diff --git a/Code/Tools/ProjectManager/Source/UpdateProjectCtrl.cpp b/Code/Tools/ProjectManager/Source/UpdateProjectCtrl.cpp
index d130ab50ce..3f72b7058e 100644
--- a/Code/Tools/ProjectManager/Source/UpdateProjectCtrl.cpp
+++ b/Code/Tools/ProjectManager/Source/UpdateProjectCtrl.cpp
@@ -215,6 +215,17 @@ namespace O3DE::ProjectManager
                 return false;
             }
 
+            // Check if project path has changed and move it
+            // Move project first to avoid trying to update settings at the new location before it has been moved there
+            if (newProjectSettings.m_path != m_projectInfo.m_path)
+            {
+                if (!ProjectUtils::MoveProject(m_projectInfo.m_path, newProjectSettings.m_path))
+                {
+                    QMessageBox::critical(this, tr("Project move failed"), tr("Failed to move project."));
+                    return false;
+                }
+            }
+
             // Update project if settings changed
             {
                 auto result = PythonBindingsInterface::Get()->UpdateProject(newProjectSettings);
@@ -225,16 +236,6 @@ namespace O3DE::ProjectManager
                 }
             }
 
-            // Check if project path has changed and move it
-            if (newProjectSettings.m_path != m_projectInfo.m_path)
-            {
-                if (!ProjectUtils::MoveProject(m_projectInfo.m_path, newProjectSettings.m_path))
-                {
-                    QMessageBox::critical(this, tr("Project move failed"), tr("Failed to move project."));
-                    return false;
-                }
-            }
-
             if (!newProjectSettings.m_newPreviewImagePath.isEmpty())
             {
                 if (!ProjectUtils::ReplaceFile(