diff --git a/apps/provisioning/pkg/repository/test_test.go b/apps/provisioning/pkg/repository/test_test.go
index 5b7c8c6b815..0a35c024ca4 100644
--- a/apps/provisioning/pkg/repository/test_test.go
+++ b/apps/provisioning/pkg/repository/test_test.go
@@ -26,6 +26,9 @@ func TestValidateRepository(t *testing.T) {
 			repository: func() *MockRepository {
 				m := NewMockRepository(t)
 				m.On("Config").Return(&provisioning.Repository{
+					ObjectMeta: metav1.ObjectMeta{
+						Finalizers: []string{CleanFinalizer, RemoveOrphanResourcesFinalizer},
+					},
 					Spec: provisioning.RepositorySpec{
 						Title: "Test Repo",
 					},
@@ -232,6 +235,28 @@ func TestValidateRepository(t *testing.T) {
 				require.Contains(t, errors.ToAggregate().Error(), "spec.workflow: Invalid value: \"invalid\": invalid workflow")
 			},
 		},
+		{
+			name: "mutual exclusive finalizers are set together",
+			repository: func() *MockRepository {
+				m := NewMockRepository(t)
+				m.On("Config").Return(&provisioning.Repository{
+					ObjectMeta: metav1.ObjectMeta{
+						Finalizers: []string{RemoveOrphanResourcesFinalizer, ReleaseOrphanResourcesFinalizer},
+					},
+					Spec: provisioning.RepositorySpec{
+						Title:     "Test Repo",
+						Type:      provisioning.GitHubRepositoryType,
+						Workflows: []provisioning.Workflow{provisioning.WriteWorkflow},
+					},
+				})
+				m.On("Validate").Return(field.ErrorList{})
+				return m
+			}(),
+			expectedErrs: 1,
+			validateError: func(t *testing.T, errors field.ErrorList) {
+				require.Contains(t, errors.ToAggregate().Error(), "cannot have both remove and release orphan resources finalizers")
+			},
+		},
 	}
 
 	for _, tt := range tests {
diff --git a/pkg/tests/apis/provisioning/repository_test.go b/pkg/tests/apis/provisioning/repository_test.go
index b48c7d82add..8d3e7daa089 100644
--- a/pkg/tests/apis/provisioning/repository_test.go
+++ b/pkg/tests/apis/provisioning/repository_test.go
@@ -18,6 +18,7 @@ import (
 	"k8s.io/apimachinery/pkg/types"
 
 	provisioning "github.com/grafana/grafana/apps/provisioning/pkg/apis/provisioning/v0alpha1"
+	"github.com/grafana/grafana/apps/provisioning/pkg/repository"
 	"github.com/grafana/grafana/pkg/apimachinery/utils"
 	"github.com/grafana/grafana/pkg/infra/usagestats"
 	"github.com/grafana/grafana/pkg/tests/apis"
@@ -162,6 +163,58 @@ func TestIntegrationProvisioning_CreatingAndGetting(t *testing.T) {
 	})
 }
 
+func TestIntegrationProvisioning_RepositoryValidation(t *testing.T) {
+	testutil.SkipIntegrationTestInShortMode(t)
+
+	helper := runGrafana(t)
+	ctx := context.Background()
+
+	for _, testCase := range []struct {
+		name        string
+		repo        *unstructured.Unstructured
+		expectedErr string
+	}{
+		{
+			name: "should succeed with valid local repository",
+			repo: func() *unstructured.Unstructured {
+				return helper.RenderObject(t, "testdata/local-readonly.json.tmpl", map[string]any{
+					"Name":        "valid-repo",
+					"SyncEnabled": true,
+				})
+			}(),
+		},
+		{
+			name: "should error if mutually exclusive finalizers are set",
+			repo: func() *unstructured.Unstructured {
+				localTmp := helper.RenderObject(t, "testdata/local-readonly.json.tmpl", map[string]any{
+					"Name":        "repo-with-invalid-finalizers",
+					"SyncEnabled": true,
+				})
+
+				// Setting finalizers to trigger a failure
+				localTmp.SetFinalizers([]string{
+					repository.CleanFinalizer,
+					repository.ReleaseOrphanResourcesFinalizer,
+					repository.RemoveOrphanResourcesFinalizer,
+				})
+
+				return localTmp
+			}(),
+			expectedErr: "cannot have both remove and release orphan resources finalizers",
+		},
+	} {
+		t.Run(testCase.name, func(t *testing.T) {
+			_, err := helper.Repositories.Resource.Create(ctx, testCase.repo, metav1.CreateOptions{})
+			if testCase.expectedErr == "" {
+				assert.NoError(t, err)
+			} else {
+				assert.Error(t, err)
+				assert.ErrorContains(t, err, testCase.expectedErr)
+			}
+		})
+	}
+}
+
 func TestIntegrationProvisioning_FailInvalidSchema(t *testing.T) {
 	testutil.SkipIntegrationTestInShortMode(t)