diff --git a/python_modules/dagster/dagster/_core/definitions/repository_definition/repository_data_builder.py b/python_modules/dagster/dagster/_core/definitions/repository_definition/repository_data_builder.py
index 6ea665a950cb3..9ba023875364b 100644
--- a/python_modules/dagster/dagster/_core/definitions/repository_definition/repository_data_builder.py
+++ b/python_modules/dagster/dagster/_core/definitions/repository_definition/repository_data_builder.py
@@ -24,6 +24,7 @@
 )
 from dagster._core.definitions.asset_checks import AssetChecksDefinition
 from dagster._core.definitions.asset_graph import AssetGraph
+from dagster._core.definitions.asset_spec import AssetSpec
 from dagster._core.definitions.assets_job import (
     get_base_asset_jobs,
     is_base_asset_job_name,
@@ -32,7 +33,10 @@
     AutoMaterializeSensorDefinition,
 )
 from dagster._core.definitions.executor_definition import ExecutorDefinition
-from dagster._core.definitions.external_asset import create_external_asset_from_source_asset
+from dagster._core.definitions.external_asset import (
+    create_external_asset_from_source_asset,
+    external_asset_from_spec,
+)
 from dagster._core.definitions.graph_definition import GraphDefinition
 from dagster._core.definitions.internal_asset_graph import InternalAssetGraph
 from dagster._core.definitions.job_definition import JobDefinition
@@ -228,11 +232,22 @@ def build_caching_repository_data_from_list(
         elif isinstance(definition, SourceAsset):
             source_assets.append(definition)
             assets_defs.append(create_external_asset_from_source_asset(definition))
+            asset_keys.add(definition.key)
         elif isinstance(definition, AssetChecksDefinition):
             asset_checks_defs.append(definition)
         else:
             check.failed(f"Unexpected repository entry {definition}")
 
+    # Create unexecutable external assets definitions for any referenced keys for which no
+    # definition was provided.
+    all_referenced_asset_keys = {
+        *(key for asset_def in assets_defs for key in asset_def.dependency_keys),
+        *(checks_def.asset_key for checks_def in asset_checks_defs),
+    }
+    for key in all_referenced_asset_keys.difference(asset_keys):
+        assets_defs.append(external_asset_from_spec(AssetSpec(key=key)))
+        asset_keys.add(key)
+
     if assets_defs or source_assets or asset_checks_defs:
         for job_def in get_base_asset_jobs(
             assets=assets_defs,
diff --git a/python_modules/dagster/dagster/_core/host_representation/external_data.py b/python_modules/dagster/dagster/_core/host_representation/external_data.py
index 7496158652ed3..b7189f8395573 100644
--- a/python_modules/dagster/dagster/_core/host_representation/external_data.py
+++ b/python_modules/dagster/dagster/_core/host_representation/external_data.py
@@ -1642,20 +1642,7 @@ def external_asset_nodes_from_defs(
 
         group_name_by_asset_key.update(asset_layer.group_names_by_assets())
 
-    asset_keys_without_definitions = all_upstream_asset_keys.difference(assets_defs_by_key.keys())
-
-    asset_nodes = [
-        ExternalAssetNode(
-            asset_key=asset_key,
-            dependencies=list(deps[asset_key].values()),
-            depended_by=list(dep_by[asset_key].values()),
-            execution_type=AssetExecutionType.UNEXECUTABLE,
-            job_names=[],
-            group_name=group_name_by_asset_key.get(asset_key),
-            code_version=code_version_by_asset_key.get(asset_key),
-        )
-        for asset_key in asset_keys_without_definitions
-    ]
+    asset_nodes: List[ExternalAssetNode] = []
 
     for asset_key, node_tuple_list in node_defs_by_asset_key.items():
         node_output_handle, job_def = node_tuple_list[0]
@@ -1735,11 +1722,7 @@ def external_asset_nodes_from_defs(
 
     # Ensure any external assets that are have no nodes in any job are included in the asset graph
     for asset in assets_defs_by_key.values():
-        for key in [
-            key
-            for key in asset.keys
-            if (key not in node_defs_by_asset_key) and key not in asset_keys_without_definitions
-        ]:
+        for key in [key for key in asset.keys if key not in node_defs_by_asset_key]:
             asset_nodes.append(
                 ExternalAssetNode(
                     asset_key=key,
diff --git a/python_modules/dagster/dagster_tests/asset_defs_tests/test_asset_graph.py b/python_modules/dagster/dagster_tests/asset_defs_tests/test_asset_graph.py
index e9bf80d073763..c68a2b9d20b31 100644
--- a/python_modules/dagster/dagster_tests/asset_defs_tests/test_asset_graph.py
+++ b/python_modules/dagster/dagster_tests/asset_defs_tests/test_asset_graph.py
@@ -424,21 +424,6 @@ def op1():
         assert asset_graph.get_execution_unit_asset_keys(asset_def.key) == {asset_def.key}
 
 
-def test_get_non_source_roots_missing_source(asset_graph_from_assets: Callable[..., AssetGraph]):
-    @asset
-    def foo():
-        pass
-
-    @asset(deps=["this_source_is_fake", "source_asset"])
-    def bar(foo):
-        pass
-
-    source_asset = SourceAsset("source_asset")
-
-    asset_graph = asset_graph_from_assets([foo, bar, source_asset])
-    assert asset_graph.get_materializable_roots(AssetKey("bar")) == {AssetKey("foo")}
-
-
 def test_partitioned_source_asset(asset_graph_from_assets: Callable[..., AssetGraph]):
     partitions_def = DailyPartitionsDefinition(start_date="2022-01-01")
 
diff --git a/python_modules/dagster/dagster_tests/core_tests/host_representation_tests/test_external_data.py b/python_modules/dagster/dagster_tests/core_tests/host_representation_tests/test_external_data.py
index a6c815ad67a9f..e673ad9e45369 100644
--- a/python_modules/dagster/dagster_tests/core_tests/host_representation_tests/test_external_data.py
+++ b/python_modules/dagster/dagster_tests/core_tests/host_representation_tests/test_external_data.py
@@ -857,6 +857,7 @@ def foo(bar):
         ),
         key=lambda n: n.asset_key,
     )
+
     assert external_asset_nodes == [
         ExternalAssetNode(
             asset_key=AssetKey("bar"),