diff --git a/Makefile b/Makefile
index 3472f5a0f21b4..6d402a864027e 100644
--- a/Makefile
+++ b/Makefile
@@ -203,18 +203,35 @@ else
 IMAGE_TAG?=latest
 endif
 
+# defaults for building images and manifests
 ifeq (${DOCKER_PUSH},true)
 ifndef IMAGE_NAMESPACE
 $(error IMAGE_NAMESPACE must be set to push images (e.g. IMAGE_NAMESPACE=argoproj))
 endif
 endif
 
+# Consruct prefix for docker image
+# Note: keeping same logic as in hacks/update_manifests.sh
+ifdef IMAGE_REGISTRY
 ifdef IMAGE_NAMESPACE
+IMAGE_PREFIX=${IMAGE_REGISTRY}/${IMAGE_NAMESPACE}/
+else
+$(error IMAGE_NAMESPACE must be set when IMAGE_REGISTRY is set (e.g. IMAGE_NAMESPACE=argoproj))
+endif
+else
+ifdef IMAGE_NAMESPACE
+# for backwards compatibility with the old way like IMAGE_NAMESPACE='quay.io/argoproj' 
 IMAGE_PREFIX=${IMAGE_NAMESPACE}/
+else
+# Neither namespace nor registry given - apply the default values
+IMAGE_REGISTRY="quay.io"
+IMAGE_NAMESPACE="argoproj"
+IMAGE_PREFIX=${IMAGE_REGISTRY}/${IMAGE_NAMESPACE}/
+endif
 endif
 
-ifndef IMAGE_REGISTRY
-IMAGE_REGISTRY="quay.io"
+ifndef IMAGE_REPOSITORY
+IMAGE_REPOSITORY=argocd
 endif
 
 .PHONY: all
@@ -354,16 +371,16 @@ image: build-ui
 	ln -sfn ${DIST_DIR}/argocd ${DIST_DIR}/argocd-cmp-server
 	ln -sfn ${DIST_DIR}/argocd ${DIST_DIR}/argocd-dex
 	cp Dockerfile.dev dist
-	DOCKER_BUILDKIT=1 $(DOCKER) build --platform=$(TARGET_ARCH) -t $(IMAGE_PREFIX)argocd:$(IMAGE_TAG) -f dist/Dockerfile.dev dist
+	DOCKER_BUILDKIT=1 $(DOCKER) build --platform=$(TARGET_ARCH) -t $(IMAGE_PREFIX)$(IMAGE_REPOSITORY):$(IMAGE_TAG) -f dist/Dockerfile.dev dist
 else
 image:
-	DOCKER_BUILDKIT=1 $(DOCKER) build -t $(IMAGE_PREFIX)argocd:$(IMAGE_TAG) --platform=$(TARGET_ARCH) .
+	DOCKER_BUILDKIT=1 $(DOCKER) build -t $(IMAGE_PREFIX)$(IMAGE_REPOSITORY):$(IMAGE_TAG) --platform=$(TARGET_ARCH) .
 endif
-	@if [ "$(DOCKER_PUSH)" = "true" ] ; then $(DOCKER) push $(IMAGE_PREFIX)argocd:$(IMAGE_TAG) ; fi
+	@if [ "$(DOCKER_PUSH)" = "true" ] ; then $(DOCKER) push $(IMAGE_PREFIX)$(IMAGE_REPOSITORY):$(IMAGE_TAG) ; fi
 
 .PHONY: armimage
 armimage:
-	$(DOCKER) build -t $(IMAGE_PREFIX)argocd:$(IMAGE_TAG)-arm .
+	$(DOCKER) build -t $(IMAGE_PREFIX)(IMAGE_REPOSITORY):$(IMAGE_TAG)-arm .
 
 .PHONY: builder-image
 builder-image:
diff --git a/hack/update-manifests.sh b/hack/update-manifests.sh
index d9e25879f7df7..b388312372b6c 100755
--- a/hack/update-manifests.sh
+++ b/hack/update-manifests.sh
@@ -12,14 +12,39 @@ KUSTOMIZE=kustomize
 
 cd "${SRCROOT}/manifests/ha/base/redis-ha" && ./generate.sh
 
+# Empty defaults - to avoid errors for unset env. variables
+IMAGE_REGISTRY="${IMAGE_REGISTRY:-}"
+IMAGE_NAMESPACE="${IMAGE_NAMESPACE:-}"
+IMAGE_TAG="${IMAGE_TAG:-}"
 # Image repository configuration - can be overridden in forks
-IMAGE_REGISTRY="${IMAGE_REGISTRY:-quay.io}"
-IMAGE_NAMESPACE="${IMAGE_NAMESPACE:-argoproj}"
 IMAGE_REPOSITORY="${IMAGE_REPOSITORY:-argocd}"
-IMAGE_TAG="${IMAGE_TAG:-}"
+
+# Apply defaults if needed
+if [[ -n $IMAGE_REGISTRY ]];then
+    if [[ -z $IMAGE_NAMESPACE ]]; then
+	echo "IMAGE_NAMESPACE must be set when IMAGE_REGISTRY is set (e.g. IMAGE_NAMESPACE=argoproj)" >&2
+	exit 1
+    fi
+    # both registry and namespace set, nothing to do
+else  # registry not set
+    if [[ -z $IMAGE_NAMESPACE ]]; then
+	# Neither namespace nor registry given - apply the default values
+	IMAGE_REGISTRY="${IMAGE_REGISTRY:-quay.io}"
+	IMAGE_NAMESPACE="${IMAGE_NAMESPACE:-argoproj}"
+    fi
+    # If namespace is set, then it's an image without registry or
+    # registry is given as part of namespace (old convention)
+fi
 
 # Construct full image name
-FULL_IMAGE_NAME="${IMAGE_REGISTRY}/${IMAGE_NAMESPACE}/${IMAGE_REPOSITORY}"
+# Note: keeping same logic as in Makefile for docker images
+FULL_IMAGE_NAME="${IMAGE_REPOSITORY}"
+if [[ -n $IMAGE_NAMESPACE ]]; then
+    FULL_IMAGE_NAME="${IMAGE_NAMESPACE}/${FULL_IMAGE_NAME}"
+fi
+if [[ -n $IMAGE_REGISTRY ]]; then
+    FULL_IMAGE_NAME="${IMAGE_REGISTRY}/${FULL_IMAGE_NAME}"
+fi
 
 # Auto-detect current image in manifests for release workflows
 detect_current_image() {