diff --git a/constraint/pkg/externaldata/cache.go b/constraint/pkg/externaldata/cache.go
index f286a3a9a..edf378954 100644
--- a/constraint/pkg/externaldata/cache.go
+++ b/constraint/pkg/externaldata/cache.go
@@ -2,6 +2,7 @@ package externaldata
 
 import (
 	"fmt"
+	"strings"
 	"sync"
 
 	"github.com/open-policy-agent/frameworks/constraint/pkg/apis/externaldata/v1alpha1"
@@ -29,11 +30,25 @@ func (c *ProviderCache) Get(key string) (v1alpha1.Provider, error) {
 	return v1alpha1.Provider{}, fmt.Errorf("key is not found in provider cache")
 }
 
-func (c *ProviderCache) Upsert(provider *v1alpha1.Provider) {
+func (c *ProviderCache) Upsert(provider *v1alpha1.Provider) error {
 	c.mux.Lock()
 	defer c.mux.Unlock()
 
+	if !isValidName(provider.Name) {
+		return fmt.Errorf("provider name can not be empty. value %s", provider.Name)
+	}
+	if !isValidURL(provider.Spec.ProxyURL) {
+		return fmt.Errorf("invalid provider proxy url. value: %s", provider.Spec.ProxyURL)
+	}
+	if !isValidTimeout(provider.Spec.Timeout) {
+		return fmt.Errorf("provider timeout should be a positive integer. value: %d", provider.Spec.Timeout)
+	}
+	if !isValidFailurePolicy(string(provider.Spec.FailurePolicy)) {
+		return fmt.Errorf("provider failure policy should be either Ignore or Fail. value: %s", provider.Spec.FailurePolicy)
+	}
+
 	c.cache[provider.GetName()] = *provider.DeepCopy()
+	return nil
 }
 
 func (c *ProviderCache) Remove(name string) {
@@ -42,3 +57,28 @@ func (c *ProviderCache) Remove(name string) {
 
 	delete(c.cache, name)
 }
+
+func isValidName(name string) bool {
+	return len(name) != 0
+}
+
+func isValidURL(url string) bool {
+	if len(url) == 0 {
+		return false
+	}
+	if !strings.HasPrefix(url, "http://") && !strings.HasPrefix(url, "https://") {
+		return false
+	}
+	return true
+}
+
+func isValidTimeout(timeout int) bool {
+	return timeout >= 0
+}
+
+func isValidFailurePolicy(policy string) bool {
+	if !strings.EqualFold(policy, string(v1alpha1.Ignore)) || !strings.EqualFold(policy, string(v1alpha1.Fail)) {
+		return false
+	}
+	return true
+}