diff --git a/Code/Tools/ProjectManager/Resources/ProjectManager.qss b/Code/Tools/ProjectManager/Resources/ProjectManager.qss
index 6694168f2b..e755964a7f 100644
--- a/Code/Tools/ProjectManager/Resources/ProjectManager.qss
+++ b/Code/Tools/ProjectManager/Resources/ProjectManager.qss
@@ -691,6 +691,12 @@ QProgressBar::chunk {
 
 #gemRepoAddDialogInstructionTitleLabel {
     font-size:14px;
+    font-weight:bold;
+}
+
+#gemRepoAddDialogWarningLabel {
+    font-size:12px;
+    font-style:italic;
 }
 
 #addGemRepoDialog #formFrame {
diff --git a/Code/Tools/ProjectManager/Source/GemRepo/GemRepoAddDialog.cpp b/Code/Tools/ProjectManager/Source/GemRepo/GemRepoAddDialog.cpp
index 601c62d6e1..05a14b48d3 100644
--- a/Code/Tools/ProjectManager/Source/GemRepo/GemRepoAddDialog.cpp
+++ b/Code/Tools/ProjectManager/Source/GemRepo/GemRepoAddDialog.cpp
@@ -27,6 +27,7 @@ namespace O3DE::ProjectManager
         QVBoxLayout* vLayout = new QVBoxLayout();
         vLayout->setContentsMargins(30, 30, 25, 10);
         vLayout->setSpacing(0);
+        vLayout->setAlignment(Qt::AlignTop);
         setLayout(vLayout);
 
         QLabel* instructionTitleLabel = new QLabel(tr("Enter a valid path to add a new user repository"));
@@ -41,9 +42,18 @@ namespace O3DE::ProjectManager
         vLayout->addWidget(instructionContextLabel);
 
         m_repoPath = new FormFolderBrowseEditWidget(tr("Repository Path"), "", this);
-        m_repoPath->setFixedWidth(600);
+        m_repoPath->setFixedSize(QSize(600, 100));
         vLayout->addWidget(m_repoPath);
 
+        vLayout->addSpacing(10);
+
+        QLabel* warningLabel = new QLabel(tr("Online repositories may contain files that could potentially harm your computer,"
+            " please ensure you understand the risks before downloading Gems from third-party sources."));
+        warningLabel->setObjectName("gemRepoAddDialogWarningLabel");
+        warningLabel->setWordWrap(true);
+        warningLabel->setAlignment(Qt::AlignLeft);
+        vLayout->addWidget(warningLabel);
+
         vLayout->addSpacing(40);
 
         QDialogButtonBox* dialogButtons = new QDialogButtonBox();