diff --git a/AutomatedTesting/Editor/Scripts/scene_mesh_to_prefab.py b/AutomatedTesting/Editor/Scripts/scene_mesh_to_prefab.py
index 4aeff06f18..e832b1f82b 100644
--- a/AutomatedTesting/Editor/Scripts/scene_mesh_to_prefab.py
+++ b/AutomatedTesting/Editor/Scripts/scene_mesh_to_prefab.py
@@ -54,6 +54,30 @@ def get_mesh_node_names(sceneGraph):
 
     return meshDataList, paths
 
+def add_material_component(entity_id):
+    # Create an override AZ::Render::EditorMaterialComponent
+    editor_material_component = azlmbr.entity.EntityUtilityBus(
+        azlmbr.bus.Broadcast,
+        "GetOrAddComponentByTypeName",
+        entity_id,
+        "EditorMaterialComponent")
+
+    # this fills out the material asset to a known product AZMaterial asset relative path
+    json_update = json.dumps({
+            "Controller": { "Configuration": { "materials": [
+                {
+                    "Key": {},
+                    "Value": { "MaterialAsset":{
+                        "assetHint": "materials/basic_grey.azmaterial"
+                    }}
+                }]
+            }}
+        });
+    result = azlmbr.entity.EntityUtilityBus(azlmbr.bus.Broadcast, "UpdateComponentForEntity", entity_id, editor_material_component, json_update)
+
+    if not result:
+        raise RuntimeError("UpdateComponentForEntity for editor_material_component failed")
+
 def update_manifest(scene):
     import json
     import uuid, os
@@ -75,6 +99,7 @@ def update_manifest(scene):
 
     created_entities = []
     previous_entity_id = azlmbr.entity.InvalidEntityId
+    first_mesh = True
 
     # Loop every mesh node in the scene
     for activeMeshIndex in range(len(mesh_name_list)):
@@ -112,6 +137,11 @@ def update_manifest(scene):
         if not result:
             raise RuntimeError("UpdateComponentForEntity failed for Mesh component")
 
+        # an example of adding a material component to override the default material
+        if previous_entity_id is not None and first_mesh:
+            first_mesh = False
+            add_material_component(entity_id)
+
         # Get the transform component
         transform_component = azlmbr.entity.EntityUtilityBus(azlmbr.bus.Broadcast, "GetOrAddComponentByTypeName", entity_id, "27F1E1A1-8D9D-4C3B-BD3A-AFB9762449C0")
 
diff --git a/Code/Framework/AzToolsFramework/AzToolsFramework/UI/Prefab/PrefabIntegrationManager.cpp b/Code/Framework/AzToolsFramework/AzToolsFramework/UI/Prefab/PrefabIntegrationManager.cpp
index 16e3c047b5..526912cf29 100644
--- a/Code/Framework/AzToolsFramework/AzToolsFramework/UI/Prefab/PrefabIntegrationManager.cpp
+++ b/Code/Framework/AzToolsFramework/AzToolsFramework/UI/Prefab/PrefabIntegrationManager.cpp
@@ -766,15 +766,8 @@ namespace AzToolsFramework
             {
                 return false;
             }
-
             outPrefabAssetPath = product->GetRelativePath();
-
-            auto asset = AZ::Data::AssetManager::Instance().GetAsset(
-                product->GetAssetId(),
-                azrtti_typeid<AZ::Prefab::ProceduralPrefabAsset>(),
-                AZ::Data::AssetLoadBehavior::Default);
-
-            return asset.BlockUntilLoadComplete() != AZ::Data::AssetData::AssetStatus::Error;
+            return true;
         }
 
         void PrefabIntegrationManager::WarnUserOfError(AZStd::string_view title, AZStd::string_view message)
diff --git a/Gems/Prefab/PrefabBuilder/PrefabGroup/PrefabGroupBehavior.cpp b/Gems/Prefab/PrefabBuilder/PrefabGroup/PrefabGroupBehavior.cpp
index 44a95c1b6b..3bc8e9bff9 100644
--- a/Gems/Prefab/PrefabBuilder/PrefabGroup/PrefabGroupBehavior.cpp
+++ b/Gems/Prefab/PrefabBuilder/PrefabGroup/PrefabGroupBehavior.cpp
@@ -174,7 +174,7 @@ namespace AZ::SceneAPI::Behaviors
         const auto bytesWritten = fileStream.Write(sb.GetSize(), sb.GetString());
         if (bytesWritten > 1)
         {
-            AZ::u32 subId = AZ::Crc32(filePath.c_str());
+            AZ::u32 subId = AZ::Crc32(assetPath.c_str());
             context.GetProductList().AddProduct(
                 filePath,
                 context.GetScene().GetSourceGuid(),