diff --git a/internal/distro/rhel7/distro.go b/internal/distro/rhel7/distro.go
index 8208536af..ed0131588 100644
--- a/internal/distro/rhel7/distro.go
+++ b/internal/distro/rhel7/distro.go
@@ -558,6 +558,12 @@ func (t *imageType) checkOptions(customizations *blueprint.Customizations, optio
 		return warnings, err
 	}
 
+	// check if repository customizations are valid
+	_, err = customizations.GetRepositories()
+	if err != nil {
+		return warnings, err
+	}
+
 	return warnings, nil
 }
 
diff --git a/internal/distro/rhel7/images.go b/internal/distro/rhel7/images.go
index d36a37dcb..08adec89d 100644
--- a/internal/distro/rhel7/images.go
+++ b/internal/distro/rhel7/images.go
@@ -156,6 +156,36 @@ func osCustomizations(
 		// should have been validated before this point.
 		panic(fmt.Sprintf("failed to convert file customizations to fs node files: %v", err))
 	}
+
+	// set yum repos first, so it doesn't get overridden by
+	// imageConfig.YUMRepos
+	osc.YUMRepos = imageConfig.YUMRepos
+
+	customRepos, err := c.GetRepositories()
+	if err != nil {
+		// This shouldn't happen and since the repos
+		// should have already been validated
+		panic(fmt.Sprintf("failed to get custom repos: %v", err))
+	}
+
+	// This function returns a map of filename and corresponding yum repos
+	// and a list of fs node files for the inline gpg keys so we can save
+	// them to disk. This step also swaps the inline gpg key with the path
+	// to the file in the os file tree
+	yumRepos, gpgKeyFiles, err := blueprint.RepoCustomizationsToRepoConfigAndGPGKeyFiles(customRepos)
+	if err != nil {
+		panic(fmt.Sprintf("failed to convert inline gpgkeys to fs node files: %v", err))
+	}
+
+	// add the gpg key files to the list of files to be added to the tree
+	if len(gpgKeyFiles) > 0 {
+		osc.Files = append(osc.Files, gpgKeyFiles...)
+	}
+
+	for filename, repos := range yumRepos {
+		osc.YUMRepos = append(osc.YUMRepos, osbuild.NewYumReposStageOptions(filename, repos))
+	}
+
 	osc.ShellInit = imageConfig.ShellInit
 
 	osc.Grub2Config = imageConfig.Grub2Config
@@ -173,7 +203,6 @@ func osCustomizations(
 	osc.Sysctld = imageConfig.Sysctld
 	osc.DNFConfig = imageConfig.DNFConfig
 	osc.DNFAutomaticConfig = imageConfig.DNFAutomaticConfig
-	osc.YUMRepos = imageConfig.YUMRepos
 	osc.YUMConfig = imageConfig.YumConfig
 	osc.SshdConfig = imageConfig.SshdConfig
 	osc.AuthConfig = imageConfig.Authconfig
diff --git a/test/data/manifests/rhel_7-x86_64-qcow2-boot.json b/test/data/manifests/rhel_7-x86_64-qcow2-boot.json
index f58a4ccd6..731ae096b 100644
--- a/test/data/manifests/rhel_7-x86_64-qcow2-boot.json
+++ b/test/data/manifests/rhel_7-x86_64-qcow2-boot.json
@@ -29,7 +29,7 @@
       },
       {
         "name": "azure-rhui-7",
-        "baseurl": "https://rpmrepo.osbuild.org/v2/mirror/rhvpn/el7/el7-x86_64-rhui-azure-20220530"
+        "baseurl": "https://rpmrepo.osbuild.org/v2/mirror/rhvpn/el7/el7-x86_64-rhui-azure-20230418"
       }
     ],
     "filename": "disk.qcow2",
diff --git a/test/data/manifests/rhel_7-x86_64-qcow2_customize-boot.json b/test/data/manifests/rhel_7-x86_64-qcow2_customize-boot.json
index 53ad87679..661857993 100644
--- a/test/data/manifests/rhel_7-x86_64-qcow2_customize-boot.json
+++ b/test/data/manifests/rhel_7-x86_64-qcow2_customize-boot.json
@@ -29,7 +29,7 @@
       },
       {
         "name": "azure-rhui-7",
-        "baseurl": "https://rpmrepo.osbuild.org/v2/mirror/rhvpn/el7/el7-x86_64-rhui-azure-20220530"
+        "baseurl": "https://rpmrepo.osbuild.org/v2/mirror/rhvpn/el7/el7-x86_64-rhui-azure-20230418"
       }
     ],
     "filename": "disk.qcow2",
@@ -155,6 +155,21 @@
             "user": 0,
             "group": 0
           }
+        ],
+        "repositories": [
+          {
+            "id": "example",
+            "baseurls": [
+              "https://example.com/download/yum"
+            ],
+            "gpgkeys": [
+              "-----BEGIN PGP PUBLIC KEY BLOCK-----\n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\nWSb6T+gChmYBseZwk/k=\n=DQ3i\n-----END PGP PUBLIC KEY BLOCK-----\n"
+            ],
+            "name": "Example repo",
+            "enabled": true,
+            "gpgcheck": true,
+            "repo_gpgcheck": false
+          }
         ]
       }
     }
@@ -1986,6 +2001,27 @@
               }
             }
           },
+          {
+            "type": "org.osbuild.yum.repos",
+            "options": {
+              "filename": "example.repo",
+              "repos": [
+                {
+                  "id": "example",
+                  "baseurl": [
+                    "https://example.com/download/yum"
+                  ],
+                  "enabled": true,
+                  "gpgkey": [
+                    "file:///etc/pki/rpm-gpg/RPM-GPG-KEY-example-0"
+                  ],
+                  "name": "Example repo",
+                  "gpgcheck": true,
+                  "repo_gpgcheck": false
+                }
+              ]
+            }
+          },
           {
             "type": "org.osbuild.rhsm",
             "options": {
@@ -2154,6 +2190,15 @@
                     "id": "sha256:e3b0c44298fc1c149afbf4c8996fb92427ae41e4649b934ca495991b7852b855"
                   }
                 ]
+              },
+              "file-e6e7e40c00b4d4aceb64629e41b6f31904359447a47f9c2eb603eb530804c5b1": {
+                "type": "org.osbuild.files",
+                "origin": "org.osbuild.source",
+                "references": [
+                  {
+                    "id": "sha256:e6e7e40c00b4d4aceb64629e41b6f31904359447a47f9c2eb603eb530804c5b1"
+                  }
+                ]
               }
             },
             "options": {
@@ -2177,6 +2222,11 @@
                   "from": "input://file-e3b0c44298fc1c149afbf4c8996fb92427ae41e4649b934ca495991b7852b855/sha256:e3b0c44298fc1c149afbf4c8996fb92427ae41e4649b934ca495991b7852b855",
                   "to": "tree:///etc/empty_file.txt",
                   "remove_destination": true
+                },
+                {
+                  "from": "input://file-e6e7e40c00b4d4aceb64629e41b6f31904359447a47f9c2eb603eb530804c5b1/sha256:e6e7e40c00b4d4aceb64629e41b6f31904359447a47f9c2eb603eb530804c5b1",
+                  "to": "tree:///etc/pki/rpm-gpg/RPM-GPG-KEY-example-0",
+                  "remove_destination": true
                 }
               ]
             }
@@ -3816,6 +3866,10 @@
           "sha256:e3b0c44298fc1c149afbf4c8996fb92427ae41e4649b934ca495991b7852b855": {
             "encoding": "base64",
             "data": ""
+          },
+          "sha256:e6e7e40c00b4d4aceb64629e41b6f31904359447a47f9c2eb603eb530804c5b1": {
+            "encoding": "base64",
+            "data": "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"
           }
         }
       }