diff --git a/.changeset/spicy-vans-eat.md b/.changeset/spicy-vans-eat.md
new file mode 100644
index 0000000000..037a5f18e0
--- /dev/null
+++ b/.changeset/spicy-vans-eat.md
@@ -0,0 +1,5 @@
+---
+'@backstage/backend-app-api': patch
+---
+
+Fix feature loaders in CJS double-default nested builds
diff --git a/packages/backend-app-api/src/wiring/BackendInitializer.test.ts b/packages/backend-app-api/src/wiring/BackendInitializer.test.ts
index cf8845fcec..c3c42ca423 100644
--- a/packages/backend-app-api/src/wiring/BackendInitializer.test.ts
+++ b/packages/backend-app-api/src/wiring/BackendInitializer.test.ts
@@ -576,4 +576,59 @@ describe('BackendInitializer', () => {
       "Illegal dependency: Module 'mod' for plugin 'test' attempted to depend on extension point 'a' for plugin 'test-a'. Extension points can only be used within their plugin's scope.",
     );
   });
+
+  it('should properly load double-default CJS modules', async () => {
+    expect.assertions(3);
+
+    const init = new BackendInitializer(baseFactories);
+    init.add(
+      createBackendFeatureLoader({
+        loader() {
+          return [
+            createBackendPlugin({
+              pluginId: 'no-double-wrapping',
+              register(reg) {
+                reg.registerInit({
+                  deps: {},
+                  async init() {
+                    expect(true).toBeTruthy();
+                  },
+                });
+              },
+            }),
+            {
+              default: createBackendPlugin({
+                pluginId: 'single-wrapping',
+                register(reg) {
+                  reg.registerInit({
+                    deps: {},
+                    async init() {
+                      expect(true).toBeTruthy();
+                    },
+                  });
+                },
+              }),
+            },
+            {
+              default: {
+                default: createBackendPlugin({
+                  pluginId: 'double-wrapping',
+                  register(reg) {
+                    reg.registerInit({
+                      deps: {},
+                      async init() {
+                        expect(true).toBeTruthy();
+                      },
+                    });
+                  },
+                }),
+              },
+            } as any, // not typescript valid, but can happen at runtime
+          ];
+        },
+      }),
+    );
+
+    await init.start();
+  });
 });
diff --git a/packages/backend-app-api/src/wiring/BackendInitializer.ts b/packages/backend-app-api/src/wiring/BackendInitializer.ts
index c0da9eda62..b2173fb105 100644
--- a/packages/backend-app-api/src/wiring/BackendInitializer.ts
+++ b/packages/backend-app-api/src/wiring/BackendInitializer.ts
@@ -38,6 +38,7 @@ import { featureDiscoveryServiceRef } from '@backstage/backend-plugin-api/alpha'
 import { DependencyGraph } from '../lib/DependencyGraph';
 import { ServiceRegistry } from './ServiceRegistry';
 import { createInitializationLogger } from './createInitializationLogger';
+import { unwrapFeature } from './helpers';
 
 export interface BackendRegisterInit {
   consumes: Set<ServiceOrExtensionPoint>;
@@ -163,7 +164,7 @@ export class BackendInitializer {
     if (featureDiscovery) {
       const { features } = await featureDiscovery.getBackendFeatures();
       for (const feature of features) {
-        this.#addFeature(feature);
+        this.#addFeature(unwrapFeature(feature));
       }
       this.#serviceRegistry.checkForCircularDeps();
     }
@@ -417,6 +418,7 @@ export class BackendInitializer {
 
       const result = await loader
         .loader(Object.fromEntries(deps))
+        .then(features => features.map(unwrapFeature))
         .catch(error => {
           throw new ForwardedError(
             `Feature loader ${loader.description} failed`,
diff --git a/packages/backend-app-api/src/wiring/BackstageBackend.ts b/packages/backend-app-api/src/wiring/BackstageBackend.ts
index 9df7549bcb..49a8bbbbfb 100644
--- a/packages/backend-app-api/src/wiring/BackstageBackend.ts
+++ b/packages/backend-app-api/src/wiring/BackstageBackend.ts
@@ -16,6 +16,7 @@
 
 import { BackendFeature, ServiceFactory } from '@backstage/backend-plugin-api';
 import { BackendInitializer } from './BackendInitializer';
+import { unwrapFeature } from './helpers';
 import { Backend } from './types';
 
 export class BackstageBackend implements Backend {
@@ -50,21 +51,3 @@ function isPromise<T>(value: unknown | Promise<T>): value is Promise<T> {
     typeof value.then === 'function'
   );
 }
-
-function unwrapFeature(
-  feature: BackendFeature | { default: BackendFeature },
-): BackendFeature {
-  if ('$$type' in feature) {
-    return feature;
-  }
-
-  // This is a workaround where default exports get transpiled to `exports['default'] = ...`
-  // in CommonJS modules, which in turn results in a double `{ default: { default: ... } }` nesting
-  // when importing using a dynamic import.
-  // TODO: This is a broader issue than just this piece of code, and should move away from CommonJS.
-  if ('default' in feature) {
-    return feature.default;
-  }
-
-  return feature;
-}
diff --git a/packages/backend-app-api/src/wiring/helpers.ts b/packages/backend-app-api/src/wiring/helpers.ts
new file mode 100644
index 0000000000..ffb7e3b079
--- /dev/null
+++ b/packages/backend-app-api/src/wiring/helpers.ts
@@ -0,0 +1,36 @@
+/*
+ * Copyright 2024 The Backstage Authors
+ *
+ * Licensed under the Apache License, Version 2.0 (the "License");
+ * you may not use this file except in compliance with the License.
+ * You may obtain a copy of the License at
+ *
+ *     http://www.apache.org/licenses/LICENSE-2.0
+ *
+ * Unless required by applicable law or agreed to in writing, software
+ * distributed under the License is distributed on an "AS IS" BASIS,
+ * WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+ * See the License for the specific language governing permissions and
+ * limitations under the License.
+ */
+
+import { BackendFeature } from '@backstage/backend-plugin-api';
+
+/** @internal */
+export function unwrapFeature(
+  feature: BackendFeature | { default: BackendFeature },
+): BackendFeature {
+  if ('$$type' in feature) {
+    return feature;
+  }
+
+  // This is a workaround where default exports get transpiled to `exports['default'] = ...`
+  // in CommonJS modules, which in turn results in a double `{ default: { default: ... } }` nesting
+  // when importing using a dynamic import.
+  // TODO: This is a broader issue than just this piece of code, and should move away from CommonJS.
+  if ('default' in feature) {
+    return feature.default;
+  }
+
+  return feature;
+}