diff --git a/Gems/Atom/TestData/TestData/Objects/ModelHotReload/DisplayVertexColor.material b/Gems/Atom/TestData/TestData/Objects/ModelHotReload/DisplayVertexColor.material
new file mode 100644
index 0000000000..104d675387
--- /dev/null
+++ b/Gems/Atom/TestData/TestData/Objects/ModelHotReload/DisplayVertexColor.material
@@ -0,0 +1,18 @@
+{
+    "description": "",
+    "materialType": "Materials/Types/StandardMultilayerPBR.materialtype",
+    "parentMaterial": "",
+    "propertyLayoutVersion": 3,
+    "properties": {
+        "blend": {
+            "blendSource": "BlendMaskVertexColors",
+            "debugDrawMode": "FinalBlendWeights",
+            "enableLayer2": true,
+            "enableLayer3": true,
+            "textureMap": ""
+        },
+        "parallax": {
+            "enable": false
+        }
+    }
+}
diff --git a/Gems/Atom/TestData/TestData/Objects/ModelHotReload/novertexcolor.fbx b/Gems/Atom/TestData/TestData/Objects/ModelHotReload/novertexcolor.fbx
new file mode 100644
index 0000000000..abc518cf09
--- /dev/null
+++ b/Gems/Atom/TestData/TestData/Objects/ModelHotReload/novertexcolor.fbx
@@ -0,0 +1,3 @@
+version https://git-lfs.github.com/spec/v1
+oid sha256:b6d860c6fc3703914716a97910899eca2e66927688690646f697c6246ac310fb
+size 317340
diff --git a/Gems/Atom/TestData/TestData/Objects/ModelHotReload/sphere_5lods.fbx b/Gems/Atom/TestData/TestData/Objects/ModelHotReload/sphere_5lods.fbx
new file mode 100644
index 0000000000..de03622834
--- /dev/null
+++ b/Gems/Atom/TestData/TestData/Objects/ModelHotReload/sphere_5lods.fbx
@@ -0,0 +1,3 @@
+version https://git-lfs.github.com/spec/v1
+oid sha256:91b8153f93e4773d872478fef40ff00c1b8d5f1ef13101cf62f81956e1c30107
+size 68800
diff --git a/Gems/Atom/TestData/TestData/Objects/ModelHotReload/vertexcolor.fbx b/Gems/Atom/TestData/TestData/Objects/ModelHotReload/vertexcolor.fbx
new file mode 100644
index 0000000000..3bbbc29a33
--- /dev/null
+++ b/Gems/Atom/TestData/TestData/Objects/ModelHotReload/vertexcolor.fbx
@@ -0,0 +1,3 @@
+version https://git-lfs.github.com/spec/v1
+oid sha256:2cf646a0a977c2edc5ee2ab6351ef633f194ce60c59ea3cb8359f71648db668e
+size 374492
diff --git a/Gems/AtomLyIntegration/CommonFeatures/Code/Source/Mesh/MeshComponentController.cpp b/Gems/AtomLyIntegration/CommonFeatures/Code/Source/Mesh/MeshComponentController.cpp
index 6cdb44a9e1..12b14d8162 100644
--- a/Gems/AtomLyIntegration/CommonFeatures/Code/Source/Mesh/MeshComponentController.cpp
+++ b/Gems/AtomLyIntegration/CommonFeatures/Code/Source/Mesh/MeshComponentController.cpp
@@ -32,6 +32,23 @@ namespace AZ
 {
     namespace Render
     {
+        namespace Internal
+        {
+            struct MeshComponentNotificationBusHandler final
+                : public MeshComponentNotificationBus::Handler
+                , public AZ::BehaviorEBusHandler
+            {
+                AZ_EBUS_BEHAVIOR_BINDER(
+                    MeshComponentNotificationBusHandler, "{8B8F4977-817F-4C7C-9141-0E5FF899E1BC}", AZ::SystemAllocator, OnModelReady);
+
+                void OnModelReady(
+                    [[maybe_unused]] const Data::Asset<RPI::ModelAsset>& modelAsset,
+                    [[maybe_unused]] const Data::Instance<RPI::Model>& model) override
+                {
+                    Call(FN_OnModelReady);
+                }
+            };
+        } // namespace Internal
 
         namespace MeshComponentControllerVersionUtility
         {
@@ -173,6 +190,12 @@ namespace AZ
                     ->VirtualProperty("MinimumScreenCoverage", "GetMinimumScreenCoverage", "SetMinimumScreenCoverage")
                     ->VirtualProperty("QualityDecayRate", "GetQualityDecayRate", "SetQualityDecayRate")
                     ;
+                
+                behaviorContext->EBus<MeshComponentNotificationBus>("MeshComponentNotificationBus")
+                    ->Attribute(AZ::Script::Attributes::Scope, AZ::Script::Attributes::ScopeFlags::Common)
+                    ->Attribute(AZ::Script::Attributes::Category, "render")
+                    ->Attribute(AZ::Script::Attributes::Module, "render")
+                    ->Handler<Internal::MeshComponentNotificationBusHandler>();
             }
         }
 
@@ -306,7 +329,7 @@ namespace AZ
             return model ? model->GetUvNames() : AZStd::unordered_set<AZ::Name>();
         }
 
-        void MeshComponentController::OnMaterialsUpdated([[maybe_unused]] const MaterialAssignmentMap& materials)
+        void MeshComponentController::OnMaterialsUpdated(const MaterialAssignmentMap& materials)
         {
             if (m_meshFeatureProcessor)
             {