diff --git a/charts/external-dns/CHANGELOG.md b/charts/external-dns/CHANGELOG.md
index 3a4552209..6882ce29c 100644
--- a/charts/external-dns/CHANGELOG.md
+++ b/charts/external-dns/CHANGELOG.md
@@ -24,6 +24,7 @@ and this project adheres to [Semantic Versioning](https://semver.org/spec/v2.0.0
 
 ### Fixed
 
+- Correctly handles 'txtPrefix' and 'txtSuffix' arguments when both are provided. ([#5250](https://github.com/kubernetes-sigs/external-dns/pull/5250)) _@ivankatliarchuk_
 - Add missing types in the schema for empty values ([#5228](https://github.com/kubernetes-sigs/external-dns/pull/5228)) _@ivankatliarchuk_
 - Add missing types in the schema for empty values ([#5207](https://github.com/kubernetes-sigs/external-dns/pull/5207)) _@t3mi_
 
diff --git a/charts/external-dns/templates/deployment.yaml b/charts/external-dns/templates/deployment.yaml
index ae60cffcf..7a1ec8c72 100644
--- a/charts/external-dns/templates/deployment.yaml
+++ b/charts/external-dns/templates/deployment.yaml
@@ -100,10 +100,12 @@ spec:
             {{- if .Values.txtOwnerId }}
             - --txt-owner-id={{ .Values.txtOwnerId }}
             {{- end }}
+            {{- if and .Values.txtPrefix .Values.txtSuffix }}
+            {{- fail (printf "'txtPrefix' and 'txtSuffix' are mutually exclusive") }}
+            {{- end }}
             {{- if .Values.txtPrefix }}
             - --txt-prefix={{ .Values.txtPrefix }}
-            {{- end }}
-            {{- if and (eq .Values.txtPrefix "") (ne .Values.txtSuffix "") }}
+            {{- else if .Values.txtSuffix }}
             - --txt-suffix={{ .Values.txtSuffix }}
             {{- end }}
             {{- if .Values.namespaced }}
diff --git a/charts/external-dns/tests/deployment-flags_test.yaml b/charts/external-dns/tests/deployment-flags_test.yaml
index 38a9567ff..44ae176c3 100644
--- a/charts/external-dns/tests/deployment-flags_test.yaml
+++ b/charts/external-dns/tests/deployment-flags_test.yaml
@@ -6,7 +6,6 @@ release:
 tests:
   - it: should provide expected default flags
     asserts:
-      # - matchSnapshot: {}
       - exists :
           path: spec.template.spec.containers[?(@.name == "external-dns")]
       - equal :
@@ -21,33 +20,6 @@ tests:
             - --registry=txt
             - --provider=aws
 
-  - it: should configure txtPrefix and ignore txtSuffix if not empty
-    set:
-      provider:
-        name: cloudflare
-      txtPrefix: "test-prefix"
-      txtSuffix: "test-suffix"
-      txtOwnerId: "testing"
-    asserts:
-      - exists :
-          path: spec.template.spec.containers[?(@.name == "external-dns")]
-      - equal :
-          path: spec.template.spec.containers[?(@.name == "external-dns")].args
-          value:
-            - --log-level=info
-            - --log-format=text
-            - --interval=1m
-            - --source=service
-            - --source=ingress
-            - --policy=upsert-only
-            - --registry=txt
-            - --txt-owner-id=testing
-            - --txt-prefix=test-prefix
-            - --provider=cloudflare
-      - notContains:
-          path: spec.template.spec.containers[?(@.name == "external-dns")].args
-          content: "--txt-suffix=test-suffix"
-
   - it: should configure 'txtSuffix' when not empty with 'txtPrefix' empty
     set:
       txtPrefix: ""
@@ -70,6 +42,19 @@ tests:
       - notContains:
           path: spec.template.spec.containers[?(@.name == "external-dns")].args
           content: "--txt-prefix=test-prefix"
+      - contains:
+          path: spec.template.spec.containers[?(@.name == "external-dns")].args
+          content: "--txt-suffix=test-suffix"
+
+  - it: should configure 'txtSuffix' when set and 'txtPrefix' is not present
+    set:
+      txtSuffix: "custom-suffix"
+    asserts:
+      - exists :
+          path: spec.template.spec.containers[?(@.name == "external-dns")]
+      - contains:
+          path: spec.template.spec.containers[?(@.name == "external-dns")].args
+          content: "--txt-suffix=custom-suffix"
 
   - it: should be able configure multiple sources
     set:
@@ -117,3 +102,11 @@ tests:
             - --zone-id-filter=/hostedzone/Z00003
             - --zone-id-filter=/hostedzone/Z00004
             - --zone-id-filter=/hostedzone/Z00005
+
+  - it: should throw error when txtPrefix and txtSuffix are set
+    set:
+        txtPrefix: "test-prefix"
+        txtSuffix: "test-suffix"
+    asserts:
+     - failedTemplate:
+          errorMessage: "'txtPrefix' and 'txtSuffix' are mutually exclusive"