diff --git a/Code/Editor/AzAssetBrowser/AzAssetBrowserRequestHandler.cpp b/Code/Editor/AzAssetBrowser/AzAssetBrowserRequestHandler.cpp
index 1c2be16a3d..6fc10e379a 100644
--- a/Code/Editor/AzAssetBrowser/AzAssetBrowserRequestHandler.cpp
+++ b/Code/Editor/AzAssetBrowser/AzAssetBrowserRequestHandler.cpp
@@ -199,41 +199,6 @@ namespace AzAssetBrowserRequestHandlerPrivate
             }
         }
     }
-
-    // Helper utility - determines if the thing being dragged is a FBX from the scene import pipeline
-    // This is important to differentiate.
-    // when someone drags a MTL file directly into the viewport, even from a FBX, we want to spawn it as a decal
-    // but when someone drags a FBX that contains MTL files, we want only to spawn the meshes.
-    // so we have to specifically differentiate here between the mimeData type that contains the source as the root
-    // (dragging the fbx file itself)
-    // and one which contains the actual product at its root.
-
-    bool IsDragOfFBX(const QMimeData* mimeData)
-    {
-        AZStd::vector<AssetBrowserEntry*> entries;
-        if (!AssetBrowserEntry::FromMimeData(mimeData, entries))
-        {
-            // if mimedata does not even contain entries, no point in proceeding.
-            return false;
-        }
-
-        for (auto entry : entries)
-        {
-            if (entry->GetEntryType() != AssetBrowserEntry::AssetEntryType::Source)
-            {
-                continue;
-            }
-            // this is a source file.  Is it the filetype we're looking for?
-            if (SourceAssetBrowserEntry* source = azrtti_cast<SourceAssetBrowserEntry*>(entry))
-            {
-                if (AzFramework::StringFunc::Equal(source->GetExtension().c_str(), ".fbx", false))
-                {
-                    return true;
-                }
-            }
-        }
-        return false;
-    }
 }
 
 AzAssetBrowserRequestHandler::AzAssetBrowserRequestHandler()
diff --git a/Code/Editor/Include/IEditorMaterialManager.h b/Code/Editor/Include/IEditorMaterialManager.h
index d76ec32829..6f71c5ddd1 100644
--- a/Code/Editor/Include/IEditorMaterialManager.h
+++ b/Code/Editor/Include/IEditorMaterialManager.h
@@ -9,10 +9,6 @@
 #define CRYINCLUDE_EDITOR_MATERIAL_IEDITORMATERIALMANAGER_H
 #pragma once
 
-#define MATERIAL_FILE_EXT ".mtl"
-#define DCC_MATERIAL_FILE_EXT ".dccmtl"
-#define MATERIALS_PATH "materials/"
-
 #include <Include/IBaseLibraryManager.h>
 #include <IMaterial.h>
 
diff --git a/Code/Framework/AzToolsFramework/AzToolsFramework/AssetBrowser/AssetBrowserComponent.cpp b/Code/Framework/AzToolsFramework/AzToolsFramework/AssetBrowser/AssetBrowserComponent.cpp
index 7da6f794d6..172bd3a29c 100644
--- a/Code/Framework/AzToolsFramework/AzToolsFramework/AssetBrowser/AssetBrowserComponent.cpp
+++ b/Code/Framework/AzToolsFramework/AzToolsFramework/AssetBrowser/AssetBrowserComponent.cpp
@@ -234,11 +234,6 @@ namespace AzToolsFramework
                     return SourceFileDetails("Icons/AssetBrowser/Lua_16.svg");
                 }
 
-                if (AzFramework::StringFunc::Equal(extension.c_str(), ".mtl"))
-                {
-                    return SourceFileDetails("Icons/AssetBrowser/Material_16.svg");
-                }
-
                 if (AzFramework::StringFunc::Equal(extension.c_str(), AzToolsFramework::SliceUtilities::GetSliceFileExtension().c_str()))
                 {
                     return SourceFileDetails("Icons/AssetBrowser/Slice_16.svg");
diff --git a/Code/Framework/AzToolsFramework/AzToolsFramework/UI/PropertyEditor/EntityPropertyEditor.cpp b/Code/Framework/AzToolsFramework/AzToolsFramework/UI/PropertyEditor/EntityPropertyEditor.cpp
index 29bc106eed..9ecbdf5ffc 100644
--- a/Code/Framework/AzToolsFramework/AzToolsFramework/UI/PropertyEditor/EntityPropertyEditor.cpp
+++ b/Code/Framework/AzToolsFramework/AzToolsFramework/UI/PropertyEditor/EntityPropertyEditor.cpp
@@ -4705,13 +4705,6 @@ namespace AzToolsFramework
     {
         if (mimeData->hasFormat(AssetBrowser::AssetBrowserEntry::GetMimeType()))
         {
-            // extra special case:  MTLs from FBX drags are ignored.  are we dragging a FBX file?
-            bool isDraggingFBXFile = false;
-            AssetBrowser::AssetBrowserEntry::ForEachEntryInMimeData<AssetBrowser::SourceAssetBrowserEntry>(mimeData, [&](const AssetBrowser::SourceAssetBrowserEntry* source)
-            {
-                isDraggingFBXFile = isDraggingFBXFile || AzFramework::StringFunc::Equal(source->GetExtension().c_str(), ".fbx", false);
-            });
-
             // the usual case - we only allow asset browser drops of assets that have actually been associated with a kind of component.
             AssetBrowser::AssetBrowserEntry::ForEachEntryInMimeData<AssetBrowser::ProductAssetBrowserEntry>(mimeData, [&](const AssetBrowser::ProductAssetBrowserEntry* product)
             {
@@ -4723,17 +4716,7 @@ namespace AzToolsFramework
 
                 if (canCreateComponent && !componentTypeId.IsNull())
                 {
-                    // we have a component type that handles this asset.
-                    // but we disallow it if its a MTL file from a FBX and the FBX itself is being dragged.  Its still allowed
-                    // to drag the actual MTL.
-                    EBusFindAssetTypeByName materialAssetTypeResult("Material");
-                    AZ::AssetTypeInfoBus::BroadcastResult(materialAssetTypeResult, &AZ::AssetTypeInfo::GetAssetType);
-                    AZ::Data::AssetType materialAssetType = materialAssetTypeResult.GetAssetType();
-
-                    if ((!isDraggingFBXFile) || (product->GetAssetType() != materialAssetType))
-                    {
-                        callbackFunction(product);
-                    }
+                    callbackFunction(product);
                 }
             });
         }
diff --git a/Code/Tools/AssetProcessor/AssetBuilderSDK/AssetBuilderSDK/AssetBuilderSDK.cpp b/Code/Tools/AssetProcessor/AssetBuilderSDK/AssetBuilderSDK/AssetBuilderSDK.cpp
index a02eef8b75..f9b5d6aef7 100644
--- a/Code/Tools/AssetProcessor/AssetBuilderSDK/AssetBuilderSDK/AssetBuilderSDK.cpp
+++ b/Code/Tools/AssetProcessor/AssetBuilderSDK/AssetBuilderSDK/AssetBuilderSDK.cpp
@@ -690,7 +690,6 @@ namespace AssetBuilderSDK
     static const char* textureExtensions = ".dds";
     static const char* staticMeshExtensions = ".cgf";
     static const char* skinnedMeshExtensions = ".skin";
-    static const char* materialExtensions = ".mtl";
 
     // MIPS
     static const int c_MaxMipsCount = 11; // 11 is for 8k textures non-compressed. When not compressed it is using one file per mip.
@@ -805,11 +804,6 @@ namespace AssetBuilderSDK
             return textureAssetType;
         }
 
-        if (AzFramework::StringFunc::Find(materialExtensions, extension.c_str()) != AZStd::string::npos)
-        {
-            return materialAssetType;
-        }
-
         if (AzFramework::StringFunc::Find(staticMeshExtensions, extension.c_str()) != AZStd::string::npos)
         {
             return meshAssetType;
diff --git a/Gems/LmbrCentral/Code/Source/LmbrCentral.cpp b/Gems/LmbrCentral/Code/Source/LmbrCentral.cpp
index 027d19fdef..ab187a6eed 100644
--- a/Gems/LmbrCentral/Code/Source/LmbrCentral.cpp
+++ b/Gems/LmbrCentral/Code/Source/LmbrCentral.cpp
@@ -364,8 +364,6 @@ namespace LmbrCentral
             assetCatalog->AddExtension("dds");
             assetCatalog->AddExtension("caf");
             assetCatalog->AddExtension("xml");
-            assetCatalog->AddExtension("mtl");
-            assetCatalog->AddExtension("dccmtl");
             assetCatalog->AddExtension("sprite");
             assetCatalog->AddExtension("cax");
         }