diff --git a/Gems/LyShine/Code/Tests/LyShineEditorTest.cpp b/Gems/LyShine/Code/Tests/LyShineEditorTest.cpp
index 9e57ac26fd..68da6e6009 100644
--- a/Gems/LyShine/Code/Tests/LyShineEditorTest.cpp
+++ b/Gems/LyShine/Code/Tests/LyShineEditorTest.cpp
@@ -16,6 +16,7 @@
 #include <CryCommon/Mocks/ISystemMock.h>
 #include <LyShineBuilder/UiCanvasBuilderWorker.h>
 #include <AzCore/IO/Path/Path.h>
+#include <AzCore/Settings/SettingsRegistryMergeUtils.h>
 #include <AzCore/UserSettings/UserSettingsComponent.h>
 #include <AzCore/Utils/Utils.h>
 #include <AzToolsFramework/Application/ToolsApplication.h>
@@ -88,6 +89,12 @@ protected:
         m_data->m_stubEnv.pSystem = &m_data->m_mockSystem;
         gEnv = &m_data->m_stubEnv;
 
+        AZ::SettingsRegistryInterface* registry = AZ::SettingsRegistry::Get();
+        auto projectPathKey =
+            AZ::SettingsRegistryInterface::FixedValueString(AZ::SettingsRegistryMergeUtils::BootstrapSettingsRootKey) + "/project_path";
+        registry->Set(projectPathKey, "AutomatedTesting");
+        AZ::SettingsRegistryMergeUtils::MergeSettingsToRegistry_AddRuntimeFilePaths(*registry);
+
         m_app.Start(m_descriptor);
         // Without this, the user settings component would attempt to save on finalize/shutdown. Since the file is
         // shared across the whole engine, if multiple tests are run in parallel, the saving could cause a crash 
diff --git a/Gems/Prefab/PrefabBuilder/PrefabBuilderTests.cpp b/Gems/Prefab/PrefabBuilder/PrefabBuilderTests.cpp
index 2bb0d8aaf3..ace089b9bd 100644
--- a/Gems/Prefab/PrefabBuilder/PrefabBuilderTests.cpp
+++ b/Gems/Prefab/PrefabBuilder/PrefabBuilderTests.cpp
@@ -14,6 +14,7 @@
 #include <AzCore/Component/TransformBus.h>
 #include <AzCore/Serialization/Json/JsonSystemComponent.h>
 #include <AzCore/Serialization/Json/RegistrationContext.h>
+#include <AzCore/Settings/SettingsRegistryMergeUtils.h>
 #include <AzCore/UserSettings/UserSettingsComponent.h>
 
 namespace UnitTest
@@ -172,6 +173,12 @@ namespace UnitTest
 
     void PrefabBuilderTests::SetUp()
     {
+        AZ::SettingsRegistryInterface* registry = AZ::SettingsRegistry::Get();
+        auto projectPathKey =
+            AZ::SettingsRegistryInterface::FixedValueString(AZ::SettingsRegistryMergeUtils::BootstrapSettingsRootKey) + "/project_path";
+        registry->Set(projectPathKey, "AutomatedTesting");
+        AZ::SettingsRegistryMergeUtils::MergeSettingsToRegistry_AddRuntimeFilePaths(*registry);
+
         AZ::ComponentApplication::Descriptor desc;
         m_app.Start(desc);
         m_app.CreateReflectionManager();