diff --git a/Code/Framework/AzToolsFramework/AzToolsFramework/Entity/PrefabEditorEntityOwnershipService.cpp b/Code/Framework/AzToolsFramework/AzToolsFramework/Entity/PrefabEditorEntityOwnershipService.cpp
index 336b56653b..0ddfdc8536 100644
--- a/Code/Framework/AzToolsFramework/AzToolsFramework/Entity/PrefabEditorEntityOwnershipService.cpp
+++ b/Code/Framework/AzToolsFramework/AzToolsFramework/Entity/PrefabEditorEntityOwnershipService.cpp
@@ -524,8 +524,6 @@ namespace AzToolsFramework
                                 rootSpawnableIndex = m_playInEditorData.m_assets.size();
                             }
 
-                            LoadReferencedAssets(product.GetReferencedAssets());
-
                             AZ::Data::AssetInfo info;
                             info.m_assetId = product.GetAsset().GetId();
                             info.m_assetType = product.GetAssetType();
@@ -536,6 +534,11 @@ namespace AzToolsFramework
                             m_playInEditorData.m_assets.emplace_back(product.ReleaseAsset().release(), AZ::Data::AssetLoadBehavior::Default);
                         }
 
+                        for (auto& product : context.GetProcessedObjects())
+                        {
+                            LoadReferencedAssets(product.GetReferencedAssets());
+                        }
+
                         // make sure that PRE_NOTIFY assets get their notify before we activate, so that we can preserve the order of 
                         // (load asset) -> (notify) -> (init) -> (activate)
                         AZ::Data::AssetManager::Instance().DispatchEvents();