diff --git a/Code/Framework/AzToolsFramework/AzToolsFramework/Prefab/EditorPrefabComponent.cpp b/Code/Framework/AzToolsFramework/AzToolsFramework/Prefab/EditorPrefabComponent.cpp
index 12d676a0b4..8f14429cd0 100644
--- a/Code/Framework/AzToolsFramework/AzToolsFramework/Prefab/EditorPrefabComponent.cpp
+++ b/Code/Framework/AzToolsFramework/AzToolsFramework/Prefab/EditorPrefabComponent.cpp
@@ -16,7 +16,6 @@
 #include <AzCore/Serialization/EditContext.h>
 #include <AzToolsFramework/Prefab/PrefabPublicInterface.h>
 #include <AzToolsFramework/UI/EditorEntityUi/EditorEntityUiInterface.h>
-#include <AzToolsFramework/UI/Outliner/EntityOutlinerWidgetInterface.h>
 #include <AzToolsFramework/UI/Prefab/PrefabIntegrationBus.h>
 
 namespace AzToolsFramework
diff --git a/Code/Framework/AzToolsFramework/AzToolsFramework/Prefab/Instance/InstanceUpdateExecutor.cpp b/Code/Framework/AzToolsFramework/AzToolsFramework/Prefab/Instance/InstanceUpdateExecutor.cpp
index 71b1e04ec8..80ac86c974 100644
--- a/Code/Framework/AzToolsFramework/AzToolsFramework/Prefab/Instance/InstanceUpdateExecutor.cpp
+++ b/Code/Framework/AzToolsFramework/AzToolsFramework/Prefab/Instance/InstanceUpdateExecutor.cpp
@@ -21,9 +21,9 @@
 #include <AzToolsFramework/Prefab/Instance/TemplateInstanceMapperInterface.h>
 #include <AzToolsFramework/Prefab/PrefabDomUtils.h>
 #include <AzToolsFramework/Prefab/PrefabPublicInterface.h>
+#include <AzToolsFramework/Prefab/PrefabPublicNotificationBus.h>
 #include <AzToolsFramework/Prefab/PrefabSystemComponentInterface.h>
 #include <AzToolsFramework/Prefab/Template/Template.h>
-#include <AzToolsFramework/UI/Outliner/EntityOutlinerWidgetInterface.h>
 
 namespace AzToolsFramework
 {
@@ -90,17 +90,13 @@ namespace AzToolsFramework
 
                 if (instanceCountToUpdateInBatch > 0)
                 {
+                    // Notify Propagation has begun
+                    PrefabPublicNotificationBus::Broadcast(&PrefabPublicNotifications::OnPrefabInstancePropagationBegin);
+
                     EntityIdList selectedEntityIds;
                     ToolsApplicationRequestBus::BroadcastResult(selectedEntityIds, &ToolsApplicationRequests::GetSelectedEntities);
                     ToolsApplicationRequestBus::Broadcast(&ToolsApplicationRequests::SetSelectedEntities, EntityIdList());
 
-                    // Disable the Outliner to avoid showing the propagation steps
-                    EntityOutlinerWidgetInterface* entityOutlinerWidgetInterface = AZ::Interface<EntityOutlinerWidgetInterface>::Get();
-                    if (entityOutlinerWidgetInterface)
-                    {
-                        entityOutlinerWidgetInterface->SetUpdatesEnabled(false);
-                    }
-
                     for (int i = 0; i < instanceCountToUpdateInBatch; ++i)
                     {
                         Instance* instanceToUpdate = m_instancesUpdateQueue.front();
@@ -168,18 +164,8 @@ namespace AzToolsFramework
                     }
                     ToolsApplicationRequestBus::Broadcast(&ToolsApplicationRequests::SetSelectedEntities, selectedEntityIds);
 
-                    // Enable the Outliner
-                    if (entityOutlinerWidgetInterface)
-                    {
-                        entityOutlinerWidgetInterface->SetUpdatesEnabled(true);
-
-                        auto prefabPublicInterface = AZ::Interface<PrefabPublicInterface>::Get();
-                        if (prefabPublicInterface)
-                        {
-                            AZ::EntityId rootEntityId = prefabPublicInterface->GetLevelInstanceContainerEntityId();
-                            entityOutlinerWidgetInterface->ExpandEntityChildren(rootEntityId);
-                        }
-                    }
+                    // Notify Propagation has ended
+                    PrefabPublicNotificationBus::Broadcast(&PrefabPublicNotifications::OnPrefabInstancePropagationEnd);
                 }
 
                 m_updatingTemplateInstancesInQueue = false;
diff --git a/Code/Framework/AzToolsFramework/AzToolsFramework/Prefab/PrefabPublicNotificationBus.h b/Code/Framework/AzToolsFramework/AzToolsFramework/Prefab/PrefabPublicNotificationBus.h
new file mode 100644
index 0000000000..fc5879f776
--- /dev/null
+++ b/Code/Framework/AzToolsFramework/AzToolsFramework/Prefab/PrefabPublicNotificationBus.h
@@ -0,0 +1,34 @@
+/*
+ * All or portions of this file Copyright (c) Amazon.com, Inc. or its affiliates or
+ * its licensors.
+ *
+ * For complete copyright and license terms please see the LICENSE at the root of this
+ * distribution (the "License"). All use of this software is governed by the License,
+ * or, if provided, by the license below or the license accompanying this file. Do not
+ * remove or modify any license notices. This file is distributed on an "AS IS" BASIS,
+ * WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+ *
+ */
+
+#pragma once
+
+#include <AzCore/EBus/EBus.h>
+
+namespace AzToolsFramework
+{
+    namespace Prefab
+    {
+        class PrefabPublicNotifications
+            : public AZ::EBusTraits
+        {
+        public:
+            virtual ~PrefabPublicNotifications() = default;
+
+            virtual void OnPrefabInstancePropagationBegin() {}
+            virtual void OnPrefabInstancePropagationEnd() {}
+        };
+
+        using PrefabPublicNotificationBus = AZ::EBus<PrefabPublicNotifications>;
+
+    } // namespace Prefab
+} // namespace AzToolsFramework
diff --git a/Code/Framework/AzToolsFramework/AzToolsFramework/UI/Outliner/EntityOutlinerWidget.cpp b/Code/Framework/AzToolsFramework/AzToolsFramework/UI/Outliner/EntityOutlinerWidget.cpp
index 3ee8a14285..cc65b61908 100644
--- a/Code/Framework/AzToolsFramework/AzToolsFramework/UI/Outliner/EntityOutlinerWidget.cpp
+++ b/Code/Framework/AzToolsFramework/AzToolsFramework/UI/Outliner/EntityOutlinerWidget.cpp
@@ -286,12 +286,12 @@ namespace AzToolsFramework
         ComponentModeFramework::EditorComponentModeNotificationBus::Handler::BusConnect(
             GetEntityContextId());
         EditorEntityInfoNotificationBus::Handler::BusConnect();
-        AZ::Interface<EntityOutlinerWidgetInterface>::Register(this);
+        Prefab::PrefabPublicNotificationBus::Handler::BusConnect();
     }
 
     EntityOutlinerWidget::~EntityOutlinerWidget()
     {
-        AZ::Interface<EntityOutlinerWidgetInterface>::Unregister(this);
+        Prefab::PrefabPublicNotificationBus::Handler::BusDisconnect();
         ComponentModeFramework::EditorComponentModeNotificationBus::Handler::BusDisconnect();
         EditorEntityInfoNotificationBus::Handler::BusDisconnect();
         EditorPickModeNotificationBus::Handler::BusDisconnect();
@@ -1109,25 +1109,18 @@ namespace AzToolsFramework
         setEnabled(true);
         SetEntityOutlinerState(m_gui, true);
     }
-    
-    void EntityOutlinerWidget::SetUpdatesEnabled(bool enable)
+
+    void EntityOutlinerWidget::OnPrefabInstancePropagationBegin()
     {
-        if (enable)
-        {
-            QTimer::singleShot(1, this, [this]() {
-                m_gui->m_objectTree->setUpdatesEnabled(true);
-            });
-        }
-        else
-        {
-            m_gui->m_objectTree->setUpdatesEnabled(false);
-        }
+        m_gui->m_objectTree->setUpdatesEnabled(false);
     }
 
-    void EntityOutlinerWidget::ExpandEntityChildren(AZ::EntityId entityId)
+    void EntityOutlinerWidget::OnPrefabInstancePropagationEnd()
     {
-        QModelIndex index = GetIndexFromEntityId(entityId);
-        m_gui->m_objectTree->expand(index);
+        QTimer::singleShot(1, this, [this]() {
+            m_gui->m_objectTree->setUpdatesEnabled(true);
+            m_gui->m_objectTree->expand(m_proxyModel->index(0,0));
+        });
     }
 
     void EntityOutlinerWidget::OnEntityInfoUpdatedAddChildEnd(AZ::EntityId /*parentId*/, AZ::EntityId childId)
diff --git a/Code/Framework/AzToolsFramework/AzToolsFramework/UI/Outliner/EntityOutlinerWidget.hxx b/Code/Framework/AzToolsFramework/AzToolsFramework/UI/Outliner/EntityOutlinerWidget.hxx
index f225bb49b8..9a02febab2 100644
--- a/Code/Framework/AzToolsFramework/AzToolsFramework/UI/Outliner/EntityOutlinerWidget.hxx
+++ b/Code/Framework/AzToolsFramework/AzToolsFramework/UI/Outliner/EntityOutlinerWidget.hxx
@@ -20,10 +20,10 @@
 #include <AzToolsFramework/ComponentMode/EditorComponentModeBus.h>
 #include <AzToolsFramework/Entity/EditorEntityInfoBus.h>
 #include <AzToolsFramework/Entity/EditorEntityContextBus.h>
+#include <AzToolsFramework/Prefab/PrefabPublicNotificationBus.h>
 #include <AzToolsFramework/ToolsMessaging/EntityHighlightBus.h>
 #include <AzToolsFramework/UI/Outliner/EntityOutlinerCacheBus.h>
 #include <AzToolsFramework/UI/Outliner/EntityOutlinerSearchWidget.h>
-#include <AzToolsFramework/UI/Outliner/EntityOutlinerWidgetInterface.h>
 #include <AzToolsFramework/UI/SearchWidget/SearchWidgetTypes.hxx>
 
 #include <QIcon>
@@ -62,7 +62,7 @@ namespace AzToolsFramework
         , private EditorEntityContextNotificationBus::Handler
         , private EditorEntityInfoNotificationBus::Handler
         , private ComponentModeFramework::EditorComponentModeNotificationBus::Handler
-        , private EntityOutlinerWidgetInterface
+        , private Prefab::PrefabPublicNotificationBus::Handler
     {
         Q_OBJECT;
     public:
@@ -106,9 +106,9 @@ namespace AzToolsFramework
         void EnteredComponentMode(const AZStd::vector<AZ::Uuid>& componentModeTypes) override;
         void LeftComponentMode(const AZStd::vector<AZ::Uuid>& componentModeTypes) override;
 
-        // EntityOutlinerWidgetInterface
-        void SetUpdatesEnabled(bool enable) override;
-        void ExpandEntityChildren(AZ::EntityId entityId) override;
+        // PrefabPublicNotificationBus
+        void OnPrefabInstancePropagationBegin() override;
+        void OnPrefabInstancePropagationEnd() override;
 
         // Build a selection object from the given entities. Entities already in the Widget's selection buffers are ignored.
         template <class EntityIdCollection>
diff --git a/Code/Framework/AzToolsFramework/AzToolsFramework/UI/Outliner/EntityOutlinerWidgetInterface.h b/Code/Framework/AzToolsFramework/AzToolsFramework/UI/Outliner/EntityOutlinerWidgetInterface.h
deleted file mode 100644
index afbb790c1a..0000000000
--- a/Code/Framework/AzToolsFramework/AzToolsFramework/UI/Outliner/EntityOutlinerWidgetInterface.h
+++ /dev/null
@@ -1,30 +0,0 @@
-/*
-* All or portions of this file Copyright (c) Amazon.com, Inc. or its affiliates or
-* its licensors.
-*
-* For complete copyright and license terms please see the LICENSE at the root of this
-* distribution (the "License"). All use of this software is governed by the License,
-* or, if provided, by the license below or the license accompanying this file. Do not
-* remove or modify any license notices. This file is distributed on an "AS IS" BASIS,
-* WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
-*
-*/
-
-#pragma once
-
-#include <AzCore/Interface/Interface.h>
-#include <AzCore/Serialization/SerializeContext.h>
-
-namespace AzToolsFramework
-{
-    class EntityOutlinerWidgetInterface
-    {
-    public:
-        AZ_RTTI(EntityOutlinerWidgetInterface, "{30C0F252-EC84-4196-BF59-EB9E73B8ADCB}");
-
-        virtual void SetUpdatesEnabled(bool enable) = 0;
-        virtual void ExpandEntityChildren(AZ::EntityId entityId) = 0;
-    };
-
-} // namespace AzToolsFramework
-
diff --git a/Code/Framework/AzToolsFramework/AzToolsFramework/aztoolsframework_files.cmake b/Code/Framework/AzToolsFramework/AzToolsFramework/aztoolsframework_files.cmake
index 96eaab3009..627c2ea6ed 100644
--- a/Code/Framework/AzToolsFramework/AzToolsFramework/aztoolsframework_files.cmake
+++ b/Code/Framework/AzToolsFramework/AzToolsFramework/aztoolsframework_files.cmake
@@ -652,6 +652,7 @@ set(FILES
     Prefab/PrefabPublicHandler.h
     Prefab/PrefabPublicHandler.cpp
     Prefab/PrefabPublicInterface.h
+    Prefab/PrefabPublicNotificationBus.h
     Prefab/PrefabUndo.h
     Prefab/PrefabUndo.cpp
     Prefab/PrefabUndoCache.cpp
@@ -687,7 +688,6 @@ set(FILES
     UI/Outliner/EntityOutlinerDisplayOptionsMenu.cpp
     UI/Outliner/EntityOutlinerTreeView.hxx
     UI/Outliner/EntityOutlinerTreeView.cpp
-    UI/Outliner/EntityOutlinerWidgetInterface.h
     UI/Outliner/EntityOutlinerWidget.hxx
     UI/Outliner/EntityOutlinerWidget.cpp
     UI/Outliner/EntityOutlinerCacheBus.h