diff --git a/dev/tests/unit/Magento/FunctionalTestFramework/DataGenerator/Handlers/PersistedObjectHandlerTest.php b/dev/tests/unit/Magento/FunctionalTestFramework/DataGenerator/Handlers/PersistedObjectHandlerTest.php
index 6c3823466..592b87f4e 100644
--- a/dev/tests/unit/Magento/FunctionalTestFramework/DataGenerator/Handlers/PersistedObjectHandlerTest.php
+++ b/dev/tests/unit/Magento/FunctionalTestFramework/DataGenerator/Handlers/PersistedObjectHandlerTest.php
@@ -32,6 +32,30 @@ public function setUp()
         TestLoggingUtil::getInstance()->setMockLoggingUtil();
     }
 
+    public function testCreateEntityWithNonExistingName()
+    {
+        // Test Data and Variables
+        $entityName = "InvalidEntity";
+        $entityStepKey = "StepKey";
+        $scope = PersistedObjectHandler::TEST_SCOPE;
+
+        $exceptionMessage = "Entity \"" . $entityName . "\" does not exist." .
+            "\nException occurred executing action at StepKey \"" . $entityStepKey . "\"";
+
+        $this->expectException(TestReferenceException::class);
+
+        $this->expectExceptionMessage($exceptionMessage);
+
+        $handler = PersistedObjectHandler::getInstance();
+
+        // Call method
+        $handler->createEntity(
+            $entityStepKey,
+            $scope,
+            $entityName
+        );
+    }
+
     public function testCreateSimpleEntity()
     {
         // Test Data and Variables
diff --git a/src/Magento/FunctionalTestingFramework/DataGenerator/Handlers/PersistedObjectHandler.php b/src/Magento/FunctionalTestingFramework/DataGenerator/Handlers/PersistedObjectHandler.php
index 2a0f11a01..00353856b 100644
--- a/src/Magento/FunctionalTestingFramework/DataGenerator/Handlers/PersistedObjectHandler.php
+++ b/src/Magento/FunctionalTestingFramework/DataGenerator/Handlers/PersistedObjectHandler.php
@@ -97,6 +97,14 @@ public function createEntity(
         }
         
         $retrievedEntity = DataObjectHandler::getInstance()->getObject($entity);
+
+        if ($retrievedEntity === null) {
+            throw new TestReferenceException(
+                "Entity \"" . $entity . "\" does not exist." .
+                "\nException occurred executing action at StepKey \"" . $key . "\""
+            );
+        }
+
         $persistedObject = new DataPersistenceHandler(
             $retrievedEntity,
             $retrievedDependentObjects,