diff --git a/cmake/LYTestWrappers.cmake b/cmake/LYTestWrappers.cmake
index 80ac70f294..03146b6045 100644
--- a/cmake/LYTestWrappers.cmake
+++ b/cmake/LYTestWrappers.cmake
@@ -32,6 +32,7 @@ endif()
 # Set and create folders for PyTest and GTest xml output
 ly_set(PYTEST_XML_OUTPUT_DIR ${CMAKE_BINARY_DIR}/Testing/Pytest)
 ly_set(GTEST_XML_OUTPUT_DIR ${CMAKE_BINARY_DIR}/Testing/Gtest)
+ly_set(LYTESTTOOLS_OUTPUT_DIR ${CMAKE_BINARY_DIR}/Testing/LyTestTools)
 file(MAKE_DIRECTORY ${PYTEST_XML_OUTPUT_DIR})
 file(MAKE_DIRECTORY ${GTEST_XML_OUTPUT_DIR})
 
@@ -309,12 +310,11 @@ function(ly_add_pytest)
     endif()
 
     string(REPLACE "::" "_" pytest_report_directory "${PYTEST_XML_OUTPUT_DIR}/${ly_add_pytest_NAME}.xml")
+    string(REPLACE "::" "_" pytest_output_directory "${LYTESTTOOLS_OUTPUT_DIR}/${ly_add_pytest_NAME}")
 
     # Add the script path to the test target params
     set(LY_TEST_PARAMS "${ly_add_pytest_PATH}")
 
-    string(REPLACE "::" "_" pytest_output_directory "${CMAKE_BINARY_DIR}/Testing/LyTestTools/${ly_add_pytest_NAME}")
-
     ly_add_test(
         NAME ${ly_add_pytest_NAME}
         PARENT_NAME ${ly_add_pytest_NAME}