diff --git a/pkg/suse-ai-lifecycle-manager/pages/components/AppWizard.vue b/pkg/suse-ai-lifecycle-manager/pages/components/AppWizard.vue
index 082c5d2..69cdf4f 100644
--- a/pkg/suse-ai-lifecycle-manager/pages/components/AppWizard.vue
+++ b/pkg/suse-ai-lifecycle-manager/pages/components/AppWizard.vue
@@ -23,7 +23,8 @@ import {
   getClusters,
   getInstalledHelmDetails,
   inferClusterRepoForChart,
-  listClusterRepos
+  listClusterRepos,
+  listNamespaces
 } from '../../services/rancher-apps';
 import { getRepoAuthForClusterRepo } from '../../services/repo-auth';
 import { persistLoad, persistSave, persistClear } from '../../services/ui-persist';
@@ -67,6 +68,7 @@ const versionInfo = ref<any | null>(null);
 const questionsLoading = ref(false);
 const versionInfoKey = ref('');
 const defaultValuesSnapshot = ref<Record<string, any>>({});
+const namespaceOptions = ref<{label: string, value: string}[]>([]);
 
 // Multi-cluster install progress state
 const showProgressModal = ref(false);
@@ -93,6 +95,52 @@ const versionOptions = computed(() =>
   (versions.value || []).map(v => ({ label: v, value: v }))
 );
 
+// Fetch all namespaces from all clusters and filter out system namespaces
+async function fetchAllNamespaces() {
+  if (!store) {
+    return;
+  }
+
+  try {
+    const clusters = await getClusters(store);
+    console.log('[SUSE-AI] All available clusters:', clusters);
+
+    const allNamespaces = new Set<string>();
+
+    await Promise.all(clusters.map(async (cluster) => {
+      console.log('[SUSE-AI] Trying to get namespaces for cluster:', cluster);
+      try {
+        const namespaces = await listNamespaces(store, cluster.id);
+        namespaces.forEach(ns => allNamespaces.add(ns));
+      } catch (e) {
+        console.warn(`[SUSE-AI] Failed to fetch namespaces for cluster ${cluster.id}:`, e);
+      }
+    }));
+
+    console.log('[SUSE-AI] Found all unique namespaces:', allNamespaces);
+
+    const systemPrefixes = ['c-', 'p-', 'kube-', 'cattle-', 'rancher', 'longhorn-', 'fleet-', 'cluster-fleet-', 'system-', 'istio-', 'neuvector', 'ingress-', 'cert-manager'];
+    const userNamespaces = Array.from(allNamespaces).filter(name => 
+        !systemPrefixes.some(prefix => name.startsWith(prefix))
+    );
+
+    const desiredDefault = `${props.slug}-system`;
+    if (!userNamespaces.includes(desiredDefault)) {
+      userNamespaces.push(desiredDefault);
+    }
+
+    const sortedNamespaces = userNamespaces.sort();
+    namespaceOptions.value = sortedNamespaces.map(ns => ({ label: ns, value: ns }));
+    
+    if (isInstallMode.value) {
+      form.value.namespace = desiredDefault;
+    }
+
+  } catch (e) {
+    console.warn(`[SUSE-AI] Failed to fetch all namespaces:`, e);
+  }
+}
+
 // Wizard step configuration for Rancher Wizard component
 const wizardSteps = computed(() => [
   {
@@ -184,6 +232,7 @@ const basicInfoForm = computed({
 onMounted(async () => {
   try {
     await initializeWizard();
+    await fetchAllNamespaces();
   } catch (e) {
     error.value = `Failed to initialize: ${e.message || 'Unknown error'}`;
   } finally {
@@ -969,6 +1018,7 @@ function previousStep() {
             v-model:form="basicInfoForm"
             :version-options="versionOptions"
             :loading-versions="loadingVersions"
+            :namespace-options="namespaceOptions"
           />
 
           <!-- Step: Target Cluster -->
diff --git a/pkg/suse-ai-lifecycle-manager/pages/components/wizard/BasicInfoStep.vue b/pkg/suse-ai-lifecycle-manager/pages/components/wizard/BasicInfoStep.vue
index ded1048..a4cbc5c 100644
--- a/pkg/suse-ai-lifecycle-manager/pages/components/wizard/BasicInfoStep.vue
+++ b/pkg/suse-ai-lifecycle-manager/pages/components/wizard/BasicInfoStep.vue
@@ -10,11 +10,15 @@
         />
       </div>
       <div class="col span-6">
-        <LabeledInput
+        <LabeledSelect
           v-model:value="namespace"
           :label="t('suseai.wizard.form.namespace', 'Namespace')"
-          :placeholder="t('suseai.wizard.form.namespacePlaceholder', 'Enter namespace')"
-          required
+          :options="namespaceOptions"
+          :placeholder="t('suseai.wizard.form.namespacePlaceholder', 'Select or create a namespace')"
+          :taggable="true"
+          :searchable="true"
+          :clearable="false"
+          :required="true"
         />
       </div>
     </div>
@@ -68,6 +72,7 @@ interface Props {
   form: BasicInfoForm;
   versionOptions: Array<{ label: string; value: string }>;
   loadingVersions: boolean;
+  namespaceOptions: Array<{ label: string; value: string }>;
 }
 
 interface Emits {
@@ -80,12 +85,6 @@ const emit = defineEmits<Emits>();
 // Simple fallback function for translations
 const t = (key: string, fallback: string) => fallback;
 
-// Create individual computed properties for better reactivity
-const localForm = computed({
-  get: () => props.form,
-  set: (value: BasicInfoForm) => emit('update:form', value)
-});
-
 // Individual field computeds for better reactivity
 const release = computed({
   get: () => props.form.release,
@@ -94,7 +93,10 @@ const release = computed({
 
 const namespace = computed({
   get: () => props.form.namespace,
-  set: (value: string) => emit('update:form', { ...props.form, namespace: value })
+  set: (value: string | { label: string }) => {
+    const namespaceName = typeof value === 'object' ? value.label : value;
+    emit('update:form', { ...props.form, namespace: namespaceName });
+  }
 });
 
 const chartRepo = computed({
diff --git a/pkg/suse-ai-lifecycle-manager/services/rancher-apps.ts b/pkg/suse-ai-lifecycle-manager/services/rancher-apps.ts
index 5fa2479..72b6b75 100644
--- a/pkg/suse-ai-lifecycle-manager/services/rancher-apps.ts
+++ b/pkg/suse-ai-lifecycle-manager/services/rancher-apps.ts
@@ -362,10 +362,13 @@ export async function listCatalogApps($store: RancherStore, clusterId: string):
   return res?.data?.items || res?.data || res?.items || [];
 }
 
-async function listNamespaces($store: RancherStore, clusterId: string): Promise<string[]> {
-  const url = `/k8s/clusters/${encodeURIComponent(clusterId)}/api/v1/namespaces?limit=5000`;
+export async function listNamespaces($store: RancherStore, clusterId: string): Promise<string[]> {
+  const url = clusterId === 'local'
+    ? '/api/v1/namespaces?limit=5000'
+    : `/k8s/clusters/${encodeURIComponent(clusterId)}/api/v1/namespaces?limit=5000`;
   const res = await $store.dispatch('rancher/request', { url, timeout: 20000 });
-  const items = res?.data?.items || res?.data || [];
+  const items = res?.data?.items || res?.data || res?.items || [];
+
   return (items || []).map((n: NamespaceResource) => n?.metadata?.name).filter((n: string) => !!n);
 }