diff --git a/Code/Framework/AzNetworking/AzNetworking/AutoGen/AutoPacketDispatcher_Header.jinja b/Code/Framework/AzNetworking/AzNetworking/AutoGen/AutoPacketDispatcher_Header.jinja
index 63442ea1eb..1e9edc56bd 100644
--- a/Code/Framework/AzNetworking/AzNetworking/AutoGen/AutoPacketDispatcher_Header.jinja
+++ b/Code/Framework/AzNetworking/AzNetworking/AutoGen/AutoPacketDispatcher_Header.jinja
@@ -16,7 +16,7 @@ namespace {{ xml.attrib['Name'] }}
     //! @param handler      the handler used to handle the received packet
     //! @return boolean true on successful dispatch, false if the request was not handled
     template <typename HANDLER>
-    bool DispatchPacket(AzNetworking::IConnection* connection, const AzNetworking::IPacketHeader& packetHeader, AzNetworking::ISerializer& serializer, HANDLER& handler);
+    AzNetworking::PacketDispatchResult DispatchPacket(AzNetworking::IConnection* connection, const AzNetworking::IPacketHeader& packetHeader, AzNetworking::ISerializer& serializer, HANDLER& handler);
 }
 {% endfor %}
 
diff --git a/Code/Framework/AzNetworking/AzNetworking/AutoGen/AutoPacketDispatcher_Inline.jinja b/Code/Framework/AzNetworking/AzNetworking/AutoGen/AutoPacketDispatcher_Inline.jinja
index ac659820c3..9767828f3a 100644
--- a/Code/Framework/AzNetworking/AzNetworking/AutoGen/AutoPacketDispatcher_Inline.jinja
+++ b/Code/Framework/AzNetworking/AzNetworking/AutoGen/AutoPacketDispatcher_Inline.jinja
@@ -2,7 +2,7 @@
 namespace {{ xml.attrib['Name'] }}
 {
     template <typename HANDLER>
-    inline bool DispatchPacket(AzNetworking::IConnection* connection, const AzNetworking::IPacketHeader& packetHeader, AzNetworking::ISerializer& serializer, HANDLER& handler)
+    inline AzNetworking::PacketDispatchResult DispatchPacket(AzNetworking::IConnection* connection, const AzNetworking::IPacketHeader& packetHeader, AzNetworking::ISerializer& serializer, HANDLER& handler)
     {
         switch (aznumeric_cast<int32_t>(packetHeader.GetPacketType()))
         {
@@ -10,16 +10,26 @@ namespace {{ xml.attrib['Name'] }}
             case aznumeric_cast<int32_t>({{ Packet.attrib['Name'] }}::Type):
             {
                 AZLOG(Debug_DispatchPackets, "Received packet %s", "{{ Packet.attrib['Name'] }}");
+{%      if ('HandshakePacket' not in Packet.attrib) or (Packet.attrib['HandshakePacket'] == 'false') %}
+                if (!handler.IsHandshakeComplete())
+                {
+                    return AzNetworking::PacketDispatchResult::Pending;
+                }
+{% endif %}
+
                 {{ Packet.attrib['Name'] }} packet;
                 if (!serializer.Serialize(packet, "Packet"))
                 {
-                    return false;
+                    return AzNetworking::PacketDispatchResult::Failure;
+                }
+                if(handler.HandleRequest(connection, packetHeader, packet))
+                {
+                    return AzNetworking::PacketDispatchResult::Success;
                 }
-                return handler.HandleRequest(connection, packetHeader, packet);
             }
 {%      endfor %}
         }
-        return false;
+        return AzNetworking::PacketDispatchResult::Failure;
     }
 }
 {% endfor %}
diff --git a/Code/Framework/AzNetworking/AzNetworking/ConnectionLayer/IConnectionListener.h b/Code/Framework/AzNetworking/AzNetworking/ConnectionLayer/IConnectionListener.h
index 41e79e2207..f93e7d72f6 100644
--- a/Code/Framework/AzNetworking/AzNetworking/ConnectionLayer/IConnectionListener.h
+++ b/Code/Framework/AzNetworking/AzNetworking/ConnectionLayer/IConnectionListener.h
@@ -45,8 +45,8 @@ namespace AzNetworking
         //! @param connection   pointer to the connection instance generating the event
         //! @param packetHeader packet header of the associated payload
         //! @param serializer   serializer instance containing the transmitted payload
-        //! @return boolean true to signal success, false to disconnect with a transport error
-        virtual bool OnPacketReceived(IConnection* connection, const IPacketHeader& packetHeader, ISerializer& serializer) = 0;
+        //! @return PacketDispatchResult result of the packet handling attempt
+        virtual PacketDispatchResult OnPacketReceived(IConnection* connection, const IPacketHeader& packetHeader, ISerializer& serializer) = 0;
 
         //! Called when a packet is deemed lost by the remote connection.
         //! @param connection pointer to the connection instance generating the event
diff --git a/Code/Framework/AzNetworking/AzNetworking/PacketLayer/IPacketHeader.h b/Code/Framework/AzNetworking/AzNetworking/PacketLayer/IPacketHeader.h
index ea9734a867..f7ca7f0166 100644
--- a/Code/Framework/AzNetworking/AzNetworking/PacketLayer/IPacketHeader.h
+++ b/Code/Framework/AzNetworking/AzNetworking/PacketLayer/IPacketHeader.h
@@ -15,6 +15,12 @@
 
 namespace AzNetworking
 {
+    AZ_ENUM_CLASS(PacketDispatchResult
+        , Success
+        , Pending
+        , Failure
+    );
+
     AZ_ENUM_CLASS(PacketFlag
         , Compressed
         , MAX
diff --git a/Code/Framework/AzNetworking/AzNetworking/UdpTransport/UdpConnection.cpp b/Code/Framework/AzNetworking/AzNetworking/UdpTransport/UdpConnection.cpp
index 3efc6a51a8..7b451865c4 100644
--- a/Code/Framework/AzNetworking/AzNetworking/UdpTransport/UdpConnection.cpp
+++ b/Code/Framework/AzNetworking/AzNetworking/UdpTransport/UdpConnection.cpp
@@ -236,14 +236,14 @@ namespace AzNetworking
         return true;
     }
 
-    bool UdpConnection::HandleCorePacket(IConnectionListener& connectionListener, UdpPacketHeader& header, ISerializer& serializer)
+    PacketDispatchResult UdpConnection::HandleCorePacket(IConnectionListener& connectionListener, UdpPacketHeader& header, ISerializer& serializer)
     {
         switch (static_cast<CorePackets::PacketType>(header.GetPacketType()))
         {
         case CorePackets::PacketType::InitiateConnectionPacket:
         {
             AZLOG(NET_CorePackets, "Received core packet %s", "InitiateConnection");
-            return true;
+            return PacketDispatchResult::Success;
         }
         break;
 
@@ -253,7 +253,7 @@ namespace AzNetworking
             CorePackets::ConnectionHandshakePacket packet;
             if (!serializer.Serialize(packet, "Packet"))
             {
-                return false;
+                return PacketDispatchResult::Failure;
             }
 
             if (m_state != ConnectionState::Connected)
@@ -264,7 +264,7 @@ namespace AzNetworking
                 }
             }
 
-            return true;
+            return PacketDispatchResult::Success;
         }
         break;
 
@@ -274,10 +274,10 @@ namespace AzNetworking
             CorePackets::TerminateConnectionPacket packet;
             if (!serializer.Serialize(packet, "Packet"))
             {
-                return false;
+                return PacketDispatchResult::Failure;
             }
             Disconnect(packet.GetDisconnectReason(), TerminationEndpoint::Remote);
-            return true;
+            return PacketDispatchResult::Success;
         }
         break;
 
@@ -287,10 +287,10 @@ namespace AzNetworking
             CorePackets::HeartbeatPacket packet;
             if (!serializer.Serialize(packet, "Packet"))
             {
-                return false;
+                return PacketDispatchResult::Failure;
             }
             // Do nothing, we've already processed our ack packets
-            return true;
+            return PacketDispatchResult::Success;
         }
         break;
 
@@ -302,6 +302,6 @@ namespace AzNetworking
             AZ_Assert(false, "Unhandled core packet type!");
         }
 
-        return false;
+        return PacketDispatchResult::Failure;
     }
 }
diff --git a/Code/Framework/AzNetworking/AzNetworking/UdpTransport/UdpConnection.h b/Code/Framework/AzNetworking/AzNetworking/UdpTransport/UdpConnection.h
index 67d626d6cb..3d29cfcd23 100644
--- a/Code/Framework/AzNetworking/AzNetworking/UdpTransport/UdpConnection.h
+++ b/Code/Framework/AzNetworking/AzNetworking/UdpTransport/UdpConnection.h
@@ -131,7 +131,7 @@ namespace AzNetworking
         //! @param header     the packet header received to process
         //! @param serializer the output serializer containing the transmitted packet data
         //! @return boolean true on successful handling of the received header
-        bool HandleCorePacket(IConnectionListener& listener, UdpPacketHeader& header, ISerializer& serializer);
+        PacketDispatchResult HandleCorePacket(IConnectionListener& listener, UdpPacketHeader& header, ISerializer& serializer);
 
         AZ_DISABLE_COPY_MOVE(UdpConnection);
 
diff --git a/Code/Framework/AzNetworking/AzNetworking/UdpTransport/UdpFragmentQueue.cpp b/Code/Framework/AzNetworking/AzNetworking/UdpTransport/UdpFragmentQueue.cpp
index 66fe6f30eb..fa4ee78a92 100644
--- a/Code/Framework/AzNetworking/AzNetworking/UdpTransport/UdpFragmentQueue.cpp
+++ b/Code/Framework/AzNetworking/AzNetworking/UdpTransport/UdpFragmentQueue.cpp
@@ -37,14 +37,14 @@ namespace AzNetworking
         return m_sequenceGenerator.GetNextSequenceId();
     }
 
-    bool UdpFragmentQueue::ProcessReceivedChunk(UdpConnection* connection, IConnectionListener& connectionListener, UdpPacketHeader& header, ISerializer& serializer)
+    PacketDispatchResult UdpFragmentQueue::ProcessReceivedChunk(UdpConnection* connection, IConnectionListener& connectionListener, UdpPacketHeader& header, ISerializer& serializer)
     {
         AZStd::unique_ptr<CorePackets::FragmentedPacket> packet = AZStd::make_unique<CorePackets::FragmentedPacket>();
 
         if (!serializer.Serialize(*packet, "Packet"))
         {
             AZLOG(NET_FragmentQueue, "Fragment failed serialization");
-            return false;
+            return PacketDispatchResult::Failure;
         }
 
         const bool isReliable = header.GetIsReliable();
@@ -63,14 +63,14 @@ namespace AzNetworking
         {
             // Too old to process
             AZLOG(NET_FragmentQueue, "Fragment sequence ID is outside our tracked window");
-            return false;
+            return PacketDispatchResult::Failure;
         }
 
         if (m_deliveredFragments.GetBit(static_cast<uint32_t>(sequenceDelta)))
         {
             // Received packet is a duplicate of one already forwarded to gameplay
             AZLOG(NET_FragmentQueue, "Received duplicate of fragmented packet %u, discarding", static_cast<uint32_t>(fragmentSequence));
-            return true;
+            return PacketDispatchResult::Success;
         }
 
         const uint32_t chunkCount = packet->GetChunkCount();
@@ -89,7 +89,7 @@ namespace AzNetworking
         {
             // Either we disagree on the number of chunks, or chunkIndex is bigger than the expected size, bail and disconnect
             AZLOG(NET_FragmentQueue, "Malformed chunk metadata in fragmented packet, chunkIndex %u, chunkCount %u, reservedSize %u", chunkIndex, chunkCount, static_cast<uint32_t>(packetFragments.size()));
-            return false;
+            return PacketDispatchResult::Failure;
         }
 
         packetFragments[chunkIndex] = AZStd::move(packet);
@@ -105,7 +105,7 @@ namespace AzNetworking
                 }
 
                 // We haven't received all chunks required to complete this packet yet
-                return true;
+                return PacketDispatchResult::Success;
             }
 
             totalPacketSize += static_cast<uint32_t>(packetFragments[index]->GetChunkBuffer().GetSize());
@@ -119,7 +119,7 @@ namespace AzNetworking
         if (!buffer.Resize(totalPacketSize))
         {
             AZLOG_ERROR("Fragmented packet is too large to fit in UdpPacketEncodingBuffer");
-            return false;
+            return PacketDispatchResult::Failure;
         }
 
         uint8_t* bufferPointer = buffer.GetBuffer();
@@ -141,17 +141,17 @@ namespace AzNetworking
             if (!header.SerializePacketFlags(networkSerializer))
             {
                 AZLOG(NET_FragmentQueue, "Reconstructed fragmented packet failed packet flags serialization");
-                return false;
+                return PacketDispatchResult::Failure;
             }
 
             if (!networkISerializer.Serialize(header, "Header"))
             {
                 AZLOG(NET_FragmentQueue, "Reconstructed fragmented packet failed header serialization");
-                return false;
+                return PacketDispatchResult::Failure;
             }
         }
         connection->GetPacketTracker().ProcessReceived(connection, header);
-        bool handledPacket = false;
+        PacketDispatchResult handledPacket;
         if (header.GetPacketType() < aznumeric_cast<PacketType>(CorePackets::PacketType::MAX))
         {
             handledPacket = connection->HandleCorePacket(connectionListener, header, networkSerializer);
diff --git a/Code/Framework/AzNetworking/AzNetworking/UdpTransport/UdpFragmentQueue.h b/Code/Framework/AzNetworking/AzNetworking/UdpTransport/UdpFragmentQueue.h
index 38c4df4f0e..15d4cfa10c 100644
--- a/Code/Framework/AzNetworking/AzNetworking/UdpTransport/UdpFragmentQueue.h
+++ b/Code/Framework/AzNetworking/AzNetworking/UdpTransport/UdpFragmentQueue.h
@@ -9,6 +9,7 @@
 #pragma once
 
 #include <AzNetworking/PacketLayer/IPacket.h>
+#include <AzNetworking/PacketLayer/IPacketHeader.h>
 #include <AzNetworking/AutoGen/CorePackets.AutoPackets.h>
 #include <AzNetworking/ConnectionLayer/SequenceGenerator.h>
 #include <AzNetworking/DataStructures/RingBufferBitset.h>
@@ -44,8 +45,8 @@ namespace AzNetworking
         //! @param connectionListener the connection listener for delivery of completed packets
         //! @param header             the chunk packet header
         //! @param serializer         the serializer containing the chunk body
-        //! @return boolean true if the chunk was processed, false if an error was encountered
-        bool ProcessReceivedChunk(UdpConnection* connection, IConnectionListener& connectionListener, UdpPacketHeader& header, ISerializer& serializer);
+        //! @return PacketDispatchResult result of processing the chunk
+        PacketDispatchResult ProcessReceivedChunk(UdpConnection* connection, IConnectionListener& connectionListener, UdpPacketHeader& header, ISerializer& serializer);
 
     private:
 
diff --git a/Code/Framework/AzNetworking/AzNetworking/UdpTransport/UdpNetworkInterface.cpp b/Code/Framework/AzNetworking/AzNetworking/UdpTransport/UdpNetworkInterface.cpp
index d50b20831f..983b425b60 100644
--- a/Code/Framework/AzNetworking/AzNetworking/UdpTransport/UdpNetworkInterface.cpp
+++ b/Code/Framework/AzNetworking/AzNetworking/UdpTransport/UdpNetworkInterface.cpp
@@ -277,7 +277,7 @@ namespace AzNetworking
 
                 timeoutItem->UpdateTimeoutTime(startTimeMs);
 
-                bool handledPacket = false;
+                PacketDispatchResult handledPacket;
                 if (header.GetPacketType() < aznumeric_cast<PacketType>(CorePackets::PacketType::MAX))
                 {
                     handledPacket = connection->HandleCorePacket(m_connectionListener, header, packetSerializer);
@@ -287,7 +287,7 @@ namespace AzNetworking
                     handledPacket = m_connectionListener.OnPacketReceived(connection, header, packetSerializer);
                 }
 
-                if (handledPacket)
+                if (handledPacket == PacketDispatchResult::Success)
                 {
                     connection->UpdateHeartbeat(currentTimeMs);
                     if (connection->GetConnectionState() == ConnectionState::Connecting && !connection->GetDtlsEndpoint().IsConnecting())
@@ -299,10 +299,16 @@ namespace AzNetworking
                 else if (m_socket->IsEncrypted() && connection->GetDtlsEndpoint().IsConnecting() &&
                     !IsHandshakePacket(connection->GetDtlsEndpoint(), header.GetPacketType()))
                 {
-                    // It's possible for one side to finish its half of the handshake and start sending encrypted data
+                    // It's possible for one side to finish its half of the encryption handshake and start sending encrypted data
+                    // This will appear as a SerializationError due to the incomplete encryption handshake
                     // If it's not an expected unencrypted type then skip it for now
                     continue;
                 }
+                else if (handledPacket == PacketDispatchResult::Pending)
+                {
+                    // If we did not handle due to a handshake pending completion, defer it
+                    continue;
+                }
                 else if (connection->GetConnectionState() != ConnectionState::Disconnecting)
                 {
                     connection->Disconnect(DisconnectReason::StreamError, TerminationEndpoint::Local);
diff --git a/Gems/Multiplayer/Code/Source/AutoGen/Multiplayer.AutoPackets.xml b/Gems/Multiplayer/Code/Source/AutoGen/Multiplayer.AutoPackets.xml
index ce8931107f..203750d761 100644
--- a/Gems/Multiplayer/Code/Source/AutoGen/Multiplayer.AutoPackets.xml
+++ b/Gems/Multiplayer/Code/Source/AutoGen/Multiplayer.AutoPackets.xml
@@ -7,12 +7,12 @@
     <Include File="Multiplayer/NetworkEntity/NetworkEntityRpcMessage.h" />
     <Include File="Multiplayer/NetworkEntity/NetworkEntityUpdateMessage.h" />
 
-    <Packet Name="Connect" Desc="Client connection packet, on success the server will reply with an Accept">
+    <Packet Name="Connect" HandshakePacket="true" Desc="Client connection packet, on success the server will reply with an Accept">
         <Member Type="uint16_t" Name="networkProtocolVersion" Init="0" />
         <Member Type="Multiplayer::LongNetworkString" Name="ticket" />
     </Packet>
 
-    <Packet Name="Accept" Desc="Server accept packet">
+    <Packet Name="Accept" HandshakePacket="true" Desc="Server accept packet">
         <Member Type="Multiplayer::HostId" Name="hostId" Init="Multiplayer::InvalidHostId" />
         <Member Type="Multiplayer::LongNetworkString" Name="map" />
     </Packet>
diff --git a/Gems/Multiplayer/Code/Source/Editor/MultiplayerEditorConnection.cpp b/Gems/Multiplayer/Code/Source/Editor/MultiplayerEditorConnection.cpp
index fc398182ef..e634cb52fc 100644
--- a/Gems/Multiplayer/Code/Source/Editor/MultiplayerEditorConnection.cpp
+++ b/Gems/Multiplayer/Code/Source/Editor/MultiplayerEditorConnection.cpp
@@ -168,7 +168,7 @@ namespace Multiplayer
         ;
     }
 
-    bool MultiplayerEditorConnection::OnPacketReceived(AzNetworking::IConnection* connection, const IPacketHeader& packetHeader, ISerializer& serializer)
+    AzNetworking::PacketDispatchResult MultiplayerEditorConnection::OnPacketReceived(AzNetworking::IConnection* connection, const IPacketHeader& packetHeader, ISerializer& serializer)
     {
         return MultiplayerEditorPackets::DispatchPacket(connection, packetHeader, serializer, *this);
     }
diff --git a/Gems/Multiplayer/Code/Source/Editor/MultiplayerEditorConnection.h b/Gems/Multiplayer/Code/Source/Editor/MultiplayerEditorConnection.h
index 8c19848db7..8f1f90cc6b 100644
--- a/Gems/Multiplayer/Code/Source/Editor/MultiplayerEditorConnection.h
+++ b/Gems/Multiplayer/Code/Source/Editor/MultiplayerEditorConnection.h
@@ -33,6 +33,7 @@ namespace Multiplayer
         MultiplayerEditorConnection();
         ~MultiplayerEditorConnection() = default;
 
+        bool IsHandshakeComplete(){ return true; };
         bool HandleRequest(AzNetworking::IConnection* connection, const AzNetworking::IPacketHeader& packetHeader, MultiplayerEditorPackets::EditorServerInit& packet);
         bool HandleRequest(AzNetworking::IConnection* connection, const AzNetworking::IPacketHeader& packetHeader, MultiplayerEditorPackets::EditorServerReady& packet);
         
@@ -40,7 +41,7 @@ namespace Multiplayer
         //! @{
         AzNetworking::ConnectResult ValidateConnect(const AzNetworking::IpAddress& remoteAddress, const AzNetworking::IPacketHeader& packetHeader, AzNetworking::ISerializer& serializer) override;
         void OnConnect(AzNetworking::IConnection* connection) override;
-        bool OnPacketReceived(AzNetworking::IConnection* connection, const AzNetworking::IPacketHeader& packetHeader, AzNetworking::ISerializer& serializer) override;
+        AzNetworking::PacketDispatchResult OnPacketReceived(AzNetworking::IConnection* connection, const AzNetworking::IPacketHeader& packetHeader, AzNetworking::ISerializer& serializer) override;
         void OnPacketLost(AzNetworking::IConnection* connection, AzNetworking::PacketId packetId) override;
         void OnDisconnect(AzNetworking::IConnection* connection, AzNetworking::DisconnectReason reason, AzNetworking::TerminationEndpoint endpoint) override;
         //! @}
diff --git a/Gems/Multiplayer/Code/Source/MultiplayerSystemComponent.cpp b/Gems/Multiplayer/Code/Source/MultiplayerSystemComponent.cpp
index b0a8350982..c36f2e0f11 100644
--- a/Gems/Multiplayer/Code/Source/MultiplayerSystemComponent.cpp
+++ b/Gems/Multiplayer/Code/Source/MultiplayerSystemComponent.cpp
@@ -441,6 +441,11 @@ namespace Multiplayer
         MultiplayerPackets::SyncConsole m_syncPacket;
     };
 
+    bool MultiplayerSystemComponent::IsHandshakeComplete()
+    {
+        return m_didHandshake;
+    }
+
     bool MultiplayerSystemComponent::HandleRequest
     (
         [[maybe_unused]] AzNetworking::IConnection* connection,
@@ -465,6 +470,8 @@ namespace Multiplayer
 
         if (connection->SendReliablePacket(MultiplayerPackets::Accept(InvalidHostId, sv_map)))
         {
+            m_didHandshake = true;
+
             // Sync our console
             ConsoleReplicator consoleReplicator(connection);
             AZ::Interface<AZ::IConsole>::Get()->VisitRegisteredFunctors([&consoleReplicator](AZ::ConsoleFunctorBase* functor) { consoleReplicator.Visit(functor); });
@@ -480,6 +487,8 @@ namespace Multiplayer
         [[maybe_unused]] MultiplayerPackets::Accept& packet
     )
     {
+        m_didHandshake = true;
+
         AZ::CVarFixedString commandString = "sv_map " + packet.GetMap();
         AZ::Interface<AZ::IConsole>::Get()->PerformCommand(commandString.c_str());
 
@@ -670,7 +679,7 @@ namespace Multiplayer
         }
     }
 
-    bool MultiplayerSystemComponent::OnPacketReceived(AzNetworking::IConnection* connection, const IPacketHeader& packetHeader, ISerializer& serializer)
+    AzNetworking::PacketDispatchResult MultiplayerSystemComponent::OnPacketReceived(AzNetworking::IConnection* connection, const IPacketHeader& packetHeader, ISerializer& serializer)
     {
         return MultiplayerPackets::DispatchPacket(connection, packetHeader, serializer, *this);
     }
diff --git a/Gems/Multiplayer/Code/Source/MultiplayerSystemComponent.h b/Gems/Multiplayer/Code/Source/MultiplayerSystemComponent.h
index e2fb7deacc..74ba2ddf34 100644
--- a/Gems/Multiplayer/Code/Source/MultiplayerSystemComponent.h
+++ b/Gems/Multiplayer/Code/Source/MultiplayerSystemComponent.h
@@ -76,6 +76,7 @@ namespace Multiplayer
         int GetTickOrder() override;
         //! @}
 
+        bool IsHandshakeComplete();
         bool HandleRequest(AzNetworking::IConnection* connection, const AzNetworking::IPacketHeader& packetHeader, MultiplayerPackets::Connect& packet);
         bool HandleRequest(AzNetworking::IConnection* connection, const AzNetworking::IPacketHeader& packetHeader, MultiplayerPackets::Accept& packet);
         bool HandleRequest(AzNetworking::IConnection* connection, const AzNetworking::IPacketHeader& packetHeader, MultiplayerPackets::ReadyForEntityUpdates& packet);
@@ -89,7 +90,7 @@ namespace Multiplayer
         //! @{
         AzNetworking::ConnectResult ValidateConnect(const AzNetworking::IpAddress& remoteAddress, const AzNetworking::IPacketHeader& packetHeader, AzNetworking::ISerializer& serializer) override;
         void OnConnect(AzNetworking::IConnection* connection) override;
-        bool OnPacketReceived(AzNetworking::IConnection* connection, const AzNetworking::IPacketHeader& packetHeader, AzNetworking::ISerializer& serializer) override;
+        AzNetworking::PacketDispatchResult OnPacketReceived(AzNetworking::IConnection* connection, const AzNetworking::IPacketHeader& packetHeader, AzNetworking::ISerializer& serializer) override;
         void OnPacketLost(AzNetworking::IConnection* connection, AzNetworking::PacketId packetId) override;
         void OnDisconnect(AzNetworking::IConnection* connection, AzNetworking::DisconnectReason reason, AzNetworking::TerminationEndpoint endpoint) override;
         //! @}
@@ -158,6 +159,7 @@ namespace Multiplayer
         double m_serverSendAccumulator = 0.0;
         float m_renderBlendFactor = 0.0f;
         float m_tickFactor = 0.0f;
+        bool m_didHandshake = false;
 
 #if !defined(AZ_RELEASE_BUILD)
         MultiplayerEditorConnection m_editorConnectionListener;