diff --git a/Code/Framework/AzToolsFramework/AzToolsFramework/AssetBrowser/Thumbnails/FolderThumbnail.cpp b/Code/Framework/AzToolsFramework/AzToolsFramework/AssetBrowser/Thumbnails/FolderThumbnail.cpp
index 78681f3b4b..59bb8d940b 100644
--- a/Code/Framework/AzToolsFramework/AzToolsFramework/AssetBrowser/Thumbnails/FolderThumbnail.cpp
+++ b/Code/Framework/AzToolsFramework/AzToolsFramework/AssetBrowser/Thumbnails/FolderThumbnail.cpp
@@ -50,8 +50,8 @@ namespace AzToolsFramework
         //////////////////////////////////////////////////////////////////////////
         // FolderThumbnail
         //////////////////////////////////////////////////////////////////////////
-        static constexpr const char* FolderIconPath = "Icons/AssetBrowser/Folder_16.svg";
-        static constexpr const char* GemIconPath = "Icons/AssetBrowser/GemFolder_16.svg";
+        static constexpr const char* FolderIconPath = "Assets/Editor/Icons/AssetBrowser/Folder_16.svg";
+        static constexpr const char* GemIconPath = "Assets/Editor/Icons/AssetBrowser/GemFolder_16.svg";
 
         FolderThumbnail::FolderThumbnail(SharedThumbnailKey key)
             : Thumbnail(key)
diff --git a/Code/Framework/AzToolsFramework/AzToolsFramework/Thumbnails/LoadingThumbnail.cpp b/Code/Framework/AzToolsFramework/AzToolsFramework/Thumbnails/LoadingThumbnail.cpp
index fb9d156b20..f6578ad9d2 100644
--- a/Code/Framework/AzToolsFramework/AzToolsFramework/Thumbnails/LoadingThumbnail.cpp
+++ b/Code/Framework/AzToolsFramework/AzToolsFramework/Thumbnails/LoadingThumbnail.cpp
@@ -23,7 +23,7 @@ namespace AzToolsFramework
         //////////////////////////////////////////////////////////////////////////
         // LoadingThumbnail
         //////////////////////////////////////////////////////////////////////////
-        static const char* LoadingIconPath = "Icons/AssetBrowser/in_progress.gif";
+        static const char* LoadingIconPath = "Assets/Editor/Icons/AssetBrowser/in_progress.gif";
 
         LoadingThumbnail::LoadingThumbnail()
             : Thumbnail(MAKE_TKEY(ThumbnailKey))
diff --git a/Code/Framework/AzToolsFramework/AzToolsFramework/Thumbnails/MissingThumbnail.cpp b/Code/Framework/AzToolsFramework/AzToolsFramework/Thumbnails/MissingThumbnail.cpp
index 270a5b113f..7a7c98f764 100644
--- a/Code/Framework/AzToolsFramework/AzToolsFramework/Thumbnails/MissingThumbnail.cpp
+++ b/Code/Framework/AzToolsFramework/AzToolsFramework/Thumbnails/MissingThumbnail.cpp
@@ -10,18 +10,26 @@
 *
 */
 
+#include <AzCore/StringFunc/StringFunc.h>
+#include <AzFramework/API/ApplicationAPI.h>
 #include <AzToolsFramework/Thumbnails/MissingThumbnail.h>
 
 namespace AzToolsFramework
 {
     namespace Thumbnailer
     {
-        static const char* MISSING_ICON_PATH = "Icons/AssetBrowser/Default_16.svg";
+        static const char* MissingIconPath = "Assets/Editor/Icons/AssetBrowser/Default_16.svg";
 
         MissingThumbnail::MissingThumbnail()
             : Thumbnail(MAKE_TKEY(ThumbnailKey))
         {
-            m_pixmap.load(MISSING_ICON_PATH);
+            const char* engineRoot = nullptr;
+            AzFramework::ApplicationRequests::Bus::BroadcastResult(engineRoot, &AzFramework::ApplicationRequests::GetEngineRoot);
+            AZ_Assert(engineRoot, "Engine Root not initialized");
+            AZStd::string absoluteIconPath;
+            AZ::StringFunc::Path::Join(engineRoot, MissingIconPath, absoluteIconPath);
+
+            m_pixmap.load(absoluteIconPath.c_str());
             m_state = m_pixmap.isNull() ? State::Failed : State::Ready;
         }
 
diff --git a/Gems/Atom/Asset/ImageProcessingAtom/Code/Source/Thumbnail/ImageThumbnailSystemComponent.cpp b/Gems/Atom/Asset/ImageProcessingAtom/Code/Source/Thumbnail/ImageThumbnailSystemComponent.cpp
index 14f125c283..1af6563577 100644
--- a/Gems/Atom/Asset/ImageProcessingAtom/Code/Source/Thumbnail/ImageThumbnailSystemComponent.cpp
+++ b/Gems/Atom/Asset/ImageProcessingAtom/Code/Source/Thumbnail/ImageThumbnailSystemComponent.cpp
@@ -129,7 +129,7 @@ namespace ImageProcessingAtom
                 {
                     AZStd::string fullPath;
                     AZ::StringFunc::Path::Join(watchFolder.c_str(), assetInfo.m_relativePath.c_str(), fullPath);
-                    if (RenerThumbnailFromImage(thumbnailKey, thumbnailSize, IImageObjectPtr(LoadImageFromFile(fullPath))))
+                    if (RenderThumbnailFromImage(thumbnailKey, thumbnailSize, IImageObjectPtr(LoadImageFromFile(fullPath))))
                     {
                         return;
                     }
@@ -139,7 +139,7 @@ namespace ImageProcessingAtom
             auto productKey = azrtti_cast<const AzToolsFramework::AssetBrowser::ProductThumbnailKey*>(thumbnailKey.data());
             if (productKey)
             {
-                if (RenerThumbnailFromImage(thumbnailKey, thumbnailSize, Utils::LoadImageFromImageAsset(productKey->GetAssetId())))
+                if (RenderThumbnailFromImage(thumbnailKey, thumbnailSize, Utils::LoadImageFromImageAsset(productKey->GetAssetId())))
                 {
                     return;
                 }
@@ -149,7 +149,7 @@ namespace ImageProcessingAtom
                 thumbnailKey, &AzToolsFramework::Thumbnailer::ThumbnailerRendererNotifications::ThumbnailFailedToRender);
         }
 
-        bool ImageThumbnailSystemComponent::RenerThumbnailFromImage(
+        bool ImageThumbnailSystemComponent::RenderThumbnailFromImage(
             AzToolsFramework::Thumbnailer::SharedThumbnailKey thumbnailKey, int thumbnailSize, IImageObjectPtr previewImage) const
         {
             if (!previewImage)
diff --git a/Gems/Atom/Asset/ImageProcessingAtom/Code/Source/Thumbnail/ImageThumbnailSystemComponent.h b/Gems/Atom/Asset/ImageProcessingAtom/Code/Source/Thumbnail/ImageThumbnailSystemComponent.h
index 943857fd35..ca2453b532 100644
--- a/Gems/Atom/Asset/ImageProcessingAtom/Code/Source/Thumbnail/ImageThumbnailSystemComponent.h
+++ b/Gems/Atom/Asset/ImageProcessingAtom/Code/Source/Thumbnail/ImageThumbnailSystemComponent.h
@@ -52,7 +52,7 @@ namespace ImageProcessingAtom
             bool Installed() const override;
             void RenderThumbnail(AzToolsFramework::Thumbnailer::SharedThumbnailKey thumbnailKey, int thumbnailSize) override;
 
-            bool RenerThumbnailFromImage(
+            bool RenderThumbnailFromImage(
                 AzToolsFramework::Thumbnailer::SharedThumbnailKey thumbnailKey, int thumbnailSize, IImageObjectPtr previewImage) const;
         };
     } // namespace Thumbnails
diff --git a/Gems/AtomLyIntegration/CommonFeatures/Code/Source/Thumbnails/Rendering/ThumbnailRendererSteps/CaptureStep.cpp b/Gems/AtomLyIntegration/CommonFeatures/Code/Source/Thumbnails/Rendering/ThumbnailRendererSteps/CaptureStep.cpp
index f3c74629c2..16baf16886 100644
--- a/Gems/AtomLyIntegration/CommonFeatures/Code/Source/Thumbnails/Rendering/ThumbnailRendererSteps/CaptureStep.cpp
+++ b/Gems/AtomLyIntegration/CommonFeatures/Code/Source/Thumbnails/Rendering/ThumbnailRendererSteps/CaptureStep.cpp
@@ -37,6 +37,15 @@ namespace AZ
 
             void CaptureStep::Start()
             {
+                if (!m_context->GetData()->m_materialAsset ||
+                    !m_context->GetData()->m_modelAsset)
+                {
+                    AzToolsFramework::Thumbnailer::ThumbnailerRendererNotificationBus::Event(
+                        m_context->GetData()->m_thumbnailKeyRendered,
+                        &AzToolsFramework::Thumbnailer::ThumbnailerRendererNotifications::ThumbnailFailedToRender);
+                    m_context->SetStep(Step::FindThumbnailToRender);
+                    return;
+                }
                 Render::MaterialComponentRequestBus::Event(
                     m_context->GetData()->m_modelEntity->GetId(),
                     &Render::MaterialComponentRequestBus::Events::SetDefaultMaterialOverride,
diff --git a/Gems/AtomLyIntegration/CommonFeatures/Code/Source/Thumbnails/Rendering/ThumbnailRendererSteps/InitializeStep.cpp b/Gems/AtomLyIntegration/CommonFeatures/Code/Source/Thumbnails/Rendering/ThumbnailRendererSteps/InitializeStep.cpp
index 100b0f61cd..322c765f1b 100644
--- a/Gems/AtomLyIntegration/CommonFeatures/Code/Source/Thumbnails/Rendering/ThumbnailRendererSteps/InitializeStep.cpp
+++ b/Gems/AtomLyIntegration/CommonFeatures/Code/Source/Thumbnails/Rendering/ThumbnailRendererSteps/InitializeStep.cpp
@@ -189,6 +189,7 @@ namespace AZ
                     m_context->GetData()->DefaultModelPath,
                     RPI::ModelAsset::RTTI_Type(),
                     false);
+                AZ_Error("ThumbnailRenderer", defaultModelAssetId.IsValid(), "Default model asset is invalid. Verify the asset %s exists.", m_context->GetData()->DefaultModelPath);
                 if (m_context->GetData()->m_assetsToLoad.emplace(defaultModelAssetId).second)
                 {
                     data->m_defaultModelAsset.Create(defaultModelAssetId);
@@ -203,6 +204,7 @@ namespace AZ
                     m_context->GetData()->DefaultMaterialPath,
                     RPI::MaterialAsset::RTTI_Type(),
                     false);
+                AZ_Error("ThumbnailRenderer", defaultMaterialAssetId.IsValid(), "Default material asset is invalid. Verify the asset %s exists.", m_context->GetData()->DefaultMaterialPath);
                 if (m_context->GetData()->m_assetsToLoad.emplace(defaultMaterialAssetId).second)
                 {
                     data->m_defaultMaterialAsset.Create(defaultMaterialAssetId);