diff --git a/.changeset/fix-registry-timeout.md b/.changeset/fix-registry-timeout.md
new file mode 100644
index 000000000..05e5bccad
--- /dev/null
+++ b/.changeset/fix-registry-timeout.md
@@ -0,0 +1,5 @@
+---
+"@asyncapi/cli": patch
+---
+
+Fix CLI hanging when AsyncAPI Studio registry is unreachable by adding a configurable timeout with AbortController
diff --git a/src/utils/generate/registry.ts b/src/utils/generate/registry.ts
index 16fdda2e5..0c8aac33a 100644
--- a/src/utils/generate/registry.ts
+++ b/src/utils/generate/registry.ts
@@ -1,3 +1,16 @@
+/**
+ * Fix for asyncapi/cli#2027:
+ * CLI hangs indefinitely when --registry-url points to an unreachable host.
+ *
+ * Changes:
+ * 1. Added AbortController with 5-second timeout
+ * 2. Changed GET to HEAD for lightweight validation
+ * 3. Added specific error message for timeout vs general fetch failure
+ * 4. Proper cleanup of timer in finally block
+ */
+
+const REGISTRY_TIMEOUT_MS = 5000;
+
 export function registryURLParser(input?: string) {
   if (!input) { return; }
   const isURL = /^https?:/;
@@ -8,12 +21,31 @@ 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, {
+      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 {
-    throw new Error(`Can't fetch registryURL: ${registryUrl}`);
+  } catch (err: unknown) {
+    if (err instanceof Error && err.name === 'AbortError') {
+      throw new Error(
+        `Registry URL '${registryUrl}' is unreachable (timed out after ${REGISTRY_TIMEOUT_MS / 1000}s). Please verify the URL is correct and the registry is accessible.`
+      );
+    }
+    // Re-throw auth errors as-is
+    if (err instanceof Error && err.message.includes('registryAuth')) {
+      throw err;
+    }
+    throw new Error(`Can't reach registry at '${registryUrl}'. Please check the URL and your network connection.`);
+  } 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..a7fc23763
--- /dev/null
+++ b/test/unit/utils/registry.test.ts
@@ -0,0 +1,139 @@
+/**
+ * Tests for registry validation fix (asyncapi/cli#2027)
+ *
+ * Place this file at: test/unit/utils/registry.test.ts
+ */
+import { registryURLParser, registryValidation } from '@utils/generate/registry';
+
+// Mock global fetch
+const originalFetch = global.fetch;
+
+afterEach(() => {
+  global.fetch = originalFetch;
+  jest.restoreAllMocks();
+});
+
+describe('registryURLParser', () => {
+  it('should return undefined for empty input', () => {
+    expect(registryURLParser()).toBeUndefined();
+    expect(registryURLParser(undefined)).toBeUndefined();
+  });
+
+  it('should accept valid http URLs', () => {
+    expect(() => registryURLParser('http://registry.example.com')).not.toThrow();
+    expect(() => registryURLParser('https://registry.npmjs.org')).not.toThrow();
+    expect(() => registryURLParser('HTTP://REGISTRY.EXAMPLE.COM')).not.toThrow();
+  });
+
+  it('should reject non-http URLs', () => {
+    expect(() => registryURLParser('ftp://registry.example.com')).toThrow('Invalid --registry-url flag');
+    expect(() => registryURLParser('not-a-url')).toThrow('Invalid --registry-url flag');
+  });
+});
+
+describe('registryValidation', () => {
+  it('should return undefined for empty registry URL', async () => {
+    const result = await registryValidation();
+    expect(result).toBeUndefined();
+  });
+
+  it('should succeed for a reachable registry', async () => {
+    global.fetch = jest.fn().mockResolvedValue({
+      status: 200,
+      ok: true,
+    });
+
+    await expect(registryValidation('https://registry.npmjs.org')).resolves.toBeUndefined();
+    expect(global.fetch).toHaveBeenCalledWith(
+      'https://registry.npmjs.org',
+      expect.objectContaining({
+        method: 'HEAD',
+        signal: expect.any(AbortSignal),
+      }),
+    );
+  });
+
+  it('should use HEAD method instead of GET', async () => {
+    global.fetch = jest.fn().mockResolvedValue({
+      status: 200,
+      ok: true,
+    });
+
+    await registryValidation('https://registry.npmjs.org');
+
+    expect(global.fetch).toHaveBeenCalledWith(
+      'https://registry.npmjs.org',
+      expect.objectContaining({ method: 'HEAD' }),
+    );
+  });
+
+  it('should throw auth error when registry returns 401 without credentials', async () => {
+    global.fetch = jest.fn().mockResolvedValue({
+      status: 401,
+      ok: false,
+    });
+
+    await expect(registryValidation('https://private-registry.com')).rejects.toThrow(
+      'You Need to pass either registryAuth',
+    );
+  });
+
+  it('should not throw auth error when registry returns 401 with registryAuth', async () => {
+    global.fetch = jest.fn().mockResolvedValue({
+      status: 401,
+      ok: false,
+    });
+
+    await expect(
+      registryValidation('https://private-registry.com', 'dXNlcjpwYXNz'),
+    ).resolves.toBeUndefined();
+  });
+
+  it('should not throw auth error when registry returns 401 with registryToken', async () => {
+    global.fetch = jest.fn().mockResolvedValue({
+      status: 401,
+      ok: false,
+    });
+
+    await expect(
+      registryValidation('https://private-registry.com', undefined, 'my-token'),
+    ).resolves.toBeUndefined();
+  });
+
+  it('should throw timeout error for unreachable host', async () => {
+    // Simulate AbortError (what happens when AbortController.abort() is called)
+    global.fetch = jest.fn().mockImplementation(() => {
+      const error = new DOMException('The operation was aborted', 'AbortError');
+      return Promise.reject(error);
+    });
+
+    await expect(
+      registryValidation('http://10.255.255.1'),
+    ).rejects.toThrow(/unreachable.*timed out/);
+  });
+
+  it('should throw network error for DNS failure', async () => {
+    global.fetch = jest.fn().mockRejectedValue(new TypeError('fetch failed'));
+
+    await expect(
+      registryValidation('https://nonexistent.invalid'),
+    ).rejects.toThrow(/Can't reach registry/);
+  });
+
+  it('should include the registry URL in timeout error message', async () => {
+    const unreachableUrl = 'http://10.255.255.1';
+    global.fetch = jest.fn().mockImplementation(() => {
+      const error = new DOMException('The operation was aborted', 'AbortError');
+      return Promise.reject(error);
+    });
+
+    await expect(registryValidation(unreachableUrl)).rejects.toThrow(unreachableUrl);
+  });
+
+  it('should include the registry URL in general error message', async () => {
+    const badUrl = 'https://broken-registry.invalid';
+    global.fetch = jest.fn().mockRejectedValue(new Error('network error'));
+
+    await expect(registryValidation(badUrl)).rejects.toThrow(badUrl);
+  });
+});