diff --git a/.changeset/cuddly-icons-lie.md b/.changeset/cuddly-icons-lie.md
new file mode 100644
index 0000000000..154e555507
--- /dev/null
+++ b/.changeset/cuddly-icons-lie.md
@@ -0,0 +1,5 @@
+---
+'@sap-ux/abap-deploy-config-inquirer': minor
+---
+
+updates options and conditions for prompts
diff --git a/packages/abap-deploy-config-inquirer/src/prompts/conditions.ts b/packages/abap-deploy-config-inquirer/src/prompts/conditions.ts
index acfa407989..9ab0a57cc4 100644
--- a/packages/abap-deploy-config-inquirer/src/prompts/conditions.ts
+++ b/packages/abap-deploy-config-inquirer/src/prompts/conditions.ts
@@ -10,6 +10,7 @@ import {
     PackageInputChoices,
     TargetSystemType,
     TransportChoices,
+    type UI5AbapRepoPromptOptions,
     type AbapDeployConfigAnswersInternal,
     type AbapDeployConfigPromptOptions,
     type BackendTarget,
@@ -143,9 +144,14 @@ export function showPasswordQuestion(): boolean {
 /**
  * Determines if the UI5 app deploy config question should be shown (UI5 Abap Repo name & Description).
  *
+ * @param ui5AbapPromptOptions - UI5 Abap Repo prompt options
  * @returns boolean
  */
-export function showUi5AppDeployConfigQuestion(): boolean {
+export function showUi5AppDeployConfigQuestion(ui5AbapPromptOptions?: UI5AbapRepoPromptOptions): boolean {
+    // if hideIfOnPremise option is true and the target system is on-premise, hide the prompt
+    if (!ui5AbapPromptOptions?.hide && ui5AbapPromptOptions?.hideIfOnPremise && !PromptState.abapDeployConfig?.scp) {
+        return false;
+    }
     return !PromptState.transportAnswers.transportConfigNeedsCreds;
 }
 
@@ -232,6 +238,9 @@ function defaultOrShowTransportQuestion(): boolean {
  * @returns boolean
  */
 export function showTransportInputChoice(): boolean {
+    if (PromptState.transportAnswers.transportRequired === false) {
+        return false;
+    }
     return defaultOrShowTransportQuestion();
 }
 
diff --git a/packages/abap-deploy-config-inquirer/src/prompts/questions/config/app.ts b/packages/abap-deploy-config-inquirer/src/prompts/questions/config/app.ts
index 10d6843832..548c15bcd5 100644
--- a/packages/abap-deploy-config-inquirer/src/prompts/questions/config/app.ts
+++ b/packages/abap-deploy-config-inquirer/src/prompts/questions/config/app.ts
@@ -13,7 +13,7 @@ import type { InputQuestion, Question } from 'inquirer';
  */
 function getUi5AbapRepoPrompt(options: AbapDeployConfigPromptOptions): Question<AbapDeployConfigAnswersInternal> {
     return {
-        when: (): boolean => showUi5AppDeployConfigQuestion(),
+        when: (): boolean => showUi5AppDeployConfigQuestion(options.ui5AbapRepo),
         type: 'input',
         name: promptNames.ui5AbapRepo,
         message: (): string => {
@@ -44,7 +44,7 @@ function getUi5AbapRepoPrompt(options: AbapDeployConfigPromptOptions): Question<
  */
 function getDescriptionPrompt(options: AbapDeployConfigPromptOptions): Question<AbapDeployConfigAnswersInternal> {
     return {
-        when: (): boolean => showUi5AppDeployConfigQuestion(),
+        when: (): boolean => showUi5AppDeployConfigQuestion(options.ui5AbapRepo),
         type: 'input',
         name: promptNames.description,
         message: t('prompts.config.app.description.message'),
diff --git a/packages/abap-deploy-config-inquirer/src/prompts/validators.ts b/packages/abap-deploy-config-inquirer/src/prompts/validators.ts
index b21643bf31..059381cb87 100644
--- a/packages/abap-deploy-config-inquirer/src/prompts/validators.ts
+++ b/packages/abap-deploy-config-inquirer/src/prompts/validators.ts
@@ -8,6 +8,7 @@ import {
     isValidUrl,
     isAppNameValid
 } from '../validator-utils';
+import { DEFAULT_PACKAGE_ABAP } from '../constants';
 import { getTransportListFromService } from '../service-provider-utils';
 import { t } from '../i18n';
 import { findBackendSystemByUrl, initTransportConfig, getPackageAnswer, queryPackages } from '../utils';
@@ -356,6 +357,10 @@ export async function validatePackage(
     if (!input?.trim()) {
         return t('warnings.providePackage');
     }
+    if (input === DEFAULT_PACKAGE_ABAP) {
+        PromptState.transportAnswers.transportRequired = false;
+        return true;
+    }
     const systemConfig: SystemConfig = {
         url: PromptState.abapDeployConfig.url,
         client: PromptState.abapDeployConfig.client,
diff --git a/packages/abap-deploy-config-inquirer/src/types.ts b/packages/abap-deploy-config-inquirer/src/types.ts
index 91bedb525c..a1a26233c5 100644
--- a/packages/abap-deploy-config-inquirer/src/types.ts
+++ b/packages/abap-deploy-config-inquirer/src/types.ts
@@ -88,6 +88,10 @@ export type UI5AbapRepoPromptOptions =
     | {
           hide?: false;
           default?: string;
+          /**
+           * If set to true, the prompt will be hidden if the target system is on-premise.
+           */
+          hideIfOnPremise?: boolean;
       }
     | {
           hide: true;
diff --git a/packages/abap-deploy-config-inquirer/test/prompts/conditions.test.ts b/packages/abap-deploy-config-inquirer/test/prompts/conditions.test.ts
index c193b7c164..61f2055d7d 100644
--- a/packages/abap-deploy-config-inquirer/test/prompts/conditions.test.ts
+++ b/packages/abap-deploy-config-inquirer/test/prompts/conditions.test.ts
@@ -193,6 +193,14 @@ describe('Test abap deploy config inquirer conditions', () => {
         expect(showUi5AppDeployConfigQuestion()).toBe(true);
     });
 
+    test('should not show ui5 app deploy config questions', () => {
+        const promptOptions = {
+            hideIfOnPremise: true
+        };
+        PromptState.abapDeployConfig.scp = false;
+        expect(showUi5AppDeployConfigQuestion(promptOptions)).toBe(false);
+    });
+
     test('should show package input choice question', () => {
         // cli
         PromptState.isYUI = false;
diff --git a/packages/abap-deploy-config-inquirer/test/prompts/validators.test.ts b/packages/abap-deploy-config-inquirer/test/prompts/validators.test.ts
index 4e6ceb3847..c3aadfde32 100644
--- a/packages/abap-deploy-config-inquirer/test/prompts/validators.test.ts
+++ b/packages/abap-deploy-config-inquirer/test/prompts/validators.test.ts
@@ -315,6 +315,12 @@ describe('Test validators', () => {
             const result = await validatePackage(' ', previousAnswers);
             expect(result).toBe(t('warnings.providePackage'));
         });
+
+        it('should return true for default package', async () => {
+            const result = await validatePackage('$TMP', previousAnswers);
+            expect(result).toBe(true);
+            expect(PromptState.transportAnswers.transportRequired).toBe(false);
+        });
     });
 
     describe('validateTransportChoiceInput', () => {