diff --git a/public/locales/en.json b/public/locales/en.json
index 8c396583..f1a83b47 100644
--- a/public/locales/en.json
+++ b/public/locales/en.json
@@ -139,6 +139,7 @@
     "createButton": "Create",
     "cancelButton": "Cancel",
     "chargingTargetLabel": "Charging Target",
+    "chargingTargetTypeLabel": "Charging Target Type",
     "displayNameLabel": "Display Name",
     "nameLabel": "Name",
     "metadataHeader": "Metadata",
@@ -282,7 +283,9 @@
     "name": "Name",
     "componentSelection": "Component Selection",
     "search": "Search",
-    "components": "Components"
+    "components": "Components",
+    "notSelected": "Not selected",
+    "btp": "BTP"
   },
   "buttons": {
     "viewResource": "View resource",
diff --git a/src/components/Dialogs/CreateProjectDialog.cy.tsx b/src/components/Dialogs/CreateProjectDialog.cy.tsx
index 3cc7b79a..69188bbf 100644
--- a/src/components/Dialogs/CreateProjectDialog.cy.tsx
+++ b/src/components/Dialogs/CreateProjectDialog.cy.tsx
@@ -55,6 +55,7 @@ export const CreateProjectWorkspaceDialogWrapper: React.FC<{
   };
   return (
     <CreateProjectWorkspaceDialog
+      type={'workspace'}
       isOpen={isOpen}
       setIsOpen={setIsOpen}
       titleText="Create Workspace"
diff --git a/src/components/Dialogs/CreateProjectDialogContainer.tsx b/src/components/Dialogs/CreateProjectDialogContainer.tsx
index 4dae1bd1..7aa2736b 100644
--- a/src/components/Dialogs/CreateProjectDialogContainer.tsx
+++ b/src/components/Dialogs/CreateProjectDialogContainer.tsx
@@ -42,6 +42,7 @@ export function CreateProjectDialogContainer({
       name: '',
       displayName: '',
       chargingTarget: '',
+      chargingTargetType: 'btp',
       members: [],
     },
   });
@@ -49,11 +50,11 @@ export function CreateProjectDialogContainer({
   const { user } = useAuthOnboarding();
 
   const username = user?.email;
-
   const clearForm = useCallback(() => {
     resetField('name');
     resetField('chargingTarget');
     resetField('displayName');
+    resetField('chargingTargetType');
   }, [resetField]);
 
   useEffect(() => {
@@ -79,6 +80,7 @@ export function CreateProjectDialogContainer({
     name,
     chargingTarget,
     displayName,
+    chargingTargetType,
     members,
   }: OnCreatePayload): Promise<boolean> => {
     try {
@@ -87,6 +89,7 @@ export function CreateProjectDialogContainer({
           displayName: displayName,
           chargingTarget: chargingTarget,
           members: members,
+          chargingTargetType: chargingTargetType,
         }),
       );
       setIsOpen(false);
@@ -115,6 +118,7 @@ export function CreateProjectDialogContainer({
       register={register}
       errors={errors}
       setValue={setValue}
+      type={'project'}
       onCreate={handleSubmit(handleProjectCreate)}
     />
   );
diff --git a/src/components/Dialogs/CreateProjectWorkspaceDialog.tsx b/src/components/Dialogs/CreateProjectWorkspaceDialog.tsx
index 894d8a87..6bfe988a 100644
--- a/src/components/Dialogs/CreateProjectWorkspaceDialog.tsx
+++ b/src/components/Dialogs/CreateProjectWorkspaceDialog.tsx
@@ -20,6 +20,7 @@ export type OnCreatePayload = {
   name: string;
   displayName?: string;
   chargingTarget?: string;
+  chargingTargetType?: string;
   members: Member[];
 };
 
@@ -34,6 +35,7 @@ export interface CreateProjectWorkspaceDialogProps {
   errors: FieldErrors<CreateDialogProps>;
   setValue: UseFormSetValue<CreateDialogProps>;
   projectName?: string;
+  type: 'workspace' | 'project';
 }
 
 export function CreateProjectWorkspaceDialog({
@@ -47,6 +49,7 @@ export function CreateProjectWorkspaceDialog({
   errors,
   setValue,
   projectName,
+  type,
 }: CreateProjectWorkspaceDialogProps) {
   const { t } = useTranslation();
   const [isKubectlDialogOpen, setIsKubectlDialogOpen] = useState(false);
@@ -87,6 +90,8 @@ export function CreateProjectWorkspaceDialog({
         <MetadataForm
           register={register}
           errors={errors}
+          setValue={setValue}
+          requireChargingTarget={type === 'project'}
           sideFormContent={
             <FormGroup
               headerText={t('CreateProjectWorkspaceDialog.membersHeader')}
diff --git a/src/components/Dialogs/CreateWorkspaceDialogContainer.tsx b/src/components/Dialogs/CreateWorkspaceDialogContainer.tsx
index 4849fea5..9b9991d4 100644
--- a/src/components/Dialogs/CreateWorkspaceDialogContainer.tsx
+++ b/src/components/Dialogs/CreateWorkspaceDialogContainer.tsx
@@ -28,6 +28,7 @@ export type CreateDialogProps = {
   name: string;
   displayName?: string;
   chargingTarget?: string;
+  chargingTargetType?: string;
   members: Member[];
 };
 
@@ -54,17 +55,18 @@ export function CreateWorkspaceDialogContainer({
       displayName: '',
       chargingTarget: '',
       members: [],
+      chargingTargetType: '',
     },
   });
   const { t } = useTranslation();
   const { user } = useAuthOnboarding();
 
   const username = user?.email;
-
   const clearForm = useCallback(() => {
     resetField('name');
     resetField('chargingTarget');
     resetField('displayName');
+    resetField('chargingTargetType');
   }, [resetField]);
 
   useEffect(() => {
@@ -127,6 +129,7 @@ export function CreateWorkspaceDialogContainer({
       register={register}
       errors={errors}
       setValue={setValue}
+      type={'workspace'}
       projectName={project}
       onCreate={handleSubmit(handleWorkspaceCreate)}
     />
diff --git a/src/components/Dialogs/MetadataForm.tsx b/src/components/Dialogs/MetadataForm.tsx
index a69f088c..1267733a 100644
--- a/src/components/Dialogs/MetadataForm.tsx
+++ b/src/components/Dialogs/MetadataForm.tsx
@@ -1,24 +1,52 @@
-import { FieldErrors, UseFormRegister } from 'react-hook-form';
+import { FieldErrors, UseFormRegister, UseFormSetValue } from 'react-hook-form';
 import { CreateDialogProps } from './CreateWorkspaceDialogContainer.tsx';
 import { useTranslation } from 'react-i18next';
-import { Form, FormGroup, Input, Label } from '@ui5/webcomponents-react';
+import {
+  Form,
+  FormGroup,
+  Input,
+  Label,
+  Option,
+  Select,
+  SelectDomRef,
+  Ui5CustomEvent,
+} from '@ui5/webcomponents-react';
 import styles from './CreateProjectWorkspaceDialog.module.css';
+import React from 'react';
 
 export interface MetadataFormProps {
   register: UseFormRegister<CreateDialogProps>;
   errors: FieldErrors<CreateDialogProps>;
-
+  setValue: UseFormSetValue<CreateDialogProps>;
   sideFormContent?: React.ReactNode;
+  requireChargingTarget?: boolean;
+}
+
+interface SelectOption {
+  label: string;
+  value: string;
 }
 
 export function MetadataForm({
   register,
   errors,
-
+  setValue,
   sideFormContent,
+  requireChargingTarget = false,
 }: MetadataFormProps) {
   const { t } = useTranslation();
-
+  const handleChargingTargetTypeChange = (
+    event: Ui5CustomEvent<SelectDomRef, { selectedOption: HTMLElement }>,
+  ) => {
+    const selectedOption = event.detail.selectedOption as HTMLElement;
+    setValue('chargingTargetType', selectedOption.dataset.value);
+  };
+  const chargingTypes: SelectOption[] = [
+    ...(!requireChargingTarget
+      ? [{ label: t('common.notSelected'), value: '' }]
+      : []),
+    { label: t('common.btp'), value: 'btp' },
+  ];
   return (
     <Form>
       <FormGroup
@@ -36,7 +64,6 @@ export function MetadataForm({
           valueStateMessage={<span>{errors.name?.message}</span>}
           required
         />
-
         <Label for={'displayName'}>
           {t('CreateProjectWorkspaceDialog.displayNameLabel')}
         </Label>
@@ -45,8 +72,21 @@ export function MetadataForm({
           {...register('displayName')}
           className={styles.input}
         />
-
-        <Label for={'chargingTarget'}>
+        <Label for={'chargingTargetType'} required={requireChargingTarget}>
+          {t('CreateProjectWorkspaceDialog.chargingTargetTypeLabel')}
+        </Label>
+        <Select
+          id={'chargingTargetType'}
+          className={styles.input}
+          onChange={handleChargingTargetTypeChange}
+        >
+          {chargingTypes.map((option) => (
+            <Option key={option.value} data-value={option.value}>
+              {option.label}
+            </Option>
+          ))}
+        </Select>
+        <Label for={'chargingTarget'} required={requireChargingTarget}>
           {t('CreateProjectWorkspaceDialog.chargingTargetLabel')}
         </Label>
         <Input
@@ -55,6 +95,7 @@ export function MetadataForm({
           className={styles.input}
         />
       </FormGroup>
+
       {sideFormContent ? sideFormContent : null}
     </Form>
   );
diff --git a/src/components/Wizards/CreateManagedControlPlaneWizardContainer.tsx b/src/components/Wizards/CreateManagedControlPlaneWizardContainer.tsx
index 2c8bd120..6f4e43ed 100644
--- a/src/components/Wizards/CreateManagedControlPlaneWizardContainer.tsx
+++ b/src/components/Wizards/CreateManagedControlPlaneWizardContainer.tsx
@@ -45,6 +45,7 @@ export type CreateDialogProps = {
   name: string;
   displayName?: string;
   chargingTarget?: string;
+  chargingTargetType?: string;
   members: Member[];
 };
 
@@ -96,6 +97,7 @@ export const CreateManagedControlPlaneWizardContainer: FC<
       name: '',
       displayName: '',
       chargingTarget: '',
+      chargingTargetType: '',
       members: [],
     },
     mode: 'onChange',
@@ -121,6 +123,7 @@ export const CreateManagedControlPlaneWizardContainer: FC<
   const clearFormFields = useCallback(() => {
     resetField('name');
     resetField('chargingTarget');
+    resetField('chargingTargetType');
     resetField('displayName');
   }, [resetField]);
 
@@ -294,7 +297,11 @@ export const CreateManagedControlPlaneWizardContainer: FC<
           selected={selectedStep === 'metadata'}
           data-step="metadata"
         >
-          <MetadataForm register={register} errors={errors} />
+          <MetadataForm
+            setValue={setValue}
+            register={register}
+            errors={errors}
+          />
         </WizardStep>
         <WizardStep
           icon={'user-edit'}
diff --git a/src/lib/api/types/crate/createManagedControlPlane.ts b/src/lib/api/types/crate/createManagedControlPlane.ts
index 88c245bb..e9a33b5d 100644
--- a/src/lib/api/types/crate/createManagedControlPlane.ts
+++ b/src/lib/api/types/crate/createManagedControlPlane.ts
@@ -1,6 +1,7 @@
 import { Resource } from '../resource';
 import {
   CHARGING_TARGET_LABEL,
+  CHARGING_TARGET_TYPE_LABEL,
   DISPLAY_NAME_ANNOTATION,
 } from '../shared/keyNames';
 import { Member } from '../shared/members';
@@ -59,6 +60,7 @@ export const CreateManagedControlPlane = (
   optional?: {
     displayName?: string;
     chargingTarget?: string;
+    chargingTargetType?: string;
     members?: Member[];
     selectedComponents?: ComponentSelectionItem[];
   },
@@ -82,6 +84,7 @@ export const CreateManagedControlPlane = (
         [DISPLAY_NAME_ANNOTATION]: optional?.displayName ?? '',
       },
       labels: {
+        [CHARGING_TARGET_TYPE_LABEL]: optional?.chargingTargetType ?? '',
         [CHARGING_TARGET_LABEL]: optional?.chargingTarget ?? '',
       },
     },
diff --git a/src/lib/api/types/crate/createProject.ts b/src/lib/api/types/crate/createProject.ts
index e772716d..e11e458f 100644
--- a/src/lib/api/types/crate/createProject.ts
+++ b/src/lib/api/types/crate/createProject.ts
@@ -1,6 +1,7 @@
 import { Resource } from '../resource';
 import {
   CHARGING_TARGET_LABEL,
+  CHARGING_TARGET_TYPE_LABEL,
   DISPLAY_NAME_ANNOTATION,
 } from '../shared/keyNames';
 import { Member } from '../shared/members';
@@ -29,6 +30,7 @@ export const CreateProject = (
   optional?: {
     displayName?: string;
     chargingTarget?: string;
+    chargingTargetType?: string;
     members?: Member[];
   },
 ): CreateProjectType => {
@@ -41,6 +43,7 @@ export const CreateProject = (
         [DISPLAY_NAME_ANNOTATION]: optional?.displayName ?? '',
       },
       labels: {
+        [CHARGING_TARGET_TYPE_LABEL]: optional?.chargingTargetType ?? '',
         [CHARGING_TARGET_LABEL]: optional?.chargingTarget ?? '',
       },
     },
diff --git a/src/lib/api/types/crate/createWorkspace.ts b/src/lib/api/types/crate/createWorkspace.ts
index 4524e979..49783f09 100644
--- a/src/lib/api/types/crate/createWorkspace.ts
+++ b/src/lib/api/types/crate/createWorkspace.ts
@@ -1,6 +1,7 @@
 import { Resource } from '../resource';
 import {
   CHARGING_TARGET_LABEL,
+  CHARGING_TARGET_TYPE_LABEL,
   DISPLAY_NAME_ANNOTATION,
 } from '../shared/keyNames';
 import { Member } from '../shared/members';
@@ -31,6 +32,7 @@ export const CreateWorkspace = (
   optional?: {
     displayName?: string;
     chargingTarget?: string;
+    chargingTargetType?: string;
     members?: Member[];
   },
 ): CreateWorkspaceType => {
@@ -44,6 +46,7 @@ export const CreateWorkspace = (
         [DISPLAY_NAME_ANNOTATION]: optional?.displayName ?? '',
       },
       labels: {
+        [CHARGING_TARGET_TYPE_LABEL]: optional?.chargingTargetType ?? '',
         [CHARGING_TARGET_LABEL]: optional?.chargingTarget ?? '',
       },
     },
diff --git a/src/lib/api/types/shared/keyNames.ts b/src/lib/api/types/shared/keyNames.ts
index 48eb535e..f4671fb3 100644
--- a/src/lib/api/types/shared/keyNames.ts
+++ b/src/lib/api/types/shared/keyNames.ts
@@ -1,3 +1,5 @@
 export const DISPLAY_NAME_ANNOTATION: string = 'openmcp.cloud/display-name';
 export const CHARGING_TARGET_LABEL: string =
   'openmcp.cloud.sap/charging-target';
+export const CHARGING_TARGET_TYPE_LABEL: string =
+  'openmcp.cloud.sap/charging-target-type';
diff --git a/src/lib/api/validations/regex.ts b/src/lib/api/validations/regex.ts
index 4310068c..3b46c506 100644
--- a/src/lib/api/validations/regex.ts
+++ b/src/lib/api/validations/regex.ts
@@ -5,3 +5,6 @@ export const projectWorkspaceNameRegex =
 // Matches managed control plane names: 1-63 chars per segment, lowercase alphanum/dash, dot-separated, no leading/trailing dash.
 export const managedControlPlaneNameRegex =
   /^(?!-)[a-z0-9-]{1,63}(?<!-)(?:\.(?!-)[a-z0-9-]{1,63}(?<!-))*$/;
+
+export const btpChargingTargetRegex =
+  /^[0-9a-f]{8}-[0-9a-f]{4}-[0-9a-f]{4}-[0-9a-f]{4}-[0-9a-f]{12}$/;
diff --git a/src/lib/api/validations/schemas.ts b/src/lib/api/validations/schemas.ts
index 7a2ff1ba..6239731e 100644
--- a/src/lib/api/validations/schemas.ts
+++ b/src/lib/api/validations/schemas.ts
@@ -18,6 +18,7 @@ export const validationSchemaProjectWorkspace = z.object({
     .max(25, t('validationErrors.max25chars')),
   displayName: z.string().optional(),
   chargingTarget: z.string().optional(),
+  chargingTargetType: z.string().optional(),
   members: z.array(member).refine((members) => members?.length > 0),
 });
 export const validationSchemaCreateManagedControlPlane = z.object({
@@ -31,5 +32,6 @@ export const validationSchemaCreateManagedControlPlane = z.object({
     .max(25, t('validationErrors.max25chars')),
   displayName: z.string().optional(),
   chargingTarget: z.string().optional(),
+  chargingTargetType: z.string().optional(),
   members: z.array(member),
 });