diff --git a/Code/Framework/AzQtComponents/AzQtComponents/Components/FancyDocking.cpp b/Code/Framework/AzQtComponents/AzQtComponents/Components/FancyDocking.cpp
index 6cea9324c4..1a7512a4fc 100644
--- a/Code/Framework/AzQtComponents/AzQtComponents/Components/FancyDocking.cpp
+++ b/Code/Framework/AzQtComponents/AzQtComponents/Components/FancyDocking.cpp
@@ -159,6 +159,8 @@ namespace AzQtComponents
         // Timer for updating our hovered drop zone opacity
         QObject::connect(m_dropZoneHoverFadeInTimer, &QTimer::timeout, this, &FancyDocking::onDropZoneHoverFadeInUpdate);
         m_dropZoneHoverFadeInTimer->setInterval(g_FancyDockingConstants.dropZoneHoverFadeUpdateIntervalMS);
+        QIcon dragIcon = QIcon(QStringLiteral(":/Cursors/Grabbing.svg"));
+        m_dragCursor = QCursor(dragIcon.pixmap(16), 5, 2);
     }
 
     FancyDocking::~FancyDocking()
@@ -1884,6 +1886,8 @@ namespace AzQtComponents
             return;
         }
 
+        QApplication::setOverrideCursor(m_dragCursor);
+
         QPoint relativePressPos = pressPos;
 
         // If we are dragging a floating window, we need to grab a reference to its
@@ -3565,6 +3569,11 @@ namespace AzQtComponents
      */
     void FancyDocking::clearDraggingState()
     {
+        if (QApplication::overrideCursor())
+        {
+            QApplication::restoreOverrideCursor();
+        }
+
         m_ghostWidget->hide();
 
         // Release the mouse and keyboard from our main window since we grab them when we start dragging
diff --git a/Code/Framework/AzQtComponents/AzQtComponents/Components/FancyDocking.h b/Code/Framework/AzQtComponents/AzQtComponents/Components/FancyDocking.h
index a466ce7087..20b90ad25c 100644
--- a/Code/Framework/AzQtComponents/AzQtComponents/Components/FancyDocking.h
+++ b/Code/Framework/AzQtComponents/AzQtComponents/Components/FancyDocking.h
@@ -266,6 +266,8 @@ namespace AzQtComponents
 
         QString m_floatingWindowIdentifierPrefix;
         QString m_tabContainerIdentifierPrefix;
+
+        QCursor m_dragCursor;
     };
 
 } // namespace AzQtComponents
diff --git a/Code/Framework/AzQtComponents/AzQtComponents/Components/Widgets/TabWidget.cpp b/Code/Framework/AzQtComponents/AzQtComponents/Components/Widgets/TabWidget.cpp
index 895785f47b..48fb47d7e6 100644
--- a/Code/Framework/AzQtComponents/AzQtComponents/Components/Widgets/TabWidget.cpp
+++ b/Code/Framework/AzQtComponents/AzQtComponents/Components/Widgets/TabWidget.cpp
@@ -21,6 +21,7 @@
 
 #include <QAction>
 #include <QActionEvent>
+#include <QApplication>
 #include <QHBoxLayout>
 #include <QIcon>
 #include <QLayout>
@@ -419,6 +420,14 @@ namespace AzQtComponents
         // a mouse move. The paint handler updates the close button's visibility
         setAttribute(Qt::WA_Hover);
         AzQtComponents::Style::addClass(this, g_emptyStyleClass);
+
+        QIcon icon = QIcon(QStringLiteral(":/Cursors/Grab_release.svg"));
+        m_hoverCursor = QCursor(icon.pixmap(16), 5, 2);
+
+        icon = QIcon(QStringLiteral(":/Cursors/Grabbing.svg"));
+        m_dragCursor = QCursor(icon.pixmap(16), 5, 2);
+
+        this->setCursor(m_hoverCursor);                                  
     }
 
     void TabBar::setHandleOverflow(bool handleOverflow)
@@ -455,6 +464,11 @@ namespace AzQtComponents
     {
         if (mouseEvent->buttons() & Qt::LeftButton)
         {
+            if (!QApplication::overrideCursor() || *QApplication::overrideCursor() != m_dragCursor)
+            {
+                QApplication::setOverrideCursor(m_dragCursor);
+            }
+
             m_lastMousePress = mouseEvent->pos();
         }
 
@@ -469,6 +483,7 @@ namespace AzQtComponents
             // selected tab is moved around. The close button is not explicitly rendered for the
             // moved tab during this operation. We need to make sure not to set it visible again
             // while the tab is moving. This flag makes sure it happens.
+
             m_movingTab = true;
         }
 
@@ -479,6 +494,13 @@ namespace AzQtComponents
 
     void TabBar::mouseReleaseEvent(QMouseEvent* mouseEvent)
     {
+        // Ensure we don't reset the cursor in the case of a dummy event being sent from DockTabWidget to trigger the animation.
+        Qt::MouseButtons realButtons = QApplication::mouseButtons();
+        if (QApplication::overrideCursor() && !(realButtons & Qt::LeftButton))
+        {
+            QApplication::restoreOverrideCursor();
+        }
+
         if (m_movingTab && !(mouseEvent->buttons() & Qt::LeftButton))
         {
             // When a moving tab is released, there is a short animation to put the moving tab
@@ -632,13 +654,7 @@ namespace AzQtComponents
                 {
                     QPoint p = tabRect(i).topLeft();
 
-                    int rightPadding = g_closeButtonPadding;
-                    if (m_overflowing == Overflowing)
-                    {
-                        rightPadding = 0;
-                    }
-
-                    p.setX(p.x() + tabRect(i).width() - rightPadding - g_closeButtonWidth);
+                    p.setX(p.x() + tabRect(i).width() - g_closeButtonPadding - g_closeButtonWidth);
                     p.setY(p.y() + 1 + (tabRect(i).height() - g_closeButtonWidth) / 2);
                     tabBtn->move(p);
                 }
diff --git a/Code/Framework/AzQtComponents/AzQtComponents/Components/Widgets/TabWidget.h b/Code/Framework/AzQtComponents/AzQtComponents/Components/Widgets/TabWidget.h
index 3f12f79907..e86deef7b4 100644
--- a/Code/Framework/AzQtComponents/AzQtComponents/Components/Widgets/TabWidget.h
+++ b/Code/Framework/AzQtComponents/AzQtComponents/Components/Widgets/TabWidget.h
@@ -203,6 +203,9 @@ namespace AzQtComponents
         bool m_movingTab = false;
         QPoint m_lastMousePress;
 
+        QCursor m_dragCursor;
+        QCursor m_hoverCursor;
+
         void resetOverflow();
         void overflowIfNeeded();
         void showCloseButtonAt(int index);
diff --git a/Code/Framework/AzQtComponents/AzQtComponents/Components/img/UI20/Cursors/Grab_release.svg b/Code/Framework/AzQtComponents/AzQtComponents/Components/img/UI20/Cursors/Grab_release.svg
new file mode 100644
index 0000000000..ad89e7d1b1
--- /dev/null
+++ b/Code/Framework/AzQtComponents/AzQtComponents/Components/img/UI20/Cursors/Grab_release.svg
@@ -0,0 +1,37 @@
+<?xml version="1.0" encoding="utf-8"?>
+<!-- Generator: Adobe Illustrator 25.2.3, SVG Export Plug-In . SVG Version: 6.00 Build 0)  -->
+<svg version="1.1" id="Layer_1" xmlns="http://www.w3.org/2000/svg" xmlns:xlink="http://www.w3.org/1999/xlink" x="0px" y="0px"
+	 viewBox="0 0 24 24" style="enable-background:new 0 0 24 24;" xml:space="preserve">
+<style type="text/css">
+	.st0{fill:#FFFFFF;}
+</style>
+<g id="Cursor-_x2F_-Grab-release">
+	<g id="Group" transform="translate(3.366335, 2.000000)">
+		<g id="Path">
+			<g>
+				<path id="path-1" d="M2.4,1v7.5H2.2C1.3,7.9,0,7.8-1.1,8.2l-0.3,0.1c-0.9,0.4-1.3,1.5-0.9,2.4l1.6,4c0.3,0.8,1.1,1.8,1.7,2.5
+					l0.5,0.4c0.4,0.3,0.7,0.7,1.1,0.9l0.1,0.1L3,18.8l0.3,0.3c0.1,0.3,0.3,0.4,0.3,0.4v0.1l0,0V22h7l0.5-0.9l0.5,0.9h3.3v-2.5l0,0
+					v-0.1l0.1-0.3l0.1-0.3l0.1-0.3l0.1-0.4l0.3-0.5l0.3-0.5l0.4-0.8l0.1-0.3c0.5-0.5,0.9-1.8,0.9-2.6V7.6c0-1.2-0.4-3.8-2.2-3.8
+					c-1.1,0-1.3,0.5-1.6,0.8c-0.1-0.3-0.4-1.5-1.7-1.6c-1.1,0-1.6,0.5-1.7,0.9C10,3.5,9.7,2.5,8.4,2.5C7.6,2.5,7.4,2.6,7.1,3
+					C6.8,2.5,6.1-2,4.6-2C3.3-2,2.4,0,2.4,1z"/>
+			</g>
+			<g>
+				<path id="path-1_1_" d="M2.4,1v7.5H2.2C1.3,7.9,0,7.8-1.1,8.2l-0.3,0.1c-0.9,0.4-1.3,1.5-0.9,2.4l1.6,4c0.3,0.8,1.1,1.8,1.7,2.5
+					l0.5,0.4c0.4,0.3,0.7,0.7,1.1,0.9l0.1,0.1L3,18.8l0.3,0.3c0.1,0.1,0.3,0.3,0.3,0.3v0.3l0,0V22h7l0.5-0.9l0.5,0.9h3.3v-2.5l0,0
+					v-0.1l0.1-0.3l0.1-0.3l0.1-0.3l0.1-0.4l0.3-0.5l0.3-0.5l0.4-0.8l0.1-0.3c0.5-0.5,0.9-1.8,0.9-2.6V7.6c0-1.2-0.4-3.8-2.2-3.8
+					c-1.1,0-1.3,0.5-1.6,0.8c-0.1-0.3-0.4-1.5-1.7-1.6c-1.1,0-1.6,0.5-1.7,0.9C10,3.5,9.7,2.5,8.4,2.5C8,2.5,7.6,3,7.1,3.1
+					c0,0.3,0.3-2.9-0.3-3.8C6.6-1.1,6.1-2,4.6-2C3.3-2,2.4,0,2.4,1z"/>
+			</g>
+		</g>
+		<path id="Path_1_" class="st0" d="M7.1,6.4V5.3c0-0.5,0.4-1.5,1.3-1.5s1.2,0.9,1.2,1.6c0,2,0,0.5,0,1.3h0.8c0-2.8,0-0.4,0-0.9
+			c0-0.8,0.5-1.3,1.3-1.3S13,5.1,13,5.9c0,0.5,0,0.9,0,0.9h0.8V6.4c0-0.7,0.3-1.2,1.1-1.2c0.9,0,1.2,0.7,1.3,1.7v1.3v5
+			c0,0.7-0.3,1.5-0.5,2.1l-0.1,0.3l-0.4,0.8L14.8,17l-0.3,0.4l-0.3,0.4L14,18.2c-0.3,0.5-0.4,0.9-0.4,1.3v0.1v1.2h-1.2l-1.2-2.5
+			l-1.3,2.5h-5v-1.2c0-0.4-0.4-0.8-0.8-1.5l-0.4-0.4l-0.4-0.4l-0.1-0.1L2.9,17l-0.3-0.3L2,16.1c-0.4-0.4-1.1-0.9-1.3-1.5l-0.3-0.4
+			l-1.5-4c-0.1-0.3,0-0.7,0.1-0.8c0,0,0,0,0.1-0.1l0.3-0.1c1.1-0.4,2.2,0.1,2.9,1.1l0.1,0.1l1.1,1.7V1c0-0.7,0.7-1.3,1.3-1.3
+			s1.2,0.7,1.2,1.2c0,3.6,0,5.4,0,5.5H7.1z"/>
+		<polygon id="Path_2_" points="12.4,10.9 13.7,10.9 13.7,15.8 12.4,15.8 		"/>
+		<polygon id="Path_3_" points="9.9,10.9 11.2,10.9 11.2,15.8 9.9,15.8 		"/>
+		<polygon id="Path_4_" points="7.4,10.9 8.7,10.9 8.7,15.8 7.4,15.8 		"/>
+	</g>
+</g>
+</svg>
diff --git a/Code/Framework/AzQtComponents/AzQtComponents/Components/img/UI20/Cursors/Grabbing.svg b/Code/Framework/AzQtComponents/AzQtComponents/Components/img/UI20/Cursors/Grabbing.svg
new file mode 100644
index 0000000000..96de4e997b
--- /dev/null
+++ b/Code/Framework/AzQtComponents/AzQtComponents/Components/img/UI20/Cursors/Grabbing.svg
@@ -0,0 +1,31 @@
+<?xml version="1.0" encoding="utf-8"?>
+<!-- Generator: Adobe Illustrator 25.2.3, SVG Export Plug-In . SVG Version: 6.00 Build 0)  -->
+<svg version="1.1" id="Layer_1" xmlns="http://www.w3.org/2000/svg" xmlns:xlink="http://www.w3.org/1999/xlink" x="0px" y="0px"
+	 viewBox="0 0 24 24" style="enable-background:new 0 0 24 24;" xml:space="preserve">
+<style type="text/css">
+	.st0{fill-rule:evenodd;clip-rule:evenodd;fill:#FFFFFF;}
+	.st1{fill-rule:evenodd;clip-rule:evenodd;}
+</style>
+<g>
+	<path class="st0" d="M5.3,4.2V2.2c0-0.6,0.2-1.1,0.6-1.6C6.3,0.1,6.9,0,7.4,0l0,0c1,0,1.7,0.5,2.4,1.1l0.2,0.2l0,0l0.2-0.2
+		c0.5,0,0.8-0.2,1.1-0.2h0.2c1,0,1.7,0.5,2.4,1.1l0.2,0.2l0,0L14,2c0.3-0.2,0.5-0.3,0.8-0.3H15c1.1,0,1.9,0.5,2.5,1.1L17.7,3l0,0
+		l0.2-0.2c0.5-0.2,0.8-0.3,1.1-0.3h0.2c1,0,1.7,0.5,2.4,1.1c0.6,0.6,1,1.6,1,2.5l0,0v7.5c0,1-0.5,2.5-1,3.3c0,0-2.2,3.3-2.2,4.5l0,0
+		V24h-2.9l-0.6-2.2L14.7,24H6.9v-2.4c0-1.1-4.8-4.3-4.8-4.3c-1-0.6-1.6-2.1-1.6-3.2l0,0V8.4c0-1.1,0.5-2.1,1.1-2.9
+		C2.6,4.6,4,4.1,5.3,4.2L5.3,4.2z"/>
+	<g>
+		<path d="M7.4,1C7.9,1,8.5,1.2,9,1.8l0.2,0.2l0.7,0.7L10.5,2C10.7,2,10.8,2,11,1.9c0.1,0,0.2,0,0.2,0h0.2c0.6,0,1.1,0.3,1.7,0.8
+			l0.2,0.2l0.7,0.7l0.7-0.7l0.1-0.1c0,0,0.1,0,0.1-0.1c0,0,0.1,0,0.1-0.1H15c0.7,0,1.3,0.3,1.8,0.8L17,3.7l0.7,0.7l0.7-0.7
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+			c0-0.7,0.3-1.5,0.9-2.2c0.6-0.6,1.5-1,2.4-1c0.1,0,0.2,0,0.4,0l1.1,0.1V4.2V2.2c0-0.4,0.1-0.6,0.3-0.9l0.1-0.1l0.1-0.1
+			C6.8,1,7.1,1,7.4,1 M14.9,2.7L14.9,2.7L14.9,2.7 M7.4,0C6.9,0,6.3,0.1,5.9,0.6c-0.5,0.5-0.6,1-0.6,1.6v2.1c-0.2,0-0.3,0-0.5,0
+			c-1.1,0-2.3,0.5-3.2,1.3C1,6.3,0.5,7.3,0.5,8.4v5.7c0,1.1,0.6,2.5,1.6,3.2c0,0,4.8,3.2,4.8,4.3V24h7.8l1.1-2.2l0.6,2.2h2.9v-2.5
+			c0-1.1,2.2-4.5,2.2-4.5c0.5-0.8,1-2.4,1-3.3V6.1c0-1-0.3-1.9-1-2.5c-0.6-0.6-1.4-1.1-2.4-1.1H19c-0.3,0-0.6,0.2-1.1,0.3L17.7,3
+			l-0.2-0.2c-0.6-0.6-1.4-1.1-2.5-1.1h-0.2c-0.3,0-0.5,0.2-0.8,0.3l-0.2,0.2L13.7,2c-0.6-0.6-1.4-1.1-2.4-1.1h-0.2
+			c-0.3,0-0.6,0.2-1.1,0.2L9.9,1.2L9.8,1.1C9.1,0.4,8.3,0,7.4,0L7.4,0z"/>
+	</g>
+	<polygon class="st1" points="10.9,10.4 12.5,10.4 12.5,16.8 10.9,16.8 	"/>
+	<polygon class="st1" points="14,10.4 15.6,10.4 15.6,16.8 14,16.8 	"/>
+	<polygon class="st1" points="17.2,10.4 18.8,10.4 18.8,16.8 17.2,16.8 	"/>
+</g>
+</svg>
diff --git a/Code/Framework/AzQtComponents/AzQtComponents/Components/resources.qrc b/Code/Framework/AzQtComponents/AzQtComponents/Components/resources.qrc
index b995874a41..8ea4755a24 100644
--- a/Code/Framework/AzQtComponents/AzQtComponents/Components/resources.qrc
+++ b/Code/Framework/AzQtComponents/AzQtComponents/Components/resources.qrc
@@ -637,5 +637,7 @@
 </qresource>
   <qresource prefix="/Cursors">
     <file alias="Pointer.svg">img/UI20/Cursors/Pointer.svg</file>
+    <file alias="Grab_release.svg">img/UI20/Cursors/Grab_release.svg</file>
+    <file alias="Grabbing.svg">img/UI20/Cursors/Grabbing.svg</file>
   </qresource>
 </RCC>