diff --git a/api/v1beta2/ocirepository_types.go b/api/v1beta2/ocirepository_types.go
index bc6d830ba..eac3f1c40 100644
--- a/api/v1beta2/ocirepository_types.go
+++ b/api/v1beta2/ocirepository_types.go
@@ -25,12 +25,16 @@ import (
 const (
 	// OCIRepositoryKind is the string representation of a OCIRepository.
 	OCIRepositoryKind = "OCIRepository"
+
+	// OCIRepositoryPrefix is the prefix used for OCIRepository URLs.
+	OCIRepositoryPrefix = "oci://"
 )
 
 // OCIRepositorySpec defines the desired state of OCIRepository
 type OCIRepositorySpec struct {
 	// URL is a reference to an OCI artifact repository hosted
 	// on a remote container registry.
+	// +kubebuilder:validation:Pattern="^oci://"
 	// +required
 	URL string `json:"url"`
 
diff --git a/config/samples/source_v1beta2_ocirepository.yaml b/config/samples/source_v1beta2_ocirepository.yaml
index 2fbdf9969..e06241b97 100644
--- a/config/samples/source_v1beta2_ocirepository.yaml
+++ b/config/samples/source_v1beta2_ocirepository.yaml
@@ -4,6 +4,6 @@ metadata:
   name: ocirepository-sample
 spec:
   interval: 1m
-  url: ghcr.io/stefanprodan/manifests/podinfo
+  url: oci://ghcr.io/stefanprodan/manifests/podinfo
   ref:
     tag: 6.1.6
diff --git a/controllers/ocirepository_controller.go b/controllers/ocirepository_controller.go
index 0e441f8a5..16e40a90a 100644
--- a/controllers/ocirepository_controller.go
+++ b/controllers/ocirepository_controller.go
@@ -20,8 +20,10 @@ import (
 	"context"
 	"errors"
 	"fmt"
+	"github.com/google/go-containerregistry/pkg/name"
 	"os"
 	"sort"
+	"strings"
 	"time"
 
 	"github.com/Masterminds/semver/v3"
@@ -363,12 +365,31 @@ func (r *OCIRepositoryReconciler) reconcileSource(ctx context.Context, obj *sour
 	return sreconcile.ResultSuccess, nil
 }
 
+// parseRepositoryURL extracts the repository URL.
+func (r *OCIRepositoryReconciler) parseRepositoryURL(obj *sourcev1.OCIRepository) (string, error) {
+	if !strings.HasPrefix(obj.Spec.URL, sourcev1.OCIRepositoryPrefix) {
+		return "", fmt.Errorf("URL must be in format 'oci://<domain>/<org>/<repo>'")
+	}
+
+	url := strings.TrimPrefix(obj.Spec.URL, sourcev1.OCIRepositoryPrefix)
+	ref, err := name.ParseReference(url)
+	if err != nil {
+		return "", fmt.Errorf("'%s' invalid URL: %w", obj.Spec.URL, err)
+	}
+
+	return ref.Context().Name(), nil
+}
+
 // getArtifactURL determines which tag or digest should be used and returns the OCI artifact FQN.
 func (r *OCIRepositoryReconciler) getArtifactURL(ctx context.Context, obj *sourcev1.OCIRepository, keychain authn.Keychain) (string, error) {
-	url := obj.Spec.URL
+	url, err := r.parseRepositoryURL(obj)
+	if err != nil {
+		return "", err
+	}
+
 	if obj.Spec.Reference != nil {
 		if obj.Spec.Reference.Digest != "" {
-			return fmt.Sprintf("%s@%s", obj.Spec.URL, obj.Spec.Reference.Digest), nil
+			return fmt.Sprintf("%s@%s", url, obj.Spec.Reference.Digest), nil
 		}
 
 		if obj.Spec.Reference.SemVer != "" {
@@ -376,11 +397,11 @@ func (r *OCIRepositoryReconciler) getArtifactURL(ctx context.Context, obj *sourc
 			if err != nil {
 				return "", err
 			}
-			return fmt.Sprintf("%s:%s", obj.Spec.URL, tag), nil
+			return fmt.Sprintf("%s:%s", url, tag), nil
 		}
 
 		if obj.Spec.Reference.Tag != "" {
-			return fmt.Sprintf("%s:%s", obj.Spec.URL, obj.Spec.Reference.Tag), nil
+			return fmt.Sprintf("%s:%s", url, obj.Spec.Reference.Tag), nil
 		}
 	}
 
diff --git a/controllers/ocirepository_controller_test.go b/controllers/ocirepository_controller_test.go
index bcae3ad1d..5963702f0 100644
--- a/controllers/ocirepository_controller_test.go
+++ b/controllers/ocirepository_controller_test.go
@@ -239,6 +239,7 @@ func TestOCIRepository_SecretRef(t *testing.T) {
 	g.Expect(err).ToNot(HaveOccurred())
 
 	repositoryURL := fmt.Sprintf("%s/podinfo", regServer.registryHost)
+	ociURL := fmt.Sprintf("oci://%s", repositoryURL)
 
 	// Push Test Image
 	err = crane.Push(image, repositoryURL, crane.WithAuth(&authn.Basic{
@@ -260,14 +261,14 @@ func TestOCIRepository_SecretRef(t *testing.T) {
 	}{
 		{
 			name:                  "private-registry-access-via-secretref",
-			url:                   repositoryURL,
+			url:                   ociURL,
 			digest:                podinfoImageDigest,
 			includeSecretRef:      true,
 			includeServiceAccount: false,
 		},
 		{
 			name:                  "private-registry-access-via-serviceaccount",
-			url:                   repositoryURL,
+			url:                   ociURL,
 			digest:                podinfoImageDigest,
 			includeSecretRef:      false,
 			includeServiceAccount: true,
@@ -289,7 +290,7 @@ func TestOCIRepository_SecretRef(t *testing.T) {
 				},
 				Type: corev1.SecretTypeDockerConfigJson,
 				StringData: map[string]string{
-					".dockerconfigjson": fmt.Sprintf(`{"auths": {%q: {"username": %q, "password": %q}}}`, tt.url, testRegistryUsername, testRegistryPassword),
+					".dockerconfigjson": fmt.Sprintf(`{"auths": {%q: {"username": %q, "password": %q}}}`, repositoryURL, testRegistryUsername, testRegistryPassword),
 				},
 			}
 			g.Expect(testEnv.CreateAndWait(ctx, secret)).To(Succeed())
@@ -435,6 +436,7 @@ func TestOCIRepository_FailedAuth(t *testing.T) {
 	g.Expect(err).ToNot(HaveOccurred())
 
 	repositoryURL := fmt.Sprintf("%s/podinfo", regServer.registryHost)
+	ociURL := fmt.Sprintf("oci://%s", repositoryURL)
 
 	// Push Test Image
 	err = crane.Push(image, repositoryURL, crane.WithAuth(&authn.Basic{
@@ -458,7 +460,7 @@ func TestOCIRepository_FailedAuth(t *testing.T) {
 	}{
 		{
 			name:                  "missing-auth",
-			url:                   repositoryURL,
+			url:                   ociURL,
 			repoUsername:          "",
 			repoPassword:          "",
 			digest:                podinfoImageDigest,
@@ -467,7 +469,7 @@ func TestOCIRepository_FailedAuth(t *testing.T) {
 		},
 		{
 			name:                  "invalid-auth-via-secret",
-			url:                   repositoryURL,
+			url:                   ociURL,
 			repoUsername:          "InvalidUser",
 			repoPassword:          "InvalidPassword",
 			digest:                podinfoImageDigest,
@@ -476,7 +478,7 @@ func TestOCIRepository_FailedAuth(t *testing.T) {
 		},
 		{
 			name:                  "invalid-auth-via-service-account",
-			url:                   repositoryURL,
+			url:                   ociURL,
 			repoUsername:          "InvalidUser",
 			repoPassword:          "InvalidPassword",
 			digest:                podinfoImageDigest,
@@ -500,7 +502,7 @@ func TestOCIRepository_FailedAuth(t *testing.T) {
 				},
 				Type: corev1.SecretTypeDockerConfigJson,
 				StringData: map[string]string{
-					".dockerconfigjson": fmt.Sprintf(`{"auths": {%q: {"username": %q, "password": %q}}}`, tt.url, tt.repoUsername, tt.repoPassword),
+					".dockerconfigjson": fmt.Sprintf(`{"auths": {%q: {"username": %q, "password": %q}}}`, repositoryURL, tt.repoUsername, tt.repoPassword),
 				},
 			}
 			g.Expect(testEnv.CreateAndWait(ctx, secret)).To(Succeed())
@@ -623,7 +625,7 @@ func createPodinfoImageFromTar(tarFileName, tag string, imageServer *httptest.Se
 	}
 
 	return &podinfoImage{
-		url:    repositoryURL,
+		url:    "oci://" + repositoryURL,
 		tag:    tag,
 		digest: podinfoImageDigest,
 	}, nil