diff --git a/.changeset/twenty-pandas-crash.md b/.changeset/twenty-pandas-crash.md
new file mode 100644
index 0000000000..95ff389406
--- /dev/null
+++ b/.changeset/twenty-pandas-crash.md
@@ -0,0 +1,5 @@
+---
+'@backstage/plugin-catalog-react': patch
+---
+
+Fixed EntityProvider setting 'loading' bool erroneously to true
diff --git a/plugins/catalog-react/src/components/EntityProvider/EntityProvider.tsx b/plugins/catalog-react/src/components/EntityProvider/EntityProvider.tsx
index 45cdd56d04..861fe3d9e7 100644
--- a/plugins/catalog-react/src/components/EntityProvider/EntityProvider.tsx
+++ b/plugins/catalog-react/src/components/EntityProvider/EntityProvider.tsx
@@ -26,7 +26,7 @@ export const EntityProvider = ({ entity, children }: EntityProviderProps) => (
   <EntityContext.Provider
     value={{
       entity,
-      loading: Boolean(entity),
+      loading: !Boolean(entity),
       error: undefined,
     }}
   >