diff --git a/keywords/files/file_keywords.py b/keywords/files/file_keywords.py
index a508c064..88ea89a8 100644
--- a/keywords/files/file_keywords.py
+++ b/keywords/files/file_keywords.py
@@ -169,6 +169,21 @@ class FileKeywords(BaseKeyword):
         """
         return self.ssh_connection.send(f"cat {file_path}")
 
+    def find_in_tgz(self, file_path: str, grep_pattern: str) -> int:
+        """
+        Searches for a string in tgz file
+
+        Args:
+            file_path (str): The absolute path to the file.
+            grep_pattern (str): Pattern to be searched.
+
+        Returns:
+            matches (int): Number of matches found.
+        """
+
+        matches = int(self.ssh_connection.send(f"tar -tf {file_path} | grep {grep_pattern} | wc -l")[0].strip("\n"))
+        return matches
+
     def validate_file_exists_with_sudo(self, path: str) -> bool:
         """
         Validates whether a file or directory exists at the specified path using sudo.
diff --git a/testcases/cloud_platform/regression/dc/backup_restore/test_verify_backup_without_images.py b/testcases/cloud_platform/regression/dc/backup_restore/test_verify_backup_without_images.py
new file mode 100644
index 00000000..343a6c09
--- /dev/null
+++ b/testcases/cloud_platform/regression/dc/backup_restore/test_verify_backup_without_images.py
@@ -0,0 +1,72 @@
+from pytest import mark
+
+from keywords.docker.images.docker_images_keywords import DockerImagesKeywords
+from config.configuration_manager import ConfigurationManager
+from framework.logging.automation_logger import get_logger
+from framework.validation.validation import validate_equals, validate_list_contains
+from keywords.cloud_platform.dcmanager.dcmanager_subcloud_backup_keywords import DcManagerSubcloudBackupKeywords
+from keywords.cloud_platform.dcmanager.dcmanager_subcloud_list_keywords import DcManagerSubcloudListKeywords
+from keywords.cloud_platform.ssh.lab_connection_keywords import LabConnectionKeywords
+from keywords.cloud_platform.version_info.cloud_platform_version_manager import CloudPlatformVersionManagerClass
+from keywords.files.file_keywords import FileKeywords
+
+def teardown_local(subcloud_name: str):
+    """Teardown function for local backup.
+
+    Args:
+        subcloud_name (str): subcloud name
+    """
+    central_ssh = LabConnectionKeywords().get_active_controller_ssh()
+    subcloud_ssh = LabConnectionKeywords().get_subcloud_ssh(subcloud_name)
+    get_logger().log_info("Removing test files")
+    FileKeywords(central_ssh).delete_folder_with_sudo("subcloud_backup.yaml")
+    FileKeywords(subcloud_ssh).delete_folder_with_sudo(f"{subcloud_name}_platform_backup_*.tgz")
+
+
+@mark.p0
+@mark.subcloud_lab_is_simplex
+def test_verify_backup_without_docker_cache(request):
+    """
+
+    Test Steps:
+        - Login and pull image from central cloud.
+        - Verify that the image is not on local registry.
+        - Run dcmanager CLI Backup with --local-only
+        - Verify the docker images tarball does not contain
+        the pulled image from the central cloud
+
+    """
+    central_docker_image = "registry.central:9001/registry.k8s.io/sig-storage/csi-snapshotter:v8.2.0"
+    local_default_backup_path = "/opt/platform-backup/backups"
+    central_ssh = LabConnectionKeywords().get_active_controller_ssh()
+    subcloud_list = DcManagerSubcloudListKeywords(central_ssh)
+    subcloud_name = subcloud_list.get_dcmanager_subcloud_list().get_healthy_subcloud_with_lowest_id().get_name()
+    subcloud_ssh = LabConnectionKeywords().get_subcloud_ssh(subcloud_name)
+    lab_config = ConfigurationManager.get_lab_config().get_subcloud(subcloud_name)
+    subcloud_password = lab_config.get_admin_credentials().get_password()
+    release = CloudPlatformVersionManagerClass().get_sw_version()
+    registry_img_to_search = "csi-snapshotter"
+
+    # Pulls an image from central cloud that is not on subcloud registry
+    DockerImagesKeywords(subcloud_ssh).pull_image(central_docker_image)
+
+    dc_manager_backup = DcManagerSubcloudBackupKeywords(central_ssh)
+
+    # Path where backup file will be stored.
+    local_path = f"/opt/platform-backup/backups/{release}/"
+
+    def teardown():
+        teardown_local(subcloud_name)
+
+    request.addfinalizer(teardown)
+
+    # Create a subcloud backup and verify the subcloud backup file in local custom path.
+    get_logger().log_info(f"Create {subcloud_name} backup locally on custom path")
+    dc_manager_backup.create_subcloud_backup(subcloud_password, subcloud_ssh, path=f"{local_path}{subcloud_name}_platform_backup_*.tgz", subcloud=subcloud_name, local_only=True, registry=True)
+
+    files_in_bckp_dir = FileKeywords(subcloud_ssh).get_files_in_dir(f"{local_default_backup_path}/{release}/")
+    img_tarball = [file for file in files_in_bckp_dir if "image_registry" in file][0]
+
+    matches = FileKeywords(subcloud_ssh).find_in_tgz(
+        f"{local_default_backup_path}/{release}/{img_tarball}", registry_img_to_search)
+    validate_equals(matches, 0,f"Validate that no matches were found for {registry_img_to_search} in {img_tarball} tarball.")