diff --git a/plugins/scaffolder/src/components/fields/MultiEntityPicker/MultiEntityPicker.test.tsx b/plugins/scaffolder/src/components/fields/MultiEntityPicker/MultiEntityPicker.test.tsx
index 4be07b139d..1ec7b56fa5 100644
--- a/plugins/scaffolder/src/components/fields/MultiEntityPicker/MultiEntityPicker.test.tsx
+++ b/plugins/scaffolder/src/components/fields/MultiEntityPicker/MultiEntityPicker.test.tsx
@@ -704,4 +704,79 @@ describe('<MultiEntityPicker />', () => {
       expect(onChange).toHaveBeenCalledWith([]);
     });
   });
+
+  describe('Multiselect maxNoOfEntities option', () => {
+    beforeEach(() => {
+      const testEntities = [
+        makeEntity('Group', 'default', 'team-a'),
+        makeEntity('Group', 'default', 'squad-b'),
+        makeEntity('User', 'default', 'user-a'),
+        makeEntity('User', 'default', 'user-b'),
+      ];
+
+      uiSchema = {
+        'ui:options': {
+          maxNoOfEntities: 2,
+          catalogFilter: [
+            {
+              kind: ['Group'],
+              'metadata.name': 'test-entity',
+            },
+            {
+              kind: ['User'],
+              'metadata.name': 'test-entity',
+            },
+          ],
+        },
+        allowArbitraryValues: true,
+      };
+      props = {
+        onChange,
+        schema,
+        required: false,
+        uiSchema,
+        rawErrors,
+        formData,
+      } as unknown as FieldProps<any>;
+
+      catalogApi.getEntities.mockResolvedValue({ items: testEntities });
+    });
+
+    it('User selects item', async () => {
+      await renderInTestApp(
+        <Wrapper>
+          <MultiEntityPicker {...props} />
+        </Wrapper>,
+      );
+
+      const input = screen.getByRole('textbox');
+
+      fireEvent.mouseDown(input);
+      const optionsBefore = screen.getAllByRole('option');
+
+      // Check that all options are enabled
+      optionsBefore.forEach(option => {
+        expect(option).toHaveAttribute('aria-disabled', 'false');
+      });
+
+      fireEvent.mouseDown(input);
+
+      // Select two options from the dropdown
+      fireEvent.change(input, { target: { value: 'team-a' } });
+      fireEvent.blur(input);
+
+      fireEvent.change(input, { target: { value: 'user-a' } });
+      fireEvent.blur(input);
+
+      expect(onChange).toHaveBeenCalledWith(['team-a']);
+
+      fireEvent.mouseDown(input);
+      const optionsAfter = screen.getAllByRole('option');
+
+      // Check that all options are disabled when macNoOfEntities is reached
+      optionsAfter.forEach(option => {
+        expect(option).toHaveAttribute('aria-disabled', 'true');
+      });
+    });
+  });
 });
diff --git a/plugins/scaffolder/src/components/fields/MultiEntityPicker/MultiEntityPicker.tsx b/plugins/scaffolder/src/components/fields/MultiEntityPicker/MultiEntityPicker.tsx
index d800c9b372..f620c75d07 100644
--- a/plugins/scaffolder/src/components/fields/MultiEntityPicker/MultiEntityPicker.tsx
+++ b/plugins/scaffolder/src/components/fields/MultiEntityPicker/MultiEntityPicker.tsx
@@ -34,7 +34,7 @@ import FormControl from '@material-ui/core/FormControl';
 import Autocomplete, {
   AutocompleteChangeReason,
 } from '@material-ui/lab/Autocomplete';
-import React, { useCallback, useEffect } from 'react';
+import React, { useCallback, useEffect, useState } from 'react';
 import useAsync from 'react-use/esm/useAsync';
 import { FieldValidation } from '@rjsf/utils';
 import {
@@ -65,6 +65,7 @@ export const MultiEntityPicker = (props: MultiEntityPickerProps) => {
   const defaultKind = uiSchema['ui:options']?.defaultKind;
   const defaultNamespace =
     uiSchema['ui:options']?.defaultNamespace || undefined;
+  const [noOfItemsSelected, setNoOfItemsSelected] = useState(0);
 
   const catalogApi = useApi(catalogApiRef);
   const entityPresentationApi = useApi(entityPresentationApiRef);
@@ -92,6 +93,9 @@ export const MultiEntityPicker = (props: MultiEntityPickerProps) => {
   const allowArbitraryValues =
     uiSchema['ui:options']?.allowArbitraryValues ?? true;
 
+  // if not specified, default to undefined
+  const maxNoOfEntities = uiSchema['ui:options']?.maxNoOfEntities ?? undefined;
+
   const onSelect = useCallback(
     (_: any, refs: (string | Entity)[], reason: AutocompleteChangeReason) => {
       const values = refs
@@ -125,6 +129,7 @@ export const MultiEntityPicker = (props: MultiEntityPickerProps) => {
         })
         .filter(ref => ref !== undefined) as string[];
 
+      setNoOfItemsSelected(values.length);
       onChange(values);
     },
     [onChange, formData, defaultKind, defaultNamespace, allowArbitraryValues],
@@ -158,6 +163,9 @@ export const MultiEntityPicker = (props: MultiEntityPickerProps) => {
             : entities?.entityRefToPresentation.get(stringifyEntityRef(option))
                 ?.entityRef!
         }
+        getOptionDisabled={_options =>
+          maxNoOfEntities ? noOfItemsSelected >= maxNoOfEntities : false
+        }
         autoSelect
         freeSolo={allowArbitraryValues}
         renderInput={params => (
diff --git a/plugins/scaffolder/src/components/fields/MultiEntityPicker/schema.ts b/plugins/scaffolder/src/components/fields/MultiEntityPicker/schema.ts
index 2621157d02..0c7989e8bf 100644
--- a/plugins/scaffolder/src/components/fields/MultiEntityPicker/schema.ts
+++ b/plugins/scaffolder/src/components/fields/MultiEntityPicker/schema.ts
@@ -47,6 +47,10 @@ export const MultiEntityPickerFieldSchema = makeFieldSchemaFromZod(
       .or(entityQueryFilterExpressionSchema)
       .optional()
       .describe('List of key-value filter expression for entities'),
+    maxNoOfEntities: z
+      .number()
+      .optional()
+      .describe('The maximum number of entities that can be selected'),
   }),
 );