diff --git a/Gems/Atom/Tools/MaterialEditor/Code/Source/Document/MaterialDocument.cpp b/Gems/Atom/Tools/MaterialEditor/Code/Source/Document/MaterialDocument.cpp
index 51164a70f4..98af749261 100644
--- a/Gems/Atom/Tools/MaterialEditor/Code/Source/Document/MaterialDocument.cpp
+++ b/Gems/Atom/Tools/MaterialEditor/Code/Source/Document/MaterialDocument.cpp
@@ -685,6 +685,12 @@ namespace MaterialEditor
                 return false;
             }
             m_materialTypeSourceData = materialTypeOutcome.GetValue();
+            
+            if (MaterialSourceData::ApplyVersionUpdatesResult::Failed == m_materialSourceData.ApplyVersionUpdates(m_absolutePath))
+            {
+                AZ_Error("MaterialDocument", false, "Material source data could not be auto updated to the latest version of the material type: '%s'.", m_materialSourceData.m_materialType.c_str());
+                return false;
+            }
         }
         else if (AzFramework::StringFunc::Path::IsExtension(m_absolutePath.c_str(), MaterialTypeSourceData::Extension))
         {