diff --git a/.changeset/fix-registry-url-timeout.md b/.changeset/fix-registry-url-timeout.md
new file mode 100644
index 000000000..5921fb1d7
--- /dev/null
+++ b/.changeset/fix-registry-url-timeout.md
@@ -0,0 +1,5 @@
+---
+"@asyncapi/cli": patch
+---
+
+fix: add timeout to registry URL validation to prevent CLI hang (#2027)
diff --git a/src/utils/generate/registry.ts b/src/utils/generate/registry.ts
index 16fdda2e5..be1d1abaf 100644
--- a/src/utils/generate/registry.ts
+++ b/src/utils/generate/registry.ts
@@ -1,3 +1,5 @@
+const REGISTRY_TIMEOUT_MS = 5000;
+
 export function registryURLParser(input?: string) {
   if (!input) { return; }
   const isURL = /^https?:/;
@@ -8,12 +10,24 @@ export function registryURLParser(input?: string) {
 
 export async function registryValidation(registryUrl?: string, registryAuth?: string, registryToken?: string) {
   if (!registryUrl) { return; }
+
+  const controller = new AbortController();
+  const timeoutId = setTimeout(() => controller.abort(), REGISTRY_TIMEOUT_MS);
+
   try {
-    const response = await fetch(registryUrl as string);
+    const response = await fetch(registryUrl as string, {
+      method: 'HEAD',
+      signal: controller.signal,
+    });
     if (response.status === 401 && !registryAuth && !registryToken) {
       throw new Error('You Need to pass either registryAuth in username:password encoded in Base64 or need to pass registryToken');
     }
-  } catch {
+  } catch (error: unknown) {
+    if (error instanceof Error && error.name === 'AbortError') {
+      throw new Error(`Registry URL timed out after ${REGISTRY_TIMEOUT_MS / 1000}s: ${registryUrl}`);
+    }
     throw new Error(`Can't fetch registryURL: ${registryUrl}`);
+  } finally {
+    clearTimeout(timeoutId);
   }
 }
diff --git a/test/unit/utils/registry.test.ts b/test/unit/utils/registry.test.ts
new file mode 100644
index 000000000..64d69f24b
--- /dev/null
+++ b/test/unit/utils/registry.test.ts
@@ -0,0 +1,47 @@
+import { expect } from 'chai';
+import { registryURLParser, registryValidation } from '../../../src/utils/generate/registry';
+
+describe('registryURLParser()', () => {
+  it('should return undefined for no input', () => {
+    expect(registryURLParser()).to.be.undefined;
+    expect(registryURLParser('')).to.be.undefined;
+  });
+
+  it('should accept valid http URLs', () => {
+    expect(registryURLParser('http://registry.example.com')).to.be.undefined;
+    expect(registryURLParser('https://registry.example.com')).to.be.undefined;
+  });
+
+  it('should throw for invalid URLs', () => {
+    expect(() => registryURLParser('ftp://example.com')).to.throw('Invalid --registry-url flag');
+    expect(() => registryURLParser('not-a-url')).to.throw('Invalid --registry-url flag');
+  });
+});
+
+describe('registryValidation()', () => {
+  it('should return undefined for no input', async () => {
+    const result = await registryValidation();
+    expect(result).to.be.undefined;
+  });
+
+  it('should throw a timeout error for unreachable hosts', async () => {
+    // 10.255.255.1 is a non-routable IP that will cause a timeout
+    try {
+      await registryValidation('http://10.255.255.1');
+      expect.fail('Should have thrown');
+    } catch (error: unknown) {
+      expect(error).to.be.instanceOf(Error);
+      expect((error as Error).message).to.match(/timed out|Can't fetch/);
+    }
+  }).timeout(10000);
+
+  it('should throw for invalid/unreachable URLs', async () => {
+    try {
+      await registryValidation('http://localhost:1');
+      expect.fail('Should have thrown');
+    } catch (error: unknown) {
+      expect(error).to.be.instanceOf(Error);
+      expect((error as Error).message).to.include('Can\'t fetch registryURL');
+    }
+  }).timeout(10000);
+});