diff --git a/pkg/controllers/custompackage/controller.go b/pkg/controllers/custompackage/controller.go
index 12480bef..ed093616 100644
--- a/pkg/controllers/custompackage/controller.go
+++ b/pkg/controllers/custompackage/controller.go
@@ -2,6 +2,7 @@ package custompackage
 
 import (
 	"context"
+	"encoding/json"
 	"fmt"
 	"os"
 	"path/filepath"
@@ -165,10 +166,16 @@ func (r *Reconciler) reconcileArgoCDApp(ctx context.Context, resource *v1alpha1.
 		notSyncedRepos := 0
 		for j := range app.Spec.Sources {
 			s := &app.Spec.Sources[j]
+			res, sErr := r.reconcileHelmValueObject(ctx, s, resource, app.Name)
+			if sErr != nil {
+				return res, sErr
+			}
+
 			res, repo, sErr := r.reconcileArgoCDSource(ctx, resource, s.RepoURL, app.Name)
 			if sErr != nil {
 				return res, sErr
 			}
+
 			if repo != nil {
 				if repo.Status.InternalGitRepositoryUrl == "" {
 					notSyncedRepos += 1
@@ -184,10 +191,16 @@ func (r *Reconciler) reconcileArgoCDApp(ctx context.Context, resource *v1alpha1.
 		appSourcesSynced = notSyncedRepos == 0
 	} else {
 		s := app.Spec.Source
+		res, sErr := r.reconcileHelmValueObject(ctx, s, resource, app.Name)
+		if sErr != nil {
+			return res, sErr
+		}
+
 		res, repo, sErr := r.reconcileArgoCDSource(ctx, resource, s.RepoURL, app.Name)
 		if sErr != nil {
 			return res, sErr
 		}
+
 		if repo != nil {
 			appSourcesSynced = repo.Status.InternalGitRepositoryUrl != ""
 			s.RepoURL = repo.Status.InternalGitRepositoryUrl
@@ -391,6 +404,68 @@ func (r *Reconciler) getArgoCDAppFile(ctx context.Context, resource *v1alpha1.Cu
 	return util.ReadWorktreeFile(wt, filePath)
 }
 
+func (r *Reconciler) reconcileHelmValueObject(ctx context.Context, source *argov1alpha1.ApplicationSource,
+	resource *v1alpha1.CustomPackage, appName string,
+) (ctrl.Result, error) {
+	if source.Helm == nil || source.Helm.ValuesObject == nil {
+		return ctrl.Result{}, nil
+	}
+
+	var data any
+	err := json.Unmarshal(source.Helm.ValuesObject.Raw, &data)
+	if err != nil {
+		return ctrl.Result{}, fmt.Errorf("processing helm valuesObject: %w", err)
+	}
+
+	res, err := r.reconcileHelmValueObjectSource(ctx, &data, resource, appName)
+	if err != nil {
+		return ctrl.Result{}, err
+	}
+
+	raw, err := json.Marshal(data)
+	if err != nil {
+		return ctrl.Result{}, fmt.Errorf("converting helm valuesObject to json")
+	}
+
+	source.Helm.ValuesObject.Raw = raw
+	return res, nil
+}
+
+func (r *Reconciler) reconcileHelmValueObjectSource(ctx context.Context,
+	valueObject *any, resource *v1alpha1.CustomPackage, appName string,
+) (ctrl.Result, error) {
+
+	switch val := (*valueObject).(type) {
+	case string:
+		res, repo, err := r.reconcileArgoCDSource(ctx, resource, val, appName)
+		if err != nil {
+			return res, fmt.Errorf("processing %s in helmValueObject: %w", val, err)
+		}
+		if repo != nil {
+			*valueObject = repo.Status.InternalGitRepositoryUrl
+		}
+	case map[string]any:
+		for k := range val {
+			v := val[k]
+			res, err := r.reconcileHelmValueObjectSource(ctx, &v, resource, appName)
+			if err != nil {
+				return res, err
+			}
+			val[k] = v
+		}
+	case []any:
+		for k := range val {
+			v := val[k]
+			res, err := r.reconcileHelmValueObjectSource(ctx, &v, resource, appName)
+			if err != nil {
+				return res, err
+			}
+			val[k] = v
+		}
+	}
+	return ctrl.Result{RequeueAfter: requeueTime}, nil
+}
+
 func localRepoName(appName, dir string) string {
 	return fmt.Sprintf("%s-%s", appName, filepath.Base(dir))
 }
diff --git a/pkg/controllers/custompackage/controller_test.go b/pkg/controllers/custompackage/controller_test.go
index bf6d1248..578138b6 100644
--- a/pkg/controllers/custompackage/controller_test.go
+++ b/pkg/controllers/custompackage/controller_test.go
@@ -577,3 +577,126 @@ func TestReconcileCustomPkgAppSet(t *testing.T) {
 		}
 	}
 }
+
+func TestReconcileHelmValueObject(t *testing.T) {
+	s := k8sruntime.NewScheme()
+	sb := k8sruntime.NewSchemeBuilder(
+		v1.AddToScheme,
+		argov1alpha1.AddToScheme,
+		v1alpha1.AddToScheme,
+	)
+	sb.AddToScheme(s)
+	testEnv := &envtest.Environment{
+		CRDDirectoryPaths: []string{
+			filepath.Join("..", "resources"),
+			"../localbuild/resources/argo/install.yaml",
+		},
+		ErrorIfCRDPathMissing: true,
+		Scheme:                s,
+		BinaryAssetsDirectory: filepath.Join("..", "..", "..", "bin", "k8s",
+			fmt.Sprintf("1.29.1-%s-%s", runtime.GOOS, runtime.GOARCH)),
+	}
+
+	cfg, err := testEnv.Start()
+	if err != nil {
+		t.Fatalf("Starting testenv: %v", err)
+	}
+	defer testEnv.Stop()
+
+	mgr, err := ctrl.NewManager(cfg, ctrl.Options{
+		Scheme: s,
+	})
+	if err != nil {
+		t.Fatalf("getting manager: %v", err)
+	}
+	ctx, ctxCancel := context.WithCancel(context.Background())
+	stoppedCh := make(chan error)
+	go func() {
+		err := mgr.Start(ctx)
+		stoppedCh <- err
+	}()
+
+	defer func() {
+		ctxCancel()
+		err := <-stoppedCh
+		if err != nil {
+			t.Errorf("Starting controller manager: %v", err)
+			t.FailNow()
+		}
+	}()
+
+	time.Sleep(1 * time.Second)
+
+	for _, n := range []string{"argocd", "test"} {
+		ns := v1.Namespace{
+			ObjectMeta: metav1.ObjectMeta{
+				Name: n,
+			},
+		}
+		err = mgr.GetClient().Create(context.Background(), &ns)
+		if err != nil {
+			t.Fatalf("creating test ns: %v", err)
+		}
+	}
+
+	r := &Reconciler{
+		Client:   mgr.GetClient(),
+		Scheme:   mgr.GetScheme(),
+		Recorder: mgr.GetEventRecorderFor("test-custompkg-controller"),
+	}
+
+	cwd, _ := os.Getwd()
+
+	resource := v1alpha1.CustomPackage{
+		ObjectMeta: metav1.ObjectMeta{
+			Name:      "test1",
+			Namespace: "test",
+			UID:       "abc",
+		},
+		Spec: v1alpha1.CustomPackageSpec{
+			Replicate:           true,
+			GitServerURL:        "https://cnoe.io",
+			InternalGitServeURL: "http://internal.cnoe.io",
+			ArgoCD: v1alpha1.ArgoCDPackageSpec{
+				ApplicationFile: filepath.Join(cwd, "test/resources/customPackages/helm/app.yaml"),
+				Name:            "my-app",
+				Namespace:       "argocd",
+				Type:            "Application",
+			},
+		},
+	}
+
+	source := &argov1alpha1.ApplicationSource{
+		Helm: &argov1alpha1.ApplicationSourceHelm{
+			ValuesObject: &k8sruntime.RawExtension{
+				Raw: []byte(`{
+				 "repoURLGit": "cnoe://test",
+				 "nested": {
+				   "repoURLGit": "cnoe://test",
+				   "bool": true,
+				   "int": 123
+				 },
+				 "bool": false,
+				 "int": 456,
+				 "arrayString": [
+				   "abc",
+				   "cnoe://test"
+				 ],
+				 "arrayMap": [
+				   {
+				     "test": "cnoe://test",
+				     "nested": {
+				       "test": "cnoe://test"
+				     }
+				   }
+				 ]
+				}`),
+			},
+		},
+	}
+
+	_, err = r.reconcileHelmValueObject(ctx, source, &resource, "test")
+	assert.NoError(t, err)
+	expectJson := `{"arrayMap":[{"nested":{"test":""},"test":""}],"arrayString":["abc",""],"bool":false,"int":456,"nested":{"bool":true,"int":123,"repoURLGit":""},"repoURLGit":""}`
+	assert.JSONEq(t, expectJson, string(source.Helm.ValuesObject.Raw))
+}
diff --git a/pkg/controllers/custompackage/test/resources/customPackages/helm/app.yaml b/pkg/controllers/custompackage/test/resources/customPackages/helm/app.yaml
new file mode 100644
index 00000000..770867e7
--- /dev/null
+++ b/pkg/controllers/custompackage/test/resources/customPackages/helm/app.yaml
@@ -0,0 +1,24 @@
+apiVersion: argoproj.io/v1alpha1
+kind: Application
+metadata:
+  name: my-app-helm
+  namespace: argocd
+spec:
+  destination:
+    namespace: my-app-helm
+    server: "https://kubernetes.default.svc"
+  source:
+    repoURL: cnoe://test
+    targetRevision: HEAD
+    path: "."
+    helm:
+      valuesObject:
+        repoURLGit: cnoe://test
+        nested:
+          repoURLGit: cnoe://test
+  project: default
+  syncPolicy:
+    automated:
+      selfHeal: true
+    syncOptions:
+      - CreateNamespace=true
diff --git a/pkg/controllers/custompackage/test/resources/customPackages/helm/test/Chart.yaml b/pkg/controllers/custompackage/test/resources/customPackages/helm/test/Chart.yaml
new file mode 100644
index 00000000..3ebad470
--- /dev/null
+++ b/pkg/controllers/custompackage/test/resources/customPackages/helm/test/Chart.yaml
@@ -0,0 +1,24 @@
+apiVersion: v2
+name: test
+description: A Helm chart for Kubernetes
+
+# A chart can be either an 'application' or a 'library' chart.
+#
+# Application charts are a collection of templates that can be packaged into versioned archives
+# to be deployed.
+#
+# Library charts provide useful utilities or functions for the chart developer. They're included as
+# a dependency of application charts to inject those utilities and functions into the rendering
+# pipeline. Library charts do not define any templates and therefore cannot be deployed.
+type: application
+
+# This is the chart version. This version number should be incremented each time you make changes
+# to the chart and its templates, including the app version.
+# Versions are expected to follow Semantic Versioning (https://semver.org/)
+version: 0.1.0
+
+# This is the version number of the application being deployed. This version number should be
+# incremented each time you make changes to the application. Versions are not expected to
+# follow Semantic Versioning. They should reflect the version the application is using.
+# It is recommended to use it with quotes.
+appVersion: "1.16.0"
diff --git a/pkg/controllers/custompackage/test/resources/customPackages/helm/test/templates/cm.yaml b/pkg/controllers/custompackage/test/resources/customPackages/helm/test/templates/cm.yaml
new file mode 100644
index 00000000..db411caa
--- /dev/null
+++ b/pkg/controllers/custompackage/test/resources/customPackages/helm/test/templates/cm.yaml
@@ -0,0 +1,6 @@
+apiVersion: v1
+kind: ConfigMap
+metadata:
+  name: config
+data:
+  test1: "one"
diff --git a/pkg/controllers/custompackage/test/resources/customPackages/helm/test/values.yaml b/pkg/controllers/custompackage/test/resources/customPackages/helm/test/values.yaml
new file mode 100644
index 00000000..1bccfc78
--- /dev/null
+++ b/pkg/controllers/custompackage/test/resources/customPackages/helm/test/values.yaml
@@ -0,0 +1 @@
+some: value