diff --git a/Code/Tools/LuaIDE/Source/LUA/LUAEditorMainWindow.cpp b/Code/Tools/LuaIDE/Source/LUA/LUAEditorMainWindow.cpp
index c05e11f575..65008f08bb 100644
--- a/Code/Tools/LuaIDE/Source/LUA/LUAEditorMainWindow.cpp
+++ b/Code/Tools/LuaIDE/Source/LUA/LUAEditorMainWindow.cpp
@@ -372,9 +372,17 @@ namespace LUAEditor
         StringFilter* stringFilter = new StringFilter();
         stringFilter->SetFilterPropagation(AssetTypeFilter::PropagateDirection::Up);
 
-        connect(m_gui->m_assetBrowserSearchWidget, &AzQtComponents::FilteredSearchWidget::TextFilterChanged, this, [stringFilter](const QString& newString)
+        connect(m_gui->m_assetBrowserSearchWidget, &AzQtComponents::FilteredSearchWidget::TextFilterChanged, this, [&, stringFilter](const QString& newString)
         {
             stringFilter->SetFilterString(newString);
+            if (newString.isEmpty())
+            {
+                m_gui->m_assetBrowserTreeView->collapseAll();
+            }
+            else
+            {
+                m_gui->m_assetBrowserTreeView->expandAll();
+            }
         });
 
         // Construct the final filter where they are all and'd together