diff --git a/Code/Framework/AzToolsFramework/AzToolsFramework/UI/Prefab/PrefabIntegrationManager.cpp b/Code/Framework/AzToolsFramework/AzToolsFramework/UI/Prefab/PrefabIntegrationManager.cpp
index bc65b9088b..d61efe0b6d 100644
--- a/Code/Framework/AzToolsFramework/AzToolsFramework/UI/Prefab/PrefabIntegrationManager.cpp
+++ b/Code/Framework/AzToolsFramework/AzToolsFramework/UI/Prefab/PrefabIntegrationManager.cpp
@@ -341,7 +341,8 @@ namespace AzToolsFramework
             }
 
             // Instantiate Prefab
-            if (selectedEntities.size() == 1 && !readOnlyEntityInSelection && !onlySelectedEntityIsClosedPrefabContainer)
+            if (selectedEntities.size() == 0 ||
+                selectedEntities.size() == 1 && !readOnlyEntityInSelection && !onlySelectedEntityIsClosedPrefabContainer)
             {
                 QAction* instantiateAction = menu->addAction(QObject::tr("Instantiate Prefab..."));
                 instantiateAction->setToolTip(QObject::tr("Instantiates a prefab file in the scene."));