diff --git a/Code/Framework/AzToolsFramework/AzToolsFramework/AssetEditor/AssetEditorWidget.cpp b/Code/Framework/AzToolsFramework/AzToolsFramework/AssetEditor/AssetEditorWidget.cpp
index 706d8243e2..a59b29ddf8 100644
--- a/Code/Framework/AzToolsFramework/AzToolsFramework/AssetEditor/AssetEditorWidget.cpp
+++ b/Code/Framework/AzToolsFramework/AzToolsFramework/AssetEditor/AssetEditorWidget.cpp
@@ -483,6 +483,8 @@ namespace AzToolsFramework
                         }
                     }
 
+                    m_dirty = false;
+
                     AddRecentPath(targetFilePath);
 
                     SetStatusText(Status::assetCreated);