diff --git a/libs/application/template-api-modules/src/lib/modules/templates/aosh/street-registration/street-registration.service.ts b/libs/application/template-api-modules/src/lib/modules/templates/aosh/street-registration/street-registration.service.ts
index 8d9512b5afd7..faf9bc8e602c 100644
--- a/libs/application/template-api-modules/src/lib/modules/templates/aosh/street-registration/street-registration.service.ts
+++ b/libs/application/template-api-modules/src/lib/modules/templates/aosh/street-registration/street-registration.service.ts
@@ -3,7 +3,7 @@ import { SharedTemplateApiService } from '../../../shared'
 import { TemplateApiModuleActionProps } from '../../../../types'
 import { ApplicationTypes } from '@island.is/application/types'
 import { BaseTemplateApiService } from '../../../base-template-api.service'
-
+import { error as errorMsg } from '@island.is/application/templates/aosh/street-registration'
 import { TemplateApiError } from '@island.is/nest/problem'
 import { coreErrorMessages } from '@island.is/application/core'
 import { StreetRegistrationAnswers } from '@island.is/application/templates/aosh/street-registration'
@@ -61,9 +61,41 @@ export class StreetRegistrationTemplateService extends BaseTemplateApiService {
   async getTypesMustInspectBeforeRegistration({
     auth,
   }: TemplateApiModuleActionProps): Promise<string[]> {
-    return await this.workMachineClientService.mustInspectBeforeRegistration(
-      auth,
-    )
+    return await this.workMachineClientService
+      .mustInspectBeforeRegistration(auth)
+      .catch((error) => {
+        this.logger.warning(
+          '[street-registration-service]: Error fetching types requires for inspection',
+          error,
+        )
+        throw new TemplateApiError(
+          {
+            title: coreErrorMessages.defaultTemplateApiError,
+            summary: errorMsg.errorGetFromAOSH,
+          },
+          500,
+        )
+      })
+  }
+
+  async getAvailableRegistrationTypes({
+    auth,
+  }: TemplateApiModuleActionProps): Promise<string[]> {
+    return await this.workMachineClientService
+      .getAvailableRegistrationTypes(auth)
+      .catch((error) => {
+        this.logger.warning(
+          '[street-registration-service]: Error fetching available types for registration',
+          error,
+        )
+        throw new TemplateApiError(
+          {
+            title: coreErrorMessages.defaultTemplateApiError,
+            summary: errorMsg.errorGetFromAOSH,
+          },
+          500,
+        )
+      })
   }
 
   async submitApplication({
diff --git a/libs/application/templates/aosh/register-new-machine/src/index.ts b/libs/application/templates/aosh/register-new-machine/src/index.ts
index 2e527d7f65bc..299df2f313a9 100644
--- a/libs/application/templates/aosh/register-new-machine/src/index.ts
+++ b/libs/application/templates/aosh/register-new-machine/src/index.ts
@@ -3,7 +3,7 @@ import RegisterNewMachineTemplate from './lib/RegisterNewMachineTemplate'
 export const getDataProviders = () => import('./dataProviders/')
 export const getFields = () => import('./fields/')
 
-export { NewMachineAnswers } from './lib/dataSchema'
+export type { NewMachineAnswers } from './lib/dataSchema'
 
 export * from './utils'
 export * from './shared/types'
diff --git a/libs/application/templates/aosh/street-registration/src/dataProviders/index.ts b/libs/application/templates/aosh/street-registration/src/dataProviders/index.ts
index 12d03fb3687f..7561f04b4c33 100644
--- a/libs/application/templates/aosh/street-registration/src/dataProviders/index.ts
+++ b/libs/application/templates/aosh/street-registration/src/dataProviders/index.ts
@@ -16,6 +16,11 @@ export const MustInspectBeforeRegistrationApi = defineTemplateApi({
   externalDataId: 'typesMustInspectBeforeRegistration',
 })
 
+export const GetAvailableRegistrationTypes = defineTemplateApi({
+  action: 'getAvailableRegistrationTypes',
+  externalDataId: 'availableRegistrationTypes',
+})
+
 export const VinnueftirlitidPaymentCatalogApi = PaymentCatalogApi.configure({
   params: {
     organizationId: InstitutionNationalIds.SAMGONGUSTOFA,
diff --git a/libs/application/templates/aosh/street-registration/src/forms/StreetRegistrationForm/InformationSection/pickMachineSubSection.ts b/libs/application/templates/aosh/street-registration/src/forms/StreetRegistrationForm/InformationSection/pickMachineSubSection.ts
index b59d0ab2c99b..a3f832323a64 100644
--- a/libs/application/templates/aosh/street-registration/src/forms/StreetRegistrationForm/InformationSection/pickMachineSubSection.ts
+++ b/libs/application/templates/aosh/street-registration/src/forms/StreetRegistrationForm/InformationSection/pickMachineSubSection.ts
@@ -6,10 +6,36 @@ import {
   getValueViaPath,
 } from '@island.is/application/core'
 import { information } from '../../../lib/messages'
-import { MachinesWithTotalCount } from '@island.is/clients/work-machines'
-import { mustInspectBeforeStreetRegistration } from '../../../utils/getSelectedMachine'
+import {
+  MachineDto,
+  MachinesWithTotalCount,
+} from '@island.is/clients/work-machines'
+import {
+  isInvalidRegistrationType,
+  isMachineDisabled,
+  mustInspectBeforeStreetRegistration,
+} from '../../../utils/getSelectedMachine'
 import { useLocale } from '@island.is/localization'
-import { Application } from '@island.is/application/types'
+import { ExternalData } from '@island.is/application/types'
+import { MessageDescriptor } from 'react-intl'
+
+const getTagLabel = (
+  externalData: ExternalData,
+  machine: MachineDto,
+  formatMessage: (message: MessageDescriptor) => string,
+): string => {
+  if (
+    mustInspectBeforeStreetRegistration(externalData, machine?.regNumber || '')
+  ) {
+    return formatMessage(
+      information.labels.pickMachine.inspectBeforeRegistration,
+    )
+  }
+  if (isInvalidRegistrationType(externalData, machine?.regNumber || '')) {
+    return formatMessage(information.labels.pickMachine.invalidRegistrationType)
+  }
+  return machine?.status || ''
+}
 
 export const pickMachineSubSection = buildSubSection({
   id: 'pickMachine',
@@ -31,14 +57,11 @@ export const pickMachineSubSection = buildSubSection({
             ) as MachinesWithTotalCount
             return machines.totalCount <= 5
           },
-          defaultValue: (application: Application) => {
-            const machineList = application?.externalData.machinesList
-              .data as MachinesWithTotalCount
-            return machineList?.machines[0].id ?? ''
-          },
+
           options: (application) => {
             const machineList = application?.externalData.machinesList
               .data as MachinesWithTotalCount
+            const externalData = application.externalData
 
             return machineList.machines.map((machine) => {
               return {
@@ -47,25 +70,21 @@ export const pickMachineSubSection = buildSubSection({
                 subLabel: `${machine.category}: ${machine.type} - ${machine.subType}`,
                 disabled: machine?.disabled
                   ? true
-                  : mustInspectBeforeStreetRegistration(
-                      application?.externalData,
-                      machine?.regNumber || '',
-                    ) || false,
-                tag: machine?.disabled
-                  ? {
-                      label: mustInspectBeforeStreetRegistration(
-                        application?.externalData,
-                        machine?.regNumber || '',
-                      )
-                        ? useLocale().formatMessage(
-                            information.labels.pickMachine
-                              .inspectBeforeRegistration,
-                          )
-                        : machine?.status || '',
-                      variant: 'red',
-                      outlined: true,
-                    }
-                  : undefined,
+                  : isMachineDisabled(externalData, machine?.regNumber || '') ||
+                    false,
+                tag:
+                  machine?.disabled ||
+                  isMachineDisabled(externalData, machine?.regNumber || '')
+                    ? {
+                        label: getTagLabel(
+                          externalData,
+                          machine,
+                          useLocale().formatMessage,
+                        ),
+                        variant: 'red',
+                        outlined: true,
+                      }
+                    : undefined,
               }
             })
           },
diff --git a/libs/application/templates/aosh/street-registration/src/forms/StreetRegistrationForm/prerequisitesSection.ts b/libs/application/templates/aosh/street-registration/src/forms/StreetRegistrationForm/prerequisitesSection.ts
index e40bb4f940eb..0bc27da313bf 100644
--- a/libs/application/templates/aosh/street-registration/src/forms/StreetRegistrationForm/prerequisitesSection.ts
+++ b/libs/application/templates/aosh/street-registration/src/forms/StreetRegistrationForm/prerequisitesSection.ts
@@ -12,6 +12,7 @@ import {
   MachinesApi,
   MustInspectBeforeRegistrationApi,
   VinnueftirlitidPaymentCatalogApi,
+  GetAvailableRegistrationTypes,
 } from '../../dataProviders'
 import { DefaultEvents } from '@island.is/application/types'
 
@@ -58,6 +59,11 @@ export const prerequisitesSection = buildSection({
           title: '',
           subTitle: '',
         }),
+        buildDataProviderItem({
+          provider: GetAvailableRegistrationTypes,
+          title: '',
+          subTitle: '',
+        }),
         buildDataProviderItem({
           provider: VinnueftirlitidPaymentCatalogApi,
           title: '',
diff --git a/libs/application/templates/aosh/street-registration/src/index.ts b/libs/application/templates/aosh/street-registration/src/index.ts
index 9225f3d712fa..87f142c43a78 100644
--- a/libs/application/templates/aosh/street-registration/src/index.ts
+++ b/libs/application/templates/aosh/street-registration/src/index.ts
@@ -9,4 +9,5 @@ export type StreetRegistrationAnswers = MachineAnswers
 export * from './utils'
 export * from './lib/messages/externalData'
 export * from './lib/messages/applicationCheck'
+export * from './lib/messages/error'
 export default template
diff --git a/libs/application/templates/aosh/street-registration/src/lib/StreetRegistrationTemplate.ts b/libs/application/templates/aosh/street-registration/src/lib/StreetRegistrationTemplate.ts
index ebdc72f7c725..5af899f8dbae 100644
--- a/libs/application/templates/aosh/street-registration/src/lib/StreetRegistrationTemplate.ts
+++ b/libs/application/templates/aosh/street-registration/src/lib/StreetRegistrationTemplate.ts
@@ -30,6 +30,7 @@ import {
   MachinesApi,
   MustInspectBeforeRegistrationApi,
   VinnueftirlitidPaymentCatalogApi,
+  GetAvailableRegistrationTypes,
 } from '../dataProviders'
 import { ApiScope } from '@island.is/auth/scopes'
 import { getChargeItems } from '../utils'
@@ -111,6 +112,7 @@ const template: ApplicationTemplate<
                 UserProfileApi,
                 MachinesApi,
                 MustInspectBeforeRegistrationApi,
+                GetAvailableRegistrationTypes,
                 VinnueftirlitidPaymentCatalogApi,
               ],
             },
diff --git a/libs/application/templates/aosh/street-registration/src/lib/dataSchema.ts b/libs/application/templates/aosh/street-registration/src/lib/dataSchema.ts
index 92a83e93b185..d7c65744894f 100644
--- a/libs/application/templates/aosh/street-registration/src/lib/dataSchema.ts
+++ b/libs/application/templates/aosh/street-registration/src/lib/dataSchema.ts
@@ -12,16 +12,18 @@ const otherAddressSchema = z.object({
 })
 
 export const MachineAnswersSchema = z.object({
-  machine: z.object({
-    id: z.string().optional(),
-    date: z.string().optional(),
-    type: z.string().optional(),
-    plate: z.string().optional(),
-    subType: z.string().optional(),
-    category: z.string().optional(),
-    regNumber: z.string().optional(),
-    ownerNumber: z.string().optional(),
-  }),
+  machine: z
+    .object({
+      id: z.string().optional(),
+      date: z.string().optional(),
+      type: z.string().optional(),
+      plate: z.string().optional(),
+      subType: z.string().optional(),
+      category: z.string().optional(),
+      regNumber: z.string().optional(),
+      ownerNumber: z.string().optional(),
+    })
+    .refine((obj) => Object.keys(obj).length > 0),
   contact: z.object({
     name: z.string().min(1),
     email: z.string().email().min(1),
diff --git a/libs/application/templates/aosh/street-registration/src/lib/messages/applicationCheck.ts b/libs/application/templates/aosh/street-registration/src/lib/messages/applicationCheck.ts
index eda53d8bc456..7e6ab37bdba3 100644
--- a/libs/application/templates/aosh/street-registration/src/lib/messages/applicationCheck.ts
+++ b/libs/application/templates/aosh/street-registration/src/lib/messages/applicationCheck.ts
@@ -17,5 +17,10 @@ export const applicationCheck = {
       defaultMessage: 'Hafið samband við Vinnueftirlitið til að götuskrá',
       description: 'Pick machine inspect before registration',
     },
+    unavailableTypeForRegistration: {
+      id: 'aosh.sr.application:applicationCheck.validation.unavailableTypeForRegistration',
+      defaultMessage: 'Ekki er hægt að götuskrá tæki í þessum flokk',
+      description: 'Pick machine has type that is not valid for registration',
+    },
   }),
 }
diff --git a/libs/application/templates/aosh/street-registration/src/lib/messages/error.ts b/libs/application/templates/aosh/street-registration/src/lib/messages/error.ts
index 400950c7ee9e..0e4b07ad7a69 100644
--- a/libs/application/templates/aosh/street-registration/src/lib/messages/error.ts
+++ b/libs/application/templates/aosh/street-registration/src/lib/messages/error.ts
@@ -43,4 +43,9 @@ export const error = defineMessages({
     defaultMessage: 'Villa kom upp við að skila inn umsókn',
     description: 'Failed to submit application',
   },
+  errorGetFromAOSH: {
+    id: 'aosh.sr.application:error.errorGetFromAOSH',
+    defaultMessage: 'Ekki tókst að sækja gögn frá Vinnueftirlitinu',
+    description: 'Failed to fetch data from AOSH',
+  },
 })
diff --git a/libs/application/templates/aosh/street-registration/src/lib/messages/information.ts b/libs/application/templates/aosh/street-registration/src/lib/messages/information.ts
index c0efe3526d81..b456a3e34f19 100644
--- a/libs/application/templates/aosh/street-registration/src/lib/messages/information.ts
+++ b/libs/application/templates/aosh/street-registration/src/lib/messages/information.ts
@@ -82,6 +82,11 @@ export const information = {
         defaultMessage: 'Hafið samband við Vinnueftirlitið til að götuskrá',
         description: 'Pick machine inspect before registration',
       },
+      invalidRegistrationType: {
+        id: 'aosh.sr.application:information.labels.pickMachine.invalidRegistrationType',
+        defaultMessage: 'Ekki er hægt að götuskrá tæki í þessum flokk',
+        description: 'Pick machine invalid registration type tag',
+      },
     }),
     machine: defineMessages({
       sectionTitle: {
diff --git a/libs/application/templates/aosh/street-registration/src/utils/getSelectedMachine.ts b/libs/application/templates/aosh/street-registration/src/utils/getSelectedMachine.ts
index e1a151103faa..5f4c38295095 100644
--- a/libs/application/templates/aosh/street-registration/src/utils/getSelectedMachine.ts
+++ b/libs/application/templates/aosh/street-registration/src/utils/getSelectedMachine.ts
@@ -37,6 +37,7 @@ export const mustInspectBeforeStreetRegistration = (
     'typesMustInspectBeforeRegistration.data',
     [],
   ) as string[]
+
   return inspectBeforeTypes?.includes(regNumber.substring(0, 2)) || false
 }
 
@@ -47,3 +48,41 @@ export const getExtraData = (application: ApplicationType): ExtraData[] => {
     { name: 'date', value: streetAnswers.machine?.date || '' },
   ]
 }
+
+export const isInvalidRegistrationType = (
+  externalData: ExternalData,
+  regNumber: string,
+) => {
+  const validTypes = getValueViaPath<string[]>(
+    externalData,
+    'availableRegistrationTypes.data',
+    [],
+  )
+  const inspectBeforeTypes = getValueViaPath<string[]>(
+    externalData,
+    'typesMustInspectBeforeRegistration.data',
+    [],
+  )
+
+  const regType = regNumber.substring(0, 2)
+
+  return (
+    !validTypes?.includes(regType) && !inspectBeforeTypes?.includes(regType)
+  )
+}
+
+export const isMachineDisabled = (
+  externalData: ExternalData,
+  regNumber: string,
+): boolean => {
+  const validTypes = getValueViaPath<string[]>(
+    externalData,
+    'availableRegistrationTypes.data',
+    [],
+  )
+
+  const regType = regNumber.substring(0, 2)
+
+  // Checks the machine type against the available registration types
+  return !validTypes?.includes(regType)
+}
diff --git a/libs/application/ui-fields/src/lib/FindVehicleFormField/FindVehicleFormField.tsx b/libs/application/ui-fields/src/lib/FindVehicleFormField/FindVehicleFormField.tsx
index d1a8402df506..731106e4bf78 100644
--- a/libs/application/ui-fields/src/lib/FindVehicleFormField/FindVehicleFormField.tsx
+++ b/libs/application/ui-fields/src/lib/FindVehicleFormField/FindVehicleFormField.tsx
@@ -27,6 +27,7 @@ import format from 'date-fns/format'
 import { formatCurrency } from '@island.is/application/ui-components'
 import {
   energyFundsLabel,
+  isInvalidRegistrationType,
   mustInspectBeforeStreetRegistration,
 } from './FindVehicleFormField.util'
 
@@ -159,8 +160,6 @@ export const FindVehicleFormField: FC<React.PropsWithChildren<Props>> = ({
     isMachine,
     isEnergyFunds,
     energyFundsMessages,
-    marginTop,
-    marginBottom,
     clearOnChange,
   } = field
 
@@ -268,21 +267,30 @@ export const FindVehicleFormField: FC<React.PropsWithChildren<Props>> = ({
     const machineDisabled = machineDetails.disabled
 
     if (application.typeId === 'StreetRegistration') {
+      const isUnavailableTypeForRegistration = isInvalidRegistrationType(
+        application?.externalData,
+        machineDetails.regNumber || '',
+      )
       const mustInspect = mustInspectBeforeStreetRegistration(
         application?.externalData,
         machineDetails.regNumber || '',
       )
-      if (mustInspect && !machineDisabled) {
+      const statusKey = mustInspect
+        ? 'inspectBeforeRegistration'
+        : isUnavailableTypeForRegistration
+        ? 'unavailableTypeForRegistration'
+        : null
+
+      if (
+        statusKey === 'inspectBeforeRegistration' ||
+        statusKey === 'unavailableTypeForRegistration'
+      ) {
         machineDetails = {
           ...machineDetails,
           disabled: true,
           status:
             validationErrors &&
-            formatText(
-              validationErrors.inspectBeforeRegistration,
-              application,
-              formatMessage,
-            ),
+            formatText(validationErrors[statusKey], application, formatMessage),
         }
       }
     }
diff --git a/libs/application/ui-fields/src/lib/FindVehicleFormField/FindVehicleFormField.util.ts b/libs/application/ui-fields/src/lib/FindVehicleFormField/FindVehicleFormField.util.ts
index b604c94ec68b..f788511fe4b1 100644
--- a/libs/application/ui-fields/src/lib/FindVehicleFormField/FindVehicleFormField.util.ts
+++ b/libs/application/ui-fields/src/lib/FindVehicleFormField/FindVehicleFormField.util.ts
@@ -8,6 +8,8 @@ import {
 } from '@island.is/application/types'
 import { MessageDescriptor } from 'react-intl'
 
+const REGISTRATION_TYPE_LENGTH = 2
+
 export const energyFundsLabel = function (
   energyDetails: EnergyFundVehicleDetailsWithGrant | null,
   energyFundsMessages: Record<string, FormText> | undefined,
@@ -44,10 +46,39 @@ export const mustInspectBeforeStreetRegistration = (
   externalData: ExternalData,
   regNumber: string,
 ) => {
-  const inspectBeforeTypes = getValueViaPath(
+  const inspectBeforeTypes = getValueViaPath<string[]>(
+    externalData,
+    'typesMustInspectBeforeRegistration.data',
+    [],
+  )
+  return (
+    inspectBeforeTypes?.includes(
+      regNumber.substring(0, REGISTRATION_TYPE_LENGTH),
+    ) || false
+  )
+}
+
+export const isInvalidRegistrationType = (
+  externalData: ExternalData,
+  regNumber: string,
+) => {
+  if (!regNumber || regNumber.length < REGISTRATION_TYPE_LENGTH) {
+    return true
+  }
+  const validTypes = getValueViaPath<string[]>(
+    externalData,
+    'availableRegistrationTypes.data',
+    [],
+  )
+  const inspectBeforeTypes = getValueViaPath<string[]>(
     externalData,
     'typesMustInspectBeforeRegistration.data',
     [],
-  ) as string[]
-  return inspectBeforeTypes?.includes(regNumber.substring(0, 2)) || false
+  )
+
+  const regType = regNumber.substring(0, REGISTRATION_TYPE_LENGTH)
+
+  return (
+    !validTypes?.includes(regType) && !inspectBeforeTypes?.includes(regType)
+  )
 }
diff --git a/libs/clients/work-machines/src/lib/workMachines.service.ts b/libs/clients/work-machines/src/lib/workMachines.service.ts
index ba1a730d4b75..bf38e22137d1 100644
--- a/libs/clients/work-machines/src/lib/workMachines.service.ts
+++ b/libs/clients/work-machines/src/lib/workMachines.service.ts
@@ -302,6 +302,12 @@ export class WorkMachinesClientService {
     ).apiMachineStreetRegistrationMustInspectBeforeRegistrationGet({})
   }
 
+  async getAvailableRegistrationTypes(auth: Auth) {
+    return await this.machineStreetApiWithAuth(
+      auth,
+    ).apiMachineStreetRegistrationMayStreetRegisterGet({})
+  }
+
   async getMachineTypes(auth: Auth): Promise<MachineTypeDto[]> {
     return await this.machineTypesApiWithAuth(auth).apiMachineTypesGet({})
   }