diff --git a/pkg/action/install.go b/pkg/action/install.go
index 7bdfc2ab5..f81f65749 100644
--- a/pkg/action/install.go
+++ b/pkg/action/install.go
@@ -21,6 +21,7 @@ import (
 	"context"
 	"fmt"
 	"io"
+	"log/slog"
 	"net/url"
 	"os"
 	"path"
@@ -750,6 +751,12 @@ func (c *ChartPathOptions) LocateChart(name string, settings *cli.EnvSettings) (
 	version := strings.TrimSpace(c.Version)
 
 	if _, err := os.Stat(name); err == nil {
+		// Issue #7862: Helm prioritizes local charts over repository URL.
+		// This behavior is maintained for backwards compatibility but with a warning.
+		if c.RepoURL != "" {
+			slog.Warn("local chart found in current working directory. repository url ignored", "chart", name, "repository", c.RepoURL)
+		}
+
 		abs, err := filepath.Abs(name)
 		if err != nil {
 			return abs, err