diff --git a/packages/catalog-model/src/EntityPolicies.ts b/packages/catalog-model/src/EntityPolicies.ts
index fa25334d5f..ca189c042e 100644
--- a/packages/catalog-model/src/EntityPolicies.ts
+++ b/packages/catalog-model/src/EntityPolicies.ts
@@ -23,6 +23,7 @@ import {
 } from './entity';
 import { ComponentV1beta1Policy } from './kinds';
 import { EntityPolicy } from './types';
+import { DefaultNamespaceEntityPolicy } from './entity/policies/DefaultNamespaceEntityPolicy';
 
 // Helper that requires that all of a set of policies can be successfully
 // applied
@@ -62,6 +63,7 @@ export class EntityPolicies implements EntityPolicy {
     return EntityPolicies.allOf([
       EntityPolicies.allOf([
         new SchemaValidEntityPolicy(),
+        new DefaultNamespaceEntityPolicy(),
         new NoForeignRootFieldsEntityPolicy(),
         new FieldFormatEntityPolicy(),
         new ReservedFieldsEntityPolicy(),
diff --git a/packages/catalog-model/src/entity/policies/DefaultNamespaceEntityPolicy.test.ts b/packages/catalog-model/src/entity/policies/DefaultNamespaceEntityPolicy.test.ts
new file mode 100644
index 0000000000..68658e5296
--- /dev/null
+++ b/packages/catalog-model/src/entity/policies/DefaultNamespaceEntityPolicy.test.ts
@@ -0,0 +1,61 @@
+/*
+ * Copyright 2020 Spotify AB
+ *
+ * Licensed under the Apache License, Version 2.0 (the "License");
+ * you may not use this file except in compliance with the License.
+ * You may obtain a copy of the License at
+ *
+ *     http://www.apache.org/licenses/LICENSE-2.0
+ *
+ * Unless required by applicable law or agreed to in writing, software
+ * distributed under the License is distributed on an "AS IS" BASIS,
+ * WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+ * See the License for the specific language governing permissions and
+ * limitations under the License.
+ */
+
+import yaml from 'yaml';
+import { DefaultNamespaceEntityPolicy } from './DefaultNamespaceEntityPolicy';
+
+describe('DefaultNamespaceEntityPolicy', () => {
+  let withNamespace: any;
+  let withoutNamespace: any;
+  let policy: DefaultNamespaceEntityPolicy;
+
+  beforeEach(() => {
+    withoutNamespace = yaml.parse(`
+      apiVersion: backstage.io/v1beta1
+      kind: Component
+      metadata:
+        name: my-component-yay
+    `);
+    withNamespace = yaml.parse(`
+      apiVersion: backstage.io/v1beta1
+      kind: Component
+      metadata:
+        name: my-component-yay
+        namespace: my-home
+    `);
+    policy = new DefaultNamespaceEntityPolicy();
+  });
+
+  it('leaves untouched if it already has a namespace', async () => {
+    const result = policy.enforce(withNamespace);
+    await expect(result).resolves.toBe(withNamespace);
+    await expect(result).resolves.toEqual(
+      expect.objectContaining({
+        metadata: { name: 'my-component-yay', namespace: 'my-home' },
+      }),
+    );
+  });
+
+  it('adds namespace in different object if it did not have one', async () => {
+    const result = policy.enforce(withoutNamespace);
+    await expect(result).resolves.not.toBe(withoutNamespace);
+    await expect(result).resolves.toEqual(
+      expect.objectContaining({
+        metadata: { name: 'my-component-yay', namespace: 'default' },
+      }),
+    );
+  });
+});
diff --git a/packages/catalog-model/src/entity/policies/DefaultNamespaceEntityPolicy.ts b/packages/catalog-model/src/entity/policies/DefaultNamespaceEntityPolicy.ts
new file mode 100644
index 0000000000..e5aba745c7
--- /dev/null
+++ b/packages/catalog-model/src/entity/policies/DefaultNamespaceEntityPolicy.ts
@@ -0,0 +1,38 @@
+/*
+ * Copyright 2020 Spotify AB
+ *
+ * Licensed under the Apache License, Version 2.0 (the "License");
+ * you may not use this file except in compliance with the License.
+ * You may obtain a copy of the License at
+ *
+ *     http://www.apache.org/licenses/LICENSE-2.0
+ *
+ * Unless required by applicable law or agreed to in writing, software
+ * distributed under the License is distributed on an "AS IS" BASIS,
+ * WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+ * See the License for the specific language governing permissions and
+ * limitations under the License.
+ */
+
+import lodash from 'lodash';
+import { EntityPolicy } from '../../types';
+import { Entity } from '../Entity';
+
+/**
+ * Sets a default namespace if none was set.
+ */
+export class DefaultNamespaceEntityPolicy implements EntityPolicy {
+  private readonly namespace: string;
+
+  constructor(namespace: string = 'default') {
+    this.namespace = namespace;
+  }
+
+  async enforce(entity: Entity): Promise<Entity> {
+    if (entity.metadata.namespace) {
+      return entity;
+    }
+
+    return lodash.merge({ metadata: { namespace: this.namespace } }, entity);
+  }
+}