diff --git a/Code/Tools/AssetProcessor/native/AssetManager/assetProcessorManager.cpp b/Code/Tools/AssetProcessor/native/AssetManager/assetProcessorManager.cpp
index 4cd4489a4c..fc806f6c9e 100644
--- a/Code/Tools/AssetProcessor/native/AssetManager/assetProcessorManager.cpp
+++ b/Code/Tools/AssetProcessor/native/AssetManager/assetProcessorManager.cpp
@@ -3573,19 +3573,61 @@ namespace AssetProcessor
                     QString knownPathBeforeWildcard = encodedFileData.left(slashBeforeWildcardIndex + 1); // include the slash
                     QString relativeSearch = encodedFileData.mid(slashBeforeWildcardIndex + 1); // skip the slash
 
-                    for (int i = 0; i < m_platformConfig->GetScanFolderCount(); ++i)
+                    // Absolute path, just check the 1 scan folder
+                    if (AZ::IO::PathView(encodedFileData.toUtf8().constData()).IsAbsolute())
                     {
-                        const ScanFolderInfo* scanFolderInfo = &m_platformConfig->GetScanFolderAt(i);
-
-                        if (!scanFolderInfo->RecurseSubFolders() && encodedFileData.contains("/"))
+                        QString scanFolderName;
+                        if (!m_platformConfig->ConvertToRelativePath(encodedFileData, resultDatabaseSourceName, scanFolderName))
                         {
-                            continue;
+                            AZ_Warning(
+                                AssetProcessor::ConsoleChannel, false,
+                                "'%s' does not appear to be in any input folder.  Use relative paths instead.",
+                                sourceDependency.m_sourceFileDependencyPath.c_str());
                         }
 
-                        QDir rooted(scanFolderInfo->ScanPath());
-                        QString absolutePath = rooted.absoluteFilePath(knownPathBeforeWildcard);
+                        auto scanFolderInfo = m_platformConfig->GetScanFolderByPath(scanFolderName);
+
+                        // Make an absolute path that is ScanFolderPath + Part of search path before the wildcard
+                        QDir rooted(scanFolderName);
+                        QString scanFolderAndKnownSubPath = rooted.absoluteFilePath(knownPathBeforeWildcard);
+
+                        resolvedDependencyList.append(m_platformConfig->FindWildcardMatches(
+                            scanFolderAndKnownSubPath, relativeSearch, false, scanFolderInfo->RecurseSubFolders()));
+                    }
+                    else // Relative path, check every scan folder
+                    {
+                        for (int i = 0; i < m_platformConfig->GetScanFolderCount(); ++i)
+                        {
+                            const ScanFolderInfo* scanFolderInfo = &m_platformConfig->GetScanFolderAt(i);
+
+                            if (!scanFolderInfo->RecurseSubFolders() && encodedFileData.contains("/"))
+                            {
+                                continue;
+                            }
 
-                        resolvedDependencyList.append(m_platformConfig->FindWildcardMatches(absolutePath, relativeSearch, false, scanFolderInfo->RecurseSubFolders()));
+                            QDir rooted(scanFolderInfo->ScanPath());
+                            QString absolutePath = rooted.absoluteFilePath(knownPathBeforeWildcard);
+
+                            resolvedDependencyList.append(m_platformConfig->FindWildcardMatches(
+                                absolutePath, relativeSearch, false, scanFolderInfo->RecurseSubFolders()));
+                        }
+                    }
+
+                    // Convert to relative paths
+                    for (auto dependencyItr = resolvedDependencyList.begin(); dependencyItr != resolvedDependencyList.end();) 
+                    {
+                        QString relativePath, scanFolder;
+                        if (m_platformConfig->ConvertToRelativePath(*dependencyItr, relativePath, scanFolder))
+                        {
+                            *dependencyItr = relativePath;
+                            ++dependencyItr;
+                        }
+                        else
+                        {
+                            AZ_Warning("AssetProcessor", false, "Failed to get relative path for wildcard dependency file %s.  Is the file within a scan folder?",
+                                dependencyItr->toUtf8().constData());
+                            dependencyItr = resolvedDependencyList.erase(dependencyItr);
+                        }
                     }
 
                     resultDatabaseSourceName = encodedFileData.replace('\\', '/');
diff --git a/Code/Tools/AssetProcessor/native/utilities/PlatformConfiguration.cpp b/Code/Tools/AssetProcessor/native/utilities/PlatformConfiguration.cpp
index 4a033cf6ca..9a60bf3110 100644
--- a/Code/Tools/AssetProcessor/native/utilities/PlatformConfiguration.cpp
+++ b/Code/Tools/AssetProcessor/native/utilities/PlatformConfiguration.cpp
@@ -1435,32 +1435,35 @@ namespace AssetProcessor
         return QString();
     }
 
-    QStringList PlatformConfiguration::FindWildcardMatches(const QString& sourceFolder, QString relativeName, bool includeFolders, bool recursiveSearch) const
+    QStringList PlatformConfiguration::FindWildcardMatches(
+        const QString& sourceFolder, QString relativeName, bool includeFolders, bool recursiveSearch) const
     {
         if (relativeName.isEmpty())
         {
             return QStringList();
         }
 
-        const int pathLen = sourceFolder.length() + 1;
+        QDir sourceFolderDir(sourceFolder);
 
-        relativeName.replace('\\', '/');
+        QString posixRelativeName = QDir::fromNativeSeparators(relativeName);
 
         QStringList returnList;
-        QRegExp nameMatch{ relativeName, Qt::CaseInsensitive, QRegExp::Wildcard };
-        QDirIterator diretoryIterator(sourceFolder, QDir::AllEntries | QDir::NoSymLinks | QDir::NoDotAndDotDot, recursiveSearch ? QDirIterator::Subdirectories : QDirIterator::NoIteratorFlags);
+        QRegExp nameMatch{ posixRelativeName, Qt::CaseInsensitive, QRegExp::Wildcard };
+        QDirIterator dirIterator(
+            sourceFolderDir.path(), QDir::AllEntries | QDir::NoSymLinks | QDir::NoDotAndDotDot,
+            recursiveSearch ? QDirIterator::Subdirectories : QDirIterator::NoIteratorFlags);
         QStringList files;
-        while (diretoryIterator.hasNext())
+        while (dirIterator.hasNext())
         {
-            diretoryIterator.next();
-            if (!includeFolders && !diretoryIterator.fileInfo().isFile())
+            dirIterator.next();
+            if (!includeFolders && !dirIterator.fileInfo().isFile())
             {
                 continue;
             }
-            QString pathMatch{ diretoryIterator.filePath().mid(pathLen) };
+            QString pathMatch{ sourceFolderDir.relativeFilePath(dirIterator.filePath()) };
             if (nameMatch.exactMatch(pathMatch))
             {
-                returnList.append(AssetUtilities::NormalizeFilePath(diretoryIterator.filePath()));
+                returnList.append(QDir::fromNativeSeparators(dirIterator.filePath()));
             }
         }
         return returnList;