diff --git a/Gems/Atom/RPI/Code/Include/Atom/RPI.Public/DynamicDraw/DynamicDrawContext.h b/Gems/Atom/RPI/Code/Include/Atom/RPI.Public/DynamicDraw/DynamicDrawContext.h
index 2dd0865688..81b23068a1 100644
--- a/Gems/Atom/RPI/Code/Include/Atom/RPI.Public/DynamicDraw/DynamicDrawContext.h
+++ b/Gems/Atom/RPI/Code/Include/Atom/RPI.Public/DynamicDraw/DynamicDrawContext.h
@@ -43,7 +43,7 @@ namespace AZ
             {
                 PrimitiveType = AZ_BIT(0),
                 DepthState = AZ_BIT(1),
-                EnableStencil = AZ_BIT(2),
+                StencilState = AZ_BIT(2),
                 FaceCullMode = AZ_BIT(3),
                 BlendMode = AZ_BIT(4)
             };
@@ -110,8 +110,8 @@ namespace AZ
 
             //! Set DepthState if DrawStateOptions::DepthState option is enabled
             void SetDepthState(RHI::DepthState depthState);
-            //! Enable/disable stencil if DrawStateOptions::EnableStencil option is enabled
-            void SetEnableStencil(bool enable);
+            //! Set StencilState if DrawStateOptions::StencilState option is enabled
+            void SetStencilState(RHI::StencilState stencilState);
             //! Set CullMode if DrawStateOptions::FaceCullMode option is enabled
             void SetCullMode(RHI::CullMode cullMode);
             //! Set TargetBlendState for target 0 if DrawStateOptions::BlendMode option is enabled
@@ -188,7 +188,7 @@ namespace AZ
                 // states available for change 
                 RHI::CullMode m_cullMode;
                 RHI::DepthState m_depthState;
-                bool m_enableStencil;
+                RHI::StencilState m_stencilState;
                 RHI::PrimitiveTopology m_topology;
                 RHI::TargetBlendState m_blendState0;
 
diff --git a/Gems/Atom/RPI/Code/Source/RPI.Public/DynamicDraw/DynamicDrawContext.cpp b/Gems/Atom/RPI/Code/Source/RPI.Public/DynamicDraw/DynamicDrawContext.cpp
index 4e4a7a5e71..00c2122825 100644
--- a/Gems/Atom/RPI/Code/Source/RPI.Public/DynamicDraw/DynamicDrawContext.cpp
+++ b/Gems/Atom/RPI/Code/Source/RPI.Public/DynamicDraw/DynamicDrawContext.cpp
@@ -30,25 +30,7 @@ namespace AZ
             constexpr const char* PerContextSrgName = "PerContextSrg";
             constexpr const char* PerDrawSrgName = "PerDrawSrg";
         };
-
-        bool CompareTargetBlendState(const RHI::TargetBlendState& firstState, const RHI::TargetBlendState& secondState)
-        {
-            return !(firstState.m_enable != secondState.m_enable
-                || firstState.m_blendOp != secondState.m_blendOp
-                || firstState.m_blendDest != secondState.m_blendDest
-                || firstState.m_blendSource != secondState.m_blendSource
-                || firstState.m_blendAlphaDest != secondState.m_blendAlphaDest
-                || firstState.m_blendAlphaOp != secondState.m_blendAlphaOp
-                || firstState.m_blendAlphaSource != secondState.m_blendAlphaSource);
-        }
-
-        bool CompareDepthState(const RHI::DepthState& firstState, const RHI::DepthState& secondState)
-        {
-            return !(firstState.m_enable != secondState.m_enable
-                || firstState.m_func != secondState.m_func
-                || firstState.m_writeMask != secondState.m_writeMask);
-        }
-
+               
         void DynamicDrawContext::MultiStates::UpdateHash(const DrawStateOptions& drawStateOptions)
         {
             if (!m_isDirty)
@@ -70,9 +52,19 @@ namespace AZ
                 seed = TypeHash64(m_depthState.m_writeMask, seed);
             }
 
-            if (RHI::CheckBitsAny(drawStateOptions, DrawStateOptions::EnableStencil))
+            if (RHI::CheckBitsAny(drawStateOptions, DrawStateOptions::StencilState))
             {
-                seed = TypeHash64(m_enableStencil, seed);
+                seed = TypeHash64(m_stencilState.m_enable, seed);
+                seed = TypeHash64(m_stencilState.m_readMask, seed);
+                seed = TypeHash64(m_stencilState.m_writeMask, seed);
+                seed = TypeHash64(m_stencilState.m_frontFace.m_failOp, seed);
+                seed = TypeHash64(m_stencilState.m_frontFace.m_depthFailOp, seed);
+                seed = TypeHash64(m_stencilState.m_frontFace.m_passOp, seed);
+                seed = TypeHash64(m_stencilState.m_frontFace.m_func, seed);
+                seed = TypeHash64(m_stencilState.m_backFace.m_failOp, seed);
+                seed = TypeHash64(m_stencilState.m_backFace.m_depthFailOp, seed);
+                seed = TypeHash64(m_stencilState.m_backFace.m_passOp, seed);
+                seed = TypeHash64(m_stencilState.m_backFace.m_func, seed);
             }
 
             if (RHI::CheckBitsAny(drawStateOptions, DrawStateOptions::FaceCullMode))
@@ -203,7 +195,7 @@ namespace AZ
             m_currentStates.m_cullMode = m_pipelineState->ConstDescriptor().m_renderStates.m_rasterState.m_cullMode;
             m_currentStates.m_topology = m_pipelineState->ConstDescriptor().m_inputStreamLayout.GetTopology();
             m_currentStates.m_depthState = m_pipelineState->ConstDescriptor().m_renderStates.m_depthStencilState.m_depth;
-            m_currentStates.m_enableStencil = m_pipelineState->ConstDescriptor().m_renderStates.m_depthStencilState.m_stencil.m_enable;
+            m_currentStates.m_stencilState = m_pipelineState->ConstDescriptor().m_renderStates.m_depthStencilState.m_stencil;
             m_currentStates.m_blendState0 = m_pipelineState->ConstDescriptor().m_renderStates.m_blendState.m_targets[0];
             m_currentStates.UpdateHash(m_drawStateOptions);
 
@@ -291,7 +283,7 @@ namespace AZ
         {
             if (RHI::CheckBitsAny(m_drawStateOptions, DrawStateOptions::DepthState))
             {
-                if (!CompareDepthState(m_currentStates.m_depthState, depthState))
+                if (!(m_currentStates.m_depthState == depthState))
                 {
                     m_currentStates.m_depthState = depthState;
                     m_currentStates.m_isDirty = true;
@@ -303,19 +295,19 @@ namespace AZ
             }
         }
 
-        void DynamicDrawContext::SetEnableStencil(bool enable)
+        void DynamicDrawContext::SetStencilState(RHI::StencilState stencilState)
         {
-            if (RHI::CheckBitsAny(m_drawStateOptions, DrawStateOptions::EnableStencil))
+            if (RHI::CheckBitsAny(m_drawStateOptions, DrawStateOptions::StencilState))
             {
-                if (m_currentStates.m_enableStencil != enable)
+                if (!(m_currentStates.m_stencilState == stencilState))
                 {
-                    m_currentStates.m_enableStencil = enable;
+                    m_currentStates.m_stencilState = stencilState;
                     m_currentStates.m_isDirty = true;
                 }
             }
             else
             {
-                AZ_Warning("RHI", false, "Can't set SetEnableStencil if DrawVariation::EnableStencil wasn't enabled");
+                AZ_Warning("RHI", false, "Can't set SetStencilState if DrawVariation::StencilState wasn't enabled");
             }
 
         }
@@ -340,7 +332,7 @@ namespace AZ
         {
             if (RHI::CheckBitsAny(m_drawStateOptions, DrawStateOptions::BlendMode))
             {
-                if (!CompareTargetBlendState(m_currentStates.m_blendState0, blendState))
+                if (!(m_currentStates.m_blendState0 == blendState))
                 {
                     m_currentStates.m_blendState0 = blendState;
                     m_currentStates.m_isDirty = true;
@@ -695,9 +687,9 @@ namespace AZ
                 {
                     m_pipelineState->RenderStatesOverlay().m_depthStencilState.m_depth = m_currentStates.m_depthState;
                 }
-                if (RHI::CheckBitsAny(m_drawStateOptions, DrawStateOptions::EnableStencil))
+                if (RHI::CheckBitsAny(m_drawStateOptions, DrawStateOptions::StencilState))
                 {
-                    m_pipelineState->RenderStatesOverlay().m_depthStencilState.m_stencil.m_enable = m_currentStates.m_enableStencil;
+                    m_pipelineState->RenderStatesOverlay().m_depthStencilState.m_stencil = m_currentStates.m_stencilState;
                 }
                 if (RHI::CheckBitsAny(m_drawStateOptions, DrawStateOptions::FaceCullMode))
                 {