diff --git a/Gems/Multiplayer/Code/Source/Pipeline/NetworkPrefabProcessor.cpp b/Gems/Multiplayer/Code/Source/Pipeline/NetworkPrefabProcessor.cpp
index 27e59c0bf4..e9b7ace7c9 100644
--- a/Gems/Multiplayer/Code/Source/Pipeline/NetworkPrefabProcessor.cpp
+++ b/Gems/Multiplayer/Code/Source/Pipeline/NetworkPrefabProcessor.cpp
@@ -17,6 +17,8 @@
 #include <AzToolsFramework/Prefab/Instance/Instance.h>
 #include <AzToolsFramework/Prefab/PrefabDomUtils.h>
 #include <Prefab/Spawnable/SpawnableUtils.h>
+#include <Multiplayer/Components/NetworkHierarchyChildComponent.h>
+#include <Multiplayer/Components/NetworkHierarchyRootComponent.h>
 
 namespace Multiplayer
 {
@@ -93,6 +95,41 @@ namespace Multiplayer
         });
     }
 
+    static bool HasNetHierarchyComponents(const AZ::Entity* entity)
+    {
+        return (entity->FindComponent<NetworkHierarchyRootComponent>() != nullptr)
+            || (entity->FindComponent<NetworkHierarchyChildComponent>() != nullptr); 
+    }
+
+    static void ValidateNetHierarchies(const AZStd::vector<AZ::Entity*>& prefabNetEntities)
+    {
+        AZStd::unordered_map<AZ::EntityId, AZ::Entity*> prefabEntitesMap;
+
+        for (auto* entity : prefabNetEntities)
+        {
+            auto* entityTransform = entity->FindComponent<AzFramework::TransformComponent>();
+            AZ_Assert(entityTransform, "Net entities have to have Transform Component");
+
+            AZ::EntityId parentId = entityTransform->GetParentId();
+
+            // The input entities array is sorted in the parent to children order,
+            // so we only need to check against already iterated entities
+            if (parentId.IsValid() && prefabEntitesMap.contains(parentId))
+            {
+                AZ::Entity* parentEntity = prefabEntitesMap[parentId];
+                bool parentValid = HasNetHierarchyComponents(parentEntity);
+                AZ_Error("NetworkPrefabProcessor", parentValid, "Parent Entity %s must have a Network Hierarchy component assigned",
+                    parentEntity->GetName().c_str());
+
+                bool childValid = HasNetHierarchyComponents(entity);
+                AZ_Error("NetworkPrefabProcessor", childValid, "Child Entity %s must have a Network Hierarchy component assigned",
+                    entity->GetName().c_str());
+            }
+
+            prefabEntitesMap[entity->GetId()] = entity;
+        }
+    }
+
     void NetworkPrefabProcessor::ProcessPrefab(PrefabProcessorContext& context, AZStd::string_view prefabName, PrefabDom& prefab)
     {
         using namespace AzToolsFramework::Prefab;
@@ -131,6 +168,9 @@ namespace Multiplayer
         // Sort the entities prior to processing. The entities will end up in the net spawnable in this order.
         SpawnableUtils::SortEntitiesByTransformHierarchy(prefabNetEntities);
 
+        // Here we validate the hierarchical net entities have one of Network Hierarchy components.
+        ValidateNetHierarchies(prefabNetEntities);
+
         // Create an asset for our future network spawnable: this allows us to put references to the asset in the components
         AZ::Data::Asset<AzFramework::Spawnable> networkSpawnableAsset;
         networkSpawnableAsset.Create(networkSpawnable->GetId());