diff --git a/.changeset/weak-jeans-cry.md b/.changeset/weak-jeans-cry.md
new file mode 100644
index 0000000000..7be5c50279
--- /dev/null
+++ b/.changeset/weak-jeans-cry.md
@@ -0,0 +1,5 @@
+---
+'@backstage/plugin-scaffolder': patch
+---
+
+Add allowArbitraryValues to ui:options in OwnedEntityPicker uiSchema, similar to allowArbitraryValues in EntityPicker
diff --git a/plugins/scaffolder/src/components/fields/OwnedEntityPicker/OwnedEntityPicker.tsx b/plugins/scaffolder/src/components/fields/OwnedEntityPicker/OwnedEntityPicker.tsx
index 8e3590e8bf..d176c0ec59 100644
--- a/plugins/scaffolder/src/components/fields/OwnedEntityPicker/OwnedEntityPicker.tsx
+++ b/plugins/scaffolder/src/components/fields/OwnedEntityPicker/OwnedEntityPicker.tsx
@@ -60,6 +60,8 @@ export const OwnedEntityPicker = (
 
   const allowedKinds = uiSchema['ui:options']?.allowedKinds;
   const defaultKind = uiSchema['ui:options']?.defaultKind;
+  const allowArbitraryValues =
+    uiSchema['ui:options']?.allowArbitraryValues ?? true;
   const { ownedEntities, loading } = useOwnedEntities(allowedKinds);
 
   const entityRefs = ownedEntities?.items
@@ -83,7 +85,7 @@ export const OwnedEntityPicker = (
         onChange={onSelect}
         options={entityRefs || []}
         autoSelect
-        freeSolo
+        freeSolo={allowArbitraryValues}
         renderInput={params => (
           <TextField
             {...params}