diff --git a/.changeset/flat-plums-shout.md b/.changeset/flat-plums-shout.md
new file mode 100644
index 0000000000..250d6a1b35
--- /dev/null
+++ b/.changeset/flat-plums-shout.md
@@ -0,0 +1,5 @@
+---
+'@backstage/plugin-catalog-backend': minor
+---
+
+Allow unknown typed location from being registered via the location service by configuration settings
diff --git a/plugins/catalog-backend/api-report.md b/plugins/catalog-backend/api-report.md
index 55f2d114db..0460fbc5e9 100644
--- a/plugins/catalog-backend/api-report.md
+++ b/plugins/catalog-backend/api-report.md
@@ -150,6 +150,7 @@ export class CatalogBuilder {
   getDefaultProcessors(): CatalogProcessor[];
   replaceEntityPolicies(policies: EntityPolicy[]): CatalogBuilder;
   replaceProcessors(processors: CatalogProcessor[]): CatalogBuilder;
+  setAllowedLocationTypes(allowedLocationTypes: string[]): CatalogBuilder;
   setEntityDataParser(parser: CatalogProcessorParser): CatalogBuilder;
   setFieldFormatValidators(validators: Partial<Validators>): CatalogBuilder;
   setLocationAnalyzer(locationAnalyzer: LocationAnalyzer): CatalogBuilder;
diff --git a/plugins/catalog-backend/src/service/CatalogBuilder.ts b/plugins/catalog-backend/src/service/CatalogBuilder.ts
index e9e35301c3..25f9fde313 100644
--- a/plugins/catalog-backend/src/service/CatalogBuilder.ts
+++ b/plugins/catalog-backend/src/service/CatalogBuilder.ts
@@ -147,7 +147,8 @@ export class CatalogBuilder {
       maxSeconds: 150,
     });
   private locationAnalyzer: LocationAnalyzer | undefined = undefined;
-  private permissionRules: CatalogPermissionRule[];
+  private readonly permissionRules: CatalogPermissionRule[];
+  private allowedLocationType: string[];
 
   /**
    * Creates a catalog builder.
@@ -167,6 +168,7 @@ export class CatalogBuilder {
     this.processorsReplace = false;
     this.parser = undefined;
     this.permissionRules = Object.values(catalogPermissionRules);
+    this.allowedLocationType = ['url'];
   }
 
   /**
@@ -363,6 +365,16 @@ export class CatalogBuilder {
     this.permissionRules.push(...permissionRules.flat());
   }
 
+  /**
+   * Sets up the allowed location types from being registered via the location service.
+   *
+   * @param allowedLocationTypes - the allowed location types
+   */
+  setAllowedLocationTypes(allowedLocationTypes: string[]): CatalogBuilder {
+    this.allowedLocationType = allowedLocationTypes;
+    return this;
+  }
+
   /**
    * Wires up and returns all of the component parts of the catalog
    */
@@ -465,7 +477,9 @@ export class CatalogBuilder {
     const locationAnalyzer =
       this.locationAnalyzer ?? new RepoLocationAnalyzer(logger, integrations);
     const locationService = new AuthorizedLocationService(
-      new DefaultLocationService(locationStore, orchestrator),
+      new DefaultLocationService(locationStore, orchestrator, {
+        allowedLocationTypes: this.allowedLocationType,
+      }),
       permissionEvaluator,
     );
     const refreshService = new AuthorizedRefreshService(
diff --git a/plugins/catalog-backend/src/service/DefaultLocationService.test.ts b/plugins/catalog-backend/src/service/DefaultLocationService.test.ts
index 4399d48d69..8169fc484d 100644
--- a/plugins/catalog-backend/src/service/DefaultLocationService.test.ts
+++ b/plugins/catalog-backend/src/service/DefaultLocationService.test.ts
@@ -144,6 +144,7 @@ describe('DefaultLocationServiceTest', () => {
       store.listLocations.mockResolvedValueOnce([
         { id: '137', ...locationSpec },
       ]);
+
       const result = await locationService.createLocation(
         { type: 'url', target: 'https://backstage.io/catalog-info.yaml' },
         true,
@@ -225,6 +226,7 @@ describe('DefaultLocationServiceTest', () => {
       store.listLocations.mockResolvedValueOnce([
         { id: '987', type: 'url', target: 'https://example.com' },
       ]);
+
       const result = await locationService.createLocation(
         { type: 'url', target: 'https://backstage.io/catalog-info.yaml' },
         true,
@@ -259,7 +261,41 @@ describe('DefaultLocationServiceTest', () => {
       });
     });
 
-    it('should not allow locations of unknown types', async () => {
+    it('should create location with unknown type if configuration allows it', async () => {
+      const locationSpec = {
+        type: 'unknown',
+        target: 'https://backstage.io/catalog-info.yaml',
+      };
+
+      store.createLocation.mockResolvedValue({
+        ...locationSpec,
+        id: '123',
+      });
+
+      const locationServiceAllowingUnknownType = new DefaultLocationService(
+        store,
+        orchestrator,
+        {
+          allowedLocationTypes: ['url', 'unknown'],
+        },
+      );
+      await expect(
+        locationServiceAllowingUnknownType.createLocation(locationSpec, false),
+      ).resolves.toEqual({
+        entities: [],
+        location: {
+          id: '123',
+          target: 'https://backstage.io/catalog-info.yaml',
+          type: 'unknown',
+        },
+      });
+      expect(store.createLocation).toBeCalledWith({
+        target: 'https://backstage.io/catalog-info.yaml',
+        type: 'unknown',
+      });
+    });
+
+    it('should not allow locations of unknown types by default', async () => {
       await expect(
         locationService.createLocation(
           {
diff --git a/plugins/catalog-backend/src/service/DefaultLocationService.ts b/plugins/catalog-backend/src/service/DefaultLocationService.ts
index 819cead63d..6603ebc08b 100644
--- a/plugins/catalog-backend/src/service/DefaultLocationService.ts
+++ b/plugins/catalog-backend/src/service/DefaultLocationService.ts
@@ -27,18 +27,29 @@ import { locationSpecToMetadataName } from '../util/conversion';
 import { InputError } from '@backstage/errors';
 import { DeferredEntity } from '@backstage/plugin-catalog-node';
 
+export type DefaultLocationServiceOptions = {
+  allowedLocationTypes: string[];
+};
+
 export class DefaultLocationService implements LocationService {
   constructor(
     private readonly store: LocationStore,
     private readonly orchestrator: CatalogProcessingOrchestrator,
+    private readonly options: DefaultLocationServiceOptions = {
+      allowedLocationTypes: ['url'],
+    },
   ) {}
 
   async createLocation(
     input: LocationInput,
     dryRun: boolean,
   ): Promise<{ location: Location; entities: Entity[]; exists?: boolean }> {
-    if (input.type !== 'url') {
-      throw new InputError(`Registered locations must be of type 'url'`);
+    if (!this.options.allowedLocationTypes.includes(input.type)) {
+      throw new InputError(
+        `Registered locations must be of an allowed type ${JSON.stringify(
+          this.options.allowedLocationTypes,
+        )}`,
+      );
     }
     if (dryRun) {
       return this.dryRunCreateLocation(input);