diff --git a/.changeset/chilled-goats-jump.md b/.changeset/chilled-goats-jump.md
new file mode 100644
index 0000000000..3dd152712a
--- /dev/null
+++ b/.changeset/chilled-goats-jump.md
@@ -0,0 +1,5 @@
+---
+'@backstage/create-app': patch
+---
+
+Correct command to create new plugins
diff --git a/packages/create-app/templates/default-app/plugins/README.md b/packages/create-app/templates/default-app/plugins/README.md
index 58dc32cb08..d7865fdba3 100644
--- a/packages/create-app/templates/default-app/plugins/README.md
+++ b/packages/create-app/templates/default-app/plugins/README.md
@@ -4,6 +4,6 @@ This is where your own plugins and their associated modules live, each in a
 separate folder of its own.
 
 If you want to create a new plugin here, go to your project root directory, run
-the command `yarn backstage-cli create`, and follow the on-screen instructions.
+the command `yarn new`, and follow the on-screen instructions.
 
 You can also check out existing plugins on [the plugin marketplace](https://backstage.io/plugins)!