diff --git a/Gems/ScriptCanvas/Code/Editor/View/Widgets/ScriptCanvasNodePaletteDockWidget.cpp b/Gems/ScriptCanvas/Code/Editor/View/Widgets/ScriptCanvasNodePaletteDockWidget.cpp
index 8341cc1e24..96b0ac353f 100644
--- a/Gems/ScriptCanvas/Code/Editor/View/Widgets/ScriptCanvasNodePaletteDockWidget.cpp
+++ b/Gems/ScriptCanvas/Code/Editor/View/Widgets/ScriptCanvasNodePaletteDockWidget.cpp
@@ -80,12 +80,11 @@ namespace ScriptCanvasEditor
                 GraphCanvas::NodePaletteTreeItem* variablesRoot = root->CreateChildNode<LocalVariablesListNodePaletteTreeItem>("Variables");
                 root->RegisterCategoryNode(variablesRoot, "Variables");
 
-                // We always want to keep these around as place holders
                 GraphCanvas::NodePaletteTreeItem* customEventRoot = root->GetCategoryNode("Script Events");
-                customEventRoot->SetAllowPruneOnEmpty(false);
+                customEventRoot->SetAllowPruneOnEmpty(true);
 
                 GraphCanvas::NodePaletteTreeItem* globalFunctionRoot = root->GetCategoryNode("User Functions");
-                globalFunctionRoot->SetAllowPruneOnEmpty(false);
+                globalFunctionRoot->SetAllowPruneOnEmpty(true);
 
             }
 
diff --git a/Gems/ScriptCanvas/Code/Include/ScriptCanvas/Core/SubgraphInterface.cpp b/Gems/ScriptCanvas/Code/Include/ScriptCanvas/Core/SubgraphInterface.cpp
index 81d6445556..9d1626fb73 100644
--- a/Gems/ScriptCanvas/Code/Include/ScriptCanvas/Core/SubgraphInterface.cpp
+++ b/Gems/ScriptCanvas/Code/Include/ScriptCanvas/Core/SubgraphInterface.cpp
@@ -509,7 +509,8 @@ namespace ScriptCanvas
 
         bool SubgraphInterface::HasAnyFunctionality() const
         {
-            return IsActiveDefaultObject() || HasPublicFunctionality();
+            // \todo restore default object addition when ndoes can define an variable, as well
+            return /*IsActiveDefaultObject() || */ HasPublicFunctionality();
         }
 
         bool SubgraphInterface::HasBranches() const