diff --git a/cosmos/config.py b/cosmos/config.py
index a33e96830..5c64193c1 100644
--- a/cosmos/config.py
+++ b/cosmos/config.py
@@ -41,8 +41,8 @@ class RenderConfig:
     :param exclude: A list of dbt exclude arguments (e.g. 'tag:nightly')
     :param dbt_deps: Configure to run dbt deps when using dbt ls for dag parsing
     :param node_converters: a dictionary mapping a ``DbtResourceType`` into a callable. Users can control how to render dbt nodes in Airflow. Only supported when using ``load_method=LoadMode.DBT_MANIFEST`` or ``LoadMode.DBT_LS``.
-    :param dbt_executable_path: The path to the dbt executable for dag generation. Defaults to dbt if available on the path. Mutually Exclusive with ProjectConfig.dbt_project_path
-    :param dbt_project_path Configures the DBT project location accessible on the airflow controller for DAG rendering - Required when using ``load_method=LoadMode.DBT_LS`` or ``load_method=LoadMode.CUSTOM``
+    :param dbt_executable_path: The path to the dbt executable for dag generation. Defaults to dbt if available on the path.
+    :param dbt_project_path Configures the DBT project location accessible on the airflow controller for DAG rendering. Mutually Exclusive with ProjectConfig.dbt_project_path. Required when using ``load_method=LoadMode.DBT_LS`` or ``load_method=LoadMode.CUSTOM``.
     """
 
     emit_datasets: bool = True
@@ -195,15 +195,21 @@ class ProfileConfig:
     profile_mapping: BaseProfileMapping | None = None
 
     def __post_init__(self) -> None:
-        "Validates that we have enough information to render a profile."
-        # if using a user-supplied profiles.yml, validate that it exists
-        if self.profiles_yml_filepath and not Path(self.profiles_yml_filepath).exists():
-            raise CosmosValueError(f"The file {self.profiles_yml_filepath} does not exist.")
+        self.validate_profile()
 
     def validate_profile(self) -> None:
         "Validates that we have enough information to render a profile."
         if not self.profiles_yml_filepath and not self.profile_mapping:
             raise CosmosValueError("Either profiles_yml_filepath or profile_mapping must be set to render a profile")
+        if self.profiles_yml_filepath and self.profile_mapping:
+            raise CosmosValueError(
+                "Both profiles_yml_filepath and profile_mapping are defined and are mutually exclusive. Ensure only one of these is defined."
+            )
+
+    def validate_profiles_yml(self) -> None:
+        "Validates a user-supplied profiles.yml is present"
+        if self.profiles_yml_filepath and not Path(self.profiles_yml_filepath).exists():
+            raise CosmosValueError(f"The file {self.profiles_yml_filepath} does not exist.")
 
     @contextlib.contextmanager
     def ensure_profile(
diff --git a/cosmos/converter.py b/cosmos/converter.py
index 559b7ea69..27039c4d1 100644
--- a/cosmos/converter.py
+++ b/cosmos/converter.py
@@ -11,6 +11,7 @@
 from airflow.utils.task_group import TaskGroup
 
 from cosmos.airflow.graph import build_airflow_graph
+from cosmos.constants import ExecutionMode
 from cosmos.dbt.graph import DbtGraph
 from cosmos.dbt.selector import retrieve_by_label
 from cosmos.config import ProjectConfig, ExecutionConfig, RenderConfig, ProfileConfig
@@ -49,7 +50,11 @@ def airflow_kwargs(**kwargs: dict[str, Any]) -> dict[str, Any]:
 
 
 def validate_arguments(
-    select: list[str], exclude: list[str], profile_args: dict[str, Any], task_args: dict[str, Any]
+    select: list[str],
+    exclude: list[str],
+    profile_config: ProfileConfig,
+    task_args: dict[str, Any],
+    execution_mode: ExecutionMode,
 ) -> None:
     """
     Validate that mutually exclusive selectors filters have not been given.
@@ -57,8 +62,9 @@ def validate_arguments(
 
     :param select: A list of dbt select arguments (e.g. 'config.materialized:incremental')
     :param exclude: A list of dbt exclude arguments (e.g. 'tag:nightly')
-    :param profile_args: Arguments to pass to the dbt profile
+    :param profile_config: ProfileConfig Object
     :param task_args: Arguments to be used to instantiate an Airflow Task
+    :param execution_mode: the current execution mode
     """
     for field in ("tags", "paths"):
         select_items = retrieve_by_label(select, field)
@@ -69,9 +75,12 @@ def validate_arguments(
 
     # if task_args has a schema, add it to the profile args and add a deprecated warning
     if "schema" in task_args:
-        profile_args["schema"] = task_args["schema"]
+        profile_config.profile_mapping.profile_args["schema"] = task_args["schema"]
         logger.warning("Specifying a schema in the `task_args` is deprecated. Please use the `profile_args` instead.")
 
+    if execution_mode in [ExecutionMode.LOCAL, ExecutionMode.VIRTUALENV]:
+        profile_config.validate_profiles_yml()
+
 
 class DbtToAirflowConverter:
     """
@@ -139,10 +148,6 @@ def __init__(
                 "RenderConfig.dbt_project_path is required for rendering an airflow DAG from a DBT Graph if no manifest is provided."
             )
 
-        profile_args = {}
-        if profile_config.profile_mapping:
-            profile_args = profile_config.profile_mapping.profile_args
-
         if not operator_args:
             operator_args = {}
 
@@ -174,7 +179,13 @@ def __init__(
         if execution_config.dbt_executable_path:
             task_args["dbt_executable_path"] = execution_config.dbt_executable_path
 
-        validate_arguments(render_config.select, render_config.exclude, profile_args, task_args)
+        validate_arguments(
+            render_config.select,
+            render_config.exclude,
+            profile_config,
+            task_args,
+            execution_mode=execution_config.execution_mode,
+        )
 
         build_airflow_graph(
             nodes=dbt_graph.filtered_nodes,
diff --git a/tests/test_config.py b/tests/test_config.py
index cc0711043..d7cd2db2e 100644
--- a/tests/test_config.py
+++ b/tests/test_config.py
@@ -1,5 +1,6 @@
 from pathlib import Path
 from unittest.mock import patch
+from cosmos.profiles.postgres.user_pass import PostgresUserPasswordProfileMapping
 
 import pytest
 
@@ -8,6 +9,7 @@
 
 
 DBT_PROJECTS_ROOT_DIR = Path(__file__).parent / "sample/"
+SAMPLE_PROFILE_YML = Path(__file__).parent / "sample/profiles.yml"
 PIPELINE_FOLDER = "jaffle_shop"
 
 
@@ -111,17 +113,24 @@ def test_project_name():
     assert dbt_project.project_name == "sample"
 
 
-def test_profile_config_post_init():
+def test_profile_config_validate_none():
     with pytest.raises(CosmosValueError) as err_info:
-        ProfileConfig(profiles_yml_filepath="/tmp/some-profile", profile_name="test", target_name="test")
-    assert err_info.value.args[0] == "The file /tmp/some-profile does not exist."
+        ProfileConfig(profile_name="test", target_name="test")
+    assert err_info.value.args[0] == "Either profiles_yml_filepath or profile_mapping must be set to render a profile"
 
 
-def test_profile_config_validate():
+def test_profile_config_validate_both():
     with pytest.raises(CosmosValueError) as err_info:
-        profile_config = ProfileConfig(profile_name="test", target_name="test")
-        assert profile_config.validate_profile() is None
-    assert err_info.value.args[0] == "Either profiles_yml_filepath or profile_mapping must be set to render a profile"
+        ProfileConfig(
+            profile_name="test",
+            target_name="test",
+            profiles_yml_filepath=SAMPLE_PROFILE_YML,
+            profile_mapping=PostgresUserPasswordProfileMapping(conn_id="test", profile_args={}),
+        )
+    assert (
+        err_info.value.args[0]
+        == "Both profiles_yml_filepath and profile_mapping are defined and are mutually exclusive. Ensure only one of these is defined."
+    )
 
 
 @patch("cosmos.config.shutil.which", return_value=None)
diff --git a/tests/test_converter.py b/tests/test_converter.py
index 4210b24d6..b6def0bf1 100644
--- a/tests/test_converter.py
+++ b/tests/test_converter.py
@@ -1,6 +1,7 @@
 from datetime import datetime
 from pathlib import Path
 from unittest.mock import patch
+from cosmos.profiles.postgres import PostgresUserPasswordProfileMapping
 
 import pytest
 from airflow.models import DAG
@@ -22,10 +23,14 @@ def test_validate_arguments_tags(argument_key):
     selector_name = argument_key[:-1]
     select = [f"{selector_name}:a,{selector_name}:b"]
     exclude = [f"{selector_name}:b,{selector_name}:c"]
-    profile_args = {}
+    profile_config = ProfileConfig(
+        profile_name="test",
+        target_name="test",
+        profile_mapping=PostgresUserPasswordProfileMapping(conn_id="test", profile_args={}),
+    )
     task_args = {}
     with pytest.raises(CosmosValueError) as err:
-        validate_arguments(select, exclude, profile_args, task_args)
+        validate_arguments(select, exclude, profile_config, task_args, execution_mode=ExecutionMode.LOCAL)
     expected = f"Can't specify the same {selector_name} in `select` and `exclude`: {{'b'}}"
     assert err.value.args[0] == expected