diff --git a/Gems/Terrain/Code/Source/Components/TerrainPhysicsColliderComponent.cpp b/Gems/Terrain/Code/Source/Components/TerrainPhysicsColliderComponent.cpp
index 8c2c0e80b6..c51728a5c3 100644
--- a/Gems/Terrain/Code/Source/Components/TerrainPhysicsColliderComponent.cpp
+++ b/Gems/Terrain/Code/Source/Components/TerrainPhysicsColliderComponent.cpp
@@ -17,6 +17,7 @@
 #include <AzCore/Serialization/SerializeContext.h>
 
 #include <AzFramework/Physics/Material.h>
+#include <AzFramework/Physics/PhysicsSystem.h>
 #include <AzFramework/Terrain/TerrainDataRequestBus.h>
 
 namespace Terrain
@@ -43,11 +44,25 @@ namespace Terrain
                         AZ::Edit::UIHandlers::ComboBox, &TerrainPhysicsSurfaceMaterialMapping::m_surfaceTag, "Surface Tag",
                         "Surface type to map to a physics material.")
                     ->DataElement(AZ::Edit::UIHandlers::Default, &TerrainPhysicsSurfaceMaterialMapping::m_materialId, "Material ID", "")
+                    ->ElementAttribute(Physics::Attributes::MaterialLibraryAssetId, &TerrainPhysicsSurfaceMaterialMapping::GetMaterialLibraryId)
                     ->Attribute(AZ::Edit::Attributes::AutoExpand, true)
                     ->Attribute(AZ::Edit::Attributes::ShowProductAssetFileName, true);
             }
         }
     }
+
+    AZ::Data::AssetId TerrainPhysicsSurfaceMaterialMapping::GetMaterialLibraryId()
+    {
+        if (const auto* physicsSystem = AZ::Interface<AzPhysics::SystemInterface>::Get())
+        {
+            if (const auto* physicsConfiguration = physicsSystem->GetConfiguration())
+            {
+                return physicsConfiguration->m_materialLibraryAsset.GetId();
+            }
+        }
+        return {};
+    }
+
     void TerrainPhysicsColliderConfig::Reflect(AZ::ReflectContext* context)
     {
         TerrainPhysicsSurfaceMaterialMapping::Reflect(context);
diff --git a/Gems/Terrain/Code/Source/Components/TerrainPhysicsColliderComponent.h b/Gems/Terrain/Code/Source/Components/TerrainPhysicsColliderComponent.h
index 1a7fbf9c72..8a70f282d0 100644
--- a/Gems/Terrain/Code/Source/Components/TerrainPhysicsColliderComponent.h
+++ b/Gems/Terrain/Code/Source/Components/TerrainPhysicsColliderComponent.h
@@ -36,6 +36,9 @@ namespace Terrain
 
         SurfaceData::SurfaceTag m_surfaceTag;
         Physics::MaterialId m_materialId;
+
+    private:
+        static AZ::Data::AssetId GetMaterialLibraryId();
     };
 
     class TerrainPhysicsColliderConfig