diff --git a/src/gpgmm/d3d12/ResidencyHeapD3D12.cpp b/src/gpgmm/d3d12/ResidencyHeapD3D12.cpp
index 89698733..e9076fac 100644
--- a/src/gpgmm/d3d12/ResidencyHeapD3D12.cpp
+++ b/src/gpgmm/d3d12/ResidencyHeapD3D12.cpp
@@ -74,6 +74,19 @@ namespace gpgmm::d3d12 {
 
         const bool isResidencyDisabled = (pResidencyManager == nullptr);
 
+        // Validate residency resource heap flags must also have a residency manager.
+        if (isResidencyDisabled && descriptor.Flags & RESIDENCY_HEAP_FLAG_ALWAYS_IN_BUDGET) {
+            ErrorLog(MessageId::kInvalidArgument, true)
+                << "Creating a heap always in budget requires a residency manager to exist.";
+            return E_INVALIDARG;
+        }
+
+        if (isResidencyDisabled && descriptor.Flags & RESIDENCY_HEAP_FLAG_ALWAYS_RESIDENT) {
+            ErrorLog(MessageId::kInvalidArgument, true)
+                << "Creating a heap always residency requires a residency manager to exist.";
+            return E_INVALIDARG;
+        }
+
         ResidencyManager* residencyManager = static_cast<ResidencyManager*>(pResidencyManager);
 
         // Ensure enough budget exists before creating the heap to avoid an out-of-memory error.
diff --git a/src/tests/end2end/D3D12ResidencyManagerTests.cpp b/src/tests/end2end/D3D12ResidencyManagerTests.cpp
index 8cc07183..f241f17f 100644
--- a/src/tests/end2end/D3D12ResidencyManagerTests.cpp
+++ b/src/tests/end2end/D3D12ResidencyManagerTests.cpp
@@ -197,6 +197,24 @@ TEST_F(D3D12ResidencyManagerTests, CreateResourceHeap) {
                                          CreateResourceHeapCallbackContext::CreateHeap,
                                          &createHeapContext, &resourceHeap));
 
+    {
+        RESIDENCY_HEAP_DESC invalidResourceHeapDesc = resourceHeapDesc;
+        invalidResourceHeapDesc.Flags |= RESIDENCY_HEAP_FLAG_ALWAYS_RESIDENT;
+
+        ASSERT_FAILED(CreateResidencyHeap(invalidResourceHeapDesc, nullptr,
+                                          CreateResourceHeapCallbackContext::CreateHeap,
+                                          &createHeapContext, nullptr));
+    }
+
+    {
+        RESIDENCY_HEAP_DESC invalidResourceHeapDesc = resourceHeapDesc;
+        invalidResourceHeapDesc.Flags |= RESIDENCY_HEAP_FLAG_ALWAYS_IN_BUDGET;
+
+        ASSERT_FAILED(CreateResidencyHeap(invalidResourceHeapDesc, nullptr,
+                                          CreateResourceHeapCallbackContext::CreateHeap,
+                                          &createHeapContext, nullptr));
+    }
+
     // Ensure the unmanaged resource heap state is always unknown. Even though D3D12 implicitly
     // creates heaps as resident, untrack resource heaps would never transition out from
     // RESIDENCY_HEAP_STATUS_CURRENT and must be left RESIDENCY_HEAP_STATUS_UNKNOWN.