diff --git a/AutomatedTesting/CMakeLists.txt b/AutomatedTesting/CMakeLists.txt
index b2d9a18c6a..289d0a6565 100644
--- a/AutomatedTesting/CMakeLists.txt
+++ b/AutomatedTesting/CMakeLists.txt
@@ -9,12 +9,38 @@
 # WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
 #
 
-file(READ "${CMAKE_CURRENT_LIST_DIR}/project.json" project_json)
+#! Adds the --project-path argument to the VS IDE debugger command arguments
+function(add_vs_debugger_arguments)
+    # Inject the project root into the --project-path argument into the Visual Studio Debugger arguments by defaults
+    list(APPEND app_targets AutomatedTesting.GameLauncher AutomatedTesting.ServerLauncher)
+    list(APPEND app_targets AssetBuilder AssetProcessor AssetProcessorBatch Editor)
+    foreach(app_target IN LISTS app_targets)
+        if (TARGET ${app_target})
+            set_property(TARGET ${app_target} APPEND PROPERTY VS_DEBUGGER_COMMAND_ARGUMENTS "--project-path=\"${CMAKE_CURRENT_LIST_DIR}\"")
+        endif()
+    endforeach()
+endfunction()
 
-string(JSON project_target_name ERROR_VARIABLE json_error GET ${project_json} "project_name")
-if(${json_error})
-    message(FATAL_ERROR "Unable to read key 'project_name' from 'project.json'")
-endif()
+if(NOT PROJECT_NAME)
+    cmake_minimum_required(VERSION 3.19)
+    project(AutomatedTesting
+        LANGUAGES C CXX
+        VERSION 1.0.0.0
+    )
+    include(EngineFinder.cmake OPTIONAL)
+    find_package(o3de REQUIRED)
+    o3de_initialize()
+    add_vs_debugger_arguments()
+else()
+    # Add the project_name to global LY_PROJECTS_TARGET_NAME property
+    file(READ "${CMAKE_CURRENT_LIST_DIR}/project.json" project_json)
 
-set_property(GLOBAL APPEND PROPERTY LY_PROJECTS_TARGET_NAME ${project_target_name})
-add_subdirectory(Gem)
+    string(JSON project_target_name ERROR_VARIABLE json_error GET ${project_json} "project_name")
+    if(json_error)
+        message(FATAL_ERROR "Unable to read key 'project_name' from 'project.json'")
+    endif()
+
+    set_property(GLOBAL APPEND PROPERTY LY_PROJECTS_TARGET_NAME ${project_target_name})
+
+    add_subdirectory(Gem)
+endif()
\ No newline at end of file
diff --git a/Code/LauncherUnified/launcher_generator.cmake b/Code/LauncherUnified/launcher_generator.cmake
index b9abfe13b5..5fd4c17442 100644
--- a/Code/LauncherUnified/launcher_generator.cmake
+++ b/Code/LauncherUnified/launcher_generator.cmake
@@ -18,6 +18,21 @@ foreach(project_name project_path IN ZIP_LISTS LY_PROJECTS_TARGET_NAME LY_PROJEC
     # If the project_path is relative, it is evaluated relative to the ${LY_ROOT_FOLDER}
     # Otherwise the the absolute project_path is returned with symlinks resolved
     file(REAL_PATH ${project_path} project_real_path BASE_DIRECTORY ${LY_ROOT_FOLDER})
+    if(NOT project_name)
+        if(NOT EXISTS ${project_real_path}/project.json)
+            message(FATAL_ERROR "The specified project path of ${project_real_path} does not contain a project.json file")
+        else()
+            # Add the project_name to global LY_PROJECTS_TARGET_NAME property
+            file(READ "${project_real_path}/project.json" project_json)
+            string(JSON project_name ERROR_VARIABLE json_error GET ${project_json} "project_name")
+            if(json_error)
+                message(FATAL_ERROR "There is an error reading the \"project_name\" key from the '${project_real_path}/project.json' file: ${json_error}")
+            endif()
+            message(WARNING "The project located at path ${project_real_path} has a valid \"project name\" of '${project_name}' read from it's project.json file."
+                " This indicates that the ${project_real_path}/CMakeLists.txt is not properly appending the \"project name\" "
+                "to the LY_PROJECTS_TARGET_NAME global property. Other configuration errors might occur")
+        endif()
+    endif()
     ################################################################################
     # Monolithic game
     ################################################################################
diff --git a/Templates/DefaultProject/Template/CMakeLists.txt b/Templates/DefaultProject/Template/CMakeLists.txt
index 24b229d05b..c314f0da5c 100644
--- a/Templates/DefaultProject/Template/CMakeLists.txt
+++ b/Templates/DefaultProject/Template/CMakeLists.txt
@@ -38,7 +38,7 @@ else()
     file(READ "${CMAKE_CURRENT_LIST_DIR}/project.json" project_json)
 
     string(JSON project_target_name ERROR_VARIABLE json_error GET ${project_json} "project_name")
-    if(${json_error})
+    if(json_error)
         message(FATAL_ERROR "Unable to read key 'project_name' from 'project.json'")
     endif()
 
diff --git a/cmake/LYTestWrappers.cmake b/cmake/LYTestWrappers.cmake
index 4f8d0bc169..73a212ee0b 100644
--- a/cmake/LYTestWrappers.cmake
+++ b/cmake/LYTestWrappers.cmake
@@ -213,8 +213,14 @@ function(ly_add_test)
             add_custom_target(${unaliased_test_name} COMMAND ${CMAKE_COMMAND} -E true ${args_TEST_COMMAND} ${args_TEST_ARGUMENTS})
 
             file(RELATIVE_PATH project_path ${LY_ROOT_FOLDER} ${CMAKE_CURRENT_SOURCE_DIR})
+            set(ide_path ${project_path})
+            # Visual Studio doesn't support a folder layout that starts with ".."
+            # So strip away the parent directory of a relative path
+            if (${project_path} MATCHES [[^(\.\./)+(.*)]])
+                set(ide_path "${CMAKE_MATCH_2}")
+            endif()
             set_target_properties(${unaliased_test_name} PROPERTIES 
-                FOLDER "${project_path}"
+                FOLDER "${ide_path}"
                 VS_DEBUGGER_COMMAND ${test_command}
                 VS_DEBUGGER_COMMAND_ARGUMENTS "${test_arguments_line}"
             )