diff --git a/tests/data b/tests/data
index 0ff59eafc76..46d451fcb7d 160000
--- a/tests/data
+++ b/tests/data
@@ -1 +1 @@
-Subproject commit 0ff59eafc7658787b55db167b4157e7eed40bc6c
+Subproject commit 46d451fcb7d6a7fca7c612c1658afb1836b79d5a
diff --git a/tests/python/bl_usd_export_test.py b/tests/python/bl_usd_export_test.py
index 59d44561fce..057a0ea3280 100644
--- a/tests/python/bl_usd_export_test.py
+++ b/tests/python/bl_usd_export_test.py
@@ -221,6 +221,43 @@ class USDExportTest(AbstractUSDTest):
         self.assertEqual(opacity_input.HasConnectedSource(), True, "Alpha input should be connected")
         self.assertAlmostEqual(opacity_thresh_input.Get(), 0.2, 2, "Opacity threshold input should be 0.2")
 
+    def test_export_material_subsets(self):
+        """Validate multiple materials assigned to the same mesh work correctly."""
+
+        bpy.ops.wm.open_mainfile(filepath=str(self.testdir / "usd_materials_multi.blend"))
+
+        # Ensure the simulation zone data is baked for all relevant frames...
+        for frame in range(1, 5):
+            bpy.context.scene.frame_set(frame)
+        bpy.context.scene.frame_set(1)
+
+        export_path = self.tempdir / "usd_materials_multi.usda"
+        res = bpy.ops.wm.usd_export(filepath=str(export_path), export_animation=True, evaluation_mode="RENDER")
+        self.assertEqual({'FINISHED'}, res, f"Unable to export to {export_path}")
+
+        stage = Usd.Stage.Open(str(export_path))
+
+        # The static mesh should have 4 materials each assigned to 4 faces (16 faces total)
+        static_mesh_prim = UsdGeom.Mesh(stage.GetPrimAtPath("/root/static_mesh/static_mesh"))
+        geom_subsets = UsdGeom.Subset.GetGeomSubsets(static_mesh_prim)
+        self.assertEqual(len(geom_subsets), 4)
+
+        unique_face_indices = set()
+        for subset in geom_subsets:
+            face_indices = subset.GetIndicesAttr().Get()
+            self.assertEqual(len(face_indices), 4)
+            unique_face_indices.update(face_indices)
+        self.assertEqual(len(unique_face_indices), 16)
+
+        # The dynamic mesh varies over time (currently blocked, see #124554 and #118754)
+        #  - Frame 1: 1 face and 1 material [mat2]
+        #  - Frame 2: 2 faces and 2 materials [mat2, mat3]
+        #  - Frame 3: 4 faces and 3 materials [mat2, mat3, mat2, mat1]
+        #  - Frame 4: 4 faces and 2 materials [mat2, mat3, mat2, mat3]
+        dynamic_mesh_prim = UsdGeom.Mesh(stage.GetPrimAtPath("/root/dynamic_mesh/dynamic_mesh"))
+        geom_subsets = UsdGeom.Subset.GetGeomSubsets(dynamic_mesh_prim)
+        self.assertEqual(len(geom_subsets), 0)
+
     def check_primvar(self, prim, pv_name, pv_typeName, pv_interp, elements_len):
         pv = UsdGeom.PrimvarsAPI(prim).GetPrimvar(pv_name)
         self.assertTrue(pv.HasValue())
diff --git a/tests/python/bl_usd_import_test.py b/tests/python/bl_usd_import_test.py
index b20adafe440..fa2c0e021c8 100644
--- a/tests/python/bl_usd_import_test.py
+++ b/tests/python/bl_usd_import_test.py
@@ -264,6 +264,37 @@ class USDImportTest(AbstractUSDTest):
         self.assertEqual(self.round_vector(node.inputs[1].default_value), [2, -2, 2])
         self.assertEqual(self.round_vector(node.inputs[2].default_value), [-1, 1, -1])
 
+    def test_import_material_subsets(self):
+        """Validate multiple materials assigned to the same mesh work correctly."""
+
+        # Use the existing materials test file to create the USD file
+        # for import. It is validated as part of the bl_usd_export test.
+        bpy.ops.wm.open_mainfile(filepath=str(self.testdir / "usd_materials_multi.blend"))
+        # Ensure the simulation zone data is baked for all relevant frames...
+        for frame in range(1, 5):
+            bpy.context.scene.frame_set(frame)
+        bpy.context.scene.frame_set(1)
+
+        testfile = str(self.tempdir / "usd_materials_multi.usda")
+        res = bpy.ops.wm.usd_export(filepath=testfile, export_animation=True, evaluation_mode="RENDER")
+        self.assertEqual({'FINISHED'}, res, f"Unable to export to {testfile}")
+
+        # Reload the empty file and import back in
+        bpy.ops.wm.open_mainfile(filepath=str(self.testdir / "empty.blend"))
+        res = bpy.ops.wm.usd_import(filepath=testfile)
+        self.assertEqual({'FINISHED'}, res, f"Unable to import USD file {testfile}")
+
+        # The static mesh should have 4 materials each assigned to 4 faces (16 faces total)
+        static_mesh = bpy.data.objects["static_mesh"].data
+        material_index_attr = static_mesh.attributes["material_index"]
+        self.assertEqual(len(static_mesh.materials), 4)
+        self.assertEqual(len(static_mesh.polygons), 16)
+        self.assertEqual(len(material_index_attr.data), 16)
+
+        for mat_index in range(0, 4):
+            face_indices = [i for i, d in enumerate(material_index_attr.data) if d.value == mat_index]
+            self.assertEqual(len(face_indices), 4, f"Incorrect number of faces with material index {mat_index}")
+
     def test_import_shader_varname_with_connection(self):
         """Test importing USD shader where uv primvar is a connection"""