diff --git a/dev/Code/Framework/GridMate/GridMate/Carrier/Carrier.cpp b/dev/Code/Framework/GridMate/GridMate/Carrier/Carrier.cpp
index a74d611f5a..9697a952e5 100644
--- a/dev/Code/Framework/GridMate/GridMate/Carrier/Carrier.cpp
+++ b/dev/Code/Framework/GridMate/GridMate/Carrier/Carrier.cpp
@@ -1300,6 +1300,8 @@ CarrierThread::CarrierThread(const CarrierDesc& desc, AZStd::shared_ptr<Compress
         bool isInit = m_compressor->Init();
         AZ_UNUSED(isInit);
         AZ_Error("GridMate", isInit, "GridMate carrier failed to initialize compression\n");
+        
+        m_maxMsgDataSizeBytes -= k_sizeOfCompressedHintHeader;
     }
     //////////////////////////////////////////////////////////////////////////