diff --git a/apps/web/src/api/git_repositories.ts b/apps/web/src/api/git_repositories.ts
index 373886e..cbacb1f 100644
--- a/apps/web/src/api/git_repositories.ts
+++ b/apps/web/src/api/git_repositories.ts
@@ -60,6 +60,13 @@ export async function createRepository(
   return response.data;
 }
 
+export async function createExternalRepository(
+  data: GitRepositoryCreate
+): Promise<GitRepository> {
+  const response = await apiClient.post<GitRepository>("/repositories", data);
+  return response.data;
+}
+
 export async function deleteRepository(projectId: string, repoId: string): Promise<void> {
   await apiClient.delete(`/projects/${projectId}/repositories/${repoId}`);
 }
diff --git a/apps/web/src/components/git-mount-editor.tsx b/apps/web/src/components/git-mount-editor.tsx
index 7a4eed0..d5dc8c8 100644
--- a/apps/web/src/components/git-mount-editor.tsx
+++ b/apps/web/src/components/git-mount-editor.tsx
@@ -7,9 +7,10 @@ interface GitMountEditorProps {
   mounts: GitMount[];
   repositories: GitRepository[];
   onChange: (mounts: GitMount[]) => void;
+  onCreateRepository?: (name: string, remoteUrl: string) => Promise<GitRepository>;
 }
 
-export const GitMountEditor = ({ mounts, repositories, onChange }: GitMountEditorProps) => {
+export const GitMountEditor = ({ mounts, repositories, onChange, onCreateRepository }: GitMountEditorProps) => {
   const [editingIndex, setEditingIndex] = useState<number | null>(null);
   const [newMount, setNewMount] = useState<GitMount>({
     repo_id: "",
@@ -58,6 +59,7 @@ export const GitMountEditor = ({ mounts, repositories, onChange }: GitMountEdito
                   onSave={(updated) => handleUpdate(index, updated)}
                   onCancel={() => setEditingIndex(null)}
                   validatePath={validatePath}
+                  onCreateRepository={onCreateRepository}
                 />
               ) : (
                 <div className="git-mount-display">
@@ -105,6 +107,7 @@ export const GitMountEditor = ({ mounts, repositories, onChange }: GitMountEdito
           onSave={handleAdd}
           onCancel={() => setNewMount({ repo_id: "", source_path: ".", target_path: "", branch: "" })}
           validatePath={validatePath}
+          onCreateRepository={onCreateRepository}
           isNew
         />
       </div>
@@ -118,12 +121,17 @@ interface GitMountFormProps {
   onSave: (mount: GitMount) => void;
   onCancel: () => void;
   validatePath: (path: string, isTarget: boolean) => string | null;
+  onCreateRepository?: (name: string, remoteUrl: string) => Promise<GitRepository>;
   isNew?: boolean;
 }
 
-const GitMountForm = ({ mount, repositories, onSave, onCancel, validatePath, isNew }: GitMountFormProps) => {
+const GitMountForm = ({ mount, repositories, onSave, onCancel, validatePath, onCreateRepository, isNew }: GitMountFormProps) => {
   const [form, setForm] = useState<GitMount>({ ...mount });
   const [errors, setErrors] = useState<Record<string, string>>({});
+  const [isCreatingRepo, setIsCreatingRepo] = useState(false);
+  const [newRepoName, setNewRepoName] = useState("");
+  const [newRepoUrl, setNewRepoUrl] = useState("");
+  const [isSubmitting, setIsSubmitting] = useState(false);
 
   const handleChange = (field: keyof GitMount, value: string) => {
     setForm((prev) => ({ ...prev, [field]: value }));
@@ -136,6 +144,26 @@ const GitMountForm = ({ mount, repositories, onSave, onCancel, validatePath, isN
     }
   };
 
+  const handleCreateRepo = async () => {
+    if (!onCreateRepository || !newRepoName.trim() || !newRepoUrl.trim()) return;
+    
+    setIsSubmitting(true);
+    try {
+      const repo = await onCreateRepository(newRepoName.trim(), newRepoUrl.trim());
+      handleChange("repo_id", repo.id);
+      setIsCreatingRepo(false);
+      setNewRepoName("");
+      setNewRepoUrl("");
+    } catch (err) {
+      setErrors((prev) => ({
+        ...prev,
+        repo_id: err instanceof Error ? err.message : "Failed to create repository",
+      }));
+    } finally {
+      setIsSubmitting(false);
+    }
+  };
+
   const handleSubmit = () => {
     const newErrors: Record<string, string> = {};
     
@@ -164,19 +192,71 @@ const GitMountForm = ({ mount, repositories, onSave, onCancel, validatePath, isN
     <div className="git-mount-form">
       <div className="form-row">
         <label>Repository</label>
-        <select
-          value={form.repo_id}
-          onChange={(e) => handleChange("repo_id", e.target.value)}
-          className={errors.repo_id ? "error" : ""}
-        >
-          <option value="">Select a repository...</option>
-          {repositories.map((repo) => (
-            <option key={repo.id} value={repo.id}>
-              {repo.name}
-            </option>
-          ))}
-        </select>
-        {errors.repo_id && <span className="error-text">{errors.repo_id}</span>}
+        {!isCreatingRepo ? (
+          <>
+            <select
+              value={form.repo_id}
+              onChange={(e) => {
+                if (e.target.value === "__new__") {
+                  setIsCreatingRepo(true);
+                } else {
+                  handleChange("repo_id", e.target.value);
+                }
+              }}
+              className={errors.repo_id ? "error" : ""}
+            >
+              <option value="">Select a repository...</option>
+              {repositories.map((repo) => (
+                <option key={repo.id} value={repo.id}>
+                  {repo.name}
+                </option>
+              ))}
+              {onCreateRepository && (
+                <option value="__new__">+ Add new repository...</option>
+              )}
+            </select>
+            {errors.repo_id && <span className="error-text">{errors.repo_id}</span>}
+          </>
+        ) : (
+          <div className="new-repo-form">
+            <input
+              type="text"
+              value={newRepoName}
+              onChange={(e) => setNewRepoName(e.target.value)}
+              placeholder="Repository name"
+              disabled={isSubmitting}
+            />
+            <input
+              type="text"
+              value={newRepoUrl}
+              onChange={(e) => setNewRepoUrl(e.target.value)}
+              placeholder="https://github.com/user/repo.git"
+              disabled={isSubmitting}
+            />
+            <div className="new-repo-actions">
+              <button
+                type="button"
+                className="primary-button small"
+                onClick={handleCreateRepo}
+                disabled={isSubmitting || !newRepoName.trim() || !newRepoUrl.trim()}
+              >
+                {isSubmitting ? "Creating..." : "Create Repository"}
+              </button>
+              <button
+                type="button"
+                className="secondary-button small"
+                onClick={() => {
+                  setIsCreatingRepo(false);
+                  setNewRepoName("");
+                  setNewRepoUrl("");
+                }}
+                disabled={isSubmitting}
+              >
+                Cancel
+              </button>
+            </div>
+          </div>
+        )}
       </div>
 
       <div className="form-row">
@@ -226,4 +306,4 @@ const GitMountForm = ({ mount, repositories, onSave, onCancel, validatePath, isN
       </div>
     </div>
   );
-};
+};
\ No newline at end of file
diff --git a/apps/web/src/pages/config-profiles.tsx b/apps/web/src/pages/config-profiles.tsx
index 7d641d2..a2a6407 100644
--- a/apps/web/src/pages/config-profiles.tsx
+++ b/apps/web/src/pages/config-profiles.tsx
@@ -19,7 +19,7 @@ import {
   type ResolvedProfile,
 } from "../api/config_profiles";
 import { listProjects } from "../api/projects";
-import { listAllUserRepositories, type GitRepository } from "../api/git_repositories";
+import { listAllUserRepositories, createExternalRepository, type GitRepository } from "../api/git_repositories";
 import type { Project } from "../types";
 import { listToolTypes, type ToolType } from "../api/tool_types";
 import { GitMountEditor } from "../components/git-mount-editor";
@@ -1259,6 +1259,14 @@ export const ConfigProfilesPage = () => {
                   mounts={formData.git_mounts || []}
                   repositories={repositories}
                   onChange={(git_mounts) => updateFormField("git_mounts", git_mounts)}
+                  onCreateRepository={async (name, remoteUrl) => {
+                    const repo = await createExternalRepository({
+                      name,
+                      remote_url: remoteUrl,
+                    });
+                    setRepositories((prev) => [...prev, repo]);
+                    return repo;
+                  }}
                 />
               </div>
 
diff --git a/apps/web/src/styles.css b/apps/web/src/styles.css
index d618f01..8c00b45 100644
--- a/apps/web/src/styles.css
+++ b/apps/web/src/styles.css
@@ -4131,3 +4131,28 @@ a.nav-item,
   margin-top: 0.5rem;
 }
 
+.new-repo-form {
+  display: flex;
+  flex-direction: column;
+  gap: 0.5rem;
+  padding: 0.75rem;
+  background: var(--bg);
+  border: 1px solid var(--border);
+  border-radius: 0.375rem;
+}
+
+.new-repo-form input {
+  padding: 0.5rem;
+  border: 1px solid var(--border);
+  border-radius: 0.375rem;
+  background: var(--surface);
+  color: var(--text);
+  font-size: 0.875rem;
+}
+
+.new-repo-actions {
+  display: flex;
+  gap: 0.5rem;
+  margin-top: 0.25rem;
+}
+