diff --git a/.changeset/proud-forks-buy.md b/.changeset/proud-forks-buy.md
new file mode 100644
index 0000000000..558d5d9078
--- /dev/null
+++ b/.changeset/proud-forks-buy.md
@@ -0,0 +1,5 @@
+---
+'@backstage/plugin-scaffolder': patch
+---
+
+The `ui:options` for `OwnedEntityPicker` field are now passed to `EntityPicker`. This allows you to use any `ui:options` which `EntityPicker` accepts in the `OwnedEntityPicker` field including `allowArbitraryValues` and `defaultNamespace`.
diff --git a/plugins/scaffolder/src/components/fields/OwnedEntityPicker/OwnedEntityPicker.tsx b/plugins/scaffolder/src/components/fields/OwnedEntityPicker/OwnedEntityPicker.tsx
index 06fdf17824..63e21f5dc6 100644
--- a/plugins/scaffolder/src/components/fields/OwnedEntityPicker/OwnedEntityPicker.tsx
+++ b/plugins/scaffolder/src/components/fields/OwnedEntityPicker/OwnedEntityPicker.tsx
@@ -94,7 +94,7 @@ function buildEntityPickerUISchema(
   // Note: This is typed to avoid es-lint rule TS2698
   const uiOptions: EntityPickerProps['uiSchema']['ui:options'] =
     uiSchema?.['ui:options'] || {};
-  const allowedKinds = uiOptions.allowedKinds;
+  const { allowedKinds, ...extraOptions } = uiOptions;
 
   const catalogFilter = asArray(uiOptions.catalogFilter).map(e => ({
     ...e,
@@ -104,6 +104,7 @@ function buildEntityPickerUISchema(
 
   return {
     'ui:options': {
+      ...extraOptions,
       catalogFilter,
     },
   };