diff --git a/cli/pkg/kctrl/cmd/package/repository/add_or_update.go b/cli/pkg/kctrl/cmd/package/repository/add_or_update.go
index 672500b52..559097ee7 100644
--- a/cli/pkg/kctrl/cmd/package/repository/add_or_update.go
+++ b/cli/pkg/kctrl/cmd/package/repository/add_or_update.go
@@ -19,6 +19,7 @@ import (
 	kcpkg "github.com/vmware-tanzu/carvel-kapp-controller/pkg/apis/packaging/v1alpha1"
 	kcclient "github.com/vmware-tanzu/carvel-kapp-controller/pkg/client/clientset/versioned"
 	versions "github.com/vmware-tanzu/carvel-vendir/pkg/vendir/versions/v1alpha1"
+	corev1 "k8s.io/api/core/v1"
 	"k8s.io/apimachinery/pkg/api/errors"
 	metav1 "k8s.io/apimachinery/pkg/apis/meta/v1"
 )
@@ -33,6 +34,7 @@ type AddOrUpdateOptions struct {
 	SecureNamespaceFlags cmdcore.SecureNamespaceFlags
 	Name                 string
 	URL                  string
+	CreateNamespace      bool
 
 	CreateRepository bool
 
@@ -72,6 +74,8 @@ func NewAddCmd(o *AddOrUpdateOptions, flagsFactory cmdcore.FlagsFactory) *cobra.
 	// TODO consider how to support other repository types
 	cmd.Flags().StringVar(&o.URL, "url", "", "OCI registry url for package repository bundle (required)")
 
+	cmd.Flags().BoolVar(&o.CreateNamespace, "create-namespace", false, "Create the package repository namespace if not present (default false)")
+
 	o.WaitFlags.Set(cmd, flagsFactory, &cmdcore.WaitFlagsOpts{
 		AllowDisableWait: true,
 		DefaultInterval:  1 * time.Second,
@@ -141,6 +145,28 @@ func (o *AddOrUpdateOptions) Run(args []string) error {
 		return err
 	}
 
+	if o.CreateNamespace {
+		coreClient, err := o.depsFactory.CoreClient()
+		if err != nil {
+			return err
+		}
+
+		namespace := &corev1.Namespace{
+			ObjectMeta: metav1.ObjectMeta{
+				Name: o.NamespaceFlags.Name,
+			},
+		}
+
+		_, err = coreClient.CoreV1().Namespaces().Create(context.Background(), namespace, metav1.CreateOptions{})
+		if err != nil {
+			if !errors.IsAlreadyExists(err) {
+				return err
+			}
+		} else {
+			o.statusUI.PrintMessagef("Created namespace '%s'", o.NamespaceFlags.Name)
+		}
+	}
+
 	existingRepository, err := client.PackagingV1alpha1().PackageRepositories(o.NamespaceFlags.Name).Get(
 		context.Background(), o.Name, metav1.GetOptions{})
 	if err != nil {
@@ -162,7 +188,6 @@ func (o *AddOrUpdateOptions) Run(args []string) error {
 	}
 
 	if o.WaitFlags.Enabled {
-		o.ui.PrintLinef("Waiting for package repository to be updated")
 		err = o.waitForPackageRepositoryInstallation(client)
 	}
 
diff --git a/cli/test/e2e/package_repository_test.go b/cli/test/e2e/package_repository_test.go
index b2a05a4fb..75d5b5c61 100644
--- a/cli/test/e2e/package_repository_test.go
+++ b/cli/test/e2e/package_repository_test.go
@@ -20,10 +20,13 @@ func TestPackageRepository(t *testing.T) {
 	pkgrName := "test-package-repository"
 	pkgrURL := `index.docker.io/k8slt/kc-e2e-test-repo:latest`
 
+	newRepoNamespace := "carvel-test-repo-a"
+
 	kind := "PackageRepository"
 
 	cleanUp := func() {
 		RemoveClusterResource(t, kind, pkgrName, env.Namespace, kubectl)
+		RemoveClusterResource(t, kind, pkgrName, newRepoNamespace, kubectl)
 	}
 
 	cleanUp()
@@ -127,4 +130,16 @@ func TestPackageRepository(t *testing.T) {
 		require.Exactly(t, expectedOutputRows, output.Tables[0].Rows)
 	})
 
+	logger.Section("creating a repository in a new namespace that doesn't exist", func() {
+		kappCtrl.Run([]string{"package", "repository", "add", "-r", pkgrName, "--url", pkgrURL, "-n", newRepoNamespace, "--create-namespace"})
+
+		kubectl.Run([]string{"get", kind, pkgrName, "-n", newRepoNamespace})
+	})
+
+	logger.Section("creating a repository in a namespace that already exists", func() {
+		kappCtrl.Run([]string{"package", "repository", "add", "-r", pkgrName, "--url", pkgrURL, "-n", env.Namespace, "--create-namespace"})
+
+		kubectl.Run([]string{"get", kind, pkgrName, "-n", env.Namespace})
+	})
+
 }