diff --git a/cmd/crossplane/project/init.go b/cmd/crossplane/project/init.go
index 90436c97..b194a228 100644
--- a/cmd/crossplane/project/init.go
+++ b/cmd/crossplane/project/init.go
@@ -38,8 +38,9 @@ const projectFileName = "crossplane-project.yaml"
 
 // initCmd initializes a new project.
 type initCmd struct {
-	Name      string `arg:""                                                    help:"The name of the new project."`
-	Directory string `help:"Directory to initialize. Defaults to project name." short:"d"                           type:"path"`
+	Name       string `arg:""                                                    help:"The name of the new project."`
+	Directory  string `help:"Directory to initialize. Defaults to project name." short:"d"                                           type:"path"`
+	Repository string `default:"example.com/my-org"                              help:"Override the repository in the project file." optional:"" short:"r"`
 }
 
 func (c *initCmd) Help() string {
@@ -61,6 +62,10 @@ func (c *initCmd) Run(sp terminal.SpinnerPrinter) error {
 		return err
 	}
 
+	repo := strings.TrimRight(strings.TrimSpace(c.Repository), "/")
+	if repo == "" {
+		return errors.New("repository cannot be empty; set --repository to an OCI repository prefix like 'xpkg.crossplane.io/my-org'")
+	}
 	return sp.WrapWithSuccessSpinner("Initializing project", func() error {
 		if err := os.MkdirAll(c.Directory, 0o750); err != nil {
 			return errors.Wrapf(err, "failed to create directory %s", c.Directory)
@@ -73,8 +78,8 @@ kind: Project
 metadata:
   name: %s
 spec:
-  repository: example.com/my-org/%s
-`, c.Name, c.Name)
+  repository: %s/%s
+`, c.Name, repo, c.Name)
 
 		if err := os.WriteFile(projFile, []byte(content), 0o600); err != nil {
 			return errors.Wrapf(err, "failed to write %s", projectFileName)