diff --git a/Gems/Atom/RPI/Code/Source/RPI.Reflect/Material/MaterialTypeAsset.cpp b/Gems/Atom/RPI/Code/Source/RPI.Reflect/Material/MaterialTypeAsset.cpp
index 76634201eb..48654d7769 100644
--- a/Gems/Atom/RPI/Code/Source/RPI.Reflect/Material/MaterialTypeAsset.cpp
+++ b/Gems/Atom/RPI/Code/Source/RPI.Reflect/Material/MaterialTypeAsset.cpp
@@ -188,6 +188,10 @@ namespace AZ
         void MaterialTypeAsset::SetReady()
         {
             m_status = AssetStatus::Ready;
+
+            // If this was created dynamically using MaterialTypeAssetCreator (which is what calls SetReady()),
+            // we need to connect to the AssetBus for reloads.
+            PostLoadInit();
         }
 
         bool MaterialTypeAsset::PostLoadInit()
diff --git a/Gems/Atom/RPI/Code/Source/RPI.Reflect/Material/MaterialTypeAssetCreator.cpp b/Gems/Atom/RPI/Code/Source/RPI.Reflect/Material/MaterialTypeAssetCreator.cpp
index c81cf31d09..46086dfecc 100644
--- a/Gems/Atom/RPI/Code/Source/RPI.Reflect/Material/MaterialTypeAssetCreator.cpp
+++ b/Gems/Atom/RPI/Code/Source/RPI.Reflect/Material/MaterialTypeAssetCreator.cpp
@@ -43,7 +43,6 @@ namespace AZ
                 return false; 
             }
 
-            m_asset->PostLoadInit();
             m_asset->SetReady();
 
             m_materialShaderResourceGroupLayout = nullptr;