diff --git a/Code/Framework/AzToolsFramework/AzToolsFramework/Entity/PrefabEditorEntityOwnershipService.cpp b/Code/Framework/AzToolsFramework/AzToolsFramework/Entity/PrefabEditorEntityOwnershipService.cpp
index dfcbfd8c45..2d97689610 100644
--- a/Code/Framework/AzToolsFramework/AzToolsFramework/Entity/PrefabEditorEntityOwnershipService.cpp
+++ b/Code/Framework/AzToolsFramework/AzToolsFramework/Entity/PrefabEditorEntityOwnershipService.cpp
@@ -88,13 +88,15 @@ namespace AzToolsFramework
     {
         if (m_rootInstance)
         {
+            AzToolsFramework::ToolsApplicationRequestBus::Broadcast(
+                &AzToolsFramework::ToolsApplicationRequestBus::Events::ClearDirtyEntities);
             Prefab::TemplateId templateId = m_rootInstance->GetTemplateId();
+            m_rootInstance->Reset();
             if (templateId != Prefab::InvalidTemplateId)
             {
                 m_rootInstance->SetTemplateId(Prefab::InvalidTemplateId);
                 m_prefabSystemComponent->RemoveTemplate(templateId);
             }
-            m_rootInstance->Reset();
             m_rootInstance->SetContainerEntityName("Level");
         }
 
diff --git a/Code/Framework/AzToolsFramework/AzToolsFramework/Prefab/Instance/Instance.cpp b/Code/Framework/AzToolsFramework/AzToolsFramework/Prefab/Instance/Instance.cpp
index 750efa1e36..043f864245 100644
--- a/Code/Framework/AzToolsFramework/AzToolsFramework/Prefab/Instance/Instance.cpp
+++ b/Code/Framework/AzToolsFramework/AzToolsFramework/Prefab/Instance/Instance.cpp
@@ -82,16 +82,7 @@ namespace AzToolsFramework
                 return;
             }
 
-            // If this instance's templateId is valid, we should be able to unregister this instance from 
-            // Template to Instance mapping successfully.
-            if (m_templateId != InvalidTemplateId &&
-                !m_templateInstanceMapper->UnregisterInstance(*this))
-            {
-                AZ_Assert(false,
-                    "Prefab - Attempted to Unregister Instance from Template with Id '%u'.  "
-                    "Instance may never have been registered or was unregistered early.",
-                    m_templateId);
-            }
+            m_templateInstanceMapper->UnregisterInstance(*this);
 
             m_templateId = templateId;
 
@@ -221,15 +212,7 @@ namespace AzToolsFramework
 
         void Instance::Reset()
         {
-            // Clean up Instance associations.
-            if (m_templateId != InvalidTemplateId && !m_templateInstanceMapper->UnregisterInstance(*this))
-            {
-                AZ_Assert(
-                    false,
-                    "Prefab - Attempted to unregister Instance from Template on file path '%s' with Id '%u'.  "
-                    "Instance may never have been registered or was unregistered early.",
-                    m_templateSourcePath.c_str(), m_templateId);
-            }
+            m_templateInstanceMapper->UnregisterInstance(*this);
 
             ClearEntities();