diff --git a/Templates/CMakeLists.txt b/Templates/CMakeLists.txt
index 84a708989a..9735907a6a 100644
--- a/Templates/CMakeLists.txt
+++ b/Templates/CMakeLists.txt
@@ -9,8 +9,8 @@
 ly_install_directory(
     DIRECTORIES 
         AssetGem
-        CustomTool
-        PythonGem
+        CppToolGem
+        PythonToolGem
         DefaultGem
         DefaultProject
         MinimalProject
diff --git a/Templates/CustomTool/Template/CMakeLists.txt b/Templates/CppToolGem/Template/CMakeLists.txt
similarity index 100%
rename from Templates/CustomTool/Template/CMakeLists.txt
rename to Templates/CppToolGem/Template/CMakeLists.txt
diff --git a/Templates/CustomTool/Template/Code/${NameLower}_editor_files.cmake b/Templates/CppToolGem/Template/Code/${NameLower}_editor_files.cmake
similarity index 100%
rename from Templates/CustomTool/Template/Code/${NameLower}_editor_files.cmake
rename to Templates/CppToolGem/Template/Code/${NameLower}_editor_files.cmake
diff --git a/Templates/CustomTool/Template/Code/${NameLower}_editor_shared_files.cmake b/Templates/CppToolGem/Template/Code/${NameLower}_editor_shared_files.cmake
similarity index 100%
rename from Templates/CustomTool/Template/Code/${NameLower}_editor_shared_files.cmake
rename to Templates/CppToolGem/Template/Code/${NameLower}_editor_shared_files.cmake
diff --git a/Templates/CustomTool/Template/Code/${NameLower}_editor_tests_files.cmake b/Templates/CppToolGem/Template/Code/${NameLower}_editor_tests_files.cmake
similarity index 100%
rename from Templates/CustomTool/Template/Code/${NameLower}_editor_tests_files.cmake
rename to Templates/CppToolGem/Template/Code/${NameLower}_editor_tests_files.cmake
diff --git a/Templates/CustomTool/Template/Code/${NameLower}_files.cmake b/Templates/CppToolGem/Template/Code/${NameLower}_files.cmake
similarity index 100%
rename from Templates/CustomTool/Template/Code/${NameLower}_files.cmake
rename to Templates/CppToolGem/Template/Code/${NameLower}_files.cmake
diff --git a/Templates/CustomTool/Template/Code/${NameLower}_shared_files.cmake b/Templates/CppToolGem/Template/Code/${NameLower}_shared_files.cmake
similarity index 100%
rename from Templates/CustomTool/Template/Code/${NameLower}_shared_files.cmake
rename to Templates/CppToolGem/Template/Code/${NameLower}_shared_files.cmake
diff --git a/Templates/CustomTool/Template/Code/${NameLower}_tests_files.cmake b/Templates/CppToolGem/Template/Code/${NameLower}_tests_files.cmake
similarity index 100%
rename from Templates/CustomTool/Template/Code/${NameLower}_tests_files.cmake
rename to Templates/CppToolGem/Template/Code/${NameLower}_tests_files.cmake
diff --git a/Templates/CustomTool/Template/Code/CMakeLists.txt b/Templates/CppToolGem/Template/Code/CMakeLists.txt
similarity index 100%
rename from Templates/CustomTool/Template/Code/CMakeLists.txt
rename to Templates/CppToolGem/Template/Code/CMakeLists.txt
diff --git a/Templates/CustomTool/Template/Code/Include/${Name}/${Name}Bus.h b/Templates/CppToolGem/Template/Code/Include/${Name}/${Name}Bus.h
similarity index 100%
rename from Templates/CustomTool/Template/Code/Include/${Name}/${Name}Bus.h
rename to Templates/CppToolGem/Template/Code/Include/${Name}/${Name}Bus.h
diff --git a/Templates/CustomTool/Template/Code/Platform/Android/${NameLower}_android_files.cmake b/Templates/CppToolGem/Template/Code/Platform/Android/${NameLower}_android_files.cmake
similarity index 100%
rename from Templates/CustomTool/Template/Code/Platform/Android/${NameLower}_android_files.cmake
rename to Templates/CppToolGem/Template/Code/Platform/Android/${NameLower}_android_files.cmake
diff --git a/Templates/CustomTool/Template/Code/Platform/Android/${NameLower}_shared_android_files.cmake b/Templates/CppToolGem/Template/Code/Platform/Android/${NameLower}_shared_android_files.cmake
similarity index 100%
rename from Templates/CustomTool/Template/Code/Platform/Android/${NameLower}_shared_android_files.cmake
rename to Templates/CppToolGem/Template/Code/Platform/Android/${NameLower}_shared_android_files.cmake
diff --git a/Templates/CustomTool/Template/Code/Platform/Android/PAL_android.cmake b/Templates/CppToolGem/Template/Code/Platform/Android/PAL_android.cmake
similarity index 100%
rename from Templates/CustomTool/Template/Code/Platform/Android/PAL_android.cmake
rename to Templates/CppToolGem/Template/Code/Platform/Android/PAL_android.cmake
diff --git a/Templates/CustomTool/Template/Code/Platform/Linux/${NameLower}_linux_files.cmake b/Templates/CppToolGem/Template/Code/Platform/Linux/${NameLower}_linux_files.cmake
similarity index 100%
rename from Templates/CustomTool/Template/Code/Platform/Linux/${NameLower}_linux_files.cmake
rename to Templates/CppToolGem/Template/Code/Platform/Linux/${NameLower}_linux_files.cmake
diff --git a/Templates/CustomTool/Template/Code/Platform/Linux/${NameLower}_shared_linux_files.cmake b/Templates/CppToolGem/Template/Code/Platform/Linux/${NameLower}_shared_linux_files.cmake
similarity index 100%
rename from Templates/CustomTool/Template/Code/Platform/Linux/${NameLower}_shared_linux_files.cmake
rename to Templates/CppToolGem/Template/Code/Platform/Linux/${NameLower}_shared_linux_files.cmake
diff --git a/Templates/CustomTool/Template/Code/Platform/Linux/PAL_linux.cmake b/Templates/CppToolGem/Template/Code/Platform/Linux/PAL_linux.cmake
similarity index 100%
rename from Templates/CustomTool/Template/Code/Platform/Linux/PAL_linux.cmake
rename to Templates/CppToolGem/Template/Code/Platform/Linux/PAL_linux.cmake
diff --git a/Templates/CustomTool/Template/Code/Platform/Mac/${NameLower}_mac_files.cmake b/Templates/CppToolGem/Template/Code/Platform/Mac/${NameLower}_mac_files.cmake
similarity index 100%
rename from Templates/CustomTool/Template/Code/Platform/Mac/${NameLower}_mac_files.cmake
rename to Templates/CppToolGem/Template/Code/Platform/Mac/${NameLower}_mac_files.cmake
diff --git a/Templates/CustomTool/Template/Code/Platform/Mac/${NameLower}_shared_mac_files.cmake b/Templates/CppToolGem/Template/Code/Platform/Mac/${NameLower}_shared_mac_files.cmake
similarity index 100%
rename from Templates/CustomTool/Template/Code/Platform/Mac/${NameLower}_shared_mac_files.cmake
rename to Templates/CppToolGem/Template/Code/Platform/Mac/${NameLower}_shared_mac_files.cmake
diff --git a/Templates/CustomTool/Template/Code/Platform/Mac/PAL_mac.cmake b/Templates/CppToolGem/Template/Code/Platform/Mac/PAL_mac.cmake
similarity index 100%
rename from Templates/CustomTool/Template/Code/Platform/Mac/PAL_mac.cmake
rename to Templates/CppToolGem/Template/Code/Platform/Mac/PAL_mac.cmake
diff --git a/Templates/CustomTool/Template/Code/Platform/Windows/${NameLower}_shared_windows_files.cmake b/Templates/CppToolGem/Template/Code/Platform/Windows/${NameLower}_shared_windows_files.cmake
similarity index 100%
rename from Templates/CustomTool/Template/Code/Platform/Windows/${NameLower}_shared_windows_files.cmake
rename to Templates/CppToolGem/Template/Code/Platform/Windows/${NameLower}_shared_windows_files.cmake
diff --git a/Templates/CustomTool/Template/Code/Platform/Windows/${NameLower}_windows_files.cmake b/Templates/CppToolGem/Template/Code/Platform/Windows/${NameLower}_windows_files.cmake
similarity index 100%
rename from Templates/CustomTool/Template/Code/Platform/Windows/${NameLower}_windows_files.cmake
rename to Templates/CppToolGem/Template/Code/Platform/Windows/${NameLower}_windows_files.cmake
diff --git a/Templates/CustomTool/Template/Code/Platform/Windows/PAL_windows.cmake b/Templates/CppToolGem/Template/Code/Platform/Windows/PAL_windows.cmake
similarity index 100%
rename from Templates/CustomTool/Template/Code/Platform/Windows/PAL_windows.cmake
rename to Templates/CppToolGem/Template/Code/Platform/Windows/PAL_windows.cmake
diff --git a/Templates/CustomTool/Template/Code/Platform/iOS/${NameLower}_ios_files.cmake b/Templates/CppToolGem/Template/Code/Platform/iOS/${NameLower}_ios_files.cmake
similarity index 100%
rename from Templates/CustomTool/Template/Code/Platform/iOS/${NameLower}_ios_files.cmake
rename to Templates/CppToolGem/Template/Code/Platform/iOS/${NameLower}_ios_files.cmake
diff --git a/Templates/CustomTool/Template/Code/Platform/iOS/${NameLower}_shared_ios_files.cmake b/Templates/CppToolGem/Template/Code/Platform/iOS/${NameLower}_shared_ios_files.cmake
similarity index 100%
rename from Templates/CustomTool/Template/Code/Platform/iOS/${NameLower}_shared_ios_files.cmake
rename to Templates/CppToolGem/Template/Code/Platform/iOS/${NameLower}_shared_ios_files.cmake
diff --git a/Templates/CustomTool/Template/Code/Platform/iOS/PAL_ios.cmake b/Templates/CppToolGem/Template/Code/Platform/iOS/PAL_ios.cmake
similarity index 100%
rename from Templates/CustomTool/Template/Code/Platform/iOS/PAL_ios.cmake
rename to Templates/CppToolGem/Template/Code/Platform/iOS/PAL_ios.cmake
diff --git a/Templates/CustomTool/Template/Code/Source/${Name}.qrc b/Templates/CppToolGem/Template/Code/Source/${Name}.qrc
similarity index 100%
rename from Templates/CustomTool/Template/Code/Source/${Name}.qrc
rename to Templates/CppToolGem/Template/Code/Source/${Name}.qrc
diff --git a/Templates/CustomTool/Template/Code/Source/${Name}EditorModule.cpp b/Templates/CppToolGem/Template/Code/Source/${Name}EditorModule.cpp
similarity index 100%
rename from Templates/CustomTool/Template/Code/Source/${Name}EditorModule.cpp
rename to Templates/CppToolGem/Template/Code/Source/${Name}EditorModule.cpp
diff --git a/Templates/CustomTool/Template/Code/Source/${Name}EditorSystemComponent.cpp b/Templates/CppToolGem/Template/Code/Source/${Name}EditorSystemComponent.cpp
similarity index 100%
rename from Templates/CustomTool/Template/Code/Source/${Name}EditorSystemComponent.cpp
rename to Templates/CppToolGem/Template/Code/Source/${Name}EditorSystemComponent.cpp
diff --git a/Templates/CustomTool/Template/Code/Source/${Name}EditorSystemComponent.h b/Templates/CppToolGem/Template/Code/Source/${Name}EditorSystemComponent.h
similarity index 100%
rename from Templates/CustomTool/Template/Code/Source/${Name}EditorSystemComponent.h
rename to Templates/CppToolGem/Template/Code/Source/${Name}EditorSystemComponent.h
diff --git a/Templates/CustomTool/Template/Code/Source/${Name}Module.cpp b/Templates/CppToolGem/Template/Code/Source/${Name}Module.cpp
similarity index 100%
rename from Templates/CustomTool/Template/Code/Source/${Name}Module.cpp
rename to Templates/CppToolGem/Template/Code/Source/${Name}Module.cpp
diff --git a/Templates/CustomTool/Template/Code/Source/${Name}ModuleInterface.h b/Templates/CppToolGem/Template/Code/Source/${Name}ModuleInterface.h
similarity index 100%
rename from Templates/CustomTool/Template/Code/Source/${Name}ModuleInterface.h
rename to Templates/CppToolGem/Template/Code/Source/${Name}ModuleInterface.h
diff --git a/Templates/CustomTool/Template/Code/Source/${Name}SystemComponent.cpp b/Templates/CppToolGem/Template/Code/Source/${Name}SystemComponent.cpp
similarity index 100%
rename from Templates/CustomTool/Template/Code/Source/${Name}SystemComponent.cpp
rename to Templates/CppToolGem/Template/Code/Source/${Name}SystemComponent.cpp
diff --git a/Templates/CustomTool/Template/Code/Source/${Name}SystemComponent.h b/Templates/CppToolGem/Template/Code/Source/${Name}SystemComponent.h
similarity index 100%
rename from Templates/CustomTool/Template/Code/Source/${Name}SystemComponent.h
rename to Templates/CppToolGem/Template/Code/Source/${Name}SystemComponent.h
diff --git a/Templates/CustomTool/Template/Code/Source/${Name}Widget.cpp b/Templates/CppToolGem/Template/Code/Source/${Name}Widget.cpp
similarity index 100%
rename from Templates/CustomTool/Template/Code/Source/${Name}Widget.cpp
rename to Templates/CppToolGem/Template/Code/Source/${Name}Widget.cpp
diff --git a/Templates/CustomTool/Template/Code/Source/${Name}Widget.h b/Templates/CppToolGem/Template/Code/Source/${Name}Widget.h
similarity index 100%
rename from Templates/CustomTool/Template/Code/Source/${Name}Widget.h
rename to Templates/CppToolGem/Template/Code/Source/${Name}Widget.h
diff --git a/Templates/CustomTool/Template/Code/Source/toolbar_icon.svg b/Templates/CppToolGem/Template/Code/Source/toolbar_icon.svg
similarity index 100%
rename from Templates/CustomTool/Template/Code/Source/toolbar_icon.svg
rename to Templates/CppToolGem/Template/Code/Source/toolbar_icon.svg
diff --git a/Templates/CustomTool/Template/Code/Tests/${Name}EditorTest.cpp b/Templates/CppToolGem/Template/Code/Tests/${Name}EditorTest.cpp
similarity index 100%
rename from Templates/CustomTool/Template/Code/Tests/${Name}EditorTest.cpp
rename to Templates/CppToolGem/Template/Code/Tests/${Name}EditorTest.cpp
diff --git a/Templates/CustomTool/Template/Code/Tests/${Name}Test.cpp b/Templates/CppToolGem/Template/Code/Tests/${Name}Test.cpp
similarity index 100%
rename from Templates/CustomTool/Template/Code/Tests/${Name}Test.cpp
rename to Templates/CppToolGem/Template/Code/Tests/${Name}Test.cpp
diff --git a/Templates/CustomTool/Template/Platform/Android/android_gem.cmake b/Templates/CppToolGem/Template/Platform/Android/android_gem.cmake
similarity index 100%
rename from Templates/CustomTool/Template/Platform/Android/android_gem.cmake
rename to Templates/CppToolGem/Template/Platform/Android/android_gem.cmake
diff --git a/Templates/CustomTool/Template/Platform/Android/android_gem.json b/Templates/CppToolGem/Template/Platform/Android/android_gem.json
similarity index 100%
rename from Templates/CustomTool/Template/Platform/Android/android_gem.json
rename to Templates/CppToolGem/Template/Platform/Android/android_gem.json
diff --git a/Templates/CustomTool/Template/Platform/Linux/linux_gem.cmake b/Templates/CppToolGem/Template/Platform/Linux/linux_gem.cmake
similarity index 100%
rename from Templates/CustomTool/Template/Platform/Linux/linux_gem.cmake
rename to Templates/CppToolGem/Template/Platform/Linux/linux_gem.cmake
diff --git a/Templates/CustomTool/Template/Platform/Linux/linux_gem.json b/Templates/CppToolGem/Template/Platform/Linux/linux_gem.json
similarity index 100%
rename from Templates/CustomTool/Template/Platform/Linux/linux_gem.json
rename to Templates/CppToolGem/Template/Platform/Linux/linux_gem.json
diff --git a/Templates/CustomTool/Template/Platform/Mac/mac_gem.cmake b/Templates/CppToolGem/Template/Platform/Mac/mac_gem.cmake
similarity index 100%
rename from Templates/CustomTool/Template/Platform/Mac/mac_gem.cmake
rename to Templates/CppToolGem/Template/Platform/Mac/mac_gem.cmake
diff --git a/Templates/CustomTool/Template/Platform/Mac/mac_gem.json b/Templates/CppToolGem/Template/Platform/Mac/mac_gem.json
similarity index 100%
rename from Templates/CustomTool/Template/Platform/Mac/mac_gem.json
rename to Templates/CppToolGem/Template/Platform/Mac/mac_gem.json
diff --git a/Templates/CustomTool/Template/Platform/Windows/windows_gem.cmake b/Templates/CppToolGem/Template/Platform/Windows/windows_gem.cmake
similarity index 100%
rename from Templates/CustomTool/Template/Platform/Windows/windows_gem.cmake
rename to Templates/CppToolGem/Template/Platform/Windows/windows_gem.cmake
diff --git a/Templates/CustomTool/Template/Platform/Windows/windows_gem.json b/Templates/CppToolGem/Template/Platform/Windows/windows_gem.json
similarity index 100%
rename from Templates/CustomTool/Template/Platform/Windows/windows_gem.json
rename to Templates/CppToolGem/Template/Platform/Windows/windows_gem.json
diff --git a/Templates/CustomTool/Template/Platform/iOS/ios_gem.cmake b/Templates/CppToolGem/Template/Platform/iOS/ios_gem.cmake
similarity index 100%
rename from Templates/CustomTool/Template/Platform/iOS/ios_gem.cmake
rename to Templates/CppToolGem/Template/Platform/iOS/ios_gem.cmake
diff --git a/Templates/CustomTool/Template/Platform/iOS/ios_gem.json b/Templates/CppToolGem/Template/Platform/iOS/ios_gem.json
similarity index 100%
rename from Templates/CustomTool/Template/Platform/iOS/ios_gem.json
rename to Templates/CppToolGem/Template/Platform/iOS/ios_gem.json
diff --git a/Templates/CustomTool/Template/gem.json b/Templates/CppToolGem/Template/gem.json
similarity index 100%
rename from Templates/CustomTool/Template/gem.json
rename to Templates/CppToolGem/Template/gem.json
diff --git a/Templates/CustomTool/Template/preview.png b/Templates/CppToolGem/Template/preview.png
similarity index 100%
rename from Templates/CustomTool/Template/preview.png
rename to Templates/CppToolGem/Template/preview.png
diff --git a/Templates/CustomTool/template.json b/Templates/CppToolGem/template.json
similarity index 98%
rename from Templates/CustomTool/template.json
rename to Templates/CppToolGem/template.json
index e3221db106..b516dbaec3 100644
--- a/Templates/CustomTool/template.json
+++ b/Templates/CppToolGem/template.json
@@ -1,12 +1,12 @@
 {
-    "template_name": "CustomTool",
-    "origin": "The primary repo for CustomTool goes here: i.e. http://www.mydomain.com",
-    "license": "What license CustomTool uses goes here: i.e. https://opensource.org/licenses/MIT",
-    "display_name": "CustomTool",
+    "template_name": "CppToolGem",
+    "origin": "The primary repo for CppToolGem goes here: i.e. http://www.mydomain.com",
+    "license": "What license CppToolGem uses goes here: i.e. https://opensource.org/licenses/MIT",
+    "display_name": "CppToolGem",
     "summary": "A gem template for a custom tool in C++ that gets registered with the Editor.",
     "canonical_tags": [],
     "user_tags": [
-        "CustomTool"
+        "CppToolGem"
     ],
     "icon_path": "preview.png",
     "copyFiles": [
diff --git a/Templates/PythonGem/Template/CMakeLists.txt b/Templates/PythonToolGem/Template/CMakeLists.txt
similarity index 100%
rename from Templates/PythonGem/Template/CMakeLists.txt
rename to Templates/PythonToolGem/Template/CMakeLists.txt
diff --git a/Templates/PythonGem/Template/Code/${NameLower}_editor_files.cmake b/Templates/PythonToolGem/Template/Code/${NameLower}_editor_files.cmake
similarity index 100%
rename from Templates/PythonGem/Template/Code/${NameLower}_editor_files.cmake
rename to Templates/PythonToolGem/Template/Code/${NameLower}_editor_files.cmake
diff --git a/Templates/PythonGem/Template/Code/${NameLower}_editor_shared_files.cmake b/Templates/PythonToolGem/Template/Code/${NameLower}_editor_shared_files.cmake
similarity index 100%
rename from Templates/PythonGem/Template/Code/${NameLower}_editor_shared_files.cmake
rename to Templates/PythonToolGem/Template/Code/${NameLower}_editor_shared_files.cmake
diff --git a/Templates/PythonGem/Template/Code/${NameLower}_editor_tests_files.cmake b/Templates/PythonToolGem/Template/Code/${NameLower}_editor_tests_files.cmake
similarity index 100%
rename from Templates/PythonGem/Template/Code/${NameLower}_editor_tests_files.cmake
rename to Templates/PythonToolGem/Template/Code/${NameLower}_editor_tests_files.cmake
diff --git a/Templates/PythonGem/Template/Code/CMakeLists.txt b/Templates/PythonToolGem/Template/Code/CMakeLists.txt
similarity index 100%
rename from Templates/PythonGem/Template/Code/CMakeLists.txt
rename to Templates/PythonToolGem/Template/Code/CMakeLists.txt
diff --git a/Templates/PythonGem/Template/Code/Include/${Name}/${Name}Bus.h b/Templates/PythonToolGem/Template/Code/Include/${Name}/${Name}Bus.h
similarity index 100%
rename from Templates/PythonGem/Template/Code/Include/${Name}/${Name}Bus.h
rename to Templates/PythonToolGem/Template/Code/Include/${Name}/${Name}Bus.h
diff --git a/Templates/PythonGem/Template/Code/Platform/Linux/${NameLower}_linux_files.cmake b/Templates/PythonToolGem/Template/Code/Platform/Linux/${NameLower}_linux_files.cmake
similarity index 100%
rename from Templates/PythonGem/Template/Code/Platform/Linux/${NameLower}_linux_files.cmake
rename to Templates/PythonToolGem/Template/Code/Platform/Linux/${NameLower}_linux_files.cmake
diff --git a/Templates/PythonGem/Template/Code/Platform/Linux/${NameLower}_shared_linux_files.cmake b/Templates/PythonToolGem/Template/Code/Platform/Linux/${NameLower}_shared_linux_files.cmake
similarity index 100%
rename from Templates/PythonGem/Template/Code/Platform/Linux/${NameLower}_shared_linux_files.cmake
rename to Templates/PythonToolGem/Template/Code/Platform/Linux/${NameLower}_shared_linux_files.cmake
diff --git a/Templates/PythonGem/Template/Code/Platform/Linux/PAL_linux.cmake b/Templates/PythonToolGem/Template/Code/Platform/Linux/PAL_linux.cmake
similarity index 100%
rename from Templates/PythonGem/Template/Code/Platform/Linux/PAL_linux.cmake
rename to Templates/PythonToolGem/Template/Code/Platform/Linux/PAL_linux.cmake
diff --git a/Templates/PythonGem/Template/Code/Platform/Mac/${NameLower}_mac_files.cmake b/Templates/PythonToolGem/Template/Code/Platform/Mac/${NameLower}_mac_files.cmake
similarity index 100%
rename from Templates/PythonGem/Template/Code/Platform/Mac/${NameLower}_mac_files.cmake
rename to Templates/PythonToolGem/Template/Code/Platform/Mac/${NameLower}_mac_files.cmake
diff --git a/Templates/PythonGem/Template/Code/Platform/Mac/${NameLower}_shared_mac_files.cmake b/Templates/PythonToolGem/Template/Code/Platform/Mac/${NameLower}_shared_mac_files.cmake
similarity index 100%
rename from Templates/PythonGem/Template/Code/Platform/Mac/${NameLower}_shared_mac_files.cmake
rename to Templates/PythonToolGem/Template/Code/Platform/Mac/${NameLower}_shared_mac_files.cmake
diff --git a/Templates/PythonGem/Template/Code/Platform/Mac/PAL_mac.cmake b/Templates/PythonToolGem/Template/Code/Platform/Mac/PAL_mac.cmake
similarity index 100%
rename from Templates/PythonGem/Template/Code/Platform/Mac/PAL_mac.cmake
rename to Templates/PythonToolGem/Template/Code/Platform/Mac/PAL_mac.cmake
diff --git a/Templates/PythonGem/Template/Code/Platform/Windows/${NameLower}_shared_windows_files.cmake b/Templates/PythonToolGem/Template/Code/Platform/Windows/${NameLower}_shared_windows_files.cmake
similarity index 100%
rename from Templates/PythonGem/Template/Code/Platform/Windows/${NameLower}_shared_windows_files.cmake
rename to Templates/PythonToolGem/Template/Code/Platform/Windows/${NameLower}_shared_windows_files.cmake
diff --git a/Templates/PythonGem/Template/Code/Platform/Windows/${NameLower}_windows_files.cmake b/Templates/PythonToolGem/Template/Code/Platform/Windows/${NameLower}_windows_files.cmake
similarity index 100%
rename from Templates/PythonGem/Template/Code/Platform/Windows/${NameLower}_windows_files.cmake
rename to Templates/PythonToolGem/Template/Code/Platform/Windows/${NameLower}_windows_files.cmake
diff --git a/Templates/PythonGem/Template/Code/Platform/Windows/PAL_windows.cmake b/Templates/PythonToolGem/Template/Code/Platform/Windows/PAL_windows.cmake
similarity index 100%
rename from Templates/PythonGem/Template/Code/Platform/Windows/PAL_windows.cmake
rename to Templates/PythonToolGem/Template/Code/Platform/Windows/PAL_windows.cmake
diff --git a/Templates/PythonGem/Template/Code/Source/${Name}EditorModule.cpp b/Templates/PythonToolGem/Template/Code/Source/${Name}EditorModule.cpp
similarity index 100%
rename from Templates/PythonGem/Template/Code/Source/${Name}EditorModule.cpp
rename to Templates/PythonToolGem/Template/Code/Source/${Name}EditorModule.cpp
diff --git a/Templates/PythonGem/Template/Code/Source/${Name}EditorSystemComponent.cpp b/Templates/PythonToolGem/Template/Code/Source/${Name}EditorSystemComponent.cpp
similarity index 100%
rename from Templates/PythonGem/Template/Code/Source/${Name}EditorSystemComponent.cpp
rename to Templates/PythonToolGem/Template/Code/Source/${Name}EditorSystemComponent.cpp
diff --git a/Templates/PythonGem/Template/Code/Source/${Name}EditorSystemComponent.h b/Templates/PythonToolGem/Template/Code/Source/${Name}EditorSystemComponent.h
similarity index 100%
rename from Templates/PythonGem/Template/Code/Source/${Name}EditorSystemComponent.h
rename to Templates/PythonToolGem/Template/Code/Source/${Name}EditorSystemComponent.h
diff --git a/Templates/PythonGem/Template/Code/Source/${Name}ModuleInterface.h b/Templates/PythonToolGem/Template/Code/Source/${Name}ModuleInterface.h
similarity index 100%
rename from Templates/PythonGem/Template/Code/Source/${Name}ModuleInterface.h
rename to Templates/PythonToolGem/Template/Code/Source/${Name}ModuleInterface.h
diff --git a/Templates/PythonGem/Template/Code/Tests/${Name}EditorTest.cpp b/Templates/PythonToolGem/Template/Code/Tests/${Name}EditorTest.cpp
similarity index 100%
rename from Templates/PythonGem/Template/Code/Tests/${Name}EditorTest.cpp
rename to Templates/PythonToolGem/Template/Code/Tests/${Name}EditorTest.cpp
diff --git a/Templates/PythonGem/Template/Editor/Scripts/${NameLower}_dialog.py b/Templates/PythonToolGem/Template/Editor/Scripts/${NameLower}_dialog.py
similarity index 100%
rename from Templates/PythonGem/Template/Editor/Scripts/${NameLower}_dialog.py
rename to Templates/PythonToolGem/Template/Editor/Scripts/${NameLower}_dialog.py
diff --git a/Templates/PythonGem/Template/Editor/Scripts/__init__.py b/Templates/PythonToolGem/Template/Editor/Scripts/__init__.py
similarity index 100%
rename from Templates/PythonGem/Template/Editor/Scripts/__init__.py
rename to Templates/PythonToolGem/Template/Editor/Scripts/__init__.py
diff --git a/Templates/PythonGem/Template/Editor/Scripts/bootstrap.py b/Templates/PythonToolGem/Template/Editor/Scripts/bootstrap.py
similarity index 100%
rename from Templates/PythonGem/Template/Editor/Scripts/bootstrap.py
rename to Templates/PythonToolGem/Template/Editor/Scripts/bootstrap.py
diff --git a/Templates/PythonGem/Template/gem.json b/Templates/PythonToolGem/Template/gem.json
similarity index 100%
rename from Templates/PythonGem/Template/gem.json
rename to Templates/PythonToolGem/Template/gem.json
diff --git a/Templates/PythonGem/Template/preview.png b/Templates/PythonToolGem/Template/preview.png
similarity index 100%
rename from Templates/PythonGem/Template/preview.png
rename to Templates/PythonToolGem/Template/preview.png
diff --git a/Templates/PythonGem/template.json b/Templates/PythonToolGem/template.json
similarity index 94%
rename from Templates/PythonGem/template.json
rename to Templates/PythonToolGem/template.json
index 75be757abb..4d85373ead 100644
--- a/Templates/PythonGem/template.json
+++ b/Templates/PythonToolGem/template.json
@@ -1,14 +1,14 @@
 {
-    "template_name": "PythonGem",
+    "template_name": "PythonToolGem",
     "restricted_name": "o3de",
     "restricted_platform_relative_path": "Templates",
-    "origin": "The primary repo for PythonGem goes here: i.e. http://www.mydomain.com",
-    "license": "What license PythonGem uses goes here: i.e. https://opensource.org/licenses/MIT",
-    "display_name": "PythonGem",
-    "summary": "A short description of PythonGem.",
+    "origin": "The primary repo for PythonToolGem goes here: i.e. http://www.mydomain.com",
+    "license": "What license PythonToolGem uses goes here: i.e. https://opensource.org/licenses/MIT",
+    "display_name": "PythonToolGem",
+    "summary": "A gem template for a custom tool in Python that gets registered with the Editor.",
     "canonical_tags": [],
     "user_tags": [
-        "PythonGem"
+        "PythonToolGem"
     ],
     "icon_path": "preview.png",
     "copyFiles": [
diff --git a/engine.json b/engine.json
index 14deffecb8..05ccd0abfd 100644
--- a/engine.json
+++ b/engine.json
@@ -92,8 +92,9 @@
     "templates": [
         "Templates/AssetGem",
         "Templates/DefaultGem",
-        "Templates/CustomTool",
         "Templates/DefaultProject",
-        "Templates/MinimalProject"
+        "Templates/CppToolGem",
+        "Templates/MinimalProject",
+        "Templates/PythonToolGem"
     ]
 }