diff --git a/python/sdk/merlin/requirements.py b/python/sdk/merlin/requirements.py
index a4849f6f1..328e9a064 100644
--- a/python/sdk/merlin/requirements.py
+++ b/python/sdk/merlin/requirements.py
@@ -5,7 +5,7 @@
 from typing import Any, List, Optional
 
 import yaml
-from packaging.requirements import Requirement
+from packaging.requirements import Requirement, InvalidRequirement
 
 _CONSTRAINTS_FILE_NAME = "constraints.txt"
 
@@ -51,6 +51,11 @@ def process_conda_env(
         for additional_merlin_req in additional_merlin_reqs:
             exist = False
             for pip_req in pip_reqs:
+                # Skip requirement comparison for pip reqs that is not a package, which can happen if the user specifies
+                # repository or trusted host as part of the pip file
+                if pip_req.strip().startswith("--"):
+                    continue
+
                 pip_req_obj = Requirement(pip_req)
                 additional_merlin_req_obj = Requirement(additional_merlin_req)
                 if pip_req_obj.name.lower() == additional_merlin_req_obj.name.lower():
diff --git a/python/sdk/test/requirements/non_package_reqs_in.yaml b/python/sdk/test/requirements/non_package_reqs_in.yaml
new file mode 100644
index 000000000..56d14156b
--- /dev/null
+++ b/python/sdk/test/requirements/non_package_reqs_in.yaml
@@ -0,0 +1,6 @@
+dependencies:
+  - python=3.10.*
+  - pip:
+      - --extra-index-url=http://artifactory.com
+      - --trusted-host=artifactory.com
+      - scikit-learn==1.4.0
diff --git a/python/sdk/test/requirements/non_package_reqs_out.yaml b/python/sdk/test/requirements/non_package_reqs_out.yaml
new file mode 100644
index 000000000..ff10b4a6a
--- /dev/null
+++ b/python/sdk/test/requirements/non_package_reqs_out.yaml
@@ -0,0 +1,7 @@
+dependencies:
+  - python=3.10.*
+  - pip:
+      - merlin-pyfunc-server<0.42.0
+      - --extra-index-url=http://artifactory.com
+      - --trusted-host=artifactory.com
+      - scikit-learn==1.4.0
diff --git a/python/sdk/test/requirements_test.py b/python/sdk/test/requirements_test.py
index 9805d5c66..837ca1154 100644
--- a/python/sdk/test/requirements_test.py
+++ b/python/sdk/test/requirements_test.py
@@ -27,6 +27,11 @@
             "test/requirements/pyfunc_server_without_version_out.yaml",
             ["merlin-pyfunc-server<0.42.0"],
         ),
+        (
+            "test/requirements/non_package_reqs_in.yaml",
+            "test/requirements/non_package_reqs_out.yaml",
+            ["merlin-pyfunc-server<0.42.0"],
+        ),
         (
             "test/requirements/other_reqs_in.yaml",
             "test/requirements/other_reqs_out.yaml",