diff --git a/Assets/Editor/Icons/AssetBrowser/Collapse_All.svg b/Assets/Editor/Icons/AssetBrowser/Collapse_All.svg
new file mode 100644
index 0000000000..7c7a7b85bd
--- /dev/null
+++ b/Assets/Editor/Icons/AssetBrowser/Collapse_All.svg
@@ -0,0 +1,14 @@
+<?xml version="1.0" encoding="utf-8"?>
+<svg version="1.1" id="Layer_1" xmlns="http://www.w3.org/2000/svg" xmlns:xlink="http://www.w3.org/1999/xlink" x="0px" y="0px"
+	 viewBox="0 0 24 24" style="enable-background:new 0 0 24 24;" xml:space="preserve">
+<path d="M3.145,8.433c0-1.47,1.196-2.666,2.666-2.666h9.544c-0.158-0.819-0.88-1.443-1.744-1.443H3.487
+	c-0.978,0-1.778,0.8-1.778,1.778v5.356c0,0.861,0.62,1.582,1.436,1.743V8.433z" fill="#FFFFFF"/>
+<g>
+	<path d="M6.833,11.654c0-1.47,1.196-2.666,2.666-2.666h9.069c-0.158-0.819-0.88-1.443-1.744-1.443H6.7
+		c-0.978,0-1.778,0.8-1.778,1.778v5.356c0,0.978,0.8,1.778,1.778,1.778h0.133V11.654z" fill="#FFFFFF"/>
+</g>
+<path d="M20.513,10.765H10.388c-0.978,0-1.778,0.8-1.778,1.777v5.356c0,0.978,0.8,1.778,1.778,1.778h10.125
+	c0.978,0,1.778-0.8,1.778-1.778v-5.356C22.29,11.565,21.49,10.765,20.513,10.765z M19.332,15.967h-7.763
+	c-0.264,0-0.478-0.355-0.478-0.793c0-0.438,0.214-0.793,0.478-0.793h7.763c0.264,0,0.478,0.355,0.478,0.793
+	C19.81,15.612,19.597,15.967,19.332,15.967z" fill="#FFFFFF"/>
+</svg>
diff --git a/Code/Editor/AzAssetBrowser/AzAssetBrowserWindow.cpp b/Code/Editor/AzAssetBrowser/AzAssetBrowserWindow.cpp
index a7faea36f6..36e08982a7 100644
--- a/Code/Editor/AzAssetBrowser/AzAssetBrowserWindow.cpp
+++ b/Code/Editor/AzAssetBrowser/AzAssetBrowserWindow.cpp
@@ -32,6 +32,15 @@ AZ_POP_DISABLE_DLL_EXPORT_MEMBER_WARNING
 
 AZ_CVAR_EXTERNED(bool, ed_useNewAssetBrowserTableView);
 
+namespace AzToolsFramework
+{
+    namespace AssetBrowser
+    {
+        static constexpr const char* CollapseAllIcon = "Assets/Editor/Icons/AssetBrowser/Collapse_All.svg";
+        static constexpr const char* MenuIcon = ":/Menu/menu.svg";
+    } // namespace AssetBrowser
+} // namespace AzToolsFramework
+
 class ListenerForShowAssetEditorEvent
     : public QObject
     , private AzToolsFramework::EditorEvents::Bus::Handler
@@ -87,10 +96,21 @@ AzAssetBrowserWindow::AzAssetBrowserWindow(QWidget* parent)
 
     m_assetBrowserModel->SetFilterModel(m_filterModel.data());
 
+    m_ui->m_collapseAllButton->setAutoRaise(true); // hover highlight
+    m_ui->m_collapseAllButton->setIcon(QIcon(AzAssetBrowser::CollapseAllIcon));
+
+    connect(
+        m_ui->m_collapseAllButton, &QToolButton::clicked, this,
+        [this]()
+        {
+            m_ui->m_assetBrowserTreeViewWidget->collapseAll();
+        });
+
     if (ed_useNewAssetBrowserTableView)
     {
         m_ui->m_toggleDisplayViewBtn->setVisible(true);
-        m_ui->m_toggleDisplayViewBtn->setIcon(QIcon(":/Menu/menu.svg"));
+        m_ui->m_toggleDisplayViewBtn->setAutoRaise(true);
+        m_ui->m_toggleDisplayViewBtn->setIcon(QIcon(AzAssetBrowser::MenuIcon));
 
         m_tableModel->setFilterRole(Qt::DisplayRole);
         m_tableModel->setSourceModel(m_filterModel.data());
diff --git a/Code/Editor/AzAssetBrowser/AzAssetBrowserWindow.ui b/Code/Editor/AzAssetBrowser/AzAssetBrowserWindow.ui
index a345438aed..2cc7c57ccd 100644
--- a/Code/Editor/AzAssetBrowser/AzAssetBrowserWindow.ui
+++ b/Code/Editor/AzAssetBrowser/AzAssetBrowserWindow.ui
@@ -72,6 +72,22 @@
            </property>
           </widget>
          </item>
+         <item>
+          <widget class="QToolButton" name="m_collapseAllButton">
+           <property name="focusPolicy">
+            <enum>Qt::ClickFocus</enum>
+           </property>
+           <property name="toolTip">
+            <string extracomment="Collapse All"/>
+           </property>
+           <property name="toolTipDuration">
+            <number>3</number>
+           </property>
+           <property name="text">
+            <string/>
+           </property>
+          </widget>
+         </item>
         </layout>
        </item>
        <item>
@@ -143,15 +159,6 @@
              <property name="sortingEnabled">
               <bool>true</bool>
              </property>
-             <attribute name="horizontalHeaderShowSortIndicator" stdset="0">
-              <bool>false</bool>
-             </attribute>
-             <attribute name="horizontalHeaderStretchLastSection">
-              <bool>true</bool>
-             </attribute>
-             <attribute name="verticalHeaderVisible">
-              <bool>false</bool>
-             </attribute>
             </widget>
            </item>
            <item>