diff --git a/CHANGELOG.md b/CHANGELOG.md
index d6a0a5fd29..292aad97b6 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -7,6 +7,13 @@ this project adheres to [Semantic Versioning](https://semver.org/spec/v2.0.0.htm
 
 <!-- towncrier release notes start -->
 
+## 0.15.2 (2024-12-15)
+
+### Improvements
+
+- Add handling for different installation types compatibility
+
+
 ## 0.15.1 (2024-12-15)
 
 ### Bug Fixes
diff --git a/port_ocean/core/models.py b/port_ocean/core/models.py
index 1ba98fb530..c5906f41aa 100644
--- a/port_ocean/core/models.py
+++ b/port_ocean/core/models.py
@@ -8,12 +8,23 @@
 
 class Runtime(Enum):
     Saas = "Saas"
-    SaasOauth2 = "SaasOauth2"
     OnPrem = "OnPrem"
 
     @property
     def is_saas_runtime(self) -> bool:
-        return self in [Runtime.Saas, Runtime.SaasOauth2]
+        return self in [Runtime.Saas]
+
+    def is_installation_type_compatible(self, installation_type: str) -> bool:
+        """
+        Check if the installation type is compatible with the runtime
+
+        if the runtime is Saas, the installation type should start with Saas
+        else the installation type should be OnPrem
+        """
+        return (
+            self.value == Runtime.Saas.value
+            and installation_type.startswith(self.value)
+        ) or installation_type == self.value
 
 
 class Entity(BaseModel):
diff --git a/port_ocean/core/utils.py b/port_ocean/core/utils.py
index 0c6ffc6f10..dbbfea8a3b 100644
--- a/port_ocean/core/utils.py
+++ b/port_ocean/core/utils.py
@@ -42,10 +42,12 @@ async def validate_integration_runtime(
     current_integration = await port_client.get_current_integration(
         should_raise=False, should_log=False
     )
-    current_runtime = current_integration.get("installationType", "OnPrem")
-    if current_integration and current_runtime != requested_runtime.value:
+    current_installation_type = current_integration.get("installationType", "OnPrem")
+    if current_integration and not requested_runtime.is_installation_type_compatible(
+        current_installation_type
+    ):
         raise IntegrationRuntimeException(
-            f"Invalid Runtime! Requested to run existing {current_runtime} integration in {requested_runtime} runtime."
+            f"Invalid Runtime! Requested to run existing {current_installation_type} integration in {requested_runtime} runtime."
         )
 
 
diff --git a/port_ocean/tests/core/test_utils.py b/port_ocean/tests/core/test_utils.py
new file mode 100644
index 0000000000..c291778c0c
--- /dev/null
+++ b/port_ocean/tests/core/test_utils.py
@@ -0,0 +1,73 @@
+from unittest.mock import AsyncMock, patch
+
+import pytest
+
+from port_ocean.core.utils import validate_integration_runtime
+from port_ocean.clients.port.client import PortClient
+from port_ocean.core.models import Runtime
+from port_ocean.tests.helpers.port_client import get_port_client_for_integration
+from port_ocean.exceptions.core import IntegrationRuntimeException
+
+
+class TestValidateIntegrationRuntime:
+
+    @pytest.mark.asyncio
+    @pytest.mark.parametrize(
+        "requested_runtime, installation_type, should_raise",
+        [
+            (Runtime.Saas, "Saas", False),
+            (Runtime.Saas, "SaasOauth2", False),
+            (Runtime.Saas, "OnPrem", True),
+            (Runtime.OnPrem, "OnPrem", False),
+            (Runtime.OnPrem, "SaasOauth2", True),
+        ],
+    )
+    @patch.object(PortClient, "get_current_integration", new_callable=AsyncMock)
+    async def test_validate_integration_runtime(
+        self,
+        mock_get_current_integration: AsyncMock,
+        requested_runtime: Runtime,
+        installation_type: str,
+        should_raise: bool,
+    ) -> None:
+        # Arrange
+        port_client = get_port_client_for_integration(
+            client_id="mock-client-id",
+            client_secret="mock-client-secret",
+            integration_identifier="mock-integration-identifier",
+            integration_type="mock-integration-type",
+            integration_version="mock-integration-version",
+            base_url="mock-base-url",
+        )
+
+        # Mock the return value of get_current_integration
+        mock_get_current_integration.return_value = {
+            "installationType": installation_type
+        }
+
+        # Act & Assert
+        if should_raise:
+            with pytest.raises(IntegrationRuntimeException):
+                await validate_integration_runtime(port_client, requested_runtime)
+        else:
+            await validate_integration_runtime(port_client, requested_runtime)
+
+        # Verify that get_current_integration was called once
+        mock_get_current_integration.assert_called_once()
+
+    @pytest.mark.parametrize(
+        "requested_runtime, installation_type, expected",
+        [
+            (Runtime.Saas, "SaasOauth2", True),
+            (Runtime.Saas, "OnPrem", False),
+            (Runtime.OnPrem, "OnPrem", True),
+            (Runtime.OnPrem, "SaasCloud", False),
+        ],
+    )
+    def test_runtime_installation_compatibility(
+        self, requested_runtime: Runtime, installation_type: str, expected: bool
+    ) -> None:
+        assert (
+            requested_runtime.is_installation_type_compatible(installation_type)
+            == expected
+        )
diff --git a/pyproject.toml b/pyproject.toml
index 702442f5f9..e94fed2990 100644
--- a/pyproject.toml
+++ b/pyproject.toml
@@ -1,6 +1,6 @@
 [tool.poetry]
 name = "port-ocean"
-version = "0.15.1"
+version = "0.15.2"
 description = "Port Ocean is a CLI tool for managing your Port projects."
 readme = "README.md"
 homepage = "https://app.getport.io"