diff --git a/changelogs/fragments/389-helm-add-support-chart_repo_url-on-helm_diff.yml b/changelogs/fragments/389-helm-add-support-chart_repo_url-on-helm_diff.yml
new file mode 100644
index 0000000000..3999721eb0
--- /dev/null
+++ b/changelogs/fragments/389-helm-add-support-chart_repo_url-on-helm_diff.yml
@@ -0,0 +1,3 @@
+---
+minor_changes:
+- helm - support repo location for helm diff (https://github.com/ansible-collections/kubernetes.core/issues/174).
diff --git a/molecule/default/roles/helm/tasks/tests_helm_diff.yml b/molecule/default/roles/helm/tasks/tests_helm_diff.yml
index 4ba3f9af51..fdeddfd0a7 100644
--- a/molecule/default/roles/helm/tasks/tests_helm_diff.yml
+++ b/molecule/default/roles/helm/tasks/tests_helm_diff.yml
@@ -9,6 +9,7 @@
         binary_path: "{{ helm_binary }}"
         state: present
         plugin_path: https://github.com/databus23/helm-diff
+        plugin_version: 3.4.0
 
     - name: Copy test chart
       copy:
@@ -160,6 +161,79 @@
         that:
           - install is not changed
 
+    # Test helm diff with chart_repo_url
+    - name: Define Redis chart values
+      set_fact:
+        redis_chart_values:
+          commonLabels:
+            phase: testing
+            company: RedHat
+          image:
+            tag: 6.2.6-debian-10-r135
+          architecture: standalone
+
+    - name: Install Redis chart
+      helm:
+        binary_path: "{{ helm_binary }}"
+        chart_repo_url: https://charts.bitnami.com/bitnami
+        chart_ref: redis
+        namespace: "{{ helm_namespace }}"
+        name: redis-chart
+        chart_version: '16.0.0'
+        release_values: "{{ redis_chart_values }}"
+
+    - name: Upgrade Redis chart
+      helm:
+        binary_path: "{{ helm_binary }}"
+        chart_repo_url: https://charts.bitnami.com/bitnami
+        chart_ref: redis
+        namespace: "{{ helm_namespace }}"
+        name: redis-chart
+        chart_version: '16.0.0'
+        release_values: "{{ redis_chart_values }}"
+      check_mode: yes
+      register: redis_upgrade
+
+    - name: Assert that module raised a warning
+      assert:
+        that:
+          - not redis_upgrade.changed
+          - redis_upgrade.warnings is defined
+          - redis_upgrade.warnings | length == 1
+          - redis_upgrade.warnings[0] == "The default idempotency check can fail to report changes in certain cases. Install helm diff >= 3.4.1 for better results."
+
+    - name: Uninstall helm diff
+      helm_plugin:
+        binary_path: "{{ helm_binary }}"
+        state: absent
+        plugin_name: diff
+      ignore_errors: yes
+
+    - name: Install helm diff (version=3.4.1)
+      helm_plugin:
+        binary_path: "{{ helm_binary }}"
+        state: present
+        plugin_path: https://github.com/databus23/helm-diff
+        plugin_version: 3.4.1
+
+    - name: Upgrade Redis chart once again
+      helm:
+        binary_path: "{{ helm_binary }}"
+        chart_repo_url: https://charts.bitnami.com/bitnami
+        chart_ref: redis
+        namespace: "{{ helm_namespace }}"
+        name: redis-chart
+        chart_version: '16.0.0'
+        release_values: "{{ redis_chart_values }}"
+      check_mode: yes
+      register: redis_upgrade_2
+
+    - name: Assert that module raised a warning
+      assert:
+        that:
+          - redis_upgrade_2.changed
+          - redis_upgrade_2.warnings is not defined
+
   always:
     - name: Remove chart directory
       file:
diff --git a/plugins/modules/helm.py b/plugins/modules/helm.py
index ca6b7712cf..ac17ce9150 100644
--- a/plugins/modules/helm.py
+++ b/plugins/modules/helm.py
@@ -27,6 +27,10 @@
 description:
   - Install, upgrade, delete packages with the Helm package manager.
 
+notes:
+  - The default idempotency check can fail to report changes when C(release_state) is set to C(present)
+    and C(chart_repo_url) is defined. Install helm diff >= 3.4.1 for better results.
+
 options:
   chart_ref:
     description:
@@ -495,9 +499,9 @@ def load_values_files(values_files):
     return values
 
 
-def has_plugin(command, plugin):
+def get_plugin_version(command, plugin):
     """
-    Check if helm plugin is installed.
+    Check if helm plugin is installed and return corresponding version
     """
 
     cmd = command + " plugin"
@@ -505,12 +509,12 @@ def has_plugin(command, plugin):
     out = parse_helm_plugin_list(module, output=output.splitlines())
 
     if not out:
-        return False
+        return None
 
     for line in out:
         if line[0] == plugin:
-            return True
-    return False
+            return line[1]
+    return None
 
 
 def helmdiff_check(
@@ -522,6 +526,7 @@ def helmdiff_check(
     values_files=None,
     chart_version=None,
     replace=False,
+    chart_repo_url=None,
 ):
     """
     Use helm diff to determine if a release would change by upgrading a chart.
@@ -530,6 +535,8 @@ def helmdiff_check(
     cmd += " " + release_name
     cmd += " " + chart_ref
 
+    if chart_repo_url is not None:
+        cmd += " " + "--repo=" + chart_repo_url
     if chart_version is not None:
         cmd += " " + "--version=" + chart_version
     if not replace:
@@ -733,7 +740,14 @@ def main():
 
         else:
 
-            if has_plugin(helm_cmd_common, "diff") and not chart_repo_url:
+            helm_diff_version = get_plugin_version(helm_cmd_common, "diff")
+            if helm_diff_version and (
+                not chart_repo_url
+                or (
+                    chart_repo_url
+                    and LooseVersion(helm_diff_version) >= LooseVersion("3.4.1")
+                )
+            ):
                 (would_change, prepared) = helmdiff_check(
                     module,
                     helm_cmd_common,
@@ -743,13 +757,14 @@ def main():
                     values_files,
                     chart_version,
                     replace,
+                    chart_repo_url,
                 )
                 if would_change and module._diff:
                     opt_result["diff"] = {"prepared": prepared}
             else:
                 module.warn(
                     "The default idempotency check can fail to report changes in certain cases. "
-                    "Install helm diff for better results."
+                    "Install helm diff >= 3.4.1 for better results."
                 )
                 would_change = default_check(
                     release_status, chart_info, release_values, values_files