diff --git a/Gems/Multiplayer/Code/Source/MultiplayerTypes.h b/Gems/Multiplayer/Code/Source/MultiplayerTypes.h
index 7ffaa8a56e..db4517b90b 100644
--- a/Gems/Multiplayer/Code/Source/MultiplayerTypes.h
+++ b/Gems/Multiplayer/Code/Source/MultiplayerTypes.h
@@ -70,6 +70,12 @@ namespace Multiplayer
         True
     };
 
+    enum class AutoActivate : uint8_t
+    {
+        DoNotActivate,
+        Activate
+    };
+
     // This is just a placeholder
     // The level/prefab cooking will devise the actual solution for identifying a dynamically spawnable entity within a prefab
     struct PrefabEntityId
diff --git a/Gems/Multiplayer/Code/Source/NetworkEntity/EntityReplication/EntityReplicationManager.cpp b/Gems/Multiplayer/Code/Source/NetworkEntity/EntityReplication/EntityReplicationManager.cpp
index 8db582f6e5..18fa338223 100644
--- a/Gems/Multiplayer/Code/Source/NetworkEntity/EntityReplication/EntityReplicationManager.cpp
+++ b/Gems/Multiplayer/Code/Source/NetworkEntity/EntityReplication/EntityReplicationManager.cpp
@@ -542,11 +542,8 @@ namespace Multiplayer
         // Create an entity if we don't have one
         if (createEntity)
         {
-            // @pereslav
-            //replicatorEntity = GetNetworkEntityManager()->CreateSingleEntityImmediateInternal(prefabEntityId, EntitySpawnType::Replicate, AutoActivate::DoNotActivate, netEntityId, localNetworkRole, AZ::Transform::Identity());
             INetworkEntityManager::EntityList entityList = GetNetworkEntityManager()->CreateEntitiesImmediate(
-                prefabEntityId, netEntityId, localNetworkRole,
-                AZ::Transform::Identity());
+                prefabEntityId, netEntityId, localNetworkRole, AutoActivate::DoNotActivate, AZ::Transform::Identity());
 
             if (entityList.size() == 1)
             {
diff --git a/Gems/Multiplayer/Code/Source/NetworkEntity/INetworkEntityManager.h b/Gems/Multiplayer/Code/Source/NetworkEntity/INetworkEntityManager.h
index 557a912a31..c79e45864d 100644
--- a/Gems/Multiplayer/Code/Source/NetworkEntity/INetworkEntityManager.h
+++ b/Gems/Multiplayer/Code/Source/NetworkEntity/INetworkEntityManager.h
@@ -55,7 +55,8 @@ namespace Multiplayer
         //! Creates new entities of the given archetype
         //! @param prefabEntryId the name of the spawnable to spawn
         virtual EntityList CreateEntitiesImmediate(
-            const PrefabEntityId& prefabEntryId, NetEntityId netEntityId, NetEntityRole netEntityRole, const AZ::Transform& transform) = 0;
+            const PrefabEntityId& prefabEntryId, NetEntityId netEntityId, NetEntityRole netEntityRole, AutoActivate autoActivate,
+            const AZ::Transform& transform) = 0;
 
         //! Returns an ConstEntityPtr for the provided entityId.
         //! @param netEntityId the netEntityId to get an ConstEntityPtr for
diff --git a/Gems/Multiplayer/Code/Source/NetworkEntity/NetworkEntityManager.cpp b/Gems/Multiplayer/Code/Source/NetworkEntity/NetworkEntityManager.cpp
index 43302efdaa..2eb93d706d 100644
--- a/Gems/Multiplayer/Code/Source/NetworkEntity/NetworkEntityManager.cpp
+++ b/Gems/Multiplayer/Code/Source/NetworkEntity/NetworkEntityManager.cpp
@@ -356,7 +356,7 @@ namespace Multiplayer
 
     INetworkEntityManager::EntityList NetworkEntityManager::CreateEntitiesImmediate(
         const PrefabEntityId& prefabEntryId, NetEntityId netEntityId, NetEntityRole netEntityRole,
-        const AZ::Transform& transform)
+        AutoActivate autoActivate, const AZ::Transform& transform)
     {
         INetworkEntityManager::EntityList returnList;
 
@@ -402,6 +402,11 @@ namespace Multiplayer
                     transformComponent->SetWorldTM(transform);
                 }
 
+                if (autoActivate == AutoActivate::DoNotActivate)
+                {
+                    clone->SetRuntimeActiveByDefault(false);
+                }
+
                 AzFramework::GameEntityContextRequestBus::Broadcast(
                     &AzFramework::GameEntityContextRequestBus::Events::AddGameEntity, clone);
 
diff --git a/Gems/Multiplayer/Code/Source/NetworkEntity/NetworkEntityManager.h b/Gems/Multiplayer/Code/Source/NetworkEntity/NetworkEntityManager.h
index 148645c638..f67d28bd7a 100644
--- a/Gems/Multiplayer/Code/Source/NetworkEntity/NetworkEntityManager.h
+++ b/Gems/Multiplayer/Code/Source/NetworkEntity/NetworkEntityManager.h
@@ -49,7 +49,7 @@ namespace Multiplayer
 
         EntityList CreateEntitiesImmediate(
             const PrefabEntityId& prefabEntryId, NetEntityId netEntityId, NetEntityRole netEntityRole,
-            const AZ::Transform& transform) override;
+            AutoActivate autoActivate, const AZ::Transform& transform) override;
 
         uint32_t GetEntityCount() const override;
         NetworkEntityHandle AddEntityToEntityMap(NetEntityId netEntityId, AZ::Entity* entity) override;