diff --git a/pkg/imgpkg/internal/util/repo_based_tag_generator_test.go b/pkg/imgpkg/internal/util/repo_based_tag_generator_test.go
new file mode 100644
index 000000000..db7641acb
--- /dev/null
+++ b/pkg/imgpkg/internal/util/repo_based_tag_generator_test.go
@@ -0,0 +1,99 @@
+// Copyright 2023 VMware, Inc.
+// SPDX-License-Identifier: Apache-2.0
+
+package util_test
+
+import (
+	"testing"
+
+	regname "github.com/google/go-containerregistry/pkg/name"
+	"github.com/stretchr/testify/require"
+	"github.com/vmware-tanzu/carvel-imgpkg/pkg/imgpkg/imagedigest"
+	util "github.com/vmware-tanzu/carvel-imgpkg/pkg/imgpkg/internal/util"
+)
+
+type testDescribe struct {
+	description string
+	origRef     string
+	expectedTag string
+}
+
+func TestGenerateTagRepobasedgenerator(t *testing.T) {
+	allTests := []testDescribe{
+		{
+			description: "OrigRef starts with -",
+			origRef:     "index.docker.io/_test-repo/simple-app-test@sha256:61cb2e3a8522bfd9d4b6219cb9e382df151ba6d4fcc4c96f870ee4e1cffbbf9c",
+			expectedTag: "_test-repo-simple-app-test-sha256-61cb2e3a8522bfd9d4b6219cb9e382df151ba6d4fcc4c96f870ee4e1cffbbf9c.imgpkg",
+		},
+		{
+			description: "OrigRef starts with *-",
+			origRef:     "index.docker.io/*-test-repo/simple-app-test@sha256:61cb2e3a8522bfd9d4b6219cb9e382df151ba6d4fcc4c96f870ee4e1cffbbf9c",
+			expectedTag: "test-repo-simple-app-test-sha256-61cb2e3a8522bfd9d4b6219cb9e382df151ba6d4fcc4c96f870ee4e1cffbbf9c.imgpkg",
+		},
+		{
+			description: "OrigRef starts with .",
+			origRef:     "index.docker.io/.test-repo/simple-app-test@sha256:61cb2e3a8522bfd9d4b6219cb9e382df151ba6d4fcc4c96f870ee4e1cffbbf9c",
+			expectedTag: "test-repo-simple-app-test-sha256-61cb2e3a8522bfd9d4b6219cb9e382df151ba6d4fcc4c96f870ee4e1cffbbf9c.imgpkg",
+		},
+		{
+			description: "OrigRef contains more than 121 characters",
+			origRef:     "index.docker.io/test-path/sample-path/verification-path/sample-path/test-repo/test-repo/simple-app-test@sha256:61cb2e3a8522bfd9d4b6219cb9e382df151ba6d4fcc4c96f870ee4e1cffbbf9c",
+			expectedTag: "h-sample-path-test-repo-test-repo-simple-app-test-sha256-61cb2e3a8522bfd9d4b6219cb9e382df151ba6d4fcc4c96f870ee4e1cffbbf9c.imgpkg",
+		},
+		{
+			description: "OrigRef contains more than 121 characters with special characters @#$%^&*()",
+			origRef:     "index.docker.io/tes%t-path/sample-path/verific&*ation-path*&^%$/sample-pa(th/test-repo/t)est-repo/simple-app-test@sha256:61cb2e3a8522bfd9d4b6219cb9e382df151ba6d4fcc4c96f870ee4e1cffbbf9c",
+			expectedTag: "h-sample-path-test-repo-test-repo-simple-app-test-sha256-61cb2e3a8522bfd9d4b6219cb9e382df151ba6d4fcc4c96f870ee4e1cffbbf9c.imgpkg",
+		},
+		{
+			description: "Image name in OrigRef has 121 chars",
+			origRef:     "index.docker.io/test-path/dev-pkg-apiextensions-storageversion-cmd-migratee@sha256:61cb2e3a8522bfd9d4b6219cb9e382df151ba6d4fcc4c96f870ee4e1cffbbf9c",
+			expectedTag: "dev-pkg-apiextensions-storageversion-cmd-migratee-sha256-61cb2e3a8522bfd9d4b6219cb9e382df151ba6d4fcc4c96f870ee4e1cffbbf9c.imgpkg",
+		},
+		{
+			description: "Image name in OrigRef has 121 chars and starts with .",
+			origRef:     "index.docker.io/test-path/.dev-pkg-apiextensions-storageversion-cmd-migrate@sha256:61cb2e3a8522bfd9d4b6219cb9e382df151ba6d4fcc4c96f870ee4e1cffbbf9c",
+			expectedTag: "dev-pkg-apiextensions-storageversion-cmd-migrate-sha256-61cb2e3a8522bfd9d4b6219cb9e382df151ba6d4fcc4c96f870ee4e1cffbbf9c.imgpkg",
+		},
+		{
+			description: "Image name in OrigRef has 121 chars and starts with _",
+			origRef:     "index.docker.io/test-path/_dev-pkg-apiextensions-storageversion-cmd-migrate@sha256:61cb2e3a8522bfd9d4b6219cb9e382df151ba6d4fcc4c96f870ee4e1cffbbf9c",
+			expectedTag: "_dev-pkg-apiextensions-storageversion-cmd-migrate-sha256-61cb2e3a8522bfd9d4b6219cb9e382df151ba6d4fcc4c96f870ee4e1cffbbf9c.imgpkg",
+		},
+		{
+			description: "Image name in OrigRef has more than 121 chars",
+			origRef:     "index.docker.io/test-path/dev-pkg-apiextensions-storageversion-cmd-migrate-test-image@sha256:61cb2e3a8522bfd9d4b6219cb9e382df151ba6d4fcc4c96f870ee4e1cffbbf9c",
+			expectedTag: "iextensions-storageversion-cmd-migrate-test-image-sha256-61cb2e3a8522bfd9d4b6219cb9e382df151ba6d4fcc4c96f870ee4e1cffbbf9c.imgpkg",
+		},
+		{
+			description: "Image name in OrigRef has more than 121 chars and starts with .",
+			origRef:     "index.docker.io/test-path/dev-pkg-ap.extensions-storageversion-cmd-migrate-test-image@sha256:61cb2e3a8522bfd9d4b6219cb9e382df151ba6d4fcc4c96f870ee4e1cffbbf9c",
+			expectedTag: "extensions-storageversion-cmd-migrate-test-image-sha256-61cb2e3a8522bfd9d4b6219cb9e382df151ba6d4fcc4c96f870ee4e1cffbbf9c.imgpkg",
+		},
+		{
+			description: "Image name in OrigRef has more than 121 chars and starts with _",
+			origRef:     "index.docker.io/test-path/dev-pkg-api_extensions-storageversion-cmd-migrate-test-image@sha256:61cb2e3a8522bfd9d4b6219cb9e382df151ba6d4fcc4c96f870ee4e1cffbbf9c",
+			expectedTag: "_extensions-storageversion-cmd-migrate-test-image-sha256-61cb2e3a8522bfd9d4b6219cb9e382df151ba6d4fcc4c96f870ee4e1cffbbf9c.imgpkg",
+		},
+		{
+			description: "Image name in OrigRef has more than 121 chars and starts with -",
+			origRef:     "index.docker.io/test-path/dev-pkg-api-extensions-storageversion-cmd-migrate-test-image@sha256:61cb2e3a8522bfd9d4b6219cb9e382df151ba6d4fcc4c96f870ee4e1cffbbf9c",
+			expectedTag: "extensions-storageversion-cmd-migrate-test-image-sha256-61cb2e3a8522bfd9d4b6219cb9e382df151ba6d4fcc4c96f870ee4e1cffbbf9c.imgpkg",
+		},
+	}
+
+	for _, test := range allTests {
+		t.Run(test.description, func(t *testing.T) {
+			digestWrap := imagedigest.DigestWrap{}
+			imgIdxRef := "index.docker.io/test-repo/tert-src-repo@sha256:61cb2e3a8522bfd9d4b6219cb9e382df151ba6d4fcc4c96f870ee4e1cffbbf9c"
+			digestWrap.DigestWrap(imgIdxRef, test.origRef)
+			importRepo, err := regname.NewRepository("import-registry/dst-repo")
+			require.NoError(t, err)
+			tagGen := util.RepoBasedTagGenerator{}
+			tag, err := tagGen.GenerateTag(digestWrap, importRepo)
+			require.NoError(t, err)
+			require.Equal(t, test.expectedTag, tag.TagStr())
+			require.LessOrEqual(t, len(tag.TagStr()), 128)
+		})
+	}
+}
diff --git a/pkg/imgpkg/internal/util/tag.go b/pkg/imgpkg/internal/util/tag.go
index ea785e793..80eef5b76 100644
--- a/pkg/imgpkg/internal/util/tag.go
+++ b/pkg/imgpkg/internal/util/tag.go
@@ -5,6 +5,7 @@ package util
 
 import (
 	"fmt"
+	"regexp"
 	"strings"
 
 	regname "github.com/google/go-containerregistry/pkg/name"
@@ -65,13 +66,19 @@ func (tagGen RepoBasedTagGenerator) GenerateTag(item imagedigest.DigestWrap, imp
 	}
 
 	origRepoPath = strings.Join(strings.Split(origRepoPath, "/")[1:], "-")
+
+	pattern := `^[^a-zA-Z0-9_]+|[^a-zA-Z0-9\._-]+`
+	regex := regexp.MustCompile(pattern)
+	cleanedOrigRepoPath := regex.ReplaceAllString(origRepoPath, "")
+
 	digestArr := strings.Split(item.RegnameDigest().DigestStr(), ":")
-	tagStartIdx := len(origRepoPath) - 49
+	tagStartIdx := len(cleanedOrigRepoPath) - 49
 	if tagStartIdx < 0 {
 		tagStartIdx = 0
 	}
 
-	dashedRepo := fmt.Sprintf("%s-%s-%s.imgpkg", origRepoPath[tagStartIdx:], digestArr[0], digestArr[1])
+	cleanedTag := regex.ReplaceAllString(cleanedOrigRepoPath[tagStartIdx:], "")
+	dashedRepo := fmt.Sprintf("%s-%s-%s.imgpkg", cleanedTag, digestArr[0], digestArr[1])
 	// if tag starts with a "-", PUT to /v2/<repo>/manifests/-<foo>
 	// will give an "un-recognized request" error
 	if strings.HasPrefix(dashedRepo, "-") {