diff --git a/ee/app/assets/javascripts/ai/catalog/components/ai_catalog_list_item.vue b/ee/app/assets/javascripts/ai/catalog/components/ai_catalog_list_item.vue
index ce84b23ea08c524fb77fe0ea5633106038604573..527e38a3dac64c91a2156bee92400293581a7c2b 100644
--- a/ee/app/assets/javascripts/ai/catalog/components/ai_catalog_list_item.vue
+++ b/ee/app/assets/javascripts/ai/catalog/components/ai_catalog_list_item.vue
@@ -8,7 +8,7 @@ import {
   GlIcon,
   GlTooltipDirective,
 } from '@gitlab/ui';
-import { __, s__ } from '~/locale';
+import { __, s__, sprintf } from '~/locale';
 import { getIdFromGraphQLId } from '~/graphql_shared/utils';
 import {
   VISIBILITY_TYPE_ICON,
@@ -17,7 +17,13 @@ import {
   VISIBILITY_LEVEL_PRIVATE_STRING,
 } from '~/visibility_level/constants';
 import FoundationalIcon from 'ee/ai/components/foundational_icon.vue';
-import { AI_CATALOG_TYPE_THIRD_PARTY_FLOW } from '../constants';
+import {
+  AI_CATALOG_TYPE_THIRD_PARTY_FLOW,
+  AI_CATALOG_ITEM_LABELS,
+  AI_CATALOG_CONSUMER_TYPE_PROJECT,
+  AI_CATALOG_CONSUMER_TYPE_GROUP,
+  AI_CATALOG_CONSUMER_LABELS,
+} from '../constants';
 
 export default {
   name: 'AiCatalogListItem',
@@ -33,6 +39,11 @@ export default {
   directives: {
     GlTooltip: GlTooltipDirective,
   },
+  inject: {
+    projectId: {
+      default: null,
+    },
+  },
   props: {
     item: {
       type: Object,
@@ -44,6 +55,20 @@ export default {
     },
   },
   computed: {
+    isProjectNamespace() {
+      return Boolean(this.projectId);
+    },
+    itemTypeLabel() {
+      return AI_CATALOG_ITEM_LABELS[this.item.itemType];
+    },
+    targetType() {
+      return this.isProjectNamespace
+        ? AI_CATALOG_CONSUMER_TYPE_PROJECT
+        : AI_CATALOG_CONSUMER_TYPE_GROUP;
+    },
+    targetTypeLabel() {
+      return AI_CATALOG_CONSUMER_LABELS[this.targetType];
+    },
     actionItems() {
       return this.itemTypeConfig.actionItems?.(this.item) || [];
     },
@@ -96,6 +121,17 @@ export default {
     isThirdPartyFlow() {
       return this.item.itemType === AI_CATALOG_TYPE_THIRD_PARTY_FLOW;
     },
+    softDeletedTooltipText() {
+      return sprintf(
+        s__(
+          'AICatalog|This %{itemType} was removed from the AI Catalog. You can still use it in this %{targetType}.',
+        ),
+        {
+          itemType: this.itemTypeLabel,
+          targetType: this.targetTypeLabel,
+        },
+      );
+    },
   },
 };
 </script>
@@ -176,6 +212,15 @@ export default {
             <gl-badge variant="info">{{ s__('AICatalog|Update available') }}</gl-badge>
           </router-link>
         </div>
+        <div
+          v-if="item.softDeleted"
+          v-gl-tooltip
+          :title="softDeletedTooltipText"
+          data-testid="ai-catalog-item-unlisted"
+          class="gl-flex gl-items-center gl-gap-2"
+        >
+          <gl-badge variant="warning">{{ s__('AICatalog|Unlisted') }}</gl-badge>
+        </div>
       </div>
     </div>
     <gl-disclosure-dropdown
diff --git a/ee/app/assets/javascripts/ai/catalog/graphql/fragments/ai_catalog_item.fragment.graphql b/ee/app/assets/javascripts/ai/catalog/graphql/fragments/ai_catalog_item.fragment.graphql
index 25c6618325b3c887499f5ad21a27908414ddcc0f..dbd205cf5517cadc539d82f598581c5bfa57f7df 100644
--- a/ee/app/assets/javascripts/ai/catalog/graphql/fragments/ai_catalog_item.fragment.graphql
+++ b/ee/app/assets/javascripts/ai/catalog/graphql/fragments/ai_catalog_item.fragment.graphql
@@ -12,6 +12,7 @@ fragment BaseAiCatalogItem on AiCatalogItem {
   name
   public
   updatedAt
+  softDeleted
   latestVersion {
     id
     updatedAt
diff --git a/ee/spec/frontend/ai/catalog/components/ai_catalog_list_item_spec.js b/ee/spec/frontend/ai/catalog/components/ai_catalog_list_item_spec.js
index 613a71bc917b829689c444066c46fd7588671a42..2f7a3ddd6edee871cb2d76e55719ecb427f6a784 100644
--- a/ee/spec/frontend/ai/catalog/components/ai_catalog_list_item_spec.js
+++ b/ee/spec/frontend/ai/catalog/components/ai_catalog_list_item_spec.js
@@ -97,6 +97,7 @@ describe('AiCatalogListItem', () => {
   const findDisclosureDropdownItems = () => wrapper.findAllComponents(GlDisclosureDropdownItem);
   const findFoundationalIcon = () => wrapper.findComponent(FoundationalIcon);
   const findUpdateAvailableLabel = () => wrapper.findByTestId('ai-catalog-item-update');
+  const findUpdateUnlistedBadge = () => wrapper.findByTestId('ai-catalog-item-unlisted');
 
   beforeEach(() => {
     createComponent();
@@ -334,4 +335,34 @@ describe('AiCatalogListItem', () => {
       });
     });
   });
+
+  describe('unlisted badge', () => {
+    describe('when item is soft deleted', () => {
+      beforeEach(() => {
+        createComponent({
+          item: { ...mockItem, softDeleted: true },
+        });
+      });
+      it('renders Unlisted badge when softDeleted is true', () => {
+        expect(findUpdateUnlistedBadge().findComponent(GlBadge).text()).toBe('Unlisted');
+      });
+
+      it('renders tooltip with correct text', () => {
+        expect(findUpdateUnlistedBadge().attributes('title')).toBe(
+          'This agent was removed from the AI Catalog. You can still use it in this group.',
+        );
+      });
+    });
+
+    describe('when item is not soft deleted', () => {
+      beforeEach(() => {
+        createComponent({
+          item: { ...mockItem, isUpdateAvailable: false },
+        });
+      });
+      it('does not render Unlisted badge when softDeleted is false', () => {
+        expect(findUpdateUnlistedBadge().exists()).toBe(false);
+      });
+    });
+  });
 });
diff --git a/ee/spec/frontend/ai/catalog/mock_data.js b/ee/spec/frontend/ai/catalog/mock_data.js
index 1b1c439c4cf04307a0433846f4a0454da27b41d2..0c49947d3e33818b2665884523108b90ba046046 100644
--- a/ee/spec/frontend/ai/catalog/mock_data.js
+++ b/ee/spec/frontend/ai/catalog/mock_data.js
@@ -175,6 +175,7 @@ const mockAgentFactory = (overrides = {}) => ({
   itemType: 'AGENT',
   description: 'A helpful AI assistant for testing purposes',
   createdAt: '2024-01-15T10:30:00Z',
+  softDeleted: false,
   public: true,
   updatedAt: '2024-08-21T14:30:00Z',
   latestVersion: mockBaseVersion,
@@ -468,6 +469,7 @@ const mockFlowFactory = (overrides = {}) => ({
   createdAt: '2024-01-15T10:30:00Z',
   public: true,
   updatedAt: '2024-08-21T14:30:00Z',
+  softDeleted: false,
   foundational: false,
   latestVersion: mockBaseVersion,
   userPermissions: mockUserPermissions,
diff --git a/locale/gitlab.pot b/locale/gitlab.pot
index ae50aa33f5dc372fda52b8290ef95526b1d9b1c5..8006b79559e121adac46d0e2202a8f408c6ee724 100644
--- a/locale/gitlab.pot
+++ b/locale/gitlab.pot
@@ -3073,6 +3073,9 @@ msgstr ""
 msgid "AICatalog|This %{itemType} requires approval from your parent group owner before it can be used"
 msgstr ""
 
+msgid "AICatalog|This %{itemType} was removed from the AI Catalog. You can still use it in this %{targetType}."
+msgstr ""
+
 msgid "AICatalog|This YAML configuration file determines the prompts, tools, and capabilities of your flow. Required properties: injectGatewayToken, image, commands"
 msgstr ""
 
@@ -3115,6 +3118,9 @@ msgstr ""
 msgid "AICatalog|Type"
 msgstr ""
 
+msgid "AICatalog|Unlisted"
+msgstr ""
+
 msgid "AICatalog|Update available"
 msgstr ""