diff --git a/com.unity.netcode.gameobjects/CHANGELOG.md b/com.unity.netcode.gameobjects/CHANGELOG.md
index 0f5ee9b0d9..26853592f8 100644
--- a/com.unity.netcode.gameobjects/CHANGELOG.md
+++ b/com.unity.netcode.gameobjects/CHANGELOG.md
@@ -10,6 +10,8 @@ Additional documentation and release notes are available at [Multiplayer Documen
 
 ### Added
 
+- Added `NetworkObject.SpawnWithObservers` property (default is true) that when set to false will spawn a `NetworkObject` with no observers and will not be spawned on any client until `NetworkObject.NetworkShow` is invoked. (#2568)
+
 ### Fixed
 
 - Fixed warning "Runtime Network Prefabs was not empty at initialization time." being erroneously logged when no runtime network prefabs had been added (#2565)
diff --git a/com.unity.netcode.gameobjects/Runtime/Core/NetworkObject.cs b/com.unity.netcode.gameobjects/Runtime/Core/NetworkObject.cs
index bbabe2e98a..3643d44a57 100644
--- a/com.unity.netcode.gameobjects/Runtime/Core/NetworkObject.cs
+++ b/com.unity.netcode.gameobjects/Runtime/Core/NetworkObject.cs
@@ -188,6 +188,12 @@ internal void GenerateGlobalObjectIdHash()
         /// </remarks>
         public Action OnMigratedToNewScene;
 
+        /// <summary>
+        /// When set to false, the NetworkObject will be spawned with no observers initially (other than the server)
+        /// </summary>
+        [Tooltip("When false, the NetworkObject will spawn with no observers initially. (default is true)")]
+        public bool SpawnWithObservers = true;
+
         /// <summary>
         /// Delegate type for checking visibility
         /// </summary>
diff --git a/com.unity.netcode.gameobjects/Runtime/Spawning/NetworkSpawnManager.cs b/com.unity.netcode.gameobjects/Runtime/Spawning/NetworkSpawnManager.cs
index 0cb3c9db9a..a82aa6b90d 100644
--- a/com.unity.netcode.gameobjects/Runtime/Spawning/NetworkSpawnManager.cs
+++ b/com.unity.netcode.gameobjects/Runtime/Spawning/NetworkSpawnManager.cs
@@ -617,8 +617,10 @@ private void SpawnNetworkObjectLocallyCommon(NetworkObject networkObject, ulong
                 }
             }
 
-            if (NetworkManager.IsServer)
+            // If we are the server and should spawn with observers
+            if (NetworkManager.IsServer && networkObject.SpawnWithObservers)
             {
+                // Add client observers
                 for (int i = 0; i < NetworkManager.ConnectedClientsList.Count; i++)
                 {
                     if (networkObject.CheckObjectVisibility == null || networkObject.CheckObjectVisibility(NetworkManager.ConnectedClientsList[i].ClientId))
diff --git a/com.unity.netcode.gameobjects/Tests/Runtime/NetworkObject/NetworkObjectOnSpawnTests.cs b/com.unity.netcode.gameobjects/Tests/Runtime/NetworkObject/NetworkObjectOnSpawnTests.cs
index f07b196378..87ec8066e8 100644
--- a/com.unity.netcode.gameobjects/Tests/Runtime/NetworkObject/NetworkObjectOnSpawnTests.cs
+++ b/com.unity.netcode.gameobjects/Tests/Runtime/NetworkObject/NetworkObjectOnSpawnTests.cs
@@ -14,6 +14,86 @@ public class NetworkObjectOnSpawnTests : NetcodeIntegrationTest
 
         protected override int NumberOfClients => 2;
 
+        public enum ObserverTestTypes
+        {
+            WithObservers,
+            WithoutObservers
+        }
+        private GameObject m_ObserverPrefab;
+        private NetworkObject m_ObserverTestNetworkObject;
+        private ObserverTestTypes m_ObserverTestType;
+
+        private const string k_ObserverTestObjName = "ObsObj";
+        private const string k_WithObserversError = "Not all clients spawned the";
+        private const string k_WithoutObserversError = "A client spawned the";
+
+        protected override void OnServerAndClientsCreated()
+        {
+            m_ObserverPrefab = CreateNetworkObjectPrefab(k_ObserverTestObjName);
+            base.OnServerAndClientsCreated();
+        }
+
+
+        private bool CheckClientsSideObserverTestObj()
+        {
+            foreach (var client in m_ClientNetworkManagers)
+            {
+                if (!s_GlobalNetworkObjects.ContainsKey(client.LocalClientId))
+                {
+                    // When no observers there shouldn't be any client spawned NetworkObjects
+                    // (players are held in a different list)
+                    return !(m_ObserverTestType == ObserverTestTypes.WithObservers);
+                }
+                var clientObjects = s_GlobalNetworkObjects[client.LocalClientId];
+                // Make sure they did spawn the object
+                if (m_ObserverTestType == ObserverTestTypes.WithObservers)
+                {
+                    if (!clientObjects.ContainsKey(m_ObserverTestNetworkObject.NetworkObjectId))
+                    {
+                        return false;
+                    }
+                    if (!clientObjects[m_ObserverTestNetworkObject.NetworkObjectId].IsSpawned)
+                    {
+                        return false;
+                    }
+                }
+            }
+            return true;
+        }
+
+
+
+        [UnityTest]
+        public IEnumerator ObserverSpawnTests([Values] ObserverTestTypes observerTestTypes)
+        {
+            m_ObserverTestType = observerTestTypes;
+            var prefabNetworkObject = m_ObserverPrefab.GetComponent<NetworkObject>();
+            prefabNetworkObject.SpawnWithObservers = observerTestTypes == ObserverTestTypes.WithObservers;
+            var instance = SpawnObject(m_ObserverPrefab, m_ServerNetworkManager);
+            m_ObserverTestNetworkObject = instance.GetComponent<NetworkObject>();
+            var withoutObservers = m_ObserverTestType == ObserverTestTypes.WithoutObservers;
+            if (withoutObservers)
+            {
+                // Just give a little time to make sure nothing spawned
+                yield return s_DefaultWaitForTick;
+            }
+            yield return WaitForConditionOrTimeOut(CheckClientsSideObserverTestObj);
+            AssertOnTimeout($"{(withoutObservers ? k_WithoutObserversError : k_WithObserversError)} {k_ObserverTestObjName} object!");
+            // If we spawned without observers
+            if (withoutObservers)
+            {
+                // Make each client an observer
+                foreach (var client in m_ClientNetworkManagers)
+                {
+                    m_ObserverTestNetworkObject.NetworkShow(client.LocalClientId);
+                }
+
+                // Validate the clients spawned the NetworkObject
+                m_ObserverTestType = ObserverTestTypes.WithObservers;
+                yield return WaitForConditionOrTimeOut(CheckClientsSideObserverTestObj);
+                AssertOnTimeout($"{k_WithObserversError} {k_ObserverTestObjName} object!");
+            }
+        }
         /// <summary>
         /// Tests that instantiating a <see cref="NetworkObject"/> and destroying without spawning it
         /// does not run <see cref="NetworkBehaviour.OnNetworkSpawn"/> or <see cref="NetworkBehaviour.OnNetworkSpawn"/>.
@@ -52,6 +132,11 @@ protected override void OnCreatePlayerPrefab()
 
         protected override IEnumerator OnTearDown()
         {
+            if (m_ObserverPrefab != null)
+            {
+                Object.Destroy(m_ObserverPrefab);
+            }
+
             if (m_TestNetworkObjectPrefab != null)
             {
                 Object.Destroy(m_TestNetworkObjectPrefab);