diff --git a/Code/Editor/CryEdit.cpp b/Code/Editor/CryEdit.cpp
index 9b46f99e16..6e921833cb 100644
--- a/Code/Editor/CryEdit.cpp
+++ b/Code/Editor/CryEdit.cpp
@@ -736,98 +736,7 @@ void CCryEditApp::OnFileSave()
 
     if (usePrefabSystemForLevels)
     {
-        auto prefabSystemComponentInterface = AZ::Interface<AzToolsFramework::Prefab::PrefabSystemComponentInterface>::Get();
-        auto prefabEditorEntityOwnershipInterface = AZ::Interface<AzToolsFramework::PrefabEditorEntityOwnershipInterface>::Get();
-        AzToolsFramework::SavePrefabsPreference savePrefabsPreference = prefabEditorEntityOwnershipInterface->GetSavePrefabsPreference();
-
-        if (savePrefabsPreference == AzToolsFramework::SavePrefabsPreference::SaveAll)
-        {
-            prefabSystemComponentInterface->SaveAllDirtyTemplates();
-        }
-        else if (savePrefabsPreference == AzToolsFramework::SavePrefabsPreference::Unspecified)
-        {
-            QDialog saveModifiedMessageBox(AzToolsFramework::GetActiveWindow());
-
-            // Main Content section begins.
-            saveModifiedMessageBox.setObjectName("SaveAllPrefabsDialog");
-            QBoxLayout* contentLayout = new QVBoxLayout(&saveModifiedMessageBox);
-            QFrame* levelSavedMessageFrame = new QFrame(&saveModifiedMessageBox);
-            QHBoxLayout* levelSavedMessageLayout = new QHBoxLayout(&saveModifiedMessageBox);
-            levelSavedMessageFrame->setObjectName("LevelSavedMessageFrame");
-
-            // Add a checkMark icon next to the level entities saved message.
-            QPixmap checkMarkIcon(QString(":/Notifications/checkmark.svg"));
-            QLabel* levelSavedSuccessfullyIconContainer = new QLabel();
-            levelSavedSuccessfullyIconContainer->setPixmap(checkMarkIcon);
-            levelSavedSuccessfullyIconContainer->setFixedWidth(checkMarkIcon.width());
-
-            // Add a message that level entities are saved successfully.
-            QLabel* levelSavedSuccessfullyLabel = new QLabel("All entities inside level have been saved successfully.");
-            levelSavedSuccessfullyLabel->setObjectName("LevelSavedSuccessfullyLabel");
-            levelSavedMessageLayout->addWidget(levelSavedSuccessfullyIconContainer);
-            levelSavedMessageLayout->addWidget(levelSavedSuccessfullyLabel);
-            levelSavedMessageFrame->setLayout(levelSavedMessageLayout);
-
-            
-            QFrame* prefabSaveQuestionFrame = new QFrame(&saveModifiedMessageBox);
-            QHBoxLayout* prefabSaveQuestionLayout = new QHBoxLayout(&saveModifiedMessageBox);
-
-            // Add a warning icon next to prefabs save question.
-            QLabel* warningIconContainer = new QLabel();
-            QPixmap warningIcon(QString(":/Notifications/warning.svg"));
-            warningIconContainer->setPixmap(warningIcon);
-            warningIconContainer->setFixedWidth(warningIcon.width());
-            prefabSaveQuestionLayout->addWidget(warningIconContainer);
-
-            // Ask if user wants all prefabs saved.
-            QLabel* prefabSaveQuestionLabel = new QLabel("Do you want to save all unsaved prefabs?");
-            prefabSaveQuestionFrame->setObjectName("PrefabSaveQuestionFrame");
-            prefabSaveQuestionLayout->addWidget(prefabSaveQuestionLabel);
-            prefabSaveQuestionFrame->setLayout(prefabSaveQuestionLayout);
-            contentLayout->addWidget(levelSavedMessageFrame);
-            contentLayout->addWidget(prefabSaveQuestionFrame);
-
-            // Footer section begins.
-            QFrame* footerSeparatorLine = new QFrame();
-            footerSeparatorLine->setObjectName("FooterSeparatorLine");
-            footerSeparatorLine->setFrameShape(QFrame::HLine);
-            contentLayout->addWidget(footerSeparatorLine);
-            QHBoxLayout* footerLayout = new QHBoxLayout(&saveModifiedMessageBox);
-
-            // Provide option for user to remember their prefab save preference.
-            QCheckBox* saveAllPrefabsPreference = new QCheckBox("Remember my preference.");
-            AzQtComponents::CheckBox::applyToggleSwitchStyle(saveAllPrefabsPreference);
-            QVBoxLayout* footerPreferenceLayout = new QVBoxLayout(&saveModifiedMessageBox);
-            footerPreferenceLayout->addWidget(saveAllPrefabsPreference);
-            QLabel* prefabSavePreferenceHint = new QLabel("You can change this anytime in Edit -> Editor Settings -> GlobalPreferences.");
-            prefabSavePreferenceHint->setObjectName("PrefabSavePreferenceHint");
-            footerPreferenceLayout->addWidget(prefabSavePreferenceHint);
-            footerLayout->addLayout(footerPreferenceLayout);
-            QDialogButtonBox* prefabSaveConfirmationButtons = new QDialogButtonBox(QDialogButtonBox::Save | QDialogButtonBox::No);
-            footerLayout->addWidget(prefabSaveConfirmationButtons);
-            contentLayout->addLayout(footerLayout);
-            connect(prefabSaveConfirmationButtons, &QDialogButtonBox::accepted, &saveModifiedMessageBox, &QDialog::accept);
-            connect(prefabSaveConfirmationButtons, &QDialogButtonBox::rejected, &saveModifiedMessageBox, &QDialog::reject);
-            AzQtComponents::StyleManager::setStyleSheet(saveModifiedMessageBox.parentWidget(), QStringLiteral("style:Editor.qss"));
-
-            int prefabSaveSelection = saveModifiedMessageBox.exec();
-            switch (prefabSaveSelection)
-            {
-            case QDialog::Accepted:
-                if (saveAllPrefabsPreference->checkState() == Qt::CheckState::Checked)
-                {
-                    gSettings.SetSavePrefabsPreference(AzToolsFramework::SavePrefabsPreference::SaveAll);
-                }
-                prefabSystemComponentInterface->SaveAllDirtyTemplates();
-                break;
-            case QDialog::Rejected:
-                if (saveAllPrefabsPreference->checkState() == Qt::CheckState::Checked)
-                {
-                    gSettings.SetSavePrefabsPreference(AzToolsFramework::SavePrefabsPreference::SaveNone);
-                }
-                break;
-            }
-        }
+        GetIEditor()->GetDocument()->ExecuteSavePrefabsDialog();
     }
 }
 
@@ -3239,29 +3148,80 @@ bool CCryEditApp::CreateLevel(bool& wasCreateLevelOperationCancelled)
     bool bIsDocModified = GetIEditor()->GetDocument()->IsModified();
     if (GetIEditor()->GetDocument()->IsDocumentReady() && bIsDocModified)
     {
-        QString str = QObject::tr("Level %1 has been changed. Save Level?").arg(GetIEditor()->GetGameEngine()->GetLevelName());
-        int result = QMessageBox::question(AzToolsFramework::GetActiveWindow(), QObject::tr("Save Level"), str, QMessageBox::Yes | QMessageBox::No | QMessageBox::Cancel);
-        if (QMessageBox::Yes == result)
+        bool usePrefabSystemForLevels = false;
+        AzFramework::ApplicationRequests::Bus::BroadcastResult(
+            usePrefabSystemForLevels, &AzFramework::ApplicationRequests::IsPrefabSystemForLevelsEnabled);
+        if (!usePrefabSystemForLevels)
         {
-            if (!GetIEditor()->GetDocument()->DoFileSave())
+            QString str = QObject::tr("Level %1 has been changed. Save Level?").arg(GetIEditor()->GetGameEngine()->GetLevelName());
+            int result = QMessageBox::question(
+                AzToolsFramework::GetActiveWindow(), QObject::tr("Save Level"), str,
+                QMessageBox::Yes | QMessageBox::No | QMessageBox::Cancel);
+            if (QMessageBox::Yes == result)
+            {
+                if (!GetIEditor()->GetDocument()->DoFileSave())
+                {
+                    // if the file save operation failed, assume that the user was informed of why
+                    // already and treat it as a cancel
+                    wasCreateLevelOperationCancelled = true;
+                    return false;
+                }
+
+                bIsDocModified = false;
+            }
+            else if (QMessageBox::No == result)
+            {
+                // Set Modified flag to false to prevent show Save unchanged dialog again
+                GetIEditor()->GetDocument()->SetModifiedFlag(false);
+            }
+            else if (QMessageBox::Cancel == result)
             {
-                // if the file save operation failed, assume that the user was informed of why
-                // already and treat it as a cancel
                 wasCreateLevelOperationCancelled = true;
                 return false;
             }
-
-            bIsDocModified = false;
-        }
-        else if (QMessageBox::No == result)
-        {
-            // Set Modified flag to false to prevent show Save unchanged dialog again
-            GetIEditor()->GetDocument()->SetModifiedFlag(false);
         }
-        else if (QMessageBox::Cancel == result)
+        else
         {
-            wasCreateLevelOperationCancelled = true;
-            return false;
+            auto prefabSystemComponentInterface = AZ::Interface<AzToolsFramework::Prefab::PrefabSystemComponentInterface>::Get();
+            auto prefabSaveSelectionDialog = GetIEditor()->GetDocument()->ConstructSaveLevelDialog();
+
+            int prefabSaveSelection = prefabSaveSelectionDialog->exec();
+            QCheckBox* saveAllPrefabsPreferenceCheckBox =
+                prefabSaveSelectionDialog->findChild<QCheckBox*>("SaveAllPrefabsPreferenceCheckBox");
+            QCheckBox* saveAllPrefabsCheckBox = prefabSaveSelectionDialog->findChild<QCheckBox*>("SaveAllPrefabsCheckbox");
+            AzToolsFramework::SavePrefabsPreference savePrefabsPreference = saveAllPrefabsCheckBox->isChecked()
+                ? AzToolsFramework::SavePrefabsPreference::SaveAll
+                : AzToolsFramework::SavePrefabsPreference::SaveNone;
+
+            switch (1 - prefabSaveSelection)
+            {
+            case QDialogButtonBox::AcceptRole:
+                if (!GetIEditor()->GetDocument()->DoFileSave())
+                {
+                    // if the file save operation failed, assume that the user was informed of why
+                    // already and treat it as a cancel
+                    wasCreateLevelOperationCancelled = true;
+                    return false;
+                }
+                if (saveAllPrefabsPreferenceCheckBox->checkState() == Qt::CheckState::Checked)
+                {
+                    gSettings.SetSavePrefabsPreference(savePrefabsPreference);
+                    gSettings.Save();
+                }
+                if (savePrefabsPreference == AzToolsFramework::SavePrefabsPreference::SaveAll)
+                {
+                    prefabSystemComponentInterface->SaveAllDirtyTemplates();
+                }
+                bIsDocModified = prefabSystemComponentInterface->AreDirtyTemplatesPresent();
+                break;
+            case QDialogButtonBox::RejectRole:
+                wasCreateLevelOperationCancelled = true;
+                return false;
+            case QDialogButtonBox::InvalidRole:
+                // Set Modified flag to false to prevent show Save unchanged dialog again
+                GetIEditor()->GetDocument()->SetModifiedFlag(false);
+                break;
+            }
         }
     }
 
diff --git a/Code/Editor/CryEditDoc.cpp b/Code/Editor/CryEditDoc.cpp
index 37a5750e1f..3301d2521a 100644
--- a/Code/Editor/CryEditDoc.cpp
+++ b/Code/Editor/CryEditDoc.cpp
@@ -697,92 +697,34 @@ bool CCryEditDoc::SaveModified()
     else
     {
         auto prefabSystemComponentInterface = AZ::Interface<AzToolsFramework::Prefab::PrefabSystemComponentInterface>::Get();
-        auto prefabEditorEntityOwnershipInterface = AZ::Interface<AzToolsFramework::PrefabEditorEntityOwnershipInterface>::Get();
-        AzToolsFramework::SavePrefabsPreference savePrefabsPreference = prefabEditorEntityOwnershipInterface->GetSavePrefabsPreference();
-
-        QDialog saveModifiedMessageBox(AzToolsFramework::GetActiveWindow());
-        saveModifiedMessageBox.setObjectName("SaveDirtyLevelDialog");
-
-        // Main Content section begins.
-        QVBoxLayout* contentLayout = new QVBoxLayout(&saveModifiedMessageBox);
-        QFrame* levelEntitiesSaveQuestionFrame = new QFrame(&saveModifiedMessageBox);
-        QHBoxLayout* levelEntitiesSaveQuestionLayout = new QHBoxLayout(&saveModifiedMessageBox);
-        levelEntitiesSaveQuestionFrame->setObjectName("LevelEntitiesSaveQuestionFrame");
-
-        // Add a warning icon next to save entities question.
-        levelEntitiesSaveQuestionFrame->setLayout(levelEntitiesSaveQuestionLayout);
-        QPixmap warningIcon(QString(":/Notifications/warning.svg"));
-        QLabel* warningIconContainer = new QLabel();
-        warningIconContainer->setPixmap(warningIcon);
-        warningIconContainer->setFixedWidth(warningIcon.width());
-        levelEntitiesSaveQuestionLayout->addWidget(warningIconContainer);
-
-        // Ask user if they want to save entities in level.
-        QLabel* levelEntitiesSaveQuestionLabel = new QLabel("Do you want to save unsaved entities in the level?");
-        levelEntitiesSaveQuestionLayout->addWidget(levelEntitiesSaveQuestionLabel);
-        contentLayout->addWidget(levelEntitiesSaveQuestionFrame);
-
-        // Ask user if they want to save unsaved prefabs in the level too.
-        QCheckBox* saveAllPrefabsCheckbox = new QCheckBox("Save all unsaved prefabs in the level too.");
-        AzQtComponents::CheckBox::applyToggleSwitchStyle(saveAllPrefabsCheckbox);
-        saveAllPrefabsCheckbox->setObjectName("SaveAllPrefabsCheckbox");
-        QObject::connect(
-            saveAllPrefabsCheckbox, &QCheckBox::stateChanged,
-            [&savePrefabsPreference](int state)
-            {
-                savePrefabsPreference = static_cast<Qt::CheckState>(state) == Qt::CheckState::Checked
-                    ? AzToolsFramework::SavePrefabsPreference::SaveAll
-                    : AzToolsFramework::SavePrefabsPreference::SaveNone;
-            });
-        contentLayout->addWidget(saveAllPrefabsCheckbox);
-
-        // Footer section begins.
-        QFrame* footerSeparatorLine = new QFrame();
-        footerSeparatorLine->setObjectName("FooterSeparatorLine");
-        footerSeparatorLine->setFrameShape(QFrame::HLine);
-        contentLayout->addWidget(footerSeparatorLine);
-        QHBoxLayout* footerLayout = new QHBoxLayout(&saveModifiedMessageBox);
-
-        // Provide option for user to remember their prefab save preference.
-        QCheckBox* saveAllPrefabsPreferenceCheckBox = new QCheckBox("Remember my preference.");
-        AzQtComponents::CheckBox::applyToggleSwitchStyle(saveAllPrefabsPreferenceCheckBox);
-        if (savePrefabsPreference == AzToolsFramework::SavePrefabsPreference::SaveAll)
-        {
-            saveAllPrefabsPreferenceCheckBox->setCheckState(Qt::CheckState::Checked);
-            saveAllPrefabsCheckbox->setCheckState(Qt::CheckState::Checked);
-        }
-        QVBoxLayout* footerPreferenceLayout = new QVBoxLayout(&saveModifiedMessageBox);
-        footerPreferenceLayout->addWidget(saveAllPrefabsPreferenceCheckBox);
-        QLabel* prefabSavePreferenceHint = new QLabel("You can change this anytime in Edit -> Editor Settings -> GlobalPreferences.");
-        prefabSavePreferenceHint->setObjectName("PrefabSavePreferenceHint");
-        footerPreferenceLayout->addWidget(prefabSavePreferenceHint);
-        footerLayout->addLayout(footerPreferenceLayout);
-        QDialogButtonBox* prefabSaveConfirmationButtons = new QDialogButtonBox(QDialogButtonBox::Save | QDialogButtonBox::Cancel);
-        footerLayout->addWidget(prefabSaveConfirmationButtons);
-        contentLayout->addLayout(footerLayout);
-        connect(prefabSaveConfirmationButtons, &QDialogButtonBox::accepted, &saveModifiedMessageBox, &QDialog::accept);
-        connect(prefabSaveConfirmationButtons, &QDialogButtonBox::rejected, &saveModifiedMessageBox, &QDialog::reject);
-        AzQtComponents::StyleManager::setStyleSheet(saveModifiedMessageBox.parentWidget(), QStringLiteral("style:Editor.qss"));
-
-        int prefabSaveSelection = saveModifiedMessageBox.exec();
-
-        if (saveAllPrefabsPreferenceCheckBox->checkState() == Qt::CheckState::Checked)
+        auto prefabSaveSelectionDialog = ConstructSaveLevelDialog();
+        
+        int prefabSaveSelection = prefabSaveSelectionDialog->exec();
+        QCheckBox* saveAllPrefabsPreferenceCheckBox = prefabSaveSelectionDialog->findChild<QCheckBox*>("SaveAllPrefabsPreferenceCheckBox");
+        QCheckBox* saveAllPrefabsCheckBox = prefabSaveSelectionDialog->findChild<QCheckBox*>("SaveAllPrefabsCheckbox");
+        AzToolsFramework::SavePrefabsPreference savePrefabsPreference = saveAllPrefabsCheckBox->isChecked()
+            ? AzToolsFramework::SavePrefabsPreference::SaveAll
+            : AzToolsFramework::SavePrefabsPreference::SaveNone;
+        
+        switch (1 - prefabSaveSelection)
         {
-            gSettings.SetSavePrefabsPreference(savePrefabsPreference);
-            prefabEditorEntityOwnershipInterface->SetSavePrefabsPreference(savePrefabsPreference);
-        }
-
-        switch (prefabSaveSelection)
-        {
-        case QDialog::Accepted:
+        case QDialogButtonBox::AcceptRole:
             DoFileSave();
+            if (saveAllPrefabsPreferenceCheckBox->checkState() == Qt::CheckState::Checked)
+            {
+                gSettings.SetSavePrefabsPreference(savePrefabsPreference);
+                gSettings.Save();
+            }
             if (savePrefabsPreference == AzToolsFramework::SavePrefabsPreference::SaveAll)
             {
                 prefabSystemComponentInterface->SaveAllDirtyTemplates();
             }
             return true;
-        case QDialog::Rejected:
+        case QDialogButtonBox::RejectRole:
             return false;
+        case QDialogButtonBox::InvalidRole:
+            SetModifiedFlag(false);
+            return true;
         }
         Q_UNREACHABLE();
     }
@@ -799,6 +741,17 @@ void CCryEditDoc::OnFileSaveAs()
         if (OnSaveDocument(levelFileDialog.GetFileName()))
         {
             CCryEditApp::instance()->AddToRecentFileList(levelFileDialog.GetFileName());
+            bool usePrefabSystemForLevels = false;
+            AzFramework::ApplicationRequests::Bus::BroadcastResult(
+                usePrefabSystemForLevels, &AzFramework::ApplicationRequests::IsPrefabSystemForLevelsEnabled);
+            if (usePrefabSystemForLevels)
+            {
+                auto prefabSystemComponentInterface = AZ::Interface<AzToolsFramework::Prefab::PrefabSystemComponentInterface>::Get();
+                if (prefabSystemComponentInterface->AreDirtyTemplatesPresent())
+                {
+                    ExecuteSavePrefabsDialog();
+                }
+            }
         }
     }
 }
@@ -2308,6 +2261,194 @@ void CCryEditDoc::OnSliceInstantiationFailed(const AZ::Data::AssetId& sliceAsset
 }
 //////////////////////////////////////////////////////////////////////////
 
+AZStd::shared_ptr<QDialog> CCryEditDoc::ConstructSaveLevelDialog()
+{
+    auto prefabEditorEntityOwnershipInterface = AZ::Interface<AzToolsFramework::PrefabEditorEntityOwnershipInterface>::Get();
+    AzToolsFramework::SavePrefabsPreference savePrefabsPreference = prefabEditorEntityOwnershipInterface->GetSavePrefabsPreference();
+
+    AZStd::shared_ptr<QDialog> saveModifiedMessageBox = AZStd::make_shared<QDialog>(AzToolsFramework::GetActiveWindow());
+    AZStd::weak_ptr<QDialog> saveModifiedMessageBoxWeakPtr(saveModifiedMessageBox);
+    // saveModifiedMessageBox.overrideWindowFlags((saveModifiedMessageBox.windowFlags()) & ~Qt::WindowCloseButtonHint);
+    saveModifiedMessageBox->setObjectName("SaveDirtyLevelDialog");
+
+    // Main Content section begins.
+    QVBoxLayout* contentLayout = new QVBoxLayout(saveModifiedMessageBox.get());
+    QFrame* levelEntitiesSaveQuestionFrame = new QFrame(saveModifiedMessageBox.get());
+    QHBoxLayout* levelEntitiesSaveQuestionLayout = new QHBoxLayout(saveModifiedMessageBox.get());
+    levelEntitiesSaveQuestionFrame->setObjectName("LevelEntitiesSaveQuestionFrame");
+
+    // Add a warning icon next to save entities question.
+    levelEntitiesSaveQuestionFrame->setLayout(levelEntitiesSaveQuestionLayout);
+    QPixmap warningIcon(QString(":/Notifications/warning.svg"));
+    QLabel* warningIconContainer = new QLabel();
+    warningIconContainer->setPixmap(warningIcon);
+    warningIconContainer->setFixedWidth(warningIcon.width());
+    levelEntitiesSaveQuestionLayout->addWidget(warningIconContainer);
+
+    // Ask user if they want to save entities in level.
+    QLabel* levelEntitiesSaveQuestionLabel = new QLabel("Do you want to save unsaved entities in the level?");
+    levelEntitiesSaveQuestionLayout->addWidget(levelEntitiesSaveQuestionLabel);
+    contentLayout->addWidget(levelEntitiesSaveQuestionFrame);
+
+    // Ask user if they want to save unsaved prefabs in the level too.
+    QCheckBox* saveAllPrefabsCheckbox = new QCheckBox("Save all unsaved prefabs in the level too.");
+    AzQtComponents::CheckBox::applyToggleSwitchStyle(saveAllPrefabsCheckbox);
+    saveAllPrefabsCheckbox->setObjectName("SaveAllPrefabsCheckbox");
+    if (savePrefabsPreference == AzToolsFramework::SavePrefabsPreference::SaveAll)
+    {
+        saveAllPrefabsCheckbox->setCheckState(Qt::CheckState::Checked);
+    }
+    QObject::connect(
+        saveAllPrefabsCheckbox, &QCheckBox::stateChanged,
+        [&savePrefabsPreference](int state)
+        {
+            savePrefabsPreference = static_cast<Qt::CheckState>(state) == Qt::CheckState::Checked
+                ? AzToolsFramework::SavePrefabsPreference::SaveAll
+                : AzToolsFramework::SavePrefabsPreference::SaveNone;
+        });
+    contentLayout->addWidget(saveAllPrefabsCheckbox);
+
+    // Footer section begins.
+    QFrame* footerSeparatorLine = new QFrame();
+    footerSeparatorLine->setObjectName("FooterSeparatorLine");
+    footerSeparatorLine->setFrameShape(QFrame::HLine);
+    contentLayout->addWidget(footerSeparatorLine);
+    QHBoxLayout* footerLayout = new QHBoxLayout(saveModifiedMessageBox.get());
+
+    // Provide option for user to remember their prefab save preference.
+    QCheckBox* saveAllPrefabsPreferenceCheckBox = new QCheckBox("Remember my preference.");
+    saveAllPrefabsPreferenceCheckBox->setObjectName("SaveAllPrefabsPreferenceCheckBox");
+    AzQtComponents::CheckBox::applyToggleSwitchStyle(saveAllPrefabsPreferenceCheckBox);
+    if (savePrefabsPreference != AzToolsFramework::SavePrefabsPreference::Unspecified)
+    {
+        saveAllPrefabsPreferenceCheckBox->setCheckState(Qt::CheckState::Checked);
+    }
+    QVBoxLayout* footerPreferenceLayout = new QVBoxLayout(saveModifiedMessageBox.get());
+    footerPreferenceLayout->addWidget(saveAllPrefabsPreferenceCheckBox);
+    QLabel* prefabSavePreferenceHint = new QLabel("You can change this anytime in Edit -> Editor Settings -> GlobalPreferences.");
+    prefabSavePreferenceHint->setObjectName("PrefabSavePreferenceHint");
+    footerPreferenceLayout->addWidget(prefabSavePreferenceHint);
+    footerLayout->addLayout(footerPreferenceLayout);
+    QDialogButtonBox* prefabSaveConfirmationButtons =
+        new QDialogButtonBox(QDialogButtonBox::Save | QDialogButtonBox::Discard | QDialogButtonBox::Cancel);
+    footerLayout->addWidget(prefabSaveConfirmationButtons);
+    contentLayout->addLayout(footerLayout);
+    connect(prefabSaveConfirmationButtons, &QDialogButtonBox::accepted, saveModifiedMessageBox.get(), &QDialog::accept);
+    connect(prefabSaveConfirmationButtons, &QDialogButtonBox::rejected, saveModifiedMessageBox.get(), &QDialog::reject);
+    connect(
+        prefabSaveConfirmationButtons, &QDialogButtonBox::clicked, saveModifiedMessageBox.get(),
+        [saveModifiedMessageBoxWeakPtr, prefabSaveConfirmationButtons](QAbstractButton* button)
+        {
+            int prefabSaveSelection = prefabSaveConfirmationButtons->buttonRole(button);
+            saveModifiedMessageBoxWeakPtr.lock()->done(prefabSaveSelection);
+        });
+    AzQtComponents::StyleManager::setStyleSheet(saveModifiedMessageBox.get(), QStringLiteral("style:Editor.qss"));
+    return saveModifiedMessageBox;
+}
+
+void CCryEditDoc::ExecuteSavePrefabsDialog()
+{
+    auto prefabSystemComponentInterface = AZ::Interface<AzToolsFramework::Prefab::PrefabSystemComponentInterface>::Get();
+    auto prefabEditorEntityOwnershipInterface = AZ::Interface<AzToolsFramework::PrefabEditorEntityOwnershipInterface>::Get();
+    AzToolsFramework::SavePrefabsPreference savePrefabsPreference = prefabEditorEntityOwnershipInterface->GetSavePrefabsPreference();
+
+    if (savePrefabsPreference == AzToolsFramework::SavePrefabsPreference::SaveAll)
+    {
+        prefabSystemComponentInterface->SaveAllDirtyTemplates();
+        SetModifiedFlag(false);
+    }
+    else if (savePrefabsPreference == AzToolsFramework::SavePrefabsPreference::SaveNone)
+    {
+        if (prefabSystemComponentInterface->AreDirtyTemplatesPresent())
+        {
+            SetModifiedFlag(true);
+        }
+    }
+    else // AzToolsFramework::SavePrefabsPreference::Unspecified
+    {
+        QDialog saveModifiedMessageBox(AzToolsFramework::GetActiveWindow());
+
+        // Main Content section begins.
+        saveModifiedMessageBox.setObjectName("SaveAllPrefabsDialog");
+        QBoxLayout* contentLayout = new QVBoxLayout(&saveModifiedMessageBox);
+        QFrame* levelSavedMessageFrame = new QFrame(&saveModifiedMessageBox);
+        QHBoxLayout* levelSavedMessageLayout = new QHBoxLayout(&saveModifiedMessageBox);
+        levelSavedMessageFrame->setObjectName("LevelSavedMessageFrame");
+
+        // Add a checkMark icon next to the level entities saved message.
+        QPixmap checkMarkIcon(QString(":/Notifications/checkmark.svg"));
+        QLabel* levelSavedSuccessfullyIconContainer = new QLabel();
+        levelSavedSuccessfullyIconContainer->setPixmap(checkMarkIcon);
+        levelSavedSuccessfullyIconContainer->setFixedWidth(checkMarkIcon.width());
+
+        // Add a message that level entities are saved successfully.
+        QLabel* levelSavedSuccessfullyLabel = new QLabel("All entities inside level have been saved successfully.");
+        levelSavedSuccessfullyLabel->setObjectName("LevelSavedSuccessfullyLabel");
+        levelSavedMessageLayout->addWidget(levelSavedSuccessfullyIconContainer);
+        levelSavedMessageLayout->addWidget(levelSavedSuccessfullyLabel);
+        levelSavedMessageFrame->setLayout(levelSavedMessageLayout);
+
+        QFrame* prefabSaveQuestionFrame = new QFrame(&saveModifiedMessageBox);
+        QHBoxLayout* prefabSaveQuestionLayout = new QHBoxLayout(&saveModifiedMessageBox);
+
+        // Add a warning icon next to prefabs save question.
+        QLabel* warningIconContainer = new QLabel();
+        QPixmap warningIcon(QString(":/Notifications/warning.svg"));
+        warningIconContainer->setPixmap(warningIcon);
+        warningIconContainer->setFixedWidth(warningIcon.width());
+        prefabSaveQuestionLayout->addWidget(warningIconContainer);
+
+        // Ask if user wants all prefabs saved.
+        QLabel* prefabSaveQuestionLabel = new QLabel("Do you want to save all unsaved prefabs?");
+        prefabSaveQuestionFrame->setObjectName("PrefabSaveQuestionFrame");
+        prefabSaveQuestionLayout->addWidget(prefabSaveQuestionLabel);
+        prefabSaveQuestionFrame->setLayout(prefabSaveQuestionLayout);
+        contentLayout->addWidget(levelSavedMessageFrame);
+        contentLayout->addWidget(prefabSaveQuestionFrame);
+
+        // Footer section begins.
+        QFrame* footerSeparatorLine = new QFrame();
+        footerSeparatorLine->setObjectName("FooterSeparatorLine");
+        footerSeparatorLine->setFrameShape(QFrame::HLine);
+        contentLayout->addWidget(footerSeparatorLine);
+        QHBoxLayout* footerLayout = new QHBoxLayout(&saveModifiedMessageBox);
+
+        // Provide option for user to remember their prefab save preference.
+        QCheckBox* saveAllPrefabsPreference = new QCheckBox("Remember my preference.");
+        AzQtComponents::CheckBox::applyToggleSwitchStyle(saveAllPrefabsPreference);
+        QVBoxLayout* footerPreferenceLayout = new QVBoxLayout(&saveModifiedMessageBox);
+        footerPreferenceLayout->addWidget(saveAllPrefabsPreference);
+        QLabel* prefabSavePreferenceHint = new QLabel("You can change this anytime in Edit -> Editor Settings -> GlobalPreferences.");
+        prefabSavePreferenceHint->setObjectName("PrefabSavePreferenceHint");
+        footerPreferenceLayout->addWidget(prefabSavePreferenceHint);
+        footerLayout->addLayout(footerPreferenceLayout);
+        QDialogButtonBox* prefabSaveConfirmationButtons = new QDialogButtonBox(QDialogButtonBox::Save | QDialogButtonBox::No);
+        footerLayout->addWidget(prefabSaveConfirmationButtons);
+        contentLayout->addLayout(footerLayout);
+        connect(prefabSaveConfirmationButtons, &QDialogButtonBox::accepted, &saveModifiedMessageBox, &QDialog::accept);
+        connect(prefabSaveConfirmationButtons, &QDialogButtonBox::rejected, &saveModifiedMessageBox, &QDialog::reject);
+        AzQtComponents::StyleManager::setStyleSheet(saveModifiedMessageBox.parentWidget(), QStringLiteral("style:Editor.qss"));
+
+        int prefabSaveSelection = saveModifiedMessageBox.exec();
+
+        if (saveAllPrefabsPreference->checkState() == Qt::CheckState::Checked)
+        {
+            gSettings.SetSavePrefabsPreference(savePrefabsPreference);
+            gSettings.Save();
+        }
+        switch (prefabSaveSelection)
+        {
+        case QDialog::Accepted:
+            prefabSystemComponentInterface->SaveAllDirtyTemplates();
+            SetModifiedFlag(false);
+            break;
+        case QDialog::Rejected:
+            SetModifiedFlag(true);
+            break;
+        }
+    }
+}
+
 namespace AzToolsFramework
 {
     void CryEditDocFuncsHandler::Reflect(AZ::ReflectContext* context)
diff --git a/Code/Editor/CryEditDoc.h b/Code/Editor/CryEditDoc.h
index a96e9428b6..3a12b461fb 100644
--- a/Code/Editor/CryEditDoc.h
+++ b/Code/Editor/CryEditDoc.h
@@ -104,6 +104,12 @@ public: // Create from serialization only
 
     bool CanCloseFrame();
 
+    //! Returns a Modal containing options to save the current level.
+    AZStd::shared_ptr<QDialog> ConstructSaveLevelDialog();
+
+    //! Executes a Modal asking users about their prefabs save preference.
+    void ExecuteSavePrefabsDialog();
+
     enum class FetchPolicy
     {
         DELETE_FOLDER,
diff --git a/Code/Framework/AzToolsFramework/AzToolsFramework/Prefab/PrefabSystemComponent.cpp b/Code/Framework/AzToolsFramework/AzToolsFramework/Prefab/PrefabSystemComponent.cpp
index 31f5816bfc..c6f91a422a 100644
--- a/Code/Framework/AzToolsFramework/AzToolsFramework/Prefab/PrefabSystemComponent.cpp
+++ b/Code/Framework/AzToolsFramework/AzToolsFramework/Prefab/PrefabSystemComponent.cpp
@@ -753,6 +753,18 @@ namespace AzToolsFramework
             }
         }
 
+        bool PrefabSystemComponent::AreDirtyTemplatesPresent()
+        {
+            for (const auto& [id, templateObject] : m_templateIdMap)
+            {
+                if (IsTemplateDirty(id))
+                {
+                    return true;
+                }
+            }
+            return false;
+        }
+
         void PrefabSystemComponent::SaveAllDirtyTemplates()
         {
             for (auto& [id, templateObject] : m_templateIdMap)
diff --git a/Code/Framework/AzToolsFramework/AzToolsFramework/Prefab/PrefabSystemComponent.h b/Code/Framework/AzToolsFramework/AzToolsFramework/Prefab/PrefabSystemComponent.h
index 3539a79d54..cb95f9b367 100644
--- a/Code/Framework/AzToolsFramework/AzToolsFramework/Prefab/PrefabSystemComponent.h
+++ b/Code/Framework/AzToolsFramework/AzToolsFramework/Prefab/PrefabSystemComponent.h
@@ -183,6 +183,8 @@ namespace AzToolsFramework
              */
             void SetTemplateDirtyFlag(const TemplateId& templateId, bool dirty) override;
 
+            bool AreDirtyTemplatesPresent() override;
+
             void SaveAllDirtyTemplates() override;
 
             //////////////////////////////////////////////////////////////////////////
diff --git a/Code/Framework/AzToolsFramework/AzToolsFramework/Prefab/PrefabSystemComponentInterface.h b/Code/Framework/AzToolsFramework/AzToolsFramework/Prefab/PrefabSystemComponentInterface.h
index bcea8a8b2d..252c8bdb6a 100644
--- a/Code/Framework/AzToolsFramework/AzToolsFramework/Prefab/PrefabSystemComponentInterface.h
+++ b/Code/Framework/AzToolsFramework/AzToolsFramework/Prefab/PrefabSystemComponentInterface.h
@@ -49,6 +49,7 @@ namespace AzToolsFramework
 
             virtual bool IsTemplateDirty(const TemplateId& templateId) = 0;
             virtual void SetTemplateDirtyFlag(const TemplateId& templateId, bool dirty) = 0;
+            virtual bool AreDirtyTemplatesPresent() = 0;
             virtual void SaveAllDirtyTemplates() = 0;
 
             virtual PrefabDom& FindTemplateDom(TemplateId templateId) = 0;