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As long as Octane was started in the viewport first (no material assignment required) the material not found error didn't show up when I tested.

I tested with the Principled Shader and Matx Subnet, same issue with both if a non-octane material is assigned before octane has been initiated.

BK wrote:

As long as Octane was started in the viewport first (no material assignment required) the material not found error didn't show up when I tested.

I tested with the Principled Shader and Matx Subnet, same issue with both if a non-octane material is assigned before octane has been initiated.

Thanks so much, Peteg, yep we can replicate it on our end!

Cheers