diff --git a/.changeset/weak-jeans-cry.md b/.changeset/weak-jeans-cry.md
new file mode 100644
index 0000000000..79f419e3db
--- /dev/null
+++ b/.changeset/weak-jeans-cry.md
@@ -0,0 +1,5 @@
+---
+'@backstage/plugin-scaffolder': patch
+---
+
+Add `allowArbitraryValues` to `ui:options` in `OwnedEntityPicker`, similar to `allowArbitraryValues` in `EntityPicker`
diff --git a/plugins/scaffolder/api-report.md b/plugins/scaffolder/api-report.md
index 9ffca426ac..c20cd0eb67 100644
--- a/plugins/scaffolder/api-report.md
+++ b/plugins/scaffolder/api-report.md
@@ -153,6 +153,8 @@ export const OwnedEntityPickerFieldExtension: FieldExtensionComponent<
 
 // @public
 export interface OwnedEntityPickerUiOptions {
+  // (undocumented)
+  allowArbitraryValues?: boolean;
   // (undocumented)
   allowedKinds?: string[];
   // (undocumented)
diff --git a/plugins/scaffolder/src/components/fields/OwnedEntityPicker/OwnedEntityPicker.tsx b/plugins/scaffolder/src/components/fields/OwnedEntityPicker/OwnedEntityPicker.tsx
index 8e3590e8bf..a280ebad6a 100644
--- a/plugins/scaffolder/src/components/fields/OwnedEntityPicker/OwnedEntityPicker.tsx
+++ b/plugins/scaffolder/src/components/fields/OwnedEntityPicker/OwnedEntityPicker.tsx
@@ -37,6 +37,7 @@ import { FieldExtensionComponentProps } from '../../../extensions';
 export interface OwnedEntityPickerUiOptions {
   allowedKinds?: string[];
   defaultKind?: string;
+  allowArbitraryValues?: boolean;
 }
 
 /**
@@ -60,6 +61,8 @@ export const OwnedEntityPicker = (
 
   const allowedKinds = uiSchema['ui:options']?.allowedKinds;
   const defaultKind = uiSchema['ui:options']?.defaultKind;
+  const allowArbitraryValues =
+    uiSchema['ui:options']?.allowArbitraryValues ?? true;
   const { ownedEntities, loading } = useOwnedEntities(allowedKinds);
 
   const entityRefs = ownedEntities?.items
@@ -83,7 +86,7 @@ export const OwnedEntityPicker = (
         onChange={onSelect}
         options={entityRefs || []}
         autoSelect
-        freeSolo
+        freeSolo={allowArbitraryValues}
         renderInput={params => (
           <TextField
             {...params}