diff --git a/.changeset/fix-registry-timeout.md b/.changeset/fix-registry-timeout.md
new file mode 100644
index 000000000..91e93e180
--- /dev/null
+++ b/.changeset/fix-registry-timeout.md
@@ -0,0 +1,5 @@
+---
+"@asyncapi/cli": patch
+---
+
+Add timeout to registry URL validation to prevent CLI hang when registry is unreachable.
diff --git a/src/utils/generate/registry.ts b/src/utils/generate/registry.ts
index 16fdda2e5..7f0ccb456 100644
--- a/src/utils/generate/registry.ts
+++ b/src/utils/generate/registry.ts
@@ -1,3 +1,13 @@
+const REGISTRY_TIMEOUT_MS = 10_000;
+
+/** Custom error class for registry authentication errors */
+class RegistryAuthError extends Error {
+  constructor(message: string) {
+    super(message);
+    this.name = 'RegistryAuthError';
+  }
+}
+
 export function registryURLParser(input?: string) {
   if (!input) { return; }
   const isURL = /^https?:/;
@@ -8,12 +18,27 @@ export function registryURLParser(input?: string) {
 
 export async function registryValidation(registryUrl?: string, registryAuth?: string, registryToken?: string) {
   if (!registryUrl) { return; }
+
+  const controller = new AbortController();
+  const timer = setTimeout(() => controller.abort(), REGISTRY_TIMEOUT_MS);
+
+  let response: Response;
   try {
-    const response = await fetch(registryUrl as string);
-    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');
+    response = await fetch(registryUrl as string, {
+      method: 'HEAD',
+      signal: controller.signal,
+    });
+  } catch (error: unknown) {
+    clearTimeout(timer);
+    if (error instanceof Error && error.name === 'AbortError') {
+      throw new Error(`Registry URL validation timed out after ${REGISTRY_TIMEOUT_MS / 1000}s: ${registryUrl}`);
     }
-  } catch {
-    throw new Error(`Can't fetch registryURL: ${registryUrl}`);
+    throw new Error(`Unable to reach registry URL: ${registryUrl}`);
+  } finally {
+    clearTimeout(timer);
+  }
+
+  if (response.status === 401 && !registryAuth && !registryToken) {
+    throw new RegistryAuthError('You Need to pass either registryAuth in username:password encoded in Base64 or need to pass registryToken');
   }
 }
diff --git a/test/unit/utils/registry.test.ts b/test/unit/utils/registry.test.ts
new file mode 100644
index 000000000..e3d8b5b24
--- /dev/null
+++ b/test/unit/utils/registry.test.ts
@@ -0,0 +1,80 @@
+import { expect } from 'chai';
+import { registryURLParser, registryValidation } from '../../../src/utils/generate/registry';
+
+describe('registryURLParser()', () => {
+  it('should return undefined for empty input', () => {
+    expect(registryURLParser(undefined)).to.be.undefined;
+    expect(registryURLParser('')).to.be.undefined;
+  });
+
+  it('should accept valid http URLs', () => {
+    expect(() => registryURLParser('https://registry.npmjs.org')).to.not.throw();
+    expect(() => registryURLParser('http://localhost:4873')).to.not.throw();
+  });
+
+  it('should reject non-http URLs', () => {
+    expect(() => registryURLParser('ftp://registry.example.com')).to.throw('Invalid --registry-url');
+    expect(() => registryURLParser('not-a-url')).to.throw('Invalid --registry-url');
+  });
+});
+
+describe('registryValidation()', () => {
+  it('should return undefined when no URL provided', async () => {
+    const result = await registryValidation(undefined);
+    expect(result).to.be.undefined;
+  });
+
+  it('should fail fast for unreachable URLs instead of hanging', async () => {
+    // Stub fetch to simulate a timeout scenario without real network calls
+    const originalFetch = global.fetch;
+    global.fetch = () => new Promise((_, reject) => {
+      // Simulate abort after timeout
+      const abortError = new Error('The operation was aborted');
+      abortError.name = 'AbortError';
+      setTimeout(() => reject(abortError), 50);
+    });
+
+    try {
+      await registryValidation('http://example.com');
+      expect.fail('Should have thrown');
+    } catch (error: unknown) {
+      expect(error).to.be.instanceOf(Error);
+      const msg = (error as Error).message;
+      expect(msg).to.include('timed out');
+    } finally {
+      global.fetch = originalFetch;
+    }
+  });
+
+  it('should throw auth error for 401 without credentials', async () => {
+    const originalFetch = global.fetch;
+    global.fetch = () => Promise.resolve(new Response(null, { status: 401 }));
+
+    try {
+      await registryValidation('http://example.com');
+      expect.fail('Should have thrown');
+    } catch (error: unknown) {
+      expect(error).to.be.instanceOf(Error);
+      const msg = (error as Error).message;
+      expect(msg).to.include('registryAuth');
+    } finally {
+      global.fetch = originalFetch;
+    }
+  });
+
+  it('should throw unreachable error for network failures', async () => {
+    const originalFetch = global.fetch;
+    global.fetch = () => Promise.reject(new Error('Network error'));
+
+    try {
+      await registryValidation('http://example.com');
+      expect.fail('Should have thrown');
+    } catch (error: unknown) {
+      expect(error).to.be.instanceOf(Error);
+      const msg = (error as Error).message;
+      expect(msg).to.include('Unable to reach');
+    } finally {
+      global.fetch = originalFetch;
+    }
+  });
+});