diff --git a/Gems/Prefab/PrefabBuilder/CMakeLists.txt b/Gems/Prefab/PrefabBuilder/CMakeLists.txt
index 5ab614eecb..22b89287ca 100644
--- a/Gems/Prefab/PrefabBuilder/CMakeLists.txt
+++ b/Gems/Prefab/PrefabBuilder/CMakeLists.txt
@@ -38,23 +38,6 @@ ly_add_target(
             Gem::PrefabBuilder.Static
 )
 
-ly_add_target(
-    NAME PrefabBuilder.Tests ${PAL_TRAIT_TEST_TARGET_TYPE}
-    NAMESPACE Gem
-    FILES_CMAKE
-        prefabbuilder_tests_files.cmake
-    INCLUDE_DIRECTORIES
-        PRIVATE
-            .
-    BUILD_DEPENDENCIES
-        PRIVATE
-            AZ::AzTest
-            Gem::PrefabBuilder.Static
-)
-ly_add_googletest(
-    NAME Gem::PrefabBuilder.Tests
-)
-
 ly_add_target_dependencies(
     TARGETS
         AssetBuilder
@@ -63,3 +46,22 @@ ly_add_target_dependencies(
     DEPENDENT_TARGETS
         Gem::PrefabBuilder
 )
+
+if(PAL_TRAIT_BUILD_TESTS_SUPPORTED)
+    ly_add_target(
+        NAME PrefabBuilder.Tests ${PAL_TRAIT_TEST_TARGET_TYPE}
+        NAMESPACE Gem
+        FILES_CMAKE
+            prefabbuilder_tests_files.cmake
+        INCLUDE_DIRECTORIES
+            PRIVATE
+                .
+        BUILD_DEPENDENCIES
+            PRIVATE
+                AZ::AzTest
+                Gem::PrefabBuilder.Static
+    )
+    ly_add_googletest(
+        NAME Gem::PrefabBuilder.Tests
+    )
+endif()
diff --git a/cmake/PAL.cmake b/cmake/PAL.cmake
index 734baad8a3..5131005c72 100644
--- a/cmake/PAL.cmake
+++ b/cmake/PAL.cmake
@@ -85,3 +85,9 @@ ly_include_cmake_file_list(${pal_dir}/platform_${PAL_PLATFORM_NAME_LOWERCASE}_fi
 
 include(${pal_dir}/PAL_${PAL_PLATFORM_NAME_LOWERCASE}.cmake)
 include(${pal_dir}/Toolchain_${PAL_PLATFORM_NAME_LOWERCASE}.cmake OPTIONAL)
+
+set(LY_DISABLE_TEST_MODULES FALSE CACHE BOOL "Option to forcibly disable the inclusion of test targets in the build")
+
+if(LY_DISABLE_TEST_MODULES)
+    ly_set(PAL_TRAIT_BUILD_TESTS_SUPPORTED FALSE)
+endif()
diff --git a/scripts/build/Platform/Windows/build_config.json b/scripts/build/Platform/Windows/build_config.json
index 666c0ab5e7..4dd99686c5 100644
--- a/scripts/build/Platform/Windows/build_config.json
+++ b/scripts/build/Platform/Windows/build_config.json
@@ -290,7 +290,7 @@
     "PARAMETERS": {
         "CONFIGURATION": "profile",
         "OUTPUT_DIRECTORY": "build\\windows_vs2019",
-        "CMAKE_OPTIONS": "-G \"Visual Studio 16 2019\" -DCMAKE_SYSTEM_VERSION=10.0 -DLY_UNITY_BUILD=TRUE -DCMAKE_INSTALL_PREFIX=build\\install",
+        "CMAKE_OPTIONS": "-G \"Visual Studio 16 2019\" -DCMAKE_SYSTEM_VERSION=10.0 -DLY_UNITY_BUILD=TRUE -DLY_DISABLE_TEST_MODULES=TRUE -DCMAKE_INSTALL_PREFIX=build\\install",
         "CMAKE_LY_PROJECTS": "",
         "CMAKE_TARGET": "INSTALL",
         "CMAKE_NATIVE_BUILD_ARGS": "/m /nologo"