diff --git a/.changeset/popular-jars-serve.md b/.changeset/popular-jars-serve.md
new file mode 100644
index 0000000000..6ee40195fc
--- /dev/null
+++ b/.changeset/popular-jars-serve.md
@@ -0,0 +1,5 @@
+---
+'@backstage/catalog-model': minor
+---
+
+Enable adding locations for config files that does not yet exist by adding a flag to api request
diff --git a/packages/catalog-model/src/location/types.ts b/packages/catalog-model/src/location/types.ts
index 50e6e82a54..33e443e04f 100644
--- a/packages/catalog-model/src/location/types.ts
+++ b/packages/catalog-model/src/location/types.ts
@@ -17,6 +17,10 @@
 export type LocationSpec = {
   type: string;
   target: string;
+  // When using repo importer plugin, location is being created before the component yaml file is merged to the main branch.
+  // This flag is then set to indicate that the file can be not present.
+  // default value: 'required'.
+  presence?: 'optional' | 'required';
 };
 
 export type Location = {
diff --git a/packages/catalog-model/src/location/validation.ts b/packages/catalog-model/src/location/validation.ts
index b1b91edd83..27d74b9a82 100644
--- a/packages/catalog-model/src/location/validation.ts
+++ b/packages/catalog-model/src/location/validation.ts
@@ -21,6 +21,7 @@ export const locationSpecSchema = yup
   .object<LocationSpec>({
     type: yup.string().required(),
     target: yup.string().required(),
+    presence: yup.string(),
   })
   .noUnknown()
   .required();
diff --git a/plugins/catalog-backend/src/ingestion/HigherOrderOperations.ts b/plugins/catalog-backend/src/ingestion/HigherOrderOperations.ts
index 6df6d9b4b7..b1f4e40524 100644
--- a/plugins/catalog-backend/src/ingestion/HigherOrderOperations.ts
+++ b/plugins/catalog-backend/src/ingestion/HigherOrderOperations.ts
@@ -79,7 +79,7 @@ export class HigherOrderOperations implements HigherOrderOperation {
 
     // Read the location fully, bailing on any errors
     const readerOutput = await this.locationReader.read(spec);
-    if (readerOutput.errors.length) {
+    if (!(spec.presence === 'optional') && readerOutput.errors.length) {
       const item = readerOutput.errors[0];
       throw new InputError(
         `Failed to read location ${item.location.type}:${item.location.target}, ${item.error}`,
diff --git a/plugins/catalog/src/api/CatalogClient.ts b/plugins/catalog/src/api/CatalogClient.ts
index d5ff033caa..6b10541107 100644
--- a/plugins/catalog/src/api/CatalogClient.ts
+++ b/plugins/catalog/src/api/CatalogClient.ts
@@ -109,9 +109,15 @@ export class CatalogClient implements CatalogApi {
 
     const { location, entities } = await response.json();
 
-    if (!location || entities.length === 0)
+    if (!location) {
       throw new Error(`Location wasn't added: ${target}`);
+    }
 
+    if (entities.length === 0) {
+      throw new Error(
+        `Location was added but has no entities specified yet: ${target}`,
+      );
+    }
     return {
       location,
       entities,