diff --git a/internal/controller/helmchart_controller.go b/internal/controller/helmchart_controller.go
index 9197e11e7..4f1d1a02e 100644
--- a/internal/controller/helmchart_controller.go
+++ b/internal/controller/helmchart_controller.go
@@ -456,8 +456,15 @@ func (r *HelmChartReconciler) reconcileSource(ctx context.Context, sp *patch.Ser
 
 	// Assert source has an artifact
 	if s.GetArtifact() == nil || !r.Storage.ArtifactExist(*s.GetArtifact()) {
-		// Set the condition to indicate that the source has no artifact for all types except OCI HelmRepository
-		if helmRepo, ok := s.(*sourcev1.HelmRepository); !ok || helmRepo.Spec.Type != sourcev1.HelmRepositoryTypeOCI {
+		// OCI HelmRepository sources do not produce artifacts themselves, but a
+		// failed source reconcile should still block chart builds to avoid
+		// surfacing a later generic build error on the HelmChart.
+		if helmRepo, ok := s.(*sourcev1.HelmRepository); ok && helmRepo.Spec.Type == sourcev1.HelmRepositoryTypeOCI {
+			if ready := conditions.Get(helmRepo, meta.ReadyCondition); ready != nil && ready.Status == metav1.ConditionFalse {
+				conditions.MarkTrue(obj, sourcev1.FetchFailedCondition, ready.Reason, "%s", ready.Message)
+				return sreconcile.ResultRequeue, nil
+			}
+		} else {
 			conditions.MarkTrue(obj, sourcev1.FetchFailedCondition, "NoSourceArtifact",
 				"no artifact available for %s source '%s'", obj.Spec.SourceRef.Kind, obj.Spec.SourceRef.Name)
 			r.eventLogf(ctx, obj, eventv1.EventTypeTrace, "NoSourceArtifact",
diff --git a/internal/controller/helmchart_controller_test.go b/internal/controller/helmchart_controller_test.go
index 23188e968..4f2d10f2b 100644
--- a/internal/controller/helmchart_controller_test.go
+++ b/internal/controller/helmchart_controller_test.go
@@ -779,6 +779,43 @@ func TestHelmChartReconciler_reconcileSource(t *testing.T) {
 				}))
 			},
 		},
+		{
+			name: "ResultRequeue when OCI HelmRepository source is not ready",
+			source: &sourcev1.HelmRepository{
+				ObjectMeta: metav1.ObjectMeta{
+					Name:      "helmrepository",
+					Namespace: "default",
+				},
+				Spec: sourcev1.HelmRepositorySpec{
+					Type: sourcev1.HelmRepositoryTypeOCI,
+					URL:  "oci://example.com/charts",
+				},
+				Status: sourcev1.HelmRepositoryStatus{
+					Conditions: []metav1.Condition{
+						*conditions.FalseCondition(meta.ReadyCondition, sourcev1.AuthenticationFailedReason, "failed to login to OCI registry"),
+					},
+				},
+			},
+			beforeFunc: func(obj *sourcev1.HelmChart) {
+				obj.Spec.Chart = "helmchart"
+				obj.Spec.SourceRef = sourcev1.LocalHelmChartSourceReference{
+					Name: "helmrepository",
+					Kind: sourcev1.HelmRepositoryKind,
+				}
+				conditions.MarkReconciling(obj, meta.ProgressingReason, "foo")
+				conditions.MarkUnknown(obj, meta.ReadyCondition, meta.ProgressingReason, "foo")
+			},
+			want: sreconcile.ResultRequeue,
+			assertFunc: func(g *WithT, build chart.Build, obj sourcev1.HelmChart) {
+				g.Expect(build.Complete()).To(BeFalse())
+
+				g.Expect(obj.Status.Conditions).To(conditions.MatchConditions([]metav1.Condition{
+					*conditions.TrueCondition(sourcev1.FetchFailedCondition, sourcev1.AuthenticationFailedReason, "failed to login to OCI registry"),
+					*conditions.TrueCondition(meta.ReconcilingCondition, meta.ProgressingReason, "foo"),
+					*conditions.UnknownCondition(meta.ReadyCondition, meta.ProgressingReason, "foo"),
+				}))
+			},
+		},
 	}
 	for _, tt := range tests {
 		t.Run(tt.name, func(t *testing.T) {