diff --git a/Templates/BaseGame/game/tools/materialEditor/scripts/materialEditor.ed.tscript b/Templates/BaseGame/game/tools/materialEditor/scripts/materialEditor.ed.tscript
index 1f2d4fdf6..a0919e915 100644
--- a/Templates/BaseGame/game/tools/materialEditor/scripts/materialEditor.ed.tscript
+++ b/Templates/BaseGame/game/tools/materialEditor/scripts/materialEditor.ed.tscript
@@ -2733,6 +2733,11 @@ function matEdDragNDropMapAssignment(%type, %payload)
    MaterialEditorGui.guiSync( materialEd_previewMaterial );
    
    MaterialEditorGui.doUpdateTextureMap( %assetId );
+   Canvas.popDialog(EditorDragAndDropLayer);
+   if(EditorSettings.value("AssetManagement/Assets/closeBrowserOnDragAction", false))
+   {
+        AssetBrowser.hideDialog();  
+   }
 }
 
 function materialEditorDiffuseMapContainer::onControlDropped( %this, %payload, %position )