diff --git a/pkg/common/constants/constants.go b/pkg/common/constants/constants.go
index fc7595feb..547add9c2 100644
--- a/pkg/common/constants/constants.go
+++ b/pkg/common/constants/constants.go
@@ -33,10 +33,12 @@ const (
 	DefaultDashboardCpuRequest    = "100m"
 
 	// PluginRegistry
-	DefaultPluginRegistryMemoryLimit   = "1536Mi"
-	DefaultPluginRegistryMemoryRequest = "32Mi"
-	DefaultPluginRegistryCpuLimit      = "500m"
-	DefaultPluginRegistryCpuRequest    = "100m"
+	DefaultPluginRegistryMemoryLimit                          = "256Mi"
+	DefaultPluginRegistryMemoryLimitEmbeddedOpenVSXRegistry   = "2Gi"
+	DefaultPluginRegistryMemoryRequest                        = "32Mi"
+	DefaultPluginRegistryMemoryRequestEmbeddedOpenVSXRegistry = "512Mi"
+	DefaultPluginRegistryCpuLimit                             = "500m"
+	DefaultPluginRegistryCpuRequest                           = "100m"
 
 	// DevfileRegistry
 	DefaultDevfileRegistryMemoryLimit   = "256Mi"
diff --git a/pkg/deploy/pluginregistry/pluginregistry_deployment.go b/pkg/deploy/pluginregistry/pluginregistry_deployment.go
index 72adb2d27..ff7e70759 100644
--- a/pkg/deploy/pluginregistry/pluginregistry_deployment.go
+++ b/pkg/deploy/pluginregistry/pluginregistry_deployment.go
@@ -41,6 +41,11 @@ func (p *PluginRegistryReconciler) getPluginRegistryDeploymentSpec(ctx *chetypes
 		},
 	}
 
+	if ctx.CheCluster.Spec.Components.PluginRegistry.OpenVSXURL == "" {
+		resources.Requests[corev1.ResourceMemory] = resource.MustParse(constants.DefaultPluginRegistryMemoryRequestEmbeddedOpenVSXRegistry)
+		resources.Limits[corev1.ResourceMemory] = resource.MustParse(constants.DefaultPluginRegistryMemoryLimitEmbeddedOpenVSXRegistry)
+	}
+
 	deployment := registry.GetSpecRegistryDeployment(
 		ctx,
 		registryType,
diff --git a/pkg/deploy/pluginregistry/pluginregistry_deployment_test.go b/pkg/deploy/pluginregistry/pluginregistry_deployment_test.go
index 4905b30a5..34791e814 100644
--- a/pkg/deploy/pluginregistry/pluginregistry_deployment_test.go
+++ b/pkg/deploy/pluginregistry/pluginregistry_deployment_test.go
@@ -36,7 +36,21 @@ func TestGetPluginRegistryDeploymentSpec(t *testing.T) {
 
 	testCases := []testCase{
 		{
-			name:          "Test default limits",
+			name:          "Test default limits for embedded OpenVSX registry",
+			initObjects:   []runtime.Object{},
+			memoryLimit:   constants.DefaultPluginRegistryMemoryLimitEmbeddedOpenVSXRegistry,
+			memoryRequest: constants.DefaultPluginRegistryMemoryRequestEmbeddedOpenVSXRegistry,
+			cpuLimit:      constants.DefaultPluginRegistryCpuLimit,
+			cpuRequest:    constants.DefaultPluginRegistryCpuRequest,
+			cheCluster: &chev2.CheCluster{
+				ObjectMeta: metav1.ObjectMeta{
+					Namespace: "eclipse-che",
+					Name:      "eclipse-che",
+				},
+			},
+		},
+		{
+			name:          "Test default limits for external openVSX registry",
 			initObjects:   []runtime.Object{},
 			memoryLimit:   constants.DefaultPluginRegistryMemoryLimit,
 			memoryRequest: constants.DefaultPluginRegistryMemoryRequest,
@@ -47,6 +61,13 @@ func TestGetPluginRegistryDeploymentSpec(t *testing.T) {
 					Namespace: "eclipse-che",
 					Name:      "eclipse-che",
 				},
+				Spec: chev2.CheClusterSpec{
+					Components: chev2.CheClusterComponents{
+						PluginRegistry: chev2.PluginRegistry{
+							OpenVSXURL: "open-vsx-url",
+						},
+					},
+				},
 			},
 		},
 		{