diff --git a/Code/Framework/AzToolsFramework/AzToolsFramework/Prefab/Instance/Instance.cpp b/Code/Framework/AzToolsFramework/AzToolsFramework/Prefab/Instance/Instance.cpp
index b5db46d0db..490a151925 100644
--- a/Code/Framework/AzToolsFramework/AzToolsFramework/Prefab/Instance/Instance.cpp
+++ b/Code/Framework/AzToolsFramework/AzToolsFramework/Prefab/Instance/Instance.cpp
@@ -129,7 +129,7 @@ namespace AzToolsFramework
 
         void Instance::SetLinkId(LinkId linkId)
         {
-            m_linkId = AZStd::move(linkId);
+            m_linkId = linkId;
         }
 
         LinkId Instance::GetLinkId() const
@@ -154,23 +154,26 @@ namespace AzToolsFramework
 
         bool Instance::AddEntity(AZ::Entity& entity)
         {
-            EntityAlias newEntityAlias = GenerateEntityAlias();
-            return AddEntity(entity, newEntityAlias);
+            return AddEntity(entity, GenerateEntityAlias());
         }
 
-        bool Instance::AddEntity(AZ::Entity& entity, EntityAlias entityAlias)
+        bool Instance::AddEntity(AZStd::unique_ptr<AZ::Entity>&& entity)
         {
-            if (!RegisterEntity(entity.GetId(), entityAlias))
-            {
-                return false;
-            }
+            return AddEntity(AZStd::move(entity), GenerateEntityAlias());
+        }
 
-            if (!m_entities.emplace(AZStd::make_pair(entityAlias, &entity)).second)
-            {
-                return false;
-            }
+        bool Instance::AddEntity(AZ::Entity& entity, EntityAlias entityAlias)
+        {
+            return
+                RegisterEntity(entity.GetId(), entityAlias) && 
+                m_entities.emplace(AZStd::move(entityAlias), &entity).second;
+        }
 
-            return true;
+        bool Instance::AddEntity(AZStd::unique_ptr<AZ::Entity>&& entity, EntityAlias entityAlias)
+        {
+            return
+                RegisterEntity(entity->GetId(), entityAlias) &&
+                m_entities.emplace(AZStd::move(entityAlias), AZStd::move(entity)).second;
         }
 
         AZStd::unique_ptr<AZ::Entity> Instance::DetachEntity(const AZ::EntityId& entityId)
@@ -228,6 +231,23 @@ namespace AzToolsFramework
             m_entities.clear();
         }
 
+        AZStd::unique_ptr<AZ::Entity> Instance::ReplaceEntity(AZStd::unique_ptr<AZ::Entity>&& entity, EntityAliasView alias)
+        {
+            AZStd::unique_ptr<AZ::Entity> result;
+            auto it = m_entities.find(alias);
+            if (it != m_entities.end())
+            {
+                // Swap entity ids as these need to remain stable
+                AZ::EntityId originalId = it->second->GetId();
+                it->second->SetId(entity->GetId());
+                entity->SetId(originalId);
+
+                result = AZStd::move(it->second);
+                it->second = AZStd::move(entity);
+            }
+            return result;
+        }
+
         void Instance::RemoveNestedEntities(
             const AZStd::function<bool(const AZStd::unique_ptr<AZ::Entity>&)>& filter)
         {
@@ -377,7 +397,12 @@ namespace AzToolsFramework
             return entityAliases;
         }
 
-        void Instance::GetNestedEntityIds(const AZStd::function<bool(AZ::EntityId)>& callback)
+        size_t Instance::GetEntityAliasCount() const
+        {
+            return m_entities.size();
+        }
+
+        void Instance::GetNestedEntityIds(const AZStd::function<bool(AZ::EntityId)>& callback) const
         {
             GetEntityIds(callback);
 
@@ -387,7 +412,7 @@ namespace AzToolsFramework
             }
         }
 
-        void Instance::GetEntityIds(const AZStd::function<bool(AZ::EntityId)>& callback)
+        void Instance::GetEntityIds(const AZStd::function<bool(AZ::EntityId)>& callback) const
         {
             for (auto&&[entityAlias, entityId] : m_templateToInstanceEntityIdMap)
             {
@@ -398,6 +423,17 @@ namespace AzToolsFramework
             }
         }
 
+        void Instance::GetEntityIdToAlias(const AZStd::function<bool(AZ::EntityId, EntityAliasView)>& callback) const
+        {
+            for (auto&& [entityAlias, entityId] : m_templateToInstanceEntityIdMap)
+            {
+                if (!callback(entityId, entityAlias))
+                {
+                    break;
+                }
+            }
+        }
+
         bool Instance::GetEntities_Impl(const AZStd::function<bool(AZStd::unique_ptr<AZ::Entity>&)>& callback)
         {
             for (auto& [entityAlias, entity] : m_entities)
@@ -514,24 +550,81 @@ namespace AzToolsFramework
             }
         }
 
-        EntityAliasOptionalReference Instance::GetEntityAlias(const AZ::EntityId& id)
+        EntityAliasOptionalReference Instance::GetEntityAlias(AZ::EntityId id)
         {
-            if (m_instanceToTemplateEntityIdMap.count(id))
+            auto it = m_instanceToTemplateEntityIdMap.find(id);
+            return it != m_instanceToTemplateEntityIdMap.end() ? EntityAliasOptionalReference(it->second)
+                                                               : EntityAliasOptionalReference(AZStd::nullopt);
+        }
+
+        EntityAliasView Instance::GetEntityAlias(AZ::EntityId id) const
+        {
+            auto it = m_instanceToTemplateEntityIdMap.find(id);
+            return it != m_instanceToTemplateEntityIdMap.end() ? EntityAliasView(it->second) : EntityAliasView();
+        }
+
+        AZStd::pair<Instance*, EntityAliasView> Instance::FindInstanceAndAlias(AZ::EntityId entity)
+        {
+            auto it = m_instanceToTemplateEntityIdMap.find(entity);
+            if (it != m_instanceToTemplateEntityIdMap.end())
             {
-                return m_instanceToTemplateEntityIdMap[id];
+                return AZStd::pair<Instance*, EntityAliasView>(this, it->second);
             }
-                
-            return AZStd::nullopt;
+            else
+            {
+                for (auto&& [_, instance] : m_nestedInstances)
+                {
+                    AZStd::pair<Instance*, EntityAliasView> next = instance->FindInstanceAndAlias(entity);
+                    if (next.first != nullptr)
+                    {
+                        return next;
+                    }
+                }
+            }
+            return AZStd::pair<Instance*, EntityAliasView>(nullptr, "");
         }
 
-        AZ::EntityId Instance::GetEntityId(const EntityAlias& alias)
+        AZStd::pair<const Instance*, EntityAliasView> Instance::FindInstanceAndAlias(AZ::EntityId entity) const
         {
-            if (m_templateToInstanceEntityIdMap.count(alias))
+            return const_cast<Instance*>(this)->FindInstanceAndAlias(entity);
+        }
+
+        EntityOptionalReference Instance::GetEntity(const EntityAlias& alias)
+        {
+            auto it = m_entities.find(alias);
+            return it != m_entities.end() ? EntityOptionalReference(*it->second) : EntityOptionalReference(AZStd::nullopt);
+        }
+
+        EntityOptionalConstReference Instance::GetEntity(const EntityAlias& alias) const
+        {
+            auto it = m_entities.find(alias);
+            return it != m_entities.end() ? EntityOptionalConstReference(*it->second) : EntityOptionalConstReference(AZStd::nullopt);
+        }
+
+        AZ::EntityId Instance::GetEntityId(const EntityAlias& alias) const
+        {
+            auto it = m_templateToInstanceEntityIdMap.find(alias);
+            return it != m_templateToInstanceEntityIdMap.end() ? it->second : AZ::EntityId();
+        }
+
+        AZ::EntityId Instance::GetEntityIdFromAliasPath(AliasPathView relativeAliasPath) const
+        {
+            const Instance* instance = this;
+            AliasPathView path = relativeAliasPath.ParentPath();
+            for (auto it : path)
             {
-                return m_templateToInstanceEntityIdMap[alias];
+                InstanceOptionalConstReference child = instance->FindNestedInstance(it.Native());
+                if (child.has_value())
+                {
+                    instance = &(child->get());
+                }
+                else
+                {
+                    return AZ::EntityId();
+                }
             }
-                
-            return AZ::EntityId();
+
+            return instance->GetEntityId(relativeAliasPath.Filename().Native());
         }
 
         AZStd::vector<InstanceAlias> Instance::GetNestedInstanceAliases(TemplateId templateId) const
@@ -572,6 +665,32 @@ namespace AzToolsFramework
             return aliasPathResult;
         }
 
+        AliasPath Instance::GetAliasPathRelativeToInstance(const AZ::EntityId& entity) const
+        {
+            AliasPath result = AliasPath(s_aliasPathSeparator);
+            auto&& [instance, alias] = FindInstanceAndAlias(entity);
+            if (instance)
+            {
+                AZStd::vector<const Instance*> instanceChain;
+                
+                while (instance && instance != this)
+                {
+                    instanceChain.push_back(instance);
+                    instance = instance->m_parent;
+                }
+
+                for (auto it = instanceChain.rbegin(); it != instanceChain.rend(); ++it)
+                {
+                    result.Append((*it)->m_alias);
+                }
+                return result.Append(alias);
+            }
+            else
+            {
+                return result;
+            }
+        }
+
         EntityAlias Instance::GenerateEntityAlias()
         {
             return AZStd::string::format("Entity_%s", AZ::Entity::MakeId().ToString().c_str());
diff --git a/Code/Framework/AzToolsFramework/AzToolsFramework/Prefab/Instance/Instance.h b/Code/Framework/AzToolsFramework/AzToolsFramework/Prefab/Instance/Instance.h
index 50a39268fe..25971093cd 100644
--- a/Code/Framework/AzToolsFramework/AzToolsFramework/Prefab/Instance/Instance.h
+++ b/Code/Framework/AzToolsFramework/AzToolsFramework/Prefab/Instance/Instance.h
@@ -38,6 +38,7 @@ namespace AzToolsFramework
         using AliasPath = AZ::IO::Path;
         using AliasPathView = AZ::IO::PathView;
         using EntityAlias = AZStd::string;
+        using EntityAliasView = AZStd::string_view;
         using InstanceAlias = AZStd::string;
 
         class Instance;
@@ -83,9 +84,17 @@ namespace AzToolsFramework
             void SetContainerEntityName(AZStd::string_view containerName);
 
             bool AddEntity(AZ::Entity& entity);
+            bool AddEntity(AZStd::unique_ptr<AZ::Entity>&& entity);
             bool AddEntity(AZ::Entity& entity, EntityAlias entityAlias);
+            bool AddEntity(AZStd::unique_ptr<AZ::Entity>&& entity, EntityAlias entityAlias);
             AZStd::unique_ptr<AZ::Entity> DetachEntity(const AZ::EntityId& entityId);
             void DetachEntities(const AZStd::function<void(AZStd::unique_ptr<AZ::Entity>)>& callback);
+            /**
+             * Replaces the entity stored under the provided alias with a new one.
+             *
+             * @return The original entity or a nullptr if not found.
+             */
+            AZStd::unique_ptr<AZ::Entity> ReplaceEntity(AZStd::unique_ptr<AZ::Entity>&& entity, EntityAliasView alias);
 
             /**
             * Detaches all entities in the instance hierarchy.
@@ -109,13 +118,15 @@ namespace AzToolsFramework
             * @return The list of EntityAliases
             */
             AZStd::vector<EntityAlias> GetEntityAliases();
+            size_t GetEntityAliasCount() const;
 
             /**
             * Gets the ids for the entities in the Instance DOM.  Can recursively trace all nested instances.
             */
-            void GetNestedEntityIds(const AZStd::function<bool(AZ::EntityId)>& callback);
+            void GetNestedEntityIds(const AZStd::function<bool(AZ::EntityId)>& callback) const;
 
-            void GetEntityIds(const AZStd::function<bool(AZ::EntityId)>& callback);
+            void GetEntityIds(const AZStd::function<bool(AZ::EntityId)>& callback) const;
+            void GetEntityIdToAlias(const AZStd::function<bool(AZ::EntityId, EntityAliasView)>& callback) const;
 
             /**
             * Gets the entities in the Instance DOM.  Can recursively trace all nested instances.
@@ -131,14 +142,33 @@ namespace AzToolsFramework
             *
             * @return entityAlias via optional
             */
-            AZStd::optional<AZStd::reference_wrapper<EntityAlias>> GetEntityAlias(const AZ::EntityId& id);
+            EntityAliasOptionalReference GetEntityAlias(AZ::EntityId id);
+            EntityAliasView GetEntityAlias(AZ::EntityId id) const;
+            /**
+             * Searches for the entity in this instance and its nested instances.
+             *
+             * @return The instance that owns the entity and the alias under which the entity is known.
+             *      If the entity isn't found then the instance will be null and the alias empty.
+             */
+            AZStd::pair<Instance*, EntityAliasView> FindInstanceAndAlias(AZ::EntityId entity);
+            AZStd::pair<const Instance*, EntityAliasView> FindInstanceAndAlias(AZ::EntityId entity) const;
+
+            EntityOptionalReference GetEntity(const EntityAlias& alias);
+            EntityOptionalConstReference GetEntity(const EntityAlias& alias) const;
 
             /**
             * Gets the id for a given EnitityAlias in the Instance DOM.
             *
             * @return entityId, invalid ID if not found
             */
-            AZ::EntityId GetEntityId(const EntityAlias& alias);
+            AZ::EntityId GetEntityId(const EntityAlias& alias) const;
+
+            /**
+            * Retrieves the entity id from an alias path that's relative to this instance.
+            * 
+            * @return entityId, invalid ID if not found
+            */
+            AZ::EntityId GetEntityIdFromAliasPath(AliasPathView relativeAliasPath) const;
 
 
             /**
@@ -180,6 +210,7 @@ namespace AzToolsFramework
 
             static EntityAlias GenerateEntityAlias();
             AliasPath GetAbsoluteInstanceAliasPath() const;
+            AliasPath GetAliasPathRelativeToInstance(const AZ::EntityId& entity) const;
 
             static InstanceAlias GenerateInstanceAlias();
 
diff --git a/Code/Framework/AzToolsFramework/AzToolsFramework/Prefab/Spawnable/PrefabCatchmentProcessor.cpp b/Code/Framework/AzToolsFramework/AzToolsFramework/Prefab/Spawnable/PrefabCatchmentProcessor.cpp
index 7b7107ae3e..7a54950c47 100644
--- a/Code/Framework/AzToolsFramework/AzToolsFramework/Prefab/Spawnable/PrefabCatchmentProcessor.cpp
+++ b/Code/Framework/AzToolsFramework/AzToolsFramework/Prefab/Spawnable/PrefabCatchmentProcessor.cpp
@@ -13,9 +13,12 @@
 #include <AzCore/Serialization/Utils.h>
 #include <AzFramework/Spawnable/Spawnable.h>
 #include <AzToolsFramework/Entity/EditorEntityHelpers.h>
+#include <AzToolsFramework/Prefab/Instance/Instance.h>
+#include <AzToolsFramework/Prefab/PrefabDomUtils.h>
 #include <AzToolsFramework/Prefab/Spawnable/PrefabCatchmentProcessor.h>
 #include <AzToolsFramework/Prefab/Spawnable/SpawnableUtils.h>
 
+
 namespace AzToolsFramework::Prefab::PrefabConversionUtils
 {
     void PrefabCatchmentProcessor::Process(PrefabProcessorContext& context)
@@ -37,7 +40,7 @@ namespace AzToolsFramework::Prefab::PrefabConversionUtils
                 ->Value("Text", SerializationFormats::Text);
 
             serializeContext->Class<PrefabCatchmentProcessor, PrefabProcessor>()
-                ->Version(2)
+                ->Version(3)
                 ->Field("SerializationFormat", &PrefabCatchmentProcessor::m_serializationFormat);
         }
     }
@@ -45,6 +48,8 @@ namespace AzToolsFramework::Prefab::PrefabConversionUtils
     void PrefabCatchmentProcessor::ProcessPrefab(PrefabProcessorContext& context, AZStd::string_view prefabName, PrefabDom& prefab,
         AZ::DataStream::StreamType serializationFormat)
     {
+        using namespace AzToolsFramework::Prefab::SpawnableUtils;
+
         AZStd::string uniqueName = prefabName;
         uniqueName += AzFramework::Spawnable::DotFileExtension;
 
@@ -59,33 +64,38 @@ namespace AzToolsFramework::Prefab::PrefabConversionUtils
             AZStd::move(uniqueName), context.GetSourceUuid(), AZStd::move(serializer));
         AZ_Assert(spawnable, "Failed to create a new spawnable.");
 
-        bool result = SpawnableUtils::CreateSpawnable(*spawnable, prefab, object.GetReferencedAssets());
-        if (result)
+        Instance instance;
+        if (Prefab::PrefabDomUtils::LoadInstanceFromPrefabDom(
+                instance, prefab, object.GetReferencedAssets(),
+                Prefab::PrefabDomUtils::LoadFlags::AssignRandomEntityId)) // Always assign random entity ids because the spawnable is
+                                                                          // going to be used to create clones of the entities.
         {
+            // Resolve entity aliases that store PrefabDOM information to use the spawnable instead. This is done before the entities are
+            // moved from the instance as they'd otherwise can't be found.
+            context.ResolveSpawnableEntityAliases(prefabName, *spawnable, instance);
+
             AzFramework::Spawnable::EntityList& entities = spawnable->GetEntities();
-            for (auto it = entities.begin(); it != entities.end(); )
-            {
-                if (*it)
+            instance.DetachAllEntitiesInHierarchy(
+                [&entities, &context](AZStd::unique_ptr<AZ::Entity> entity)
                 {
-                    (*it)->InvalidateDependencies();
-                    AZ::Entity::DependencySortOutcome evaluation = (*it)->EvaluateDependenciesGetDetails();
-                    if (evaluation.IsSuccess())
+                    if (entity)
                     {
-                        ++it;
+                        entity->InvalidateDependencies();
+                        AZ::Entity::DependencySortOutcome evaluation = entity->EvaluateDependenciesGetDetails();
+                        if (evaluation.IsSuccess())
+                        {
+                            entities.emplace_back(AZStd::move(entity));
+                        }
+                        else
+                        {
+                            AZ_Error(
+                                "Prefabs", false, "Entity '%s' %s cannot be activated for the following reason: %s",
+                                entity->GetName().c_str(), entity->GetId().ToString().c_str(), evaluation.GetError().m_message.c_str());
+                            context.ErrorEncountered();
+                        }
                     }
-                    else
-                    {
-                        AZ_Error(
-                            "Prefabs", false, "Entity '%s' %s cannot be activated for the following reason: %s", (*it)->GetName().c_str(),
-                            (*it)->GetId().ToString().c_str(), evaluation.GetError().m_message.c_str());
-                        it = entities.erase(it);
-                    }
-                }
-                else
-                {
-                    it = entities.erase(it);
-                }
-            }
+                });
+
             SpawnableUtils::SortEntitiesByTransformHierarchy(*spawnable);
             context.GetProcessedObjects().push_back(AZStd::move(object));
         }
diff --git a/Code/Framework/AzToolsFramework/AzToolsFramework/Prefab/Spawnable/PrefabConversionPipeline.cpp b/Code/Framework/AzToolsFramework/AzToolsFramework/Prefab/Spawnable/PrefabConversionPipeline.cpp
index ac3ada7557..c40f0d2b2e 100644
--- a/Code/Framework/AzToolsFramework/AzToolsFramework/Prefab/Spawnable/PrefabConversionPipeline.cpp
+++ b/Code/Framework/AzToolsFramework/AzToolsFramework/Prefab/Spawnable/PrefabConversionPipeline.cpp
@@ -54,6 +54,7 @@ namespace AzToolsFramework::Prefab::PrefabConversionUtils
         {
             processor->Process(context);
         }
+        context.ResolveLinks();
     }
     size_t PrefabConversionPipeline::CalculateProcessorFingerprint(AZ::SerializeContext* context)
     {
diff --git a/Code/Framework/AzToolsFramework/AzToolsFramework/Prefab/Spawnable/PrefabProcessorContext.cpp b/Code/Framework/AzToolsFramework/AzToolsFramework/Prefab/Spawnable/PrefabProcessorContext.cpp
index 0a7fb3a224..e12ddb616f 100644
--- a/Code/Framework/AzToolsFramework/AzToolsFramework/Prefab/Spawnable/PrefabProcessorContext.cpp
+++ b/Code/Framework/AzToolsFramework/AzToolsFramework/Prefab/Spawnable/PrefabProcessorContext.cpp
@@ -6,12 +6,26 @@
  *
  */
 
+#include <AzCore/Interface/Interface.h>
 #include <AzFramework/Spawnable/Spawnable.h>
-
+#include <AzToolsFramework/Prefab/Instance/InstanceEntityMapperInterface.h>
 #include <AzToolsFramework/Prefab/Spawnable/PrefabProcessorContext.h>
+#include <AzToolsFramework/Prefab/Spawnable/SpawnableUtils.h>
 
 namespace AzToolsFramework::Prefab::PrefabConversionUtils
 {
+    EntityAliasSpawnableLink::EntityAliasSpawnableLink(AzFramework::Spawnable& spawnable, AZ::EntityId index)
+        : m_spawnable(spawnable)
+        , m_index(index)
+    {
+    }
+
+    EntityAliasPrefabLink::EntityAliasPrefabLink(AZStd::string prefabName, AzToolsFramework::Prefab::AliasPath alias)
+        : m_prefabName(AZStd::move(prefabName))
+        , m_alias(AZStd::move(alias))
+    {
+    }
+
     PrefabProcessorContext::PrefabProcessorContext(const AZ::Uuid& sourceUuid)
         : m_sourceUuid(sourceUuid)
     {}
@@ -45,7 +59,8 @@ namespace AzToolsFramework::Prefab::PrefabConversionUtils
         return !m_prefabs.empty();
     }
 
-    bool PrefabProcessorContext::RegisterSpawnableProductAssetDependency(AZStd::string prefabName, AZStd::string dependentPrefabName)
+    bool PrefabProcessorContext::RegisterSpawnableProductAssetDependency(
+        AZStd::string prefabName, AZStd::string dependentPrefabName, EntityAliasSpawnableLoadBehavior loadBehavior)
     {
         using ConversionUtils = PrefabConversionUtils::ProcessedObjectStore;
 
@@ -55,10 +70,11 @@ namespace AzToolsFramework::Prefab::PrefabConversionUtils
         dependentPrefabName += AzFramework::Spawnable::DotFileExtension;
         uint32_t spawnablePrefabSubId = ConversionUtils::BuildSubId(AZStd::move(dependentPrefabName));
 
-        return RegisterSpawnableProductAssetDependency(spawnableSubId, spawnablePrefabSubId);
+        return RegisterSpawnableProductAssetDependency(spawnableSubId, spawnablePrefabSubId, loadBehavior);
     }
 
-    bool PrefabProcessorContext::RegisterSpawnableProductAssetDependency(AZStd::string prefabName, const AZ::Data::AssetId& dependentAssetId)
+    bool PrefabProcessorContext::RegisterSpawnableProductAssetDependency(
+        AZStd::string prefabName, const AZ::Data::AssetId& dependentAssetId, EntityAliasSpawnableLoadBehavior loadBehavior)
     {
         using ConversionUtils = PrefabConversionUtils::ProcessedObjectStore;
 
@@ -67,20 +83,78 @@ namespace AzToolsFramework::Prefab::PrefabConversionUtils
 
         AZ::Data::AssetId spawnableAssetId(GetSourceUuid(), spawnableSubId);
 
-        return RegisterProductAssetDependency(spawnableAssetId, dependentAssetId);
+        return RegisterProductAssetDependency(spawnableAssetId, dependentAssetId, ToAssetLoadBehavior(loadBehavior));
     }
 
-    bool PrefabProcessorContext::RegisterSpawnableProductAssetDependency(uint32_t spawnableAssetSubId, uint32_t dependentSpawnableAssetSubId)
+    bool PrefabProcessorContext::RegisterSpawnableProductAssetDependency(
+        uint32_t spawnableAssetSubId, uint32_t dependentSpawnableAssetSubId, EntityAliasSpawnableLoadBehavior loadBehavior)
     {
         AZ::Data::AssetId spawnableAssetId(GetSourceUuid(), spawnableAssetSubId);
         AZ::Data::AssetId dependentSpawnableAssetId(GetSourceUuid(), dependentSpawnableAssetSubId);
 
-        return RegisterProductAssetDependency(spawnableAssetId, dependentSpawnableAssetId);
+        return RegisterProductAssetDependency(spawnableAssetId, dependentSpawnableAssetId, ToAssetLoadBehavior(loadBehavior));
     }
 
     bool PrefabProcessorContext::RegisterProductAssetDependency(const AZ::Data::AssetId& assetId, const AZ::Data::AssetId& dependentAssetId)
     {
-        return m_registeredProductAssetDependencies[assetId].emplace(dependentAssetId).second;
+        return RegisterProductAssetDependency(assetId, dependentAssetId, AZ::Data::AssetLoadBehavior::NoLoad);
+    }
+
+    bool PrefabProcessorContext::RegisterProductAssetDependency(
+        const AZ::Data::AssetId& assetId, const AZ::Data::AssetId& dependentAssetId, AZ::Data::AssetLoadBehavior loadBehavior)
+    {
+        auto dependencies = m_registeredProductAssetDependencies.equal_range(assetId);
+        if (dependencies.first != dependencies.second)
+        {
+            for (auto it = dependencies.first; it != dependencies.second; ++it)
+            {
+                if (it->second.m_assetId == dependentAssetId)
+                {
+                    if (it->second.m_loadBehavior < loadBehavior)
+                    {
+                        it->second.m_loadBehavior = loadBehavior;
+                    }
+                    return true;
+                }
+            }
+        }
+
+        return m_registeredProductAssetDependencies.emplace(assetId, AssetDependencyInfo{ dependentAssetId, loadBehavior }).second;
+    }
+
+    void PrefabProcessorContext::RegisterSpawnableEntityAlias(EntityAliasStore link)
+    {
+        m_entityAliases.push_back(AZStd::move(link));
+    }
+
+    void PrefabProcessorContext::ResolveSpawnableEntityAliases(
+        AZStd::string_view prefabName, AzFramework::Spawnable& spawnable, const AzToolsFramework::Prefab::Instance& instance)
+    {
+        using namespace AzToolsFramework::Prefab;
+
+        for (EntityAliasStore& entityAlias : m_entityAliases)
+        {
+            auto sourcePrefab = AZStd::get_if<EntityAliasPrefabLink>(&entityAlias.m_source);
+            if (sourcePrefab != nullptr && sourcePrefab->m_prefabName == prefabName)
+            {
+                AZ::EntityId id = instance.GetEntityIdFromAliasPath(sourcePrefab->m_alias);
+                AZ_Assert(
+                    id.IsValid(),
+                    "Entity '%s' was not found in Prefab Instance created from '%s' even though it was previously found.",
+                    sourcePrefab->m_alias.c_str(), sourcePrefab->m_prefabName.c_str());
+                entityAlias.m_source.emplace<EntityAliasSpawnableLink>(spawnable, id);
+            }
+
+            auto targetPrefab = AZStd::get_if<EntityAliasPrefabLink>(&entityAlias.m_target);
+            if (targetPrefab != nullptr && targetPrefab->m_prefabName == prefabName)
+            {
+                AZ::EntityId id = instance.GetEntityIdFromAliasPath(targetPrefab->m_alias);
+                AZ_Assert(
+                    id.IsValid(), "Entity '%s' was not found in Prefab Instance created from '%s' even though it was previously found.",
+                    targetPrefab->m_alias.c_str(), targetPrefab->m_prefabName.c_str());
+                entityAlias.m_target.emplace<EntityAliasSpawnableLink>(spawnable, id);
+            }
+        }
     }
 
     PrefabProcessorContext::ProcessedObjectStoreContainer& PrefabProcessorContext::GetProcessedObjects()
@@ -118,6 +192,46 @@ namespace AzToolsFramework::Prefab::PrefabConversionUtils
         return m_sourceUuid;
     }
 
+    void PrefabProcessorContext::ResolveLinks()
+    {
+        // Store the aliases visitor here when first encountered to avoid the visitor sorting the aliases for every addition.
+        // Once this map goes out of scope the visitors will be destroyed and in turn sort their aliases.
+        AZStd::unordered_map<AZ::Data::AssetId, AzFramework::Spawnable::EntityAliasVisitor> aliasVisitors;
+
+        for (EntityAliasStore& alias : m_entityAliases)
+        {
+            auto source = AZStd::get_if<EntityAliasSpawnableLink>(&alias.m_source);
+            AZ_Assert(source, "Entity alias found that has a source that's not yet resolved to a spawnable");
+            auto target = AZStd::get_if<EntityAliasSpawnableLink>(&alias.m_target);
+            AZ_Assert(target, "Entity alias found that has a target that's not yet resolved to a spawnable");
+
+            uint32_t sourceIndex = SpawnableUtils::FindEntityIndex(source->m_index, source->m_spawnable);
+            AZ_Assert(
+                sourceIndex != SpawnableUtils::InvalidEntityIndex, "Entity %zu not found in source spawnable while resolving to index.",
+                aznumeric_cast<AZ::u64>(source->m_index));
+            uint32_t targetIndex = SpawnableUtils::FindEntityIndex(target->m_index, target->m_spawnable);
+            AZ_Assert(
+                targetIndex != SpawnableUtils::InvalidEntityIndex, "Entity %zu not found in target spawnable while resolving to index.",
+                aznumeric_cast<AZ::u64>(target->m_index));
+
+            AZ::Data::AssetLoadBehavior loadBehavior = ToAssetLoadBehavior(alias.m_loadBehavior);
+
+            auto it = aliasVisitors.find(source->m_spawnable.GetId());
+            if (it == aliasVisitors.end())
+            {
+                AzFramework::Spawnable::EntityAliasVisitor visitor = source->m_spawnable.TryGetAliases();
+                AZ_Assert(visitor.HasLock(), "Unable to obtain lock for a newly create spawnable.");
+                it = aliasVisitors.emplace(source->m_spawnable.GetId(), AZStd::move(visitor)).first;
+            }
+            it->second.AddAlias(
+                AZ::Data::Asset<AzFramework::Spawnable>(&target->m_spawnable, loadBehavior), alias.m_tag, sourceIndex, targetIndex,
+                alias.m_aliasType, alias.m_loadBehavior == EntityAliasSpawnableLoadBehavior::QueueLoad);
+
+            // Register the dependency between the two spawnables.
+            RegisterProductAssetDependency(source->m_spawnable.GetId(), target->m_spawnable.GetId(), loadBehavior);
+        }
+    }
+
     bool PrefabProcessorContext::HasCompletedSuccessfully() const
     {
         return m_completedSuccessfully;
@@ -127,4 +241,10 @@ namespace AzToolsFramework::Prefab::PrefabConversionUtils
     {
         m_completedSuccessfully = false;
     }
+
+    AZ::Data::AssetLoadBehavior PrefabProcessorContext::ToAssetLoadBehavior(EntityAliasSpawnableLoadBehavior loadBehavior) const
+    {
+        return loadBehavior == EntityAliasSpawnableLoadBehavior::DependentLoad ? AZ::Data::AssetLoadBehavior::PreLoad
+                                                                               : AZ::Data::AssetLoadBehavior::NoLoad;
+    }
 } // namespace AzToolsFramework::Prefab::PrefabConversionUtils
diff --git a/Code/Framework/AzToolsFramework/AzToolsFramework/Prefab/Spawnable/PrefabProcessorContext.h b/Code/Framework/AzToolsFramework/AzToolsFramework/Prefab/Spawnable/PrefabProcessorContext.h
index 7c21d446de..7fc01367b2 100644
--- a/Code/Framework/AzToolsFramework/AzToolsFramework/Prefab/Spawnable/PrefabProcessorContext.h
+++ b/Code/Framework/AzToolsFramework/AzToolsFramework/Prefab/Spawnable/PrefabProcessorContext.h
@@ -9,24 +9,84 @@
 #pragma once
 
 #include <AzCore/Component/ComponentExport.h>
+#include <AzCore/IO/Path/Path.h>
 #include <AzCore/Memory/SystemAllocator.h>
 #include <AzCore/Serialization/Json/JsonSerialization.h>
 #include <AzCore/std/containers/unordered_map.h>
+#include <AzCore/std/containers/variant.h>
 #include <AzCore/std/containers/vector.h>
 #include <AzCore/std/functional.h>
 #include <AzCore/std/string/string.h>
 #include <AzCore/std/string/string_view.h>
+#include <AzFramework/Spawnable/Spawnable.h>
+#include <AzToolsFramework/Prefab/Instance/Instance.h>
 #include <AzToolsFramework/Prefab/PrefabDomTypes.h>
 #include <AzToolsFramework/Prefab/Spawnable/ProcesedObjectStore.h>
 
 namespace AzToolsFramework::Prefab::PrefabConversionUtils
 {
+    enum class EntityAliasType : uint8_t
+    {
+        Disabled,        //!< No alias is added.
+        OptionalReplace, //!< At runtime the entity might be replaced. If the alias is disabled the original entity will be spawned.
+                         //!<   The original entity will be left in the spawnable and a copy is returned.
+        Replace,         //!< At runtime the entity will be replaced. If the alias is disabled nothing will be spawned not. The original
+                         //!<   entity is returned and a blank entity is left.
+        Additional,      //!< At runtime the alias entity will be added as an additional but unrelated entity with a new entity id.
+                         //!<   An empty entity will be returned.
+        Merge            //!< At runtime the components in both entities will be merged. An empty entity will be returned. The added
+                         //!<   components may no conflict with the entities already in the root entity.
+    };
+
+    enum class EntityAliasSpawnableLoadBehavior : uint8_t
+    {
+        NoLoad,         //!< Don't load the spawnable referenced in the entity alias. Loading will be up to the caller.
+        QueueLoad,      //!< Queue the spawnable referenced in the entity alias for loading. This will be an async load because asset
+                        //!<    handlers aren't allowed to start a blocking load as this can lead to deadlocks.
+        DependentLoad   //!< The spawnable referenced in the entity alias is made a dependency of the spawnable that holds the entity
+                        //!<    alias. This will cause the spawnable to be automatically loaded along with the owning spawnable.
+    };
+
+    struct EntityAliasSpawnableLink
+    {
+        EntityAliasSpawnableLink() = default;
+        EntityAliasSpawnableLink(AzFramework::Spawnable& spawnable, AZ::EntityId index);
+
+        AzFramework::Spawnable& m_spawnable;
+        AZ::EntityId m_index;
+    };
+
+    struct EntityAliasPrefabLink
+    {
+        EntityAliasPrefabLink() = default;
+        EntityAliasPrefabLink(AZStd::string prefabName, AzToolsFramework::Prefab::AliasPath alias);
+
+        AZStd::string m_prefabName;
+        AzToolsFramework::Prefab::AliasPath m_alias;
+    };
+
+    struct EntityAliasStore
+    {
+        using LinkStore = AZStd::variant<AZStd::monostate, EntityAliasSpawnableLink, EntityAliasPrefabLink>;
+
+        LinkStore m_source;
+        LinkStore m_target;
+        uint32_t m_tag;
+        AzFramework::Spawnable::EntityAliasType m_aliasType;
+        EntityAliasSpawnableLoadBehavior m_loadBehavior;
+    };
+
+    struct AssetDependencyInfo
+    {
+        AZ::Data::AssetId m_assetId;
+        AZ::Data::AssetLoadBehavior m_loadBehavior;
+    };
+
     class PrefabProcessorContext
     {
     public:
         using ProcessedObjectStoreContainer = AZStd::vector<ProcessedObjectStore>;
-        using ProductAssetDependencyContainer =
-            AZStd::unordered_map<AZ::Data::AssetId, AZStd::unordered_set<AZ::Data::AssetId>>;
+        using ProductAssetDependencyContainer = AZStd::unordered_multimap<AZ::Data::AssetId, AssetDependencyInfo>;
 
         AZ_CLASS_ALLOCATOR(PrefabProcessorContext, AZ::SystemAllocator, 0);
         AZ_RTTI(PrefabProcessorContext, "{C7D77E3A-C544-486B-B774-7C82C38FE22F}");
@@ -39,11 +99,20 @@ namespace AzToolsFramework::Prefab::PrefabConversionUtils
         virtual void ListPrefabs(const AZStd::function<void(AZStd::string_view, const PrefabDom&)>& callback) const;
         virtual bool HasPrefabs() const;
 
-        virtual bool RegisterSpawnableProductAssetDependency(AZStd::string prefabName, AZStd::string dependentPrefabName);
-        virtual bool RegisterSpawnableProductAssetDependency(AZStd::string prefabName, const AZ::Data::AssetId& dependentAssetId);
-        virtual bool RegisterSpawnableProductAssetDependency(uint32_t spawnableAssetSubId, uint32_t dependentSpawnableAssetSubId);
+        virtual bool RegisterSpawnableProductAssetDependency(
+            AZStd::string prefabName, AZStd::string dependentPrefabName, EntityAliasSpawnableLoadBehavior loadBehavior);
+        virtual bool RegisterSpawnableProductAssetDependency(
+            AZStd::string prefabName, const AZ::Data::AssetId& dependentAssetId, EntityAliasSpawnableLoadBehavior loadBehavior);
+        virtual bool RegisterSpawnableProductAssetDependency(
+            uint32_t spawnableAssetSubId, uint32_t dependentSpawnableAssetSubId, EntityAliasSpawnableLoadBehavior loadBehavior);
         virtual bool RegisterProductAssetDependency(const AZ::Data::AssetId& assetId, const AZ::Data::AssetId& dependentAssetId);
+        virtual bool RegisterProductAssetDependency(
+            const AZ::Data::AssetId& assetId, const AZ::Data::AssetId& dependentAssetId, AZ::Data::AssetLoadBehavior loadBehavior);
 
+        virtual void RegisterSpawnableEntityAlias(EntityAliasStore link);
+        virtual void ResolveSpawnableEntityAliases(
+            AZStd::string_view prefabName, AzFramework::Spawnable& spawnable, const AzToolsFramework::Prefab::Instance& instance);
+        
         virtual ProcessedObjectStoreContainer& GetProcessedObjects();
         virtual const ProcessedObjectStoreContainer& GetProcessedObjects() const;
 
@@ -54,13 +123,19 @@ namespace AzToolsFramework::Prefab::PrefabConversionUtils
         virtual const AZ::PlatformTagSet& GetPlatformTags() const;
         virtual const AZ::Uuid& GetSourceUuid() const;
 
+        virtual void ResolveLinks();
+
         virtual bool HasCompletedSuccessfully() const;
         virtual void ErrorEncountered();
 
     protected:
         using NamedPrefabContainer = AZStd::unordered_map<AZStd::string, PrefabDom>;
+        using SpawnableEntityAliasStore = AZStd::vector<EntityAliasStore>;
+
+        AZ::Data::AssetLoadBehavior ToAssetLoadBehavior(EntityAliasSpawnableLoadBehavior loadBehavior) const;
 
         NamedPrefabContainer m_prefabs;
+        SpawnableEntityAliasStore m_entityAliases;
         ProcessedObjectStoreContainer m_products;
         ProductAssetDependencyContainer m_registeredProductAssetDependencies;
 
diff --git a/Code/Framework/AzToolsFramework/AzToolsFramework/Prefab/Spawnable/ProcesedObjectStore.cpp b/Code/Framework/AzToolsFramework/AzToolsFramework/Prefab/Spawnable/ProcesedObjectStore.cpp
index 9c59b6b559..a6770ee2c7 100644
--- a/Code/Framework/AzToolsFramework/AzToolsFramework/Prefab/Spawnable/ProcesedObjectStore.cpp
+++ b/Code/Framework/AzToolsFramework/AzToolsFramework/Prefab/Spawnable/ProcesedObjectStore.cpp
@@ -11,7 +11,16 @@
 
 namespace AzToolsFramework::Prefab::PrefabConversionUtils
 {
-    ProcessedObjectStore::ProcessedObjectStore(AZStd::string uniqueId, AZStd::unique_ptr<AZ::Data::AssetData> asset, SerializerFunction assetSerializer)
+    void ProcessedObjectStore::AssetSmartPtrDeleter::operator()(AZ::Data::AssetData* asset)
+    {
+        if (asset->GetUseCount() == 0)
+        {
+            // Only delete the asset if it wasn't turned into a full asset
+            delete asset;
+        }
+    }
+
+    ProcessedObjectStore::ProcessedObjectStore(AZStd::string uniqueId, AssetSmartPtr asset, SerializerFunction assetSerializer)
         : m_uniqueId(AZStd::move(uniqueId))
         , m_assetSerializer(AZStd::move(assetSerializer))
         , m_asset(AZStd::move(asset))
@@ -62,7 +71,7 @@ namespace AzToolsFramework::Prefab::PrefabConversionUtils
         return m_referencedAssets;
     }
 
-    AZStd::unique_ptr<AZ::Data::AssetData> ProcessedObjectStore::ReleaseAsset()
+    auto ProcessedObjectStore::ReleaseAsset() -> AssetSmartPtr
     {
         return AZStd::move(m_asset);
     }
@@ -72,6 +81,11 @@ namespace AzToolsFramework::Prefab::PrefabConversionUtils
         return AzFramework::SpawnableAssetHandler::BuildSubId(id);
     }
 
+    uint32_t ProcessedObjectStore::GetSubId() const
+    {
+        return m_asset->GetId().m_subId;
+    }
+
     const AZStd::string& ProcessedObjectStore::GetId() const
     {
         return m_uniqueId;
diff --git a/Code/Framework/AzToolsFramework/AzToolsFramework/Prefab/Spawnable/ProcesedObjectStore.h b/Code/Framework/AzToolsFramework/AzToolsFramework/Prefab/Spawnable/ProcesedObjectStore.h
index 61d529842c..c75e72840e 100644
--- a/Code/Framework/AzToolsFramework/AzToolsFramework/Prefab/Spawnable/ProcesedObjectStore.h
+++ b/Code/Framework/AzToolsFramework/AzToolsFramework/Prefab/Spawnable/ProcesedObjectStore.h
@@ -26,6 +26,12 @@ namespace AzToolsFramework::Prefab::PrefabConversionUtils
     public:
         using SerializerFunction = AZStd::function<bool(AZStd::vector<uint8_t>&, const ProcessedObjectStore&)>;
 
+        struct AssetSmartPtrDeleter
+        {
+            void operator()(AZ::Data::AssetData* asset);
+        };
+        using AssetSmartPtr = AZStd::unique_ptr<AZ::Data::AssetData, AssetSmartPtrDeleter>; 
+
         //! Constructs a new instance.
         //! @param uniqueId A name for the object that's unique within the scope of the Prefab. This name will be used to generate a sub id for the product
         //!     which requires that the name to be stable between runs.
@@ -37,24 +43,24 @@ namespace AzToolsFramework::Prefab::PrefabConversionUtils
         
         bool Serialize(AZStd::vector<uint8_t>& output) const;
         static uint32_t BuildSubId(AZStd::string_view id);
+        uint32_t GetSubId() const;
 
         bool HasAsset() const;
         const AZ::Data::AssetType& GetAssetType() const;
         const AZ::Data::AssetData& GetAsset() const;
         AZ::Data::AssetData& GetAsset();
-        AZStd::unique_ptr<AZ::Data::AssetData> ReleaseAsset();
+        AssetSmartPtr ReleaseAsset();
 
         AZStd::vector<AZ::Data::Asset<AZ::Data::AssetData>>& GetReferencedAssets();
         const AZStd::vector<AZ::Data::Asset<AZ::Data::AssetData>>& GetReferencedAssets() const;
 
-
         const AZStd::string& GetId() const;
 
     private:
-        ProcessedObjectStore(AZStd::string uniqueId, AZStd::unique_ptr<AZ::Data::AssetData> asset, SerializerFunction assetSerializer);
+        ProcessedObjectStore(AZStd::string uniqueId, AssetSmartPtr asset, SerializerFunction assetSerializer);
 
         SerializerFunction m_assetSerializer;
-        AZStd::unique_ptr<AZ::Data::AssetData> m_asset;
+        AssetSmartPtr m_asset;
         AZStd::vector<AZ::Data::Asset<AZ::Data::AssetData>> m_referencedAssets;
         AZStd::string m_uniqueId;
     };
@@ -66,7 +72,7 @@ namespace AzToolsFramework::Prefab::PrefabConversionUtils
         static_assert(AZStd::is_base_of_v<AZ::Data::AssetData, T>,
             "ProcessedObjectStore can only be created from a class that derives from AZ::Data::AssetData.");
         AZ::Data::AssetId assetId(sourceId, BuildSubId(uniqueId));
-        auto instance = AZStd::make_unique<T>(assetId, AZ::Data::AssetData::AssetStatus::Ready);
+        auto instance = AssetSmartPtr(aznew T(assetId, AZ::Data::AssetData::AssetStatus::Ready));
         ProcessedObjectStore resultLeft(AZStd::move(uniqueId), AZStd::move(instance), AZStd::move(assetSerializer));
         T* resultRight = static_cast<T*>(&resultLeft.GetAsset());
         return AZStd::make_pair<ProcessedObjectStore, T*>(AZStd::move(resultLeft), resultRight);
diff --git a/Code/Framework/AzToolsFramework/AzToolsFramework/Prefab/Spawnable/SpawnableUtils.cpp b/Code/Framework/AzToolsFramework/AzToolsFramework/Prefab/Spawnable/SpawnableUtils.cpp
index 902f439280..154337e957 100644
--- a/Code/Framework/AzToolsFramework/AzToolsFramework/Prefab/Spawnable/SpawnableUtils.cpp
+++ b/Code/Framework/AzToolsFramework/AzToolsFramework/Prefab/Spawnable/SpawnableUtils.cpp
@@ -8,9 +8,11 @@
 
 #include <AzToolsFramework/Prefab/Spawnable/SpawnableUtils.h>
 
+#include <AzCore/Component/ComponentApplicationBus.h>
 #include <AzCore/Component/Entity.h>
 #include <AzCore/Component/EntityUtils.h>
 #include <AzCore/Component/TransformBus.h>
+#include <AzCore/Serialization/SerializeContext.h>
 #include <AzCore/std/algorithm.h>
 #include <AzCore/std/smart_ptr/unique_ptr.h>
 #include <AzFramework/Spawnable/Spawnable.h>
@@ -20,18 +22,134 @@
 
 namespace AzToolsFramework::Prefab::SpawnableUtils
 {
+    namespace Internal
+    {
+        AZ::SerializeContext* GetSerializeContext()
+        {
+            AZ::SerializeContext* result = nullptr;
+            AZ::ComponentApplicationBus::BroadcastResult(result, &AZ::ComponentApplicationBus::Events::GetSerializeContext);
+            AZ_Assert(result, "SpawnbleUtils was unable to locate the Serialize Context.");
+            return result;
+        }
+
+        AZ::Entity* FindEntity(AZ::EntityId entity, AzToolsFramework::Prefab::Instance& source)
+        {
+            AZ::Entity* result = nullptr;
+            source.GetEntities(
+                [&result, entity](AZStd::unique_ptr<AZ::Entity>& instance)
+                {
+                    if (instance->GetId() != entity)
+                    {
+                        return true;
+                    }
+                    else
+                    {
+                        result = instance.get();
+                        return false;
+                    }
+                });
+            return result;
+        }
+
+        AZ::Entity* FindEntity(AZ::EntityId entity, AzFramework::Spawnable& source)
+        {
+            uint32_t index = AzToolsFramework::Prefab::SpawnableUtils::FindEntityIndex(entity, source);
+            return index != InvalidEntityIndex ? source.GetEntities()[index].get() : nullptr;
+        }
+
+        template<typename T>
+        AZStd::unique_ptr<AZ::Entity> CloneEntity(AZ::EntityId entity, T& source)
+        {
+            AZ::Entity* target = Internal::FindEntity(entity, source);
+            AZ_Assert(
+                target, "SpawnbleUtils were unable to locate entity with id %zu in Instance or Spawnable for cloning.",
+                aznumeric_cast<AZ::u64>(entity));
+            auto clone = AZStd::make_unique<AZ::Entity>();
+
+            static AZ::SerializeContext* sc = GetSerializeContext();
+            sc->CloneObjectInplace(*clone, target);
+            clone->SetId(AZ::Entity::MakeId());
+
+            return clone;        
+        }
+
+        AZStd::unique_ptr<AZ::Entity> ReplaceEntityWithPlaceholder(AZ::EntityId entity, AzToolsFramework::Prefab::Instance& source)
+        {
+            auto&& [instance, alias] = source.FindInstanceAndAlias(entity);
+            AZ_Assert(
+                instance, "SpawnbleUtils were unable to locate entity alias with id %zu in Instance '%s' for replacing.",
+                aznumeric_cast<AZ::u64>(entity), source.GetTemplateSourcePath().c_str());
+
+            EntityOptionalReference entityData = instance->GetEntity(alias);
+            AZ_Assert(
+                entityData.has_value(), "SpawnbleUtils were unable to locate entity '%.*s' in Instance '%s' for replacing.",
+                AZ_STRING_ARG(alias), source.GetTemplateSourcePath().c_str());
+            auto placeholder = AZStd::make_unique<AZ::Entity>(entityData->get().GetId(), entityData->get().GetName());
+            return instance->ReplaceEntity(AZStd::move(placeholder), alias);
+        }
+
+        AZStd::unique_ptr<AZ::Entity> ReplaceEntityWithPlaceholder(AZ::EntityId entity, AzFramework::Spawnable& source)
+        {
+            uint32_t index = AzToolsFramework::Prefab::SpawnableUtils::FindEntityIndex(entity, source);
+            AZ_Assert(
+                index != InvalidEntityIndex, "SpawnbleUtils were unable to locate entity alias with id %zu in Spawnable for replacing.",
+                aznumeric_cast<AZ::u64>(entity));
+
+            AZStd::unique_ptr<AZ::Entity> original = AZStd::move(source.GetEntities()[index]);
+            AZ_Assert(
+                original, "SpawnbleUtils were unable to locate entity with id %zu in Spawnable for replacing.",
+                aznumeric_cast<AZ::u64>(entity));
+
+            source.GetEntities()[index] = AZStd::make_unique<AZ::Entity>(original->GetId(), original->GetName());
+            
+            return original;
+        }
+
+        template<typename Source>
+        AZStd::pair<AZStd::unique_ptr<AZ::Entity>, AzFramework::Spawnable::EntityAliasType> ApplyAlias(
+            Source& source, AZ::EntityId entity, AzToolsFramework::Prefab::PrefabConversionUtils::EntityAliasType aliasType)
+        {
+            namespace PCU = AzToolsFramework::Prefab::PrefabConversionUtils;
+            using ResultPair = AZStd::pair<AZStd::unique_ptr<AZ::Entity>, AzFramework::Spawnable::EntityAliasType>;
+
+            switch (aliasType)
+            {
+            case PCU::EntityAliasType::Disabled:
+                // No need to do anything as the alias is disabled.
+                return ResultPair(nullptr, AzFramework::Spawnable::EntityAliasType::Disabled);
+            case PCU::EntityAliasType::OptionalReplace:
+                return ResultPair(CloneEntity(entity, source), AzFramework::Spawnable::EntityAliasType::Replace);
+            case PCU::EntityAliasType::Replace:
+                return ResultPair(ReplaceEntityWithPlaceholder(entity, source), AzFramework::Spawnable::EntityAliasType::Replace);
+            case PCU::EntityAliasType::Additional:
+                ResultPair(AZStd::make_unique<AZ::Entity>(AZ::Entity::MakeId()), AzFramework::Spawnable::EntityAliasType::Additional);
+            case PCU::EntityAliasType::Merge:
+                // Use the same entity id as the original entity so at runtime the entity ids can be verified to match.
+                ResultPair(AZStd::make_unique<AZ::Entity>(entity), AzFramework::Spawnable::EntityAliasType::Merge);
+            default:
+                AZ_Assert(
+                    false, "Invalid PrefabProcessorContext::EntityAliasType type (%i) provided.", aznumeric_cast<uint64_t>(aliasType));
+                return ResultPair(nullptr, AzFramework::Spawnable::EntityAliasType::Disabled);
+            }
+        }
+    }
+
     bool CreateSpawnable(AzFramework::Spawnable& spawnable, const PrefabDom& prefabDom)
     {
         AZStd::vector<AZ::Data::Asset<AZ::Data::AssetData>> referencedAssets;
         return CreateSpawnable(spawnable, prefabDom, referencedAssets);
     }
 
-    bool CreateSpawnable(AzFramework::Spawnable& spawnable, const PrefabDom& prefabDom, AZStd::vector<AZ::Data::Asset<AZ::Data::AssetData>>& referencedAssets)
+    bool CreateSpawnable(
+        AzFramework::Spawnable& spawnable,
+        const PrefabDom& prefabDom,
+        AZStd::vector<AZ::Data::Asset<AZ::Data::AssetData>>& referencedAssets)
     {
         Instance instance;
-        if (Prefab::PrefabDomUtils::LoadInstanceFromPrefabDom(instance, prefabDom, referencedAssets,
-            Prefab::PrefabDomUtils::LoadFlags::AssignRandomEntityId)) // Always assign random entity ids because the spawnable is
-                                                                              // going to be used to create clones of the entities.
+        if (Prefab::PrefabDomUtils::LoadInstanceFromPrefabDom(
+                instance, prefabDom, referencedAssets,
+                Prefab::PrefabDomUtils::LoadFlags::AssignRandomEntityId)) // Always assign random entity ids because the spawnable is
+                                                                          // going to be used to create clones of the entities.
         {
             AzFramework::Spawnable::EntityList& entities = spawnable.GetEntities();
             instance.DetachAllEntitiesInHierarchy(
@@ -47,6 +165,122 @@ namespace AzToolsFramework::Prefab::SpawnableUtils
         }
     }
 
+    AZ::Entity* CreateEntityAlias(
+        AZStd::string sourcePrefabName,
+        AzToolsFramework::Prefab::Instance& source,
+        AZStd::string targetPrefabName,
+        AzToolsFramework::Prefab::Instance& target,
+        AZ::EntityId entity,
+        AzToolsFramework::Prefab::PrefabConversionUtils::EntityAliasType aliasType,
+        AzToolsFramework::Prefab::PrefabConversionUtils::EntityAliasSpawnableLoadBehavior loadBehavior,
+        uint32_t tag,
+        AzToolsFramework::Prefab::PrefabConversionUtils::PrefabProcessorContext& context)
+    {
+        using namespace AzToolsFramework::Prefab::PrefabConversionUtils;
+
+        AliasPath alias = source.GetAliasPathRelativeToInstance(entity);
+        if (!alias.empty())
+        {
+            auto&& [replacement, storedAliasType] = Internal::ApplyAlias(source, entity, aliasType);
+
+            AZ::Entity* result = replacement.get();
+            target.AddEntity(AZStd::move(replacement), alias.Filename().Native());
+
+            EntityAliasStore store;
+            store.m_aliasType = storedAliasType;
+            store.m_source.emplace<EntityAliasPrefabLink>(AZStd::move(sourcePrefabName), AZStd::move(alias));
+            store.m_target.emplace<EntityAliasPrefabLink>(
+                AZStd::move(targetPrefabName), target.GetAliasPathRelativeToInstance(result->GetId()));
+            store.m_loadBehavior = loadBehavior;
+            store.m_tag = tag;
+            context.RegisterSpawnableEntityAlias(AZStd::move(store));
+
+            return result;
+        }
+        else
+        {
+            AZ_Assert(false, "Entity with id %zu was not found in the source prefab.", static_cast<AZ::u64>(entity));
+            return nullptr;
+        }
+    }
+
+    AZ::Entity* CreateEntityAlias(
+        AZStd::string sourcePrefabName,
+        AzToolsFramework::Prefab::Instance& source,
+        AzFramework::Spawnable& target,
+        AZ::EntityId entity,
+        AzToolsFramework::Prefab::PrefabConversionUtils::EntityAliasType aliasType,
+        AzToolsFramework::Prefab::PrefabConversionUtils::EntityAliasSpawnableLoadBehavior loadBehavior,
+        uint32_t tag,
+        AzToolsFramework::Prefab::PrefabConversionUtils::PrefabProcessorContext& context)
+    {
+        using namespace AzToolsFramework::Prefab::PrefabConversionUtils;
+
+        AliasPath alias = source.GetAliasPathRelativeToInstance(entity);
+        if (!alias.empty())
+        {
+            auto&& [replacement, storedAliasType] = Internal::ApplyAlias(source, entity, aliasType);
+
+            AZ::Entity* result = replacement.get();
+            target.GetEntities().push_back(AZStd::move(replacement));
+            
+            EntityAliasStore store;
+            store.m_aliasType = storedAliasType;
+            store.m_source.emplace<EntityAliasPrefabLink>(AZStd::move(sourcePrefabName), AZStd::move(alias));
+            store.m_target.emplace<EntityAliasSpawnableLink>(target, result->GetId());
+            store.m_tag = tag;
+            store.m_loadBehavior = loadBehavior;
+            context.RegisterSpawnableEntityAlias(AZStd::move(store));
+
+            return result;
+        }
+        else
+        {
+            AZ_Assert(false, "Entity with id %zu was not found in the source prefab.", static_cast<AZ::u64>(entity));
+            return nullptr;
+        }
+    }
+
+    AZ::Entity* CreateEntityAlias(
+        AzFramework::Spawnable& source,
+        AzFramework::Spawnable& target,
+        AZ::EntityId entity,
+        AzToolsFramework::Prefab::PrefabConversionUtils::EntityAliasType aliasType,
+        AzToolsFramework::Prefab::PrefabConversionUtils::EntityAliasSpawnableLoadBehavior loadBehavior,
+        uint32_t tag,
+        AzToolsFramework::Prefab::PrefabConversionUtils::PrefabProcessorContext& context)
+    {
+        using namespace AzToolsFramework::Prefab::PrefabConversionUtils;
+
+        auto&& [replacement, storedAliasType] = Internal::ApplyAlias(source, entity, aliasType);
+        AZ::Entity* result = replacement.get();
+        target.GetEntities().push_back(AZStd::move(replacement));
+
+        EntityAliasStore store;
+        store.m_aliasType = storedAliasType;
+        store.m_source.emplace<EntityAliasSpawnableLink>(source, entity);
+        store.m_target.emplace<EntityAliasSpawnableLink>(target, result->GetId());
+        store.m_tag = tag;
+        store.m_loadBehavior = loadBehavior;
+        context.RegisterSpawnableEntityAlias(AZStd::move(store));
+
+        return result;
+    }
+
+    uint32_t FindEntityIndex(AZ::EntityId entity, const AzFramework::Spawnable& spawnable)
+    {
+        auto begin = spawnable.GetEntities().begin();
+        auto end = spawnable.GetEntities().end();
+        for(auto it = begin; it != end; ++it)
+        {
+            if ((*it)->GetId() == entity)
+            {
+                return AZStd::distance(begin, it);
+            }
+        }
+        return InvalidEntityIndex;
+    }
+
     template<typename EntityPtr>
     void OrganizeEntitiesForSorting(
         AZStd::vector<EntityPtr>& entities,
diff --git a/Code/Framework/AzToolsFramework/AzToolsFramework/Prefab/Spawnable/SpawnableUtils.h b/Code/Framework/AzToolsFramework/AzToolsFramework/Prefab/Spawnable/SpawnableUtils.h
index ffcf13e081..892b83455d 100644
--- a/Code/Framework/AzToolsFramework/AzToolsFramework/Prefab/Spawnable/SpawnableUtils.h
+++ b/Code/Framework/AzToolsFramework/AzToolsFramework/Prefab/Spawnable/SpawnableUtils.h
@@ -8,14 +8,59 @@
 
 #pragma once
 
+#include <AzCore/Component/EntityId.h>
+#include <AzCore/std/limits.h>
 #include <AzFramework/Spawnable/Spawnable.h>
 #include <AzToolsFramework/Prefab/PrefabDomTypes.h>
+#include <AzToolsFramework/Prefab/Spawnable/PrefabProcessorContext.h>
+
+namespace AZ
+{
+    class Entity;
+}
+
+namespace AzToolsFramework::Prefab
+{
+    class Instance;
+}
 
 namespace AzToolsFramework::Prefab::SpawnableUtils
 {
+    static constexpr uint32_t InvalidEntityIndex = AZStd::numeric_limits<uint32_t>::max();
+
     bool CreateSpawnable(AzFramework::Spawnable& spawnable, const PrefabDom& prefabDom);
     bool CreateSpawnable(AzFramework::Spawnable& spawnable, const PrefabDom& prefabDom, AZStd::vector<AZ::Data::Asset<AZ::Data::AssetData>>& referencedAssets);
 
+    AZ::Entity* CreateEntityAlias(
+        AZStd::string sourcePrefabName,
+        AzToolsFramework::Prefab::Instance& source,
+        AZStd::string targetPrefabName,
+        AzToolsFramework::Prefab::Instance& target,
+        AZ::EntityId entity,
+        AzToolsFramework::Prefab::PrefabConversionUtils::EntityAliasType aliasType,
+        AzToolsFramework::Prefab::PrefabConversionUtils::EntityAliasSpawnableLoadBehavior loadBehavior,
+        uint32_t tag,
+        AzToolsFramework::Prefab::PrefabConversionUtils::PrefabProcessorContext& context);
+    AZ::Entity* CreateEntityAlias(
+        AZStd::string sourcePrefabName,
+        AzToolsFramework::Prefab::Instance& source,
+        AzFramework::Spawnable& target,
+        AZ::EntityId entity,
+        AzToolsFramework::Prefab::PrefabConversionUtils::EntityAliasType aliasType,
+        AzToolsFramework::Prefab::PrefabConversionUtils::EntityAliasSpawnableLoadBehavior loadBehavior,
+        uint32_t tag,
+        AzToolsFramework::Prefab::PrefabConversionUtils::PrefabProcessorContext& context);
+    AZ::Entity* CreateEntityAlias(
+        AzFramework::Spawnable& source,
+        AzFramework::Spawnable& target,
+        AZ::EntityId entity,
+        AzToolsFramework::Prefab::PrefabConversionUtils::EntityAliasType aliasType,
+        AzToolsFramework::Prefab::PrefabConversionUtils::EntityAliasSpawnableLoadBehavior loadBehavior,
+        uint32_t tag,
+        AzToolsFramework::Prefab::PrefabConversionUtils::PrefabProcessorContext& context);
+
+    uint32_t FindEntityIndex(AZ::EntityId entity, const AzFramework::Spawnable& spawnable);
+
     void SortEntitiesByTransformHierarchy(AzFramework::Spawnable& spawnable);
 
     template <typename EntityPtr>
diff --git a/Gems/Prefab/PrefabBuilder/PrefabBuilderComponent.cpp b/Gems/Prefab/PrefabBuilder/PrefabBuilderComponent.cpp
index a86d7b57e2..6107226783 100644
--- a/Gems/Prefab/PrefabBuilder/PrefabBuilderComponent.cpp
+++ b/Gems/Prefab/PrefabBuilder/PrefabBuilderComponent.cpp
@@ -175,6 +175,8 @@ namespace AZ::Prefab
         const AzToolsFramework::Prefab::PrefabConversionUtils::PrefabProcessorContext::ProductAssetDependencyContainer& registeredDependencies,
         AZStd::vector<AssetBuilderSDK::JobProduct>& outputProducts) const
     {
+        using namespace AzToolsFramework::Prefab::PrefabConversionUtils;
+
         outputProducts.reserve(store.size());
 
         AZStd::vector<uint8_t> data;
@@ -211,17 +213,14 @@ namespace AZ::Prefab
             if (AssetBuilderSDK::OutputObject(&object.GetAsset(), object.GetAssetType(), productPath.String(), object.GetAssetType(),
                 object.GetAsset().GetId().m_subId, product))
             {
-                auto findRegisteredDependencies = registeredDependencies.find(object.GetAsset().GetId());
-                if (findRegisteredDependencies != registeredDependencies.end())
-                {
-                    AZStd::transform(findRegisteredDependencies->second.begin(), findRegisteredDependencies->second.end(),
-                        AZStd::back_inserter(product.m_dependencies),
-                        [](const AZ::Data::AssetId& productId) -> AssetBuilderSDK::ProductDependency
-                        {
-                            return AssetBuilderSDK::ProductDependency(productId,
-                                AZ::Data::ProductDependencyInfo::CreateFlags(AZ::Data::AssetLoadBehavior::NoLoad));
-                        });
-                }
+                auto range = registeredDependencies.equal_range(object.GetAsset().GetId());
+                AZStd::transform(range.first, range.second,
+                    AZStd::back_inserter(product.m_dependencies),
+                    [](const auto& dependency) -> AssetBuilderSDK::ProductDependency
+                    {
+                        return AssetBuilderSDK::ProductDependency(
+                            dependency.second.m_assetId, AZ::Data::ProductDependencyInfo::CreateFlags(dependency.second.m_loadBehavior));
+                    });
 
                 outputProducts.push_back(AZStd::move(product));
             }