diff --git a/pkg/api/resource_types.go b/pkg/api/resource_types.go
index 4b1d8e83..e2c06387 100755
--- a/pkg/api/resource_types.go
+++ b/pkg/api/resource_types.go
@@ -165,26 +165,11 @@ func EncodeManifest(manifest, deleteOption, updateStrategy map[string]interface{
 		return nil, nil
 	}
 
-	delOption := &workv1.DeleteOption{
-		PropagationPolicy: workv1.DeletePropagationPolicyTypeForeground,
-	}
-	if len(deleteOption) != 0 {
-		delOption = &workv1.DeleteOption{}
-		deleteOptionBytes, err := json.Marshal(deleteOption)
-		if err != nil {
-			return nil, fmt.Errorf("failed to marshal deleteOption to json: %v", err)
-		}
-		err = json.Unmarshal(deleteOptionBytes, delOption)
-		if err != nil {
-			return nil, fmt.Errorf("failed to unmarshal json to deleteOption: %v", err)
-		}
-	}
-
+	// default update strategy is ServerSideApply
 	upStrategy := &workv1.UpdateStrategy{
 		Type: workv1.UpdateStrategyTypeServerSideApply,
 	}
 	if len(updateStrategy) != 0 {
-		upStrategy = &workv1.UpdateStrategy{}
 		updateStrategyBytes, err := json.Marshal(updateStrategy)
 		if err != nil {
 			return nil, fmt.Errorf("failed to marshal updateStrategy to json: %v", err)
@@ -193,7 +178,29 @@ func EncodeManifest(manifest, deleteOption, updateStrategy map[string]interface{
 		if err != nil {
 			return nil, fmt.Errorf("failed to unmarshal json to updateStrategy: %v", err)
 		}
-		fmt.Println("upStrategy", upStrategy)
+	}
+
+	// default delete option is Foreground
+	delOption := &workv1.DeleteOption{
+		PropagationPolicy: workv1.DeletePropagationPolicyTypeForeground,
+	}
+
+	// set delete option to Orphan if update strategy is ReadOnly
+	if upStrategy.Type == workv1.UpdateStrategyTypeReadOnly {
+		delOption = &workv1.DeleteOption{
+			PropagationPolicy: workv1.DeletePropagationPolicyTypeOrphan,
+		}
+	} else {
+		if len(deleteOption) != 0 {
+			deleteOptionBytes, err := json.Marshal(deleteOption)
+			if err != nil {
+				return nil, fmt.Errorf("failed to marshal deleteOption to json: %v", err)
+			}
+			err = json.Unmarshal(deleteOptionBytes, delOption)
+			if err != nil {
+				return nil, fmt.Errorf("failed to unmarshal json to deleteOption: %v", err)
+			}
+		}
 	}
 
 	// create a cloud event with the manifest as the data
diff --git a/pkg/handlers/resource.go b/pkg/handlers/resource.go
index 501ddc60..555462c9 100755
--- a/pkg/handlers/resource.go
+++ b/pkg/handlers/resource.go
@@ -35,6 +35,7 @@ func (h resourceHandler) Create(w http.ResponseWriter, r *http.Request) {
 			validateEmpty(&rs, "Id", "id"),
 			validateNotEmpty(&rs, "ConsumerName", "consumer_name"),
 			validateNotEmpty(&rs, "Manifest", "manifest"),
+			validateDeleteOptionAndUpdateStrategy(&rs),
 		},
 		func() (interface{}, *errors.ServiceError) {
 			ctx := r.Context()
diff --git a/pkg/handlers/validation.go b/pkg/handlers/validation.go
index 48f6c6d6..4367c525 100755
--- a/pkg/handlers/validation.go
+++ b/pkg/handlers/validation.go
@@ -3,6 +3,7 @@ package handlers
 import (
 	"reflect"
 
+	"github.com/openshift-online/maestro/pkg/api/openapi"
 	"github.com/openshift-online/maestro/pkg/errors"
 )
 
@@ -37,3 +38,24 @@ func validateEmpty(i interface{}, fieldName string, field string) validate {
 		return nil
 	}
 }
+
+// validateDeleteOptionAndUpdateStrategy validates the delete option and update strategy
+// for a resource, to ensure that update strategy ReadOnly is only allowed with delete option Orphan.
+func validateDeleteOptionAndUpdateStrategy(rs *openapi.Resource) validate {
+	return func() *errors.ServiceError {
+		if rs.DeleteOption != nil && rs.UpdateStrategy != nil {
+			deleteType, ok := rs.DeleteOption["propagationPolicy"].(string)
+			if !ok {
+				return errors.Validation("invalid delete option")
+			}
+			updateStrategy, ok := rs.UpdateStrategy["type"].(string)
+			if !ok {
+				return errors.Validation("invalid update strategy")
+			}
+			if deleteType != "Orphan" && updateStrategy == "ReadOnly" {
+				return errors.Validation("update strategy ReadOnly is only allowed with delete option Orphan")
+			}
+		}
+		return nil
+	}
+}
diff --git a/test/e2e/pkg/resources_test.go b/test/e2e/pkg/resources_test.go
index 2ca7aef8..fb190b7c 100644
--- a/test/e2e/pkg/resources_test.go
+++ b/test/e2e/pkg/resources_test.go
@@ -227,9 +227,16 @@ var _ = Describe("Resources", Ordered, Label("e2e-tests-resources"), func() {
 		})
 
 		It("post the resource to the maestro api with readonly updateStrategy", func() {
-			res := helper.NewReadOnlyAPIResource(consumer.Name, deployName)
 			var resp *http.Response
 			var err error
+			// post the resource with readonly updateStrategy and foreground delete option should fail
+			invalidRes := helper.NewReadOnlyAPIResource(consumer.Name, deployName)
+			invalidRes.DeleteOption = map[string]interface{}{"propagationPolicy": "Foreground"}
+			resource, resp, err = apiClient.DefaultApi.ApiMaestroV1ResourcesPost(ctx).Resource(invalidRes).Execute()
+			Expect(err).Should(HaveOccurred())
+			Expect(resp.StatusCode).To(Equal(http.StatusBadRequest))
+
+			res := helper.NewReadOnlyAPIResource(consumer.Name, deployName)
 			resource, resp, err = apiClient.DefaultApi.ApiMaestroV1ResourcesPost(ctx).Resource(res).Execute()
 			Expect(err).ShouldNot(HaveOccurred())
 			Expect(resp.StatusCode).To(Equal(http.StatusCreated))
@@ -243,6 +250,15 @@ var _ = Describe("Resources", Ordered, Label("e2e-tests-resources"), func() {
 					return err
 				}
 
+				// ensure the delete option is set to Orphan
+				deleteType, ok := res.DeleteOption["propagationPolicy"]
+				if !ok {
+					return fmt.Errorf("delete option is not set")
+				}
+				if deleteType != "Orphan" {
+					return fmt.Errorf("delete option is not Orphan")
+				}
+
 				statusJSON, err := json.Marshal(res.Status)
 				if err != nil {
 					return err
diff --git a/test/factories.go b/test/factories.go
index b1ba8678..85a6f97e 100755
--- a/test/factories.go
+++ b/test/factories.go
@@ -73,9 +73,6 @@ var testReadOnlyManifestJSON = `
 	"metadata": {
 	  "name": "%s",
 	  "namespace": "%s"
-	},
-	"update_strategy": {
-	  "type": "ReadOnly"
 	}
 }
 `
@@ -125,6 +122,9 @@ func (helper *Helper) NewReadOnlyAPIResource(consumerName, deployName string) op
 	return openapi.Resource{
 		Manifest:     testManifest,
 		ConsumerName: &consumerName,
+		UpdateStrategy: map[string]interface{}{
+			"type": "ReadOnly",
+		},
 	}
 }