diff --git a/pkg/component/component_test.go b/pkg/component/component_test.go
index eff06c057ab..cf69348ccc5 100644
--- a/pkg/component/component_test.go
+++ b/pkg/component/component_test.go
@@ -492,7 +492,7 @@ func TestGatherName(t *testing.T) {
 				return nil, dir, err
 			}
 
-			d, err := devfile.ParseAndValidateFromFile(dPath, false)
+			d, err := devfile.ParseAndValidateFromFile(dPath, "", false)
 			if err != nil {
 				return nil, dir, err
 			}
diff --git a/pkg/dev/kubedev/kubedev.go b/pkg/dev/kubedev/kubedev.go
index 95ddf0465c3..0bd35deb593 100644
--- a/pkg/dev/kubedev/kubedev.go
+++ b/pkg/dev/kubedev/kubedev.go
@@ -118,7 +118,7 @@ func (o *DevClient) Start(
 // RegenerateAdapterAndPush get the new devfile and pushes the files to remote pod
 func (o *DevClient) regenerateAdapterAndPush(ctx context.Context, pushParams common.PushParameters, componentStatus *watch.ComponentStatus) error {
 
-	devObj, err := devfile.ParseAndValidateFromFileWithVariables(location.DevfileLocation(""), pushParams.StartOptions.Variables, true)
+	devObj, err := devfile.ParseAndValidateFromFileWithVariables(location.DevfileLocation(""), pushParams.StartOptions.Variables, o.prefClient.GetImageRegistry(), true)
 	if err != nil {
 		return fmt.Errorf("unable to generate component from watch parameters: %w", err)
 	}
diff --git a/pkg/dev/podmandev/podmandev.go b/pkg/dev/podmandev/podmandev.go
index 4d158c69cd6..601c8cf33e6 100644
--- a/pkg/dev/podmandev/podmandev.go
+++ b/pkg/dev/podmandev/podmandev.go
@@ -22,6 +22,7 @@ import (
 	odocontext "github.com/redhat-developer/odo/pkg/odo/context"
 	"github.com/redhat-developer/odo/pkg/podman"
 	"github.com/redhat-developer/odo/pkg/portForward"
+	"github.com/redhat-developer/odo/pkg/preference"
 	"github.com/redhat-developer/odo/pkg/state"
 	"github.com/redhat-developer/odo/pkg/sync"
 	"github.com/redhat-developer/odo/pkg/testingutil/filesystem"
@@ -41,6 +42,7 @@ type DevClient struct {
 	fs filesystem.Filesystem
 
 	podmanClient      podman.Client
+	prefClient        preference.Client
 	portForwardClient portForward.Client
 	syncClient        sync.Client
 	execClient        exec.Client
@@ -56,6 +58,7 @@ var _ dev.Client = (*DevClient)(nil)
 func NewDevClient(
 	fs filesystem.Filesystem,
 	podmanClient podman.Client,
+	prefClient preference.Client,
 	portForwardClient portForward.Client,
 	syncClient sync.Client,
 	execClient exec.Client,
@@ -65,6 +68,7 @@ func NewDevClient(
 	return &DevClient{
 		fs:                fs,
 		podmanClient:      podmanClient,
+		prefClient:        prefClient,
 		portForwardClient: portForwardClient,
 		syncClient:        syncClient,
 		execClient:        execClient,
@@ -171,14 +175,14 @@ func (o *DevClient) checkVolumesFree(pod *corev1.Pod) error {
 }
 
 func (o *DevClient) watchHandler(ctx context.Context, pushParams common.PushParameters, componentStatus *watch.ComponentStatus) error {
-	printWarningsOnDevfileChanges(ctx, pushParams.StartOptions)
+	o.printWarningsOnDevfileChanges(ctx, pushParams.StartOptions)
 	return o.reconcile(ctx, pushParams.StartOptions, componentStatus)
 }
 
-func printWarningsOnDevfileChanges(ctx context.Context, options dev.StartOptions) {
+func (o *DevClient) printWarningsOnDevfileChanges(ctx context.Context, options dev.StartOptions) {
 	var warning string
 	currentDevfile := odocontext.GetEffectiveDevfileObj(ctx)
-	newDevfile, err := devfile.ParseAndValidateFromFileWithVariables(location.DevfileLocation(""), options.Variables, true)
+	newDevfile, err := devfile.ParseAndValidateFromFileWithVariables(location.DevfileLocation(""), options.Variables, o.prefClient.GetImageRegistry(), true)
 	if err != nil {
 		warning = fmt.Sprintf("error while reading the Devfile. Please restart 'odo dev' if you made any changes to the Devfile. Error message is: %v", err)
 	} else {
diff --git a/pkg/devfile/devfile.go b/pkg/devfile/devfile.go
index 0b724512932..8bd7d0fe3f6 100644
--- a/pkg/devfile/devfile.go
+++ b/pkg/devfile/devfile.go
@@ -2,6 +2,8 @@ package devfile
 
 import (
 	"fmt"
+	"os"
+	"strconv"
 	"strings"
 
 	"github.com/devfile/api/v2/pkg/validation/variables"
@@ -14,13 +16,12 @@ import (
 )
 
 func parseRawDevfile(args parser.ParserArgs) (parser.DevfileObj, error) {
-	rawArgs := args
-	rawArgs.FlattenedDevfile = pointer.Bool(false)
-	rawArgs.ConvertKubernetesContentInUri = pointer.Bool(false)
-	rawArgs.ImageNamesAsSelector = nil
-	rawArgs.SetBooleanDefaults = pointer.Bool(false)
+	args.FlattenedDevfile = pointer.Bool(false)
+	args.ConvertKubernetesContentInUri = pointer.Bool(false)
+	args.ImageNamesAsSelector = nil
+	args.SetBooleanDefaults = pointer.Bool(false)
 
-	devfileObj, varWarnings, err := devfile.ParseDevfileAndValidate(rawArgs)
+	devfileObj, varWarnings, err := devfile.ParseDevfileAndValidate(args)
 	if err != nil {
 		return parser.DevfileObj{}, err
 	}
@@ -33,13 +34,18 @@ func parseRawDevfile(args parser.ParserArgs) (parser.DevfileObj, error) {
 
 func parseEffectiveDevfile(args parser.ParserArgs) (parser.DevfileObj, error) {
 	// Effective Devfile with everything resolved (e.g., parent flattened, K8s URIs inlined, ...)
-	effectiveArgs := args
-	effectiveArgs.FlattenedDevfile = pointer.Bool(true)
-	effectiveArgs.ConvertKubernetesContentInUri = pointer.Bool(true)
-	effectiveArgs.SetBooleanDefaults = pointer.Bool(false)
+	args.SetBooleanDefaults = pointer.Bool(false)
+	args.FlattenedDevfile = pointer.Bool(true)
+	args.ConvertKubernetesContentInUri = pointer.Bool(true)
+	if args.ImageNamesAsSelector != nil && args.ImageNamesAsSelector.Registry != "" {
+		// Tag should be a unique build identifier
+		args.ImageNamesAsSelector.Tag = strconv.Itoa(os.Getpid())
+	} else {
+		args.ImageNamesAsSelector = nil
+	}
 
 	var varWarnings variables.VariableWarning
-	devfileObj, varWarnings, err := devfile.ParseDevfileAndValidate(effectiveArgs)
+	devfileObj, varWarnings, err := devfile.ParseDevfileAndValidate(args)
 	if err != nil {
 		return parser.DevfileObj{}, err
 	}
@@ -58,9 +64,12 @@ func parseEffectiveDevfile(args parser.ParserArgs) (parser.DevfileObj, error) {
 
 // ParseAndValidateFromFile reads, parses and validates  devfile from a file
 // if there are warning it logs them on stdout
-func ParseAndValidateFromFile(devfilePath string, wantEffective bool) (parser.DevfileObj, error) {
+func ParseAndValidateFromFile(devfilePath string, imageRegistry string, wantEffective bool) (parser.DevfileObj, error) {
 	parserArgs := parser.ParserArgs{
 		Path: devfilePath,
+		ImageNamesAsSelector: &parser.ImageSelectorArgs{
+			Registry: imageRegistry,
+		},
 	}
 	if wantEffective {
 		return parseEffectiveDevfile(parserArgs)
@@ -73,11 +82,13 @@ func ParseAndValidateFromFile(devfilePath string, wantEffective bool) (parser.De
 // If wantEffective is true, it returns a complete view of the Devfile, where everything is resolved.
 // For example, parent will be flattened in the child, and Kubernetes manifests referenced by URI will be inlined in the related components.
 // If there are warnings, it logs them on stdout.
-func ParseAndValidateFromFileWithVariables(devfilePath string, variables map[string]string, wantEffective bool) (parser.DevfileObj, error) {
+func ParseAndValidateFromFileWithVariables(devfilePath string, variables map[string]string, imageRegistry string, wantEffective bool) (parser.DevfileObj, error) {
 	parserArgs := parser.ParserArgs{
-		Path:               devfilePath,
-		ExternalVariables:  variables,
-		SetBooleanDefaults: pointer.Bool(false),
+		Path:              devfilePath,
+		ExternalVariables: variables,
+		ImageNamesAsSelector: &parser.ImageSelectorArgs{
+			Registry: imageRegistry,
+		},
 	}
 	if wantEffective {
 		return parseEffectiveDevfile(parserArgs)
diff --git a/pkg/init/init.go b/pkg/init/init.go
index 893be94cd3a..5904f51b7b5 100644
--- a/pkg/init/init.go
+++ b/pkg/init/init.go
@@ -283,7 +283,7 @@ func (o *InitClient) SelectAndPersonalizeDevfile(ctx context.Context, flags map[
 		return parser.DevfileObj{}, "", nil, fmt.Errorf("unable to download devfile: %w", err)
 	}
 
-	devfileObj, err := devfile.ParseAndValidateFromFile(devfilePath, true)
+	devfileObj, err := devfile.ParseAndValidateFromFile(devfilePath, "", true)
 	if err != nil {
 		return parser.DevfileObj{}, "", nil, fmt.Errorf("unable to parse devfile: %w", err)
 	}
diff --git a/pkg/odo/cli/add/binding/binding.go b/pkg/odo/cli/add/binding/binding.go
index a4cfe6157a9..34feab4fb25 100644
--- a/pkg/odo/cli/add/binding/binding.go
+++ b/pkg/odo/cli/add/binding/binding.go
@@ -81,7 +81,7 @@ func (o *AddBindingOptions) Run(ctx context.Context) error {
 	withDevfile := odoutil.CheckPathExists(location.DevfileLocation(odocontext.GetWorkingDirectory(ctx)))
 	var devfileObj *parser.DevfileObj
 	if withDevfile {
-		rawDevfileObj, err := devfile.ParseAndValidateFromFile(odocontext.GetDevfilePath(ctx), false)
+		rawDevfileObj, err := devfile.ParseAndValidateFromFile(odocontext.GetDevfilePath(ctx), "", false)
 		if err != nil {
 			return err
 		}
diff --git a/pkg/odo/cli/init/init.go b/pkg/odo/cli/init/init.go
index 08f422e5e3b..47dc50047c5 100644
--- a/pkg/odo/cli/init/init.go
+++ b/pkg/odo/cli/init/init.go
@@ -234,7 +234,7 @@ func (o *InitOptions) run(ctx context.Context) (devfileObj parser.DevfileObj, pa
 
 		// in case the starter project contains a devfile, read it again
 		if _, err = o.clientset.FS.Stat(devfilePath); err == nil {
-			devfileObj, err = devfile.ParseAndValidateFromFile(devfilePath, true)
+			devfileObj, err = devfile.ParseAndValidateFromFile(devfilePath, "", true)
 			if err != nil {
 				return parser.DevfileObj{}, "", "", nil, nil, err
 			}
diff --git a/pkg/odo/cli/remove/binding/binding.go b/pkg/odo/cli/remove/binding/binding.go
index cda6335854f..3c65ab74dbd 100644
--- a/pkg/odo/cli/remove/binding/binding.go
+++ b/pkg/odo/cli/remove/binding/binding.go
@@ -59,7 +59,7 @@ func (o *RemoveBindingOptions) Validate(ctx context.Context) (err error) {
 
 func (o *RemoveBindingOptions) Run(ctx context.Context) error {
 	// Update the raw Devfile only, so we do not break any relationship between parent-child for example
-	rawDevfileObj, err := devfile.ParseAndValidateFromFile(odocontext.GetDevfilePath(ctx), false)
+	rawDevfileObj, err := devfile.ParseAndValidateFromFile(odocontext.GetDevfilePath(ctx), "", false)
 	if err != nil {
 		return err
 	}
diff --git a/pkg/odo/genericclioptions/clientset/clientset.go b/pkg/odo/genericclioptions/clientset/clientset.go
index fceb428adc4..ab28455fee8 100644
--- a/pkg/odo/genericclioptions/clientset/clientset.go
+++ b/pkg/odo/genericclioptions/clientset/clientset.go
@@ -277,6 +277,7 @@ func Fetch(command *cobra.Command, platform string) (*Clientset, error) {
 			dep.DevClient = podmandev.NewDevClient(
 				dep.FS,
 				dep.PodmanClient,
+				dep.PreferenceClient,
 				dep.PortForwardClient,
 				dep.SyncClient,
 				dep.ExecClient,
diff --git a/pkg/odo/genericclioptions/devfile.go b/pkg/odo/genericclioptions/devfile.go
index 775ad04e9b5..bbbefdaaf07 100644
--- a/pkg/odo/genericclioptions/devfile.go
+++ b/pkg/odo/genericclioptions/devfile.go
@@ -13,7 +13,7 @@ import (
 	odoutil "github.com/redhat-developer/odo/pkg/util"
 )
 
-func getDevfileInfo(workingDir string, variables map[string]string) (
+func getDevfileInfo(workingDir string, variables map[string]string, imageRegistry string) (
 	devfilePath string,
 	devfileObj *parser.DevfileObj,
 	componentName string,
@@ -28,7 +28,7 @@ func getDevfileInfo(workingDir string, variables map[string]string) (
 		}
 		// Parse devfile and validate
 		var devObj parser.DevfileObj
-		devObj, err = devfile.ParseAndValidateFromFileWithVariables(devfilePath, variables, true)
+		devObj, err = devfile.ParseAndValidateFromFileWithVariables(devfilePath, variables, imageRegistry, true)
 		if err != nil {
 			return "", nil, "", fmt.Errorf("failed to parse the devfile %s: %w", devfilePath, err)
 		}
diff --git a/pkg/odo/genericclioptions/runnable.go b/pkg/odo/genericclioptions/runnable.go
index 803a6e96e62..612e771025f 100644
--- a/pkg/odo/genericclioptions/runnable.go
+++ b/pkg/odo/genericclioptions/runnable.go
@@ -248,7 +248,7 @@ func GenericRun(o Runnable, cmd *cobra.Command, args []string) error {
 
 		var devfilePath, componentName string
 		var devfileObj *parser.DevfileObj
-		devfilePath, devfileObj, componentName, err = getDevfileInfo(cwd, variables)
+		devfilePath, devfileObj, componentName, err = getDevfileInfo(cwd, variables, userConfig.GetImageRegistry())
 		if err != nil {
 			startTelemetry(cmd, err, startTime)
 			return err
diff --git a/pkg/registry/registry.go b/pkg/registry/registry.go
index 487d8e8f8cf..0b2eb869197 100644
--- a/pkg/registry/registry.go
+++ b/pkg/registry/registry.go
@@ -439,7 +439,7 @@ func (o RegistryClient) retrieveDevfileDataFromRegistry(ctx context.Context, reg
 	devfileYamlFile := location.DevfileFilenamesProvider(tmpFile)
 
 	// Parse and validate the file and return the devfile data
-	devfileObj, err := devfile.ParseAndValidateFromFile(path.Join(tmpFile, devfileYamlFile), true)
+	devfileObj, err := devfile.ParseAndValidateFromFile(path.Join(tmpFile, devfileYamlFile), "", true)
 	if err != nil {
 		return api.DevfileData{}, err
 	}
diff --git a/pkg/testingutil/devfile.go b/pkg/testingutil/devfile.go
index 95f5fb18764..9e502441736 100644
--- a/pkg/testingutil/devfile.go
+++ b/pkg/testingutil/devfile.go
@@ -143,7 +143,7 @@ func GetTestDevfileObjFromFile(fileName string) parser.DevfileObj {
 	// path to the devfile
 	devfilePath := filepath.Join(filepath.Dir(filename), "..", "..", "tests", "examples", filepath.Join("source", "devfiles", "nodejs", fileName))
 
-	devfileObj, err := devfile.ParseAndValidateFromFile(devfilePath, false)
+	devfileObj, err := devfile.ParseAndValidateFromFile(devfilePath, "", false)
 	if err != nil {
 		return parser.DevfileObj{}
 	}
diff --git a/tests/helper/odo_utils.go b/tests/helper/odo_utils.go
index b87f9f07203..6edfdfc1318 100644
--- a/tests/helper/odo_utils.go
+++ b/tests/helper/odo_utils.go
@@ -51,13 +51,13 @@ func DeleteProject(projectName string) {
 
 // GetMetadataFromDevfile retrieves the metadata from devfile
 func GetMetadataFromDevfile(devfilePath string) devfilepkg.DevfileMetadata {
-	devObj, err := devfile.ParseAndValidateFromFile(devfilePath, true)
+	devObj, err := devfile.ParseAndValidateFromFile(devfilePath, "", true)
 	Expect(err).ToNot(HaveOccurred())
 	return devObj.Data.GetMetadata()
 }
 
 func GetDevfileComponents(devfilePath, componentName string) []v1alpha2.Component {
-	devObj, err := devfile.ParseAndValidateFromFile(devfilePath, true)
+	devObj, err := devfile.ParseAndValidateFromFile(devfilePath, "", true)
 	Expect(err).ToNot(HaveOccurred())
 	components, err := devObj.Data.GetComponents(common.DevfileOptions{
 		FilterByName: componentName,