diff --git a/controllers/ocirepository_controller.go b/controllers/ocirepository_controller.go
index 377dc211..df717f29 100644
--- a/controllers/ocirepository_controller.go
+++ b/controllers/ocirepository_controller.go
@@ -102,6 +102,14 @@ var ociRepositoryFailConditions = []string{
 	sourcev1.StorageOperationFailedCondition,
 }
 
+type invalidOCIURLError struct {
+	err error
+}
+
+func (e invalidOCIURLError) Error() string {
+	return e.err.Error()
+}
+
 // ociRepositoryReconcileFunc is the function type for all the v1beta2.OCIRepository
 // (sub)reconcile functions. The type implementations are grouped and
 // executed serially to perform the complete reconcile of the object.
@@ -337,9 +345,17 @@ func (r *OCIRepositoryReconciler) reconcileSource(ctx context.Context, obj *sour
 	// Determine which artifact revision to pull
 	url, err := r.getArtifactURL(obj, options)
 	if err != nil {
+		if _, ok := err.(invalidOCIURLError); ok {
+			e := serror.NewStalling(
+				fmt.Errorf("failed to determine the artifact address for '%s': %w", obj.Spec.URL, err),
+				sourcev1.URLInvalidReason)
+			conditions.MarkTrue(obj, sourcev1.FetchFailedCondition, e.Reason, e.Err.Error())
+			return sreconcile.ResultEmpty, e
+		}
+
 		e := serror.NewGeneric(
-			fmt.Errorf("failed to determine the artifact address for '%s': %w", obj.Spec.URL, err),
-			sourcev1.URLInvalidReason)
+			fmt.Errorf("failed to determine the artifact tag for '%s': %w", obj.Spec.URL, err),
+			sourcev1.OCIOperationFailedReason)
 		conditions.MarkTrue(obj, sourcev1.FetchFailedCondition, e.Reason, e.Err.Error())
 		return sreconcile.ResultEmpty, e
 	}
@@ -464,7 +480,7 @@ func (r *OCIRepositoryReconciler) parseRepositoryURL(obj *sourcev1.OCIRepository
 func (r *OCIRepositoryReconciler) getArtifactURL(obj *sourcev1.OCIRepository, options []crane.Option) (string, error) {
 	url, err := r.parseRepositoryURL(obj)
 	if err != nil {
-		return "", err
+		return "", invalidOCIURLError{err}
 	}
 
 	if obj.Spec.Reference != nil {
diff --git a/controllers/ocirepository_controller_test.go b/controllers/ocirepository_controller_test.go
index b312fe8b..9e54e326 100644
--- a/controllers/ocirepository_controller_test.go
+++ b/controllers/ocirepository_controller_test.go
@@ -772,7 +772,7 @@ func TestOCIRepository_reconcileSource_remoteReference(t *testing.T) {
 			want:    sreconcile.ResultEmpty,
 			wantErr: true,
 			assertConditions: []metav1.Condition{
-				*conditions.TrueCondition(sourcev1.FetchFailedCondition, sourcev1.URLInvalidReason, "no match found for semver:"),
+				*conditions.TrueCondition(sourcev1.FetchFailedCondition, sourcev1.OCIOperationFailedReason, "failed to determine the artifact tag for 'oci://%s/podinfo': no match found for semver: <= 6.1.0", server.registryHost),
 			},
 		},
 		{
@@ -1064,6 +1064,48 @@ func TestOCIRepository_getArtifactURL(t *testing.T) {
 	}
 }
 
+func TestOCIRepository_stalled(t *testing.T) {
+	g := NewWithT(t)
+
+	ns, err := testEnv.CreateNamespace(ctx, "ocirepository-stalled-test")
+	g.Expect(err).ToNot(HaveOccurred())
+	defer func() { g.Expect(testEnv.Delete(ctx, ns)).To(Succeed()) }()
+
+	obj := &sourcev1.OCIRepository{
+		ObjectMeta: metav1.ObjectMeta{
+			GenerateName: "ocirepository-reconcile",
+			Namespace:    ns.Name,
+		},
+		Spec: sourcev1.OCIRepositorySpec{
+			URL:      "oci://ghcr.io/test/test:v1",
+			Interval: metav1.Duration{Duration: 60 * time.Minute},
+		},
+	}
+
+	g.Expect(testEnv.Create(ctx, obj)).To(Succeed())
+
+	key := client.ObjectKey{Name: obj.Name, Namespace: obj.Namespace}
+	resultobj := sourcev1.OCIRepository{}
+
+	// Wait for the object to fail
+	g.Eventually(func() bool {
+		if err := testEnv.Get(ctx, key, &resultobj); err != nil {
+			return false
+		}
+		readyCondition := conditions.Get(&resultobj, meta.ReadyCondition)
+		if readyCondition == nil {
+			return false
+		}
+		return obj.Generation == readyCondition.ObservedGeneration &&
+			!conditions.IsReady(&resultobj)
+	}, timeout).Should(BeTrue())
+
+	// Verify that stalled condition is present in status
+	stalledCondition := conditions.Get(&resultobj, meta.StalledCondition)
+	g.Expect(stalledCondition).ToNot(BeNil())
+	g.Expect(stalledCondition.Reason).Should(Equal(sourcev1.URLInvalidReason))
+}
+
 func TestOCIRepository_reconcileStorage(t *testing.T) {
 	g := NewWithT(t)