diff --git a/Code/Framework/AzToolsFramework/AzToolsFramework/UI/PropertyEditor/PropertyAssetCtrl.cpp b/Code/Framework/AzToolsFramework/AzToolsFramework/UI/PropertyEditor/PropertyAssetCtrl.cpp
index bd0cb3844a..e4a1a35b2c 100644
--- a/Code/Framework/AzToolsFramework/AzToolsFramework/UI/PropertyEditor/PropertyAssetCtrl.cpp
+++ b/Code/Framework/AzToolsFramework/AzToolsFramework/UI/PropertyEditor/PropertyAssetCtrl.cpp
@@ -102,7 +102,7 @@ namespace AzToolsFramework
         m_editButton->setAutoRaise(true);
         m_editButton->setIcon(QIcon(":/stylesheet/img/UI20/open-in-internal-app.svg"));
         m_editButton->setToolTip("Edit asset");
-        m_editButton->setVisible(false);
+        SetEditButtonVisible(false);
 
         connect(m_editButton, &QToolButton::clicked, this, &PropertyAssetCtrl::OnEditButtonClicked);
 
@@ -961,12 +961,16 @@ namespace AzToolsFramework
             AzFramework::StringFunc::Path::GetFileName(assetPath.c_str(), m_defaultAssetHint);
         }
         m_browseEdit->setPlaceholderText((m_defaultAssetHint + m_DefaultSuffix).c_str());
+
+        UpdateEditButton();
     }
 
     void PropertyAssetCtrl::UpdateAssetDisplay()
     {
         UpdateThumbnail();
 
+        UpdateEditButton();
+
         if (m_currentAssetType == AZ::Data::s_invalidAssetType)
         {
             return;
@@ -1109,7 +1113,9 @@ namespace AzToolsFramework
 
     void PropertyAssetCtrl::SetEditButtonVisible(bool visible)
     {
-        m_editButton->setVisible(visible);
+        m_showEditButton = visible;
+        m_editButton->setVisible(m_showEditButton);
+        UpdateEditButton();
     }
 
     void PropertyAssetCtrl::SetEditButtonIcon(const QIcon& icon)
@@ -1205,6 +1211,15 @@ namespace AzToolsFramework
         m_thumbnail->ClearThumbnail();
     }
 
+    void PropertyAssetCtrl::UpdateEditButton()
+    {
+        // if Edit button is in use (shown), enable/disable it depending on the current asset id.
+        if (m_showEditButton && m_disableEditButtonWhenNoAssetSelected)
+        {
+            m_editButton->setEnabled(GetCurrentAssetID().IsValid());
+        }
+    }
+
     void PropertyAssetCtrl::SetClearButtonEnabled(bool enable)
     {
         m_browseEdit->setClearButtonEnabled(enable);
@@ -1236,6 +1251,17 @@ namespace AzToolsFramework
         return m_hideProductFilesInAssetPicker;
     }
 
+    void PropertyAssetCtrl::SetDisableEditButtonWhenNoAssetSelected(bool disableEditButtonWhenNoAssetSelected)
+    {
+        m_disableEditButtonWhenNoAssetSelected = disableEditButtonWhenNoAssetSelected;
+        UpdateEditButton();
+    }
+
+    bool PropertyAssetCtrl::GetDisableEditButtonWhenNoAssetSelected() const
+    {
+        return m_disableEditButtonWhenNoAssetSelected;
+    }
+
     void PropertyAssetCtrl::SetShowThumbnail(bool enable)
     {
         m_showThumbnail = enable;
@@ -1349,6 +1375,12 @@ namespace AzToolsFramework
                 GUI->SetEditButtonTooltip(tr(buttonTooltip.c_str()));
             }
         }
+        else if (attrib == AZ_CRC_CE("DisableEditButtonWhenNoAssetSelected"))
+        {
+            bool disableEditButtonWhenNoAssetSelected = false;
+            attrValue->Read<bool>(disableEditButtonWhenNoAssetSelected);
+            GUI->SetDisableEditButtonWhenNoAssetSelected(disableEditButtonWhenNoAssetSelected);
+        }
         else if (attrib == AZ::Edit::Attributes::DefaultAsset)
         {
             AZ::Data::AssetId assetId;
@@ -1597,6 +1629,12 @@ namespace AzToolsFramework
                 GUI->SetEditButtonTooltip(tr(buttonTooltip.c_str()));
             }
         }
+        else if (attrib == AZ_CRC_CE("DisableEditButtonWhenNoAssetSelected"))
+        {
+            bool disableEditButtonWhenNoAssetSelected = false;
+            attrValue->Read<bool>(disableEditButtonWhenNoAssetSelected);
+            GUI->SetDisableEditButtonWhenNoAssetSelected(disableEditButtonWhenNoAssetSelected);
+        }
     }
 
     void SimpleAssetPropertyHandlerDefault::WriteGUIValuesIntoProperty(size_t index, PropertyAssetCtrl* GUI, property_t& instance, InstanceDataNode* node)
diff --git a/Code/Framework/AzToolsFramework/AzToolsFramework/UI/PropertyEditor/PropertyAssetCtrl.hxx b/Code/Framework/AzToolsFramework/AzToolsFramework/UI/PropertyEditor/PropertyAssetCtrl.hxx
index d6ff1b8de6..87fd691b20 100644
--- a/Code/Framework/AzToolsFramework/AzToolsFramework/UI/PropertyEditor/PropertyAssetCtrl.hxx
+++ b/Code/Framework/AzToolsFramework/AzToolsFramework/UI/PropertyEditor/PropertyAssetCtrl.hxx
@@ -159,6 +159,10 @@ namespace AzToolsFramework
         //! By default the asset picker shows both on an AZ::Asset<> property. You can hide product assets with this flag.
         bool m_hideProductFilesInAssetPicker = false;
 
+        //! True to disable the edit button when there is no asset currently selected.
+        bool m_disableEditButtonWhenNoAssetSelected = false;
+
+        bool m_showEditButton = false;
         bool m_showThumbnail = false;
         bool m_showThumbnailDropDownButton = false;
         EditCallbackType* m_thumbnailCallback = nullptr;
@@ -220,6 +224,9 @@ namespace AzToolsFramework
         void SetHideProductFilesInAssetPicker(bool hide);
         bool GetHideProductFilesInAssetPicker() const;
 
+        void SetDisableEditButtonWhenNoAssetSelected(bool disableEditButtonWhenNoAssetSelected);
+        bool GetDisableEditButtonWhenNoAssetSelected() const;
+
         // Enable and configure a thumbnail widget that displays an asset preview and dropdown arrow for a dropdown menu
         void SetShowThumbnail(bool enable);
         bool GetShowThumbnail() const;
@@ -250,6 +257,7 @@ namespace AzToolsFramework
 
     private:
         void UpdateThumbnail();
+        void UpdateEditButton();
     };
 
     class AssetPropertyHandlerDefault
diff --git a/Gems/PhysX/Code/Source/EditorColliderComponent.cpp b/Gems/PhysX/Code/Source/EditorColliderComponent.cpp
index 7e1d1c341f..69ae037e07 100644
--- a/Gems/PhysX/Code/Source/EditorColliderComponent.cpp
+++ b/Gems/PhysX/Code/Source/EditorColliderComponent.cpp
@@ -60,6 +60,7 @@ namespace PhysX
                         "Specifies the PhysX mesh collider asset for this PhysX collider component.")
                         ->Attribute(AZ_CRC_CE("EditButton"), "")
                         ->Attribute(AZ_CRC_CE("EditDescription"), "Open in Scene Settings")
+                        ->Attribute(AZ_CRC_CE("DisableEditButtonWhenNoAssetSelected"), true)
                     ->DataElement(AZ::Edit::UIHandlers::Default, &EditorProxyAssetShapeConfig::m_configuration, "Configuration",
                         "PhysX mesh asset collider configuration.")
                         ->Attribute(AZ::Edit::Attributes::Visibility, AZ::Edit::PropertyVisibility::ShowChildrenOnly);