diff --git a/pkg/resource/resource.go b/pkg/resource/resource.go
index 2bf143f67..ba7d7f1d9 100644
--- a/pkg/resource/resource.go
+++ b/pkg/resource/resource.go
@@ -49,6 +49,7 @@ const SecretTypeConnection corev1.SecretType = "connection.crossplane.io/v1alpha
 const (
 	ExternalResourceTagKeyKind               = "crossplane-kind"
 	ExternalResourceTagKeyName               = "crossplane-name"
+	ExternalResourceTagKeyNamespace          = "crossplane-namespace"
 	ExternalResourceTagKeyProvider           = "crossplane-providerconfig"
 	ExternalResourceTagKeyProviderConfigKind = "crossplane-providerconfig-kind"
 
@@ -414,6 +415,10 @@ func GetExternalTags(mg Managed) map[string]string {
 		ExternalResourceTagKeyName: mg.GetName(),
 	}
 
+	if namespace := mg.GetNamespace(); namespace != "" {
+		tags[ExternalResourceTagKeyNamespace] = namespace
+	}
+
 	switch mg := mg.(type) {
 	case TypedProviderConfigReferencer:
 		if pcRef := mg.GetProviderConfigReference(); pcRef != nil {
diff --git a/pkg/resource/resource_test.go b/pkg/resource/resource_test.go
index ddad8a79e..c04dc6442 100644
--- a/pkg/resource/resource_test.go
+++ b/pkg/resource/resource_test.go
@@ -636,6 +636,24 @@ func TestGetExternalTags(t *testing.T) {
 				ExternalResourceTagKeyProviderConfigKind: "ProviderConfig",
 			},
 		},
+		"SuccessfulWithNamespacedObject": {
+			o: &fake.ModernManaged{
+				ObjectMeta: metav1.ObjectMeta{
+					Name: name,
+					Namespace: namespace,
+				},
+				TypedProviderConfigReferencer: fake.TypedProviderConfigReferencer{
+					Ref: &xpv1.ProviderConfigReference{Name: provName, Kind: "ProviderConfig"},
+				},
+			},
+			want: map[string]string{
+				ExternalResourceTagKeyKind:               strings.ToLower((&fake.Managed{}).GetObjectKind().GroupVersionKind().GroupKind().String()),
+				ExternalResourceTagKeyName:               name,
+				ExternalResourceTagKeyNamespace:          namespace,
+				ExternalResourceTagKeyProvider:           provName,
+				ExternalResourceTagKeyProviderConfigKind: "ProviderConfig",
+			},
+		},
 		"SuccessfulWithLegacyProviderConfig": {
 			o: &fake.LegacyManaged{
 				ObjectMeta: metav1.ObjectMeta{