diff --git a/.changeset/cli-new-frontend-templates-default.md b/.changeset/cli-new-frontend-templates-default.md
new file mode 100644
index 0000000000..0513b36780
--- /dev/null
+++ b/.changeset/cli-new-frontend-templates-default.md
@@ -0,0 +1,16 @@
+---
+'@backstage/cli': minor
+---
+
+**BREAKING**: The CLI templates for frontend plugins have been renamed:
+
+- `new-frontend-plugin` → `frontend-plugin`
+- `new-frontend-plugin-module` → `frontend-plugin-module`
+- `frontend-plugin` (legacy) → `legacy-frontend-plugin`
+
+To smooth out this breaking change, the CLI now auto-detects which frontend system your app uses based on the dependencies in `packages/app/package.json`. When using the default templates (no explicit `templates` configuration):
+
+- Apps using `@backstage/frontend-defaults` will see the new frontend system templates (`frontend-plugin`, `frontend-plugin-module`)
+- Apps using `@backstage/app-defaults` will see the legacy template (displayed as `frontend-plugin`)
+
+This means existing projects that haven't migrated to the new frontend system will continue to create legacy plugins by default, while new projects will get the new frontend system templates. If you have explicit template configuration in your `package.json`, it will be used as-is without any auto-detection.
diff --git a/.changeset/new-frontend-system-default.md b/.changeset/new-frontend-system-default.md
new file mode 100644
index 0000000000..eeef22ce35
--- /dev/null
+++ b/.changeset/new-frontend-system-default.md
@@ -0,0 +1,5 @@
+---
+'@backstage/create-app': minor
+---
+
+**BREAKING**: The new frontend system is now the default template when creating a new Backstage app. The previous `--next` flag has been replaced with a `--legacy` flag that can be used to create an app using the old frontend system instead.
diff --git a/docs/frontend-system/building-apps/01-index.md b/docs/frontend-system/building-apps/01-index.md
index cfef547afc..d24e1622fd 100644
--- a/docs/frontend-system/building-apps/01-index.md
+++ b/docs/frontend-system/building-apps/01-index.md
@@ -18,12 +18,12 @@ The create-app CLI requires Node.js Active LTS Release, see the [prerequisites d
 :::
 
 ```sh
-# The command bellow creates a Backstage App inside the current folder.
+# The command below creates a Backstage App inside the current folder.
 # The name of the app-folder is the name that was provided when prompted.
-npx @backstage/create-app@latest --next
+npx @backstage/create-app@latest
 ```
 
-Using the `--next` flag will result in a Backstage app using the New Frontend System which will be further explained in the sections below.
+This will create a Backstage app using the new frontend system which will be further explained in the sections below.
 
 ## The app instance
 
diff --git a/docs/frontend-system/building-apps/08-migrating.md b/docs/frontend-system/building-apps/08-migrating.md
index 9f18067a55..ceba8fd868 100644
--- a/docs/frontend-system/building-apps/08-migrating.md
+++ b/docs/frontend-system/building-apps/08-migrating.md
@@ -899,39 +899,7 @@ It's encouraged that once you switch over to using the new frontend system, that
 
 This practice is also pretty important early on, as it's going to help you get familiar with the practices of the new frontend system.
 
-When creating a new Backstage app with `create-app` and using the `--next` flag you'll automatically get these choices in the `yarn new` command, but if you want to bring these templates to an older app, you can add the following to your root `package.json`:
-
-```json
-{
-  ...
-  "scripts": {
-    ...
-    "new": "backstage-cli new"
-  },
-  "backstage": {
-    "cli": {
-      "new": {
-        "globals": {
-          "license": "UNLICENSED"
-        },
-        "templates": [
-          "@backstage/cli-module-new/templates/new-frontend-plugin",
-          "@backstage/cli-module-new/templates/new-frontend-plugin-module",
-          "@backstage/cli-module-new/templates/backend-plugin",
-          "@backstage/cli-module-new/templates/backend-plugin-module",
-          "@backstage/cli-module-new/templates/plugin-web-library",
-          "@backstage/cli-module-new/templates/plugin-node-library",
-          "@backstage/cli-module-new/templates/plugin-common-library",
-          "@backstage/cli-module-new/templates/web-library",
-          "@backstage/cli-module-new/templates/node-library",
-          "@backstage/cli-module-new/templates/catalog-provider-module",
-          "@backstage/cli-module-new/templates/scaffolder-backend-module"
-        ]
-      }
-    }
-  }
-}
-```
+The `yarn new` command now defaults to the new frontend system templates for frontend plugins. If you have an older app that was created before this change, you can simply update the `@backstage/cli-module-new` package to get access to the new templates.
 
 ## Troubleshooting
 
diff --git a/docs/tooling/cli/04-templates.md b/docs/tooling/cli/04-templates.md
index 552076ed66..69b89a51c7 100644
--- a/docs/tooling/cli/04-templates.md
+++ b/docs/tooling/cli/04-templates.md
@@ -83,6 +83,8 @@ When defining the `templates` array it will override the default set of template
       "new": {
         "templates": [
           "@backstage/cli-module-new/templates/frontend-plugin",
+          "@backstage/cli-module-new/templates/frontend-plugin-module",
+          "@backstage/cli-module-new/templates/legacy-frontend-plugin",
           "@backstage/cli-module-new/templates/backend-plugin",
           "@backstage/cli-module-new/templates/backend-plugin-module",
           "@backstage/cli-module-new/templates/plugin-web-library",
@@ -90,6 +92,7 @@ When defining the `templates` array it will override the default set of template
           "@backstage/cli-module-new/templates/plugin-common-library",
           "@backstage/cli-module-new/templates/web-library",
           "@backstage/cli-module-new/templates/node-library",
+          "@backstage/cli-module-new/templates/cli-module",
           "@backstage/cli-module-new/templates/catalog-provider-module",
           "@backstage/cli-module-new/templates/scaffolder-backend-module"
         ]
diff --git a/packages/cli-module-new/src/lib/defaultTemplates.ts b/packages/cli-module-new/src/lib/defaultTemplates.ts
index e8b8e7eb70..9bfd7f74ed 100644
--- a/packages/cli-module-new/src/lib/defaultTemplates.ts
+++ b/packages/cli-module-new/src/lib/defaultTemplates.ts
@@ -16,6 +16,8 @@
 
 export const defaultTemplates = [
   '@backstage/cli-module-new/templates/frontend-plugin',
+  '@backstage/cli-module-new/templates/frontend-plugin-module',
+  '@backstage/cli-module-new/templates/legacy-frontend-plugin',
   '@backstage/cli-module-new/templates/backend-plugin',
   '@backstage/cli-module-new/templates/backend-plugin-module',
   '@backstage/cli-module-new/templates/plugin-web-library',
diff --git a/packages/cli-module-new/src/lib/preparation/loadPortableTemplateConfig.test.ts b/packages/cli-module-new/src/lib/preparation/loadPortableTemplateConfig.test.ts
index a89d0c3905..454ece648a 100644
--- a/packages/cli-module-new/src/lib/preparation/loadPortableTemplateConfig.test.ts
+++ b/packages/cli-module-new/src/lib/preparation/loadPortableTemplateConfig.test.ts
@@ -360,6 +360,141 @@ describe('loadPortableTemplateConfig', () => {
     );
   });
 
+  it('should filter out legacy frontend template for new frontend system apps', async () => {
+    mockDir.setContent({
+      'package.json': JSON.stringify({}),
+      packages: {
+        app: {
+          'package.json': JSON.stringify({
+            dependencies: {
+              '@backstage/frontend-defaults': '^0.1.0',
+            },
+          }),
+        },
+      },
+      node_modules: Object.fromEntries(
+        defaultTemplates.map(t => {
+          // Match the real behavior: both frontend-plugin and legacy-frontend-plugin
+          // have the same template name "frontend-plugin"
+          const name = t.endsWith('/legacy-frontend-plugin')
+            ? 'frontend-plugin'
+            : basename(t);
+          return [
+            t,
+            { [TEMPLATE_FILE_NAME]: `name: ${name}\nrole: web-library\n` },
+          ];
+        }),
+      ),
+    });
+
+    const config = await loadPortableTemplateConfig({
+      packagePath: mockDir.resolve('package.json'),
+    });
+
+    expect(config.isUsingDefaultTemplates).toBe(true);
+
+    const templateNames = config.templatePointers.map(t => t.name);
+    expect(templateNames).toContain('frontend-plugin');
+    expect(templateNames).toContain('frontend-plugin-module');
+    expect(templateNames).toContain('backend-plugin');
+    // Legacy template should be filtered out
+    expect(templateNames).not.toContain('legacy-frontend-plugin');
+
+    // The frontend-plugin in the list should be from the new template, not legacy
+    const frontendPlugin = config.templatePointers.find(
+      t => t.name === 'frontend-plugin',
+    );
+    expect(frontendPlugin?.target).toContain('/frontend-plugin/');
+    expect(frontendPlugin?.target).not.toContain('/legacy-frontend-plugin/');
+  });
+
+  it('should filter out new frontend templates for legacy frontend system apps', async () => {
+    mockDir.setContent({
+      'package.json': JSON.stringify({}),
+      packages: {
+        app: {
+          'package.json': JSON.stringify({
+            dependencies: {
+              '@backstage/app-defaults': '^0.1.0',
+              '@backstage/core-app-api': '^0.1.0',
+            },
+          }),
+        },
+      },
+      node_modules: Object.fromEntries(
+        defaultTemplates.map(t => {
+          const name = t.endsWith('/legacy-frontend-plugin')
+            ? 'frontend-plugin'
+            : basename(t);
+          return [
+            t,
+            { [TEMPLATE_FILE_NAME]: `name: ${name}\nrole: web-library\n` },
+          ];
+        }),
+      ),
+    });
+
+    const config = await loadPortableTemplateConfig({
+      packagePath: mockDir.resolve('package.json'),
+    });
+
+    expect(config.isUsingDefaultTemplates).toBe(true);
+
+    const templateNames = config.templatePointers.map(t => t.name);
+    // Legacy template should be present (shown as "frontend-plugin")
+    expect(templateNames).toContain('frontend-plugin');
+    expect(templateNames).toContain('backend-plugin');
+    // New frontend templates should be filtered out
+    expect(templateNames).not.toContain('frontend-plugin-module');
+
+    // The frontend-plugin in the list should be from the legacy template
+    const frontendPlugin = config.templatePointers.find(
+      t => t.name === 'frontend-plugin',
+    );
+    expect(frontendPlugin?.target).toContain('/legacy-frontend-plugin/');
+  });
+
+  it('should not filter templates when using explicit configuration', async () => {
+    mockDir.setContent({
+      'package.json': JSON.stringify({
+        backstage: {
+          cli: {
+            new: {
+              templates: ['./my-frontend-plugin', './my-backend-plugin'],
+            },
+          },
+        },
+      }),
+      // Even with a new frontend system app, explicit templates aren't filtered
+      packages: {
+        app: {
+          'package.json': JSON.stringify({
+            dependencies: {
+              '@backstage/frontend-defaults': '^0.1.0',
+            },
+          }),
+        },
+      },
+      'my-frontend-plugin': {
+        [TEMPLATE_FILE_NAME]: 'name: frontend-plugin\nrole: frontend-plugin\n',
+      },
+      'my-backend-plugin': {
+        [TEMPLATE_FILE_NAME]: 'name: backend-plugin\nrole: backend-plugin\n',
+      },
+    });
+
+    const config = await loadPortableTemplateConfig({
+      packagePath: mockDir.resolve('package.json'),
+    });
+
+    expect(config.isUsingDefaultTemplates).toBe(false);
+    expect(config.templatePointers).toHaveLength(2);
+    expect(config.templatePointers.map(t => t.name)).toEqual([
+      'frontend-plugin',
+      'backend-plugin',
+    ]);
+  });
+
   it('should handle missing backstage.new configuration', async () => {
     mockDir.setContent({
       'package.json': JSON.stringify({}),
diff --git a/packages/cli-module-new/src/lib/preparation/loadPortableTemplateConfig.ts b/packages/cli-module-new/src/lib/preparation/loadPortableTemplateConfig.ts
index 06625c79f8..fd5a92bb91 100644
--- a/packages/cli-module-new/src/lib/preparation/loadPortableTemplateConfig.ts
+++ b/packages/cli-module-new/src/lib/preparation/loadPortableTemplateConfig.ts
@@ -15,9 +15,8 @@
  */
 
 import fs from 'fs-extra';
-import { resolve as resolvePath, dirname, isAbsolute } from 'node:path';
+import { resolve as resolvePath, dirname, isAbsolute, join } from 'node:path';
 import { targetPaths } from '@backstage/cli-common';
-
 import { defaultTemplates } from '../defaultTemplates';
 import {
   PortableTemplateConfig,
@@ -29,6 +28,60 @@ import { z } from 'zod/v3';
 import { fromZodError } from 'zod-validation-error/v3';
 import { ForwardedError } from '@backstage/errors';
 
+type FrontendSystem = 'new' | 'legacy' | 'unknown';
+
+async function detectFrontendSystem(basePath: string): Promise<FrontendSystem> {
+  const appPkgPath = join(basePath, 'packages', 'app', 'package.json');
+
+  try {
+    const appPkgJson = await fs.readJson(appPkgPath);
+    const deps = {
+      ...appPkgJson.dependencies,
+      ...appPkgJson.devDependencies,
+    };
+
+    if (
+      deps['@backstage/frontend-defaults'] ||
+      deps['@backstage/frontend-app-api']
+    ) {
+      return 'new';
+    }
+    if (deps['@backstage/app-defaults'] || deps['@backstage/core-app-api']) {
+      return 'legacy';
+    }
+  } catch {
+    // App package doesn't exist or can't be read
+  }
+
+  return 'unknown';
+}
+
+// Templates to exclude based on frontend system detection (by path, not name)
+const newFrontendTemplates = [
+  '@backstage/cli-module-new/templates/frontend-plugin',
+  '@backstage/cli-module-new/templates/frontend-plugin-module',
+];
+const legacyFrontendTemplates = [
+  '@backstage/cli-module-new/templates/legacy-frontend-plugin',
+];
+
+function filterTemplateEntriesForFrontendSystem(
+  entries: Array<{ pointer: PortableTemplatePointer; rawPointer: string }>,
+  frontendSystem: FrontendSystem,
+): Array<{ pointer: PortableTemplatePointer; rawPointer: string }> {
+  if (frontendSystem === 'unknown') {
+    return entries;
+  }
+
+  if (frontendSystem === 'new') {
+    // Filter out legacy frontend templates
+    return entries.filter(e => !legacyFrontendTemplates.includes(e.rawPointer));
+  }
+
+  // Legacy system - filter out new frontend templates
+  return entries.filter(e => !newFrontendTemplates.includes(e.rawPointer));
+}
+
 const defaults = {
   license: 'Apache-2.0',
   version: '0.1.0',
@@ -105,7 +158,9 @@ export async function loadPortableTemplateConfig(
   const config = parsed.data.backstage?.cli?.new;
 
   const basePath = dirname(pkgPath);
-  const templatePointerEntries = await Promise.all(
+  const isUsingDefaultTemplates = !config?.templates;
+
+  let templatePointerEntries = await Promise.all(
     (config?.templates ?? defaultTemplates).map(async rawPointer => {
       try {
         const templatePath = resolveLocalTemplatePath(rawPointer, basePath);
@@ -121,6 +176,17 @@ export async function loadPortableTemplateConfig(
     }),
   );
 
+  // Auto-filter frontend templates based on detected frontend system.
+  // This must happen before the conflict check since both the new and legacy
+  // frontend plugin templates have the same name, but only one will be shown.
+  if (isUsingDefaultTemplates) {
+    const frontendSystem = await detectFrontendSystem(basePath);
+    templatePointerEntries = filterTemplateEntriesForFrontendSystem(
+      templatePointerEntries,
+      frontendSystem,
+    );
+  }
+
   const templateNameConflicts = new Map<string, string>();
   for (const { pointer, rawPointer } of templatePointerEntries) {
     const conflict = templateNameConflicts.get(pointer.name);
@@ -143,7 +209,7 @@ export async function loadPortableTemplateConfig(
   );
 
   return {
-    isUsingDefaultTemplates: !config?.templates,
+    isUsingDefaultTemplates,
     templatePointers: templatePointerEntries.map(({ pointer }) => pointer),
     license: overrides.license ?? config?.globals?.license ?? defaults.license,
     version: overrides.version ?? config?.globals?.version ?? defaults.version,
diff --git a/packages/cli-module-new/templates/new-frontend-plugin-module/.eslintrc.js.hbs b/packages/cli-module-new/templates/frontend-plugin-module/.eslintrc.js.hbs
similarity index 100%
rename from packages/cli-module-new/templates/new-frontend-plugin-module/.eslintrc.js.hbs
rename to packages/cli-module-new/templates/frontend-plugin-module/.eslintrc.js.hbs
diff --git a/packages/cli-module-new/templates/new-frontend-plugin-module/README.md.hbs b/packages/cli-module-new/templates/frontend-plugin-module/README.md.hbs
similarity index 100%
rename from packages/cli-module-new/templates/new-frontend-plugin-module/README.md.hbs
rename to packages/cli-module-new/templates/frontend-plugin-module/README.md.hbs
diff --git a/packages/cli-module-new/templates/new-frontend-plugin-module/package.json.hbs b/packages/cli-module-new/templates/frontend-plugin-module/package.json.hbs
similarity index 100%
rename from packages/cli-module-new/templates/new-frontend-plugin-module/package.json.hbs
rename to packages/cli-module-new/templates/frontend-plugin-module/package.json.hbs
diff --git a/packages/cli-module-new/templates/new-frontend-plugin-module/portable-template.yaml b/packages/cli-module-new/templates/frontend-plugin-module/portable-template.yaml
similarity index 100%
rename from packages/cli-module-new/templates/new-frontend-plugin-module/portable-template.yaml
rename to packages/cli-module-new/templates/frontend-plugin-module/portable-template.yaml
diff --git a/packages/cli-module-new/templates/new-frontend-plugin-module/src/index.ts.hbs b/packages/cli-module-new/templates/frontend-plugin-module/src/index.ts.hbs
similarity index 100%
rename from packages/cli-module-new/templates/new-frontend-plugin-module/src/index.ts.hbs
rename to packages/cli-module-new/templates/frontend-plugin-module/src/index.ts.hbs
diff --git a/packages/cli-module-new/templates/new-frontend-plugin-module/src/module.tsx.hbs b/packages/cli-module-new/templates/frontend-plugin-module/src/module.tsx.hbs
similarity index 100%
rename from packages/cli-module-new/templates/new-frontend-plugin-module/src/module.tsx.hbs
rename to packages/cli-module-new/templates/frontend-plugin-module/src/module.tsx.hbs
diff --git a/packages/cli-module-new/templates/new-frontend-plugin-module/src/setupTests.ts b/packages/cli-module-new/templates/frontend-plugin-module/src/setupTests.ts
similarity index 100%
rename from packages/cli-module-new/templates/new-frontend-plugin-module/src/setupTests.ts
rename to packages/cli-module-new/templates/frontend-plugin-module/src/setupTests.ts
diff --git a/packages/cli-module-new/templates/frontend-plugin/README.md.hbs b/packages/cli-module-new/templates/frontend-plugin/README.md.hbs
index 5eae32b7dc..3f1ff3e4f7 100644
--- a/packages/cli-module-new/templates/frontend-plugin/README.md.hbs
+++ b/packages/cli-module-new/templates/frontend-plugin/README.md.hbs
@@ -6,7 +6,14 @@ _This plugin was created through the Backstage CLI_
 
 ## Getting started
 
-Your plugin has been added to the example app in this repository, meaning you'll be able to access it by running `yarn start` in the root directory, and then navigating to [/{{pluginId}}](http://localhost:3000/{{pluginId}}).
+Your plugin has been added to the app in this repository, meaning you'll be able
+to access it by running `yarn start` in the root directory, and then navigating
+to [/{{pluginId}}](http://localhost:3000/{{pluginId}}).
+
+This plugin is built with Backstage's [new frontend
+system](https://backstage.io/docs/frontend-system/architecture/index), and you
+can find more information about building plugins in the [plugin builder
+documentation](https://backstage.io/docs/frontend-system/building-plugins/index).
 
 You can also serve the plugin in isolation by running `yarn start` in the plugin directory.
 This method of serving the plugin provides quicker iteration speed and a faster startup and hot reloads.
diff --git a/packages/cli-module-new/templates/new-frontend-plugin/dev/index.tsx b/packages/cli-module-new/templates/frontend-plugin/dev/index.tsx
similarity index 100%
rename from packages/cli-module-new/templates/new-frontend-plugin/dev/index.tsx
rename to packages/cli-module-new/templates/frontend-plugin/dev/index.tsx
diff --git a/packages/cli-module-new/templates/frontend-plugin/package.json.hbs b/packages/cli-module-new/templates/frontend-plugin/package.json.hbs
index 9499d11b18..955c6077b8 100644
--- a/packages/cli-module-new/templates/frontend-plugin/package.json.hbs
+++ b/packages/cli-module-new/templates/frontend-plugin/package.json.hbs
@@ -23,7 +23,7 @@
   },
   "dependencies": {
     "@backstage/core-components": "{{versionQuery '@backstage/core-components'}}",
-    "@backstage/core-plugin-api": "{{versionQuery '@backstage/core-plugin-api'}}",
+    "@backstage/frontend-plugin-api": "{{versionQuery '@backstage/frontend-plugin-api'}}",
     "@backstage/theme": "{{versionQuery '@backstage/theme'}}",
     "@material-ui/core": "{{versionQuery '@material-ui/core' '4.12.2'}}",
     "@material-ui/icons": "{{versionQuery '@material-ui/icons' '4.9.1'}}",
@@ -31,22 +31,18 @@
     "react-use": "{{versionQuery 'react-use' '17.2.4'}}"
   },
   "peerDependencies": {
-    "react": "{{versionQuery 'react' '^16.13.1 || ^17.0.0 || ^18.0.0'}}",
-    "react-dom": "{{versionQuery 'react-dom' '^16.13.1 || ^17.0.0 || ^18.0.0'}}",
-    "react-router-dom": "{{versionQuery 'react-router-dom' '^6.0.0'}}"
+    "react": "{{versionQuery 'react' '^16.13.1 || ^17.0.0 || ^18.0.0'}}"
   },
   "devDependencies": {
     "@backstage/cli": "{{versionQuery '@backstage/cli'}}",
-    "@backstage/core-app-api": "{{versionQuery '@backstage/core-app-api'}}",
-    "@backstage/dev-utils": "{{versionQuery '@backstage/dev-utils'}}",
-    "@backstage/test-utils": "{{versionQuery '@backstage/test-utils'}}",
+    "@backstage/frontend-dev-utils": "{{versionQuery '@backstage/frontend-dev-utils'}}",
+    "@backstage/frontend-defaults": "{{versionQuery '@backstage/frontend-defaults'}}",
+    "@backstage/frontend-test-utils": "{{versionQuery '@backstage/frontend-test-utils'}}",
     "@testing-library/jest-dom": "{{versionQuery '@testing-library/jest-dom' '6.0.0'}}",
     "@testing-library/react": "{{versionQuery '@testing-library/react' '14.0.0'}}",
     "@testing-library/user-event": "{{versionQuery '@testing-library/user-event' '14.0.0'}}",
     "msw": "{{versionQuery 'msw' '1.0.0'}}",
-    "react": "{{versionQuery 'react' '^16.13.1 || ^17.0.0 || ^18.0.0'}}",
-    "react-dom": "{{versionQuery 'react-dom' '^16.13.1 || ^17.0.0 || ^18.0.0'}}",
-    "react-router-dom": "{{versionQuery 'react-router-dom' '^6.0.0'}}"
+    "react": "{{versionQuery 'react' '^16.13.1 || ^17.0.0 || ^18.0.0'}}"
   },
   "files": [
     "dist"
diff --git a/packages/cli-module-new/templates/frontend-plugin/portable-template.yaml b/packages/cli-module-new/templates/frontend-plugin/portable-template.yaml
index 3afb60eb22..a70ce316f1 100644
--- a/packages/cli-module-new/templates/frontend-plugin/portable-template.yaml
+++ b/packages/cli-module-new/templates/frontend-plugin/portable-template.yaml
@@ -3,4 +3,3 @@ role: frontend-plugin
 description: A new frontend plugin
 values:
   pluginVar: '{{ camelCase pluginId }}Plugin'
-  extensionName: '{{ upperFirst ( camelCase pluginId ) }}Page'
diff --git a/packages/cli-module-new/templates/frontend-plugin/src/components/ExampleComponent/ExampleComponent.test.tsx.hbs b/packages/cli-module-new/templates/frontend-plugin/src/components/ExampleComponent/ExampleComponent.test.tsx.hbs
index c7c20863c2..d1a8a93d0b 100644
--- a/packages/cli-module-new/templates/frontend-plugin/src/components/ExampleComponent/ExampleComponent.test.tsx.hbs
+++ b/packages/cli-module-new/templates/frontend-plugin/src/components/ExampleComponent/ExampleComponent.test.tsx.hbs
@@ -5,7 +5,7 @@ import { screen } from '@testing-library/react';
 import {
   registerMswTestHooks,
   renderInTestApp,
-} from '@backstage/test-utils';
+} from '@backstage/frontend-test-utils';
 
 describe('ExampleComponent', () => {
   const server = setupServer();
diff --git a/packages/cli-module-new/templates/frontend-plugin/src/components/ExampleFetchComponent/ExampleFetchComponent.test.tsx.hbs b/packages/cli-module-new/templates/frontend-plugin/src/components/ExampleFetchComponent/ExampleFetchComponent.test.tsx.hbs
index 820e54fa37..c9b553287f 100644
--- a/packages/cli-module-new/templates/frontend-plugin/src/components/ExampleFetchComponent/ExampleFetchComponent.test.tsx.hbs
+++ b/packages/cli-module-new/templates/frontend-plugin/src/components/ExampleFetchComponent/ExampleFetchComponent.test.tsx.hbs
@@ -1,4 +1,4 @@
-import { renderInTestApp } from '@backstage/test-utils';
+import { renderInTestApp } from '@backstage/frontend-test-utils';
 import { ExampleFetchComponent } from './ExampleFetchComponent';
 
 describe('ExampleFetchComponent', () => {
diff --git a/packages/cli-module-new/templates/frontend-plugin/src/index.ts.hbs b/packages/cli-module-new/templates/frontend-plugin/src/index.ts.hbs
index be4881efaf..0d6810ad6b 100644
--- a/packages/cli-module-new/templates/frontend-plugin/src/index.ts.hbs
+++ b/packages/cli-module-new/templates/frontend-plugin/src/index.ts.hbs
@@ -1 +1 @@
-export { {{ pluginVar }}, {{ extensionName }} } from './plugin';
+export { {{ pluginVar }} as default } from './plugin';
diff --git a/packages/cli-module-new/templates/new-frontend-plugin/src/plugin.tsx.hbs b/packages/cli-module-new/templates/frontend-plugin/src/plugin.tsx.hbs
similarity index 100%
rename from packages/cli-module-new/templates/new-frontend-plugin/src/plugin.tsx.hbs
rename to packages/cli-module-new/templates/frontend-plugin/src/plugin.tsx.hbs
diff --git a/packages/cli-module-new/templates/new-frontend-plugin/src/routes.ts b/packages/cli-module-new/templates/frontend-plugin/src/routes.ts
similarity index 100%
rename from packages/cli-module-new/templates/new-frontend-plugin/src/routes.ts
rename to packages/cli-module-new/templates/frontend-plugin/src/routes.ts
diff --git a/packages/cli-module-new/templates/new-frontend-plugin/.eslintrc.js.hbs b/packages/cli-module-new/templates/legacy-frontend-plugin/.eslintrc.js.hbs
similarity index 100%
rename from packages/cli-module-new/templates/new-frontend-plugin/.eslintrc.js.hbs
rename to packages/cli-module-new/templates/legacy-frontend-plugin/.eslintrc.js.hbs
diff --git a/packages/cli-module-new/templates/legacy-frontend-plugin/README.md.hbs b/packages/cli-module-new/templates/legacy-frontend-plugin/README.md.hbs
new file mode 100644
index 0000000000..5eae32b7dc
--- /dev/null
+++ b/packages/cli-module-new/templates/legacy-frontend-plugin/README.md.hbs
@@ -0,0 +1,13 @@
+# {{pluginId}}
+
+Welcome to the {{pluginId}} plugin!
+
+_This plugin was created through the Backstage CLI_
+
+## Getting started
+
+Your plugin has been added to the example app in this repository, meaning you'll be able to access it by running `yarn start` in the root directory, and then navigating to [/{{pluginId}}](http://localhost:3000/{{pluginId}}).
+
+You can also serve the plugin in isolation by running `yarn start` in the plugin directory.
+This method of serving the plugin provides quicker iteration speed and a faster startup and hot reloads.
+It is only meant for local development, and the setup for it can be found inside the [/dev](./dev) directory.
diff --git a/packages/cli-module-new/templates/frontend-plugin/dev/index.tsx.hbs b/packages/cli-module-new/templates/legacy-frontend-plugin/dev/index.tsx.hbs
similarity index 100%
rename from packages/cli-module-new/templates/frontend-plugin/dev/index.tsx.hbs
rename to packages/cli-module-new/templates/legacy-frontend-plugin/dev/index.tsx.hbs
diff --git a/packages/cli-module-new/templates/new-frontend-plugin/package.json.hbs b/packages/cli-module-new/templates/legacy-frontend-plugin/package.json.hbs
similarity index 72%
rename from packages/cli-module-new/templates/new-frontend-plugin/package.json.hbs
rename to packages/cli-module-new/templates/legacy-frontend-plugin/package.json.hbs
index 4a37a4fa63..9499d11b18 100644
--- a/packages/cli-module-new/templates/new-frontend-plugin/package.json.hbs
+++ b/packages/cli-module-new/templates/legacy-frontend-plugin/package.json.hbs
@@ -23,7 +23,7 @@
   },
   "dependencies": {
     "@backstage/core-components": "{{versionQuery '@backstage/core-components'}}",
-    "@backstage/frontend-plugin-api": "{{versionQuery '@backstage/frontend-plugin-api'}}",
+    "@backstage/core-plugin-api": "{{versionQuery '@backstage/core-plugin-api'}}",
     "@backstage/theme": "{{versionQuery '@backstage/theme'}}",
     "@material-ui/core": "{{versionQuery '@material-ui/core' '4.12.2'}}",
     "@material-ui/icons": "{{versionQuery '@material-ui/icons' '4.9.1'}}",
@@ -31,17 +31,22 @@
     "react-use": "{{versionQuery 'react-use' '17.2.4'}}"
   },
   "peerDependencies": {
-    "react": "{{versionQuery 'react' '^16.13.1 || ^17.0.0 || ^18.0.0'}}"
+    "react": "{{versionQuery 'react' '^16.13.1 || ^17.0.0 || ^18.0.0'}}",
+    "react-dom": "{{versionQuery 'react-dom' '^16.13.1 || ^17.0.0 || ^18.0.0'}}",
+    "react-router-dom": "{{versionQuery 'react-router-dom' '^6.0.0'}}"
   },
   "devDependencies": {
     "@backstage/cli": "{{versionQuery '@backstage/cli'}}",
-    "@backstage/frontend-dev-utils": "{{versionQuery '@backstage/frontend-dev-utils'}}",
-    "@backstage/frontend-test-utils": "{{versionQuery '@backstage/frontend-test-utils'}}",
+    "@backstage/core-app-api": "{{versionQuery '@backstage/core-app-api'}}",
+    "@backstage/dev-utils": "{{versionQuery '@backstage/dev-utils'}}",
+    "@backstage/test-utils": "{{versionQuery '@backstage/test-utils'}}",
     "@testing-library/jest-dom": "{{versionQuery '@testing-library/jest-dom' '6.0.0'}}",
     "@testing-library/react": "{{versionQuery '@testing-library/react' '14.0.0'}}",
     "@testing-library/user-event": "{{versionQuery '@testing-library/user-event' '14.0.0'}}",
     "msw": "{{versionQuery 'msw' '1.0.0'}}",
-    "react": "{{versionQuery 'react' '^16.13.1 || ^17.0.0 || ^18.0.0'}}"
+    "react": "{{versionQuery 'react' '^16.13.1 || ^17.0.0 || ^18.0.0'}}",
+    "react-dom": "{{versionQuery 'react-dom' '^16.13.1 || ^17.0.0 || ^18.0.0'}}",
+    "react-router-dom": "{{versionQuery 'react-router-dom' '^6.0.0'}}"
   },
   "files": [
     "dist"
diff --git a/packages/cli-module-new/templates/legacy-frontend-plugin/portable-template.yaml b/packages/cli-module-new/templates/legacy-frontend-plugin/portable-template.yaml
new file mode 100644
index 0000000000..d69a1f35df
--- /dev/null
+++ b/packages/cli-module-new/templates/legacy-frontend-plugin/portable-template.yaml
@@ -0,0 +1,6 @@
+name: frontend-plugin
+role: frontend-plugin
+description: A new frontend plugin (legacy system)
+values:
+  pluginVar: '{{ camelCase pluginId }}Plugin'
+  extensionName: '{{ upperFirst ( camelCase pluginId ) }}Page'
diff --git a/packages/cli-module-new/templates/new-frontend-plugin/src/components/ExampleComponent/ExampleComponent.test.tsx.hbs b/packages/cli-module-new/templates/legacy-frontend-plugin/src/components/ExampleComponent/ExampleComponent.test.tsx.hbs
similarity index 94%
rename from packages/cli-module-new/templates/new-frontend-plugin/src/components/ExampleComponent/ExampleComponent.test.tsx.hbs
rename to packages/cli-module-new/templates/legacy-frontend-plugin/src/components/ExampleComponent/ExampleComponent.test.tsx.hbs
index d1a8a93d0b..c7c20863c2 100644
--- a/packages/cli-module-new/templates/new-frontend-plugin/src/components/ExampleComponent/ExampleComponent.test.tsx.hbs
+++ b/packages/cli-module-new/templates/legacy-frontend-plugin/src/components/ExampleComponent/ExampleComponent.test.tsx.hbs
@@ -5,7 +5,7 @@ import { screen } from '@testing-library/react';
 import {
   registerMswTestHooks,
   renderInTestApp,
-} from '@backstage/frontend-test-utils';
+} from '@backstage/test-utils';
 
 describe('ExampleComponent', () => {
   const server = setupServer();
diff --git a/packages/cli-module-new/templates/new-frontend-plugin/src/components/ExampleComponent/ExampleComponent.tsx.hbs b/packages/cli-module-new/templates/legacy-frontend-plugin/src/components/ExampleComponent/ExampleComponent.tsx.hbs
similarity index 100%
rename from packages/cli-module-new/templates/new-frontend-plugin/src/components/ExampleComponent/ExampleComponent.tsx.hbs
rename to packages/cli-module-new/templates/legacy-frontend-plugin/src/components/ExampleComponent/ExampleComponent.tsx.hbs
diff --git a/packages/cli-module-new/templates/new-frontend-plugin/src/components/ExampleComponent/index.ts b/packages/cli-module-new/templates/legacy-frontend-plugin/src/components/ExampleComponent/index.ts
similarity index 100%
rename from packages/cli-module-new/templates/new-frontend-plugin/src/components/ExampleComponent/index.ts
rename to packages/cli-module-new/templates/legacy-frontend-plugin/src/components/ExampleComponent/index.ts
diff --git a/packages/cli-module-new/templates/new-frontend-plugin/src/components/ExampleFetchComponent/ExampleFetchComponent.test.tsx.hbs b/packages/cli-module-new/templates/legacy-frontend-plugin/src/components/ExampleFetchComponent/ExampleFetchComponent.test.tsx.hbs
similarity index 91%
rename from packages/cli-module-new/templates/new-frontend-plugin/src/components/ExampleFetchComponent/ExampleFetchComponent.test.tsx.hbs
rename to packages/cli-module-new/templates/legacy-frontend-plugin/src/components/ExampleFetchComponent/ExampleFetchComponent.test.tsx.hbs
index c9b553287f..820e54fa37 100644
--- a/packages/cli-module-new/templates/new-frontend-plugin/src/components/ExampleFetchComponent/ExampleFetchComponent.test.tsx.hbs
+++ b/packages/cli-module-new/templates/legacy-frontend-plugin/src/components/ExampleFetchComponent/ExampleFetchComponent.test.tsx.hbs
@@ -1,4 +1,4 @@
-import { renderInTestApp } from '@backstage/frontend-test-utils';
+import { renderInTestApp } from '@backstage/test-utils';
 import { ExampleFetchComponent } from './ExampleFetchComponent';
 
 describe('ExampleFetchComponent', () => {
diff --git a/packages/cli-module-new/templates/new-frontend-plugin/src/components/ExampleFetchComponent/ExampleFetchComponent.tsx.hbs b/packages/cli-module-new/templates/legacy-frontend-plugin/src/components/ExampleFetchComponent/ExampleFetchComponent.tsx.hbs
similarity index 100%
rename from packages/cli-module-new/templates/new-frontend-plugin/src/components/ExampleFetchComponent/ExampleFetchComponent.tsx.hbs
rename to packages/cli-module-new/templates/legacy-frontend-plugin/src/components/ExampleFetchComponent/ExampleFetchComponent.tsx.hbs
diff --git a/packages/cli-module-new/templates/new-frontend-plugin/src/components/ExampleFetchComponent/index.ts b/packages/cli-module-new/templates/legacy-frontend-plugin/src/components/ExampleFetchComponent/index.ts
similarity index 100%
rename from packages/cli-module-new/templates/new-frontend-plugin/src/components/ExampleFetchComponent/index.ts
rename to packages/cli-module-new/templates/legacy-frontend-plugin/src/components/ExampleFetchComponent/index.ts
diff --git a/packages/cli-module-new/templates/legacy-frontend-plugin/src/index.ts.hbs b/packages/cli-module-new/templates/legacy-frontend-plugin/src/index.ts.hbs
new file mode 100644
index 0000000000..be4881efaf
--- /dev/null
+++ b/packages/cli-module-new/templates/legacy-frontend-plugin/src/index.ts.hbs
@@ -0,0 +1 @@
+export { {{ pluginVar }}, {{ extensionName }} } from './plugin';
diff --git a/packages/cli-module-new/templates/new-frontend-plugin/src/plugin.test.ts.hbs b/packages/cli-module-new/templates/legacy-frontend-plugin/src/plugin.test.ts.hbs
similarity index 100%
rename from packages/cli-module-new/templates/new-frontend-plugin/src/plugin.test.ts.hbs
rename to packages/cli-module-new/templates/legacy-frontend-plugin/src/plugin.test.ts.hbs
diff --git a/packages/cli-module-new/templates/frontend-plugin/src/plugin.ts.hbs b/packages/cli-module-new/templates/legacy-frontend-plugin/src/plugin.ts.hbs
similarity index 100%
rename from packages/cli-module-new/templates/frontend-plugin/src/plugin.ts.hbs
rename to packages/cli-module-new/templates/legacy-frontend-plugin/src/plugin.ts.hbs
diff --git a/packages/cli-module-new/templates/frontend-plugin/src/routes.ts.hbs b/packages/cli-module-new/templates/legacy-frontend-plugin/src/routes.ts.hbs
similarity index 100%
rename from packages/cli-module-new/templates/frontend-plugin/src/routes.ts.hbs
rename to packages/cli-module-new/templates/legacy-frontend-plugin/src/routes.ts.hbs
diff --git a/packages/cli-module-new/templates/new-frontend-plugin/src/setupTests.ts b/packages/cli-module-new/templates/legacy-frontend-plugin/src/setupTests.ts
similarity index 100%
rename from packages/cli-module-new/templates/new-frontend-plugin/src/setupTests.ts
rename to packages/cli-module-new/templates/legacy-frontend-plugin/src/setupTests.ts
diff --git a/packages/cli-module-new/templates/new-frontend-plugin/README.md.hbs b/packages/cli-module-new/templates/new-frontend-plugin/README.md.hbs
deleted file mode 100644
index 3f1ff3e4f7..0000000000
--- a/packages/cli-module-new/templates/new-frontend-plugin/README.md.hbs
+++ /dev/null
@@ -1,20 +0,0 @@
-# {{pluginId}}
-
-Welcome to the {{pluginId}} plugin!
-
-_This plugin was created through the Backstage CLI_
-
-## Getting started
-
-Your plugin has been added to the app in this repository, meaning you'll be able
-to access it by running `yarn start` in the root directory, and then navigating
-to [/{{pluginId}}](http://localhost:3000/{{pluginId}}).
-
-This plugin is built with Backstage's [new frontend
-system](https://backstage.io/docs/frontend-system/architecture/index), and you
-can find more information about building plugins in the [plugin builder
-documentation](https://backstage.io/docs/frontend-system/building-plugins/index).
-
-You can also serve the plugin in isolation by running `yarn start` in the plugin directory.
-This method of serving the plugin provides quicker iteration speed and a faster startup and hot reloads.
-It is only meant for local development, and the setup for it can be found inside the [/dev](./dev) directory.
diff --git a/packages/cli-module-new/templates/new-frontend-plugin/portable-template.yaml b/packages/cli-module-new/templates/new-frontend-plugin/portable-template.yaml
deleted file mode 100644
index a70ce316f1..0000000000
--- a/packages/cli-module-new/templates/new-frontend-plugin/portable-template.yaml
+++ /dev/null
@@ -1,5 +0,0 @@
-name: frontend-plugin
-role: frontend-plugin
-description: A new frontend plugin
-values:
-  pluginVar: '{{ camelCase pluginId }}Plugin'
diff --git a/packages/cli-module-new/templates/new-frontend-plugin/src/index.ts.hbs b/packages/cli-module-new/templates/new-frontend-plugin/src/index.ts.hbs
deleted file mode 100644
index 0d6810ad6b..0000000000
--- a/packages/cli-module-new/templates/new-frontend-plugin/src/index.ts.hbs
+++ /dev/null
@@ -1 +0,0 @@
-export { {{ pluginVar }} as default } from './plugin';
diff --git a/packages/create-app/cli-report.md b/packages/create-app/cli-report.md
index 88e19d05c6..f9286a628c 100644
--- a/packages/create-app/cli-report.md
+++ b/packages/create-app/cli-report.md
@@ -8,7 +8,7 @@
 Usage: backstage-create-app [options]
 
 Options:
-  --next
+  --legacy
   --path [directory]
   --skip-install
   --template-path [directory]
diff --git a/packages/create-app/src/createApp.test.ts b/packages/create-app/src/createApp.test.ts
index c38186b1d8..a032f9bb3b 100644
--- a/packages/create-app/src/createApp.test.ts
+++ b/packages/create-app/src/createApp.test.ts
@@ -69,7 +69,7 @@ describe('command entrypoint', () => {
     expect(tryInitGitRepositoryMock).toHaveBeenCalled();
     expect(templatingMock).toHaveBeenCalled();
     expect(templatingMock.mock.lastCall?.[0]).toEqual(
-      findOwnPaths(__dirname).resolve('templates/default-app'),
+      findOwnPaths(__dirname).resolve('templates/next-app'),
     );
     expect(templatingMock.mock.lastCall?.[1]).toContain(
       path.join(tmpdir(), 'MyApp'),
@@ -85,20 +85,20 @@ describe('command entrypoint', () => {
     expect(tryInitGitRepositoryMock).toHaveBeenCalled();
     expect(templatingMock).toHaveBeenCalled();
     expect(templatingMock.mock.lastCall?.[0]).toEqual(
-      findOwnPaths(__dirname).resolve('templates/default-app'),
+      findOwnPaths(__dirname).resolve('templates/next-app'),
     );
     expect(templatingMock.mock.lastCall?.[1]).toEqual('myDirectory');
     expect(buildAppMock).toHaveBeenCalled();
   });
 
-  it('should call expected tasks when `--next` is supplied', async () => {
-    const cmd = { next: true } as unknown as Command;
+  it('should call expected tasks when `--legacy` is supplied', async () => {
+    const cmd = { legacy: true } as unknown as Command;
     await createApp(cmd);
     expect(checkAppExistsMock).toHaveBeenCalled();
     expect(tryInitGitRepositoryMock).toHaveBeenCalled();
     expect(templatingMock).toHaveBeenCalled();
     expect(templatingMock.mock.lastCall?.[0]).toEqual(
-      findOwnPaths(__dirname).resolve('templates/next-app'),
+      findOwnPaths(__dirname).resolve('templates/default-app'),
     );
     expect(templatingMock.mock.lastCall?.[1]).toContain(
       path.join(tmpdir(), 'MyApp'),
diff --git a/packages/create-app/src/createApp.ts b/packages/create-app/src/createApp.ts
index 64db2e52ab..68c27d3a1a 100644
--- a/packages/create-app/src/createApp.ts
+++ b/packages/create-app/src/createApp.ts
@@ -63,12 +63,12 @@ export default async (opts: OptionValues): Promise<void> => {
     },
   ]);
 
-  // Pick the built-in template based on the --next flag
+  // Pick the built-in template based on the --legacy flag
   /* eslint-disable-next-line no-restricted-syntax */
   const ownPaths = findOwnPaths(__dirname);
-  const builtInTemplate = opts.next
-    ? ownPaths.resolve('templates/next-app')
-    : ownPaths.resolve('templates/default-app');
+  const builtInTemplate = opts.legacy
+    ? ownPaths.resolve('templates/default-app')
+    : ownPaths.resolve('templates/next-app');
 
   // Use `--template-path` argument as template when specified. Otherwise, use the default template.
   const templateDir = opts.templatePath
diff --git a/packages/create-app/src/index.ts b/packages/create-app/src/index.ts
index cfa448aa1a..ff3ef29b18 100644
--- a/packages/create-app/src/index.ts
+++ b/packages/create-app/src/index.ts
@@ -31,7 +31,7 @@ const main = (argv: string[]) => {
     .name('backstage-create-app')
     .version(version)
     .description('Creates a new app in a new directory or specified path')
-    .option('--next', 'Use the next generation of the app template')
+    .option('--legacy', 'Use the legacy version of the app template')
     .option(
       '--path [directory]',
       'Location to store the app defaulting to a new folder with the app name',
diff --git a/packages/create-app/src/lib/versions.ts b/packages/create-app/src/lib/versions.ts
index 006dd6d7b8..9b10660d19 100644
--- a/packages/create-app/src/lib/versions.ts
+++ b/packages/create-app/src/lib/versions.ts
@@ -39,6 +39,7 @@ import { version as catalogClient } from '../../../catalog-client/package.json';
 import { version as catalogModel } from '../../../catalog-model/package.json';
 import { version as cli } from '../../../cli/package.json';
 import { version as cliDefaults } from '../../../cli-defaults/package.json';
+import { version as cliModuleNew } from '../../../cli-module-new/package.json';
 import { version as config } from '../../../config/package.json';
 import { version as coreAppApi } from '../../../core-app-api/package.json';
 import { version as coreCompatApi } from '../../../core-compat-api/package.json';
@@ -109,6 +110,7 @@ export const packageVersions = {
   '@backstage/catalog-model': catalogModel,
   '@backstage/cli': cli,
   '@backstage/cli-defaults': cliDefaults,
+  '@backstage/cli-module-new': cliModuleNew,
   '@backstage/config': config,
   '@backstage/core-app-api': coreAppApi,
   '@backstage/core-compat-api': coreCompatApi,
diff --git a/packages/create-app/templates/default-app/package.json.hbs b/packages/create-app/templates/default-app/package.json.hbs
index 4262e0fc82..836ecccac5 100644
--- a/packages/create-app/templates/default-app/package.json.hbs
+++ b/packages/create-app/templates/default-app/package.json.hbs
@@ -22,6 +22,28 @@
     "prettier:check": "prettier --check .",
     "new": "backstage-cli new"
   },
+  "backstage": {
+    "cli": {
+      "new": {
+        "globals": {
+          "license": "UNLICENSED"
+        },
+        "templates": [
+          "@backstage/cli-module-new/templates/legacy-frontend-plugin",
+          "@backstage/cli-module-new/templates/backend-plugin",
+          "@backstage/cli-module-new/templates/backend-plugin-module",
+          "@backstage/cli-module-new/templates/plugin-web-library",
+          "@backstage/cli-module-new/templates/plugin-node-library",
+          "@backstage/cli-module-new/templates/plugin-common-library",
+          "@backstage/cli-module-new/templates/web-library",
+          "@backstage/cli-module-new/templates/node-library",
+          "@backstage/cli-module-new/templates/cli-module",
+          "@backstage/cli-module-new/templates/catalog-provider-module",
+          "@backstage/cli-module-new/templates/scaffolder-backend-module"
+        ]
+      }
+    }
+  },
   "workspaces": [
     "packages/*",
     "plugins/*"
diff --git a/packages/create-app/templates/next-app/app-config.yaml.hbs b/packages/create-app/templates/next-app/app-config.yaml.hbs
index 67917fd193..c8814a9e96 100644
--- a/packages/create-app/templates/next-app/app-config.yaml.hbs
+++ b/packages/create-app/templates/next-app/app-config.yaml.hbs
@@ -17,7 +17,6 @@ app:
         config:
           path: /
 
-
 organization:
   name: My Company
 
diff --git a/packages/create-app/templates/next-app/examples/template/template.yaml b/packages/create-app/templates/next-app/examples/template/template.yaml
index 2a20bd45ed..efb33be866 100644
--- a/packages/create-app/templates/next-app/examples/template/template.yaml
+++ b/packages/create-app/templates/next-app/examples/template/template.yaml
@@ -65,7 +65,7 @@ spec:
       input:
         repoContentsUrl: ${{ steps['publish'].output.repoContentsUrl }}
         catalogInfoPath: '/catalog-info.yaml'
-    
+
     # Let's notify the user that the template has completed using the Notification action
     - id: notify
       name: Notify
diff --git a/packages/create-app/templates/next-app/package.json.hbs b/packages/create-app/templates/next-app/package.json.hbs
index 2ace0f549b..b2c7f5cbb0 100644
--- a/packages/create-app/templates/next-app/package.json.hbs
+++ b/packages/create-app/templates/next-app/package.json.hbs
@@ -27,20 +27,7 @@
       "new": {
         "globals": {
           "license": "UNLICENSED"
-        },
-        "templates": [
-          "@backstage/cli-module-new/templates/new-frontend-plugin",
-          "@backstage/cli-module-new/templates/new-frontend-plugin-module",
-          "@backstage/cli-module-new/templates/backend-plugin",
-          "@backstage/cli-module-new/templates/backend-plugin-module",
-          "@backstage/cli-module-new/templates/plugin-web-library",
-          "@backstage/cli-module-new/templates/plugin-node-library",
-          "@backstage/cli-module-new/templates/plugin-common-library",
-          "@backstage/cli-module-new/templates/web-library",
-          "@backstage/cli-module-new/templates/node-library",
-          "@backstage/cli-module-new/templates/catalog-provider-module",
-          "@backstage/cli-module-new/templates/scaffolder-backend-module"
-        ]
+        }
       }
     }
   },
diff --git a/packages/create-app/templates/next-app/packages/app/e2e-tests/app.test.ts b/packages/create-app/templates/next-app/packages/app/e2e-tests/app.test.ts
index 839ff883de..3347034856 100644
--- a/packages/create-app/templates/next-app/packages/app/e2e-tests/app.test.ts
+++ b/packages/create-app/templates/next-app/packages/app/e2e-tests/app.test.ts
@@ -23,5 +23,6 @@ test('App should render the welcome page', async ({ page }) => {
   await expect(enterButton).toBeVisible();
   await enterButton.click();
 
-  await expect(page.getByText('My Company Catalog')).toBeVisible();
+  await expect(page.getByRole('link', { name: 'Catalog' })).toBeVisible();
+  await expect(page.getByRole('link', { name: 'APIs' })).toBeVisible();
 });
diff --git a/packages/create-app/templates/next-app/packages/app/src/modules/nav/Sidebar.tsx b/packages/create-app/templates/next-app/packages/app/src/modules/nav/Sidebar.tsx
index d436252edf..52d96151cb 100644
--- a/packages/create-app/templates/next-app/packages/app/src/modules/nav/Sidebar.tsx
+++ b/packages/create-app/templates/next-app/packages/app/src/modules/nav/Sidebar.tsx
@@ -12,19 +12,20 @@ import { SidebarLogo } from './SidebarLogo';
 import MenuIcon from '@material-ui/icons/Menu';
 import SearchIcon from '@material-ui/icons/Search';
 import { SidebarSearchModal } from '@backstage/plugin-search';
-import { UserSettingsSignInAvatar, Settings as SidebarSettings } from '@backstage/plugin-user-settings';
+import {
+  UserSettingsSignInAvatar,
+  Settings as SidebarSettings,
+} from '@backstage/plugin-user-settings';
 import { NotificationsSidebarItem } from '@backstage/plugin-notifications';
 
 export const SidebarContent = NavContentBlueprint.make({
   params: {
     component: ({ navItems }) => {
       const nav = navItems.withComponent(item => (
-        <SidebarItem
-          icon={() => item.icon}
-          to={item.href}
-          text={item.title}
-        />
+        <SidebarItem icon={() => item.icon} to={item.href} text={item.title} />
       ));
+      // Skipped items
+      nav.take('page:search');
       return compatWrapper(
         <Sidebar>
           <SidebarLogo />
diff --git a/packages/e2e-test/src/commands/runCommand.ts b/packages/e2e-test/src/commands/runCommand.ts
index 896ac5ed72..170d1252bf 100644
--- a/packages/e2e-test/src/commands/runCommand.ts
+++ b/packages/e2e-test/src/commands/runCommand.ts
@@ -35,9 +35,9 @@ const ownPaths = findOwnPaths(__dirname);
 
 const templatePackagePaths = [
   'packages/cli-module-new/templates/frontend-plugin/package.json.hbs',
-  'packages/create-app/templates/default-app/package.json.hbs',
-  'packages/create-app/templates/default-app/packages/app/package.json.hbs',
-  'packages/create-app/templates/default-app/packages/backend/package.json.hbs',
+  'packages/create-app/templates/next-app/package.json.hbs',
+  'packages/create-app/templates/next-app/packages/app/package.json.hbs',
+  'packages/create-app/templates/next-app/packages/backend/package.json.hbs',
 ];
 
 export async function runCommand(opts: OptionValues) {
@@ -66,20 +66,6 @@ export async function runCommand(opts: OptionValues) {
     env: { ...process.env, CI: undefined },
   });
 
-  await switchToReact17(appDir);
-
-  print(`Running 'yarn install' to install React 17`);
-  await runOutput(['yarn', 'install'], { cwd: appDir });
-
-  print(`Running 'yarn tsc' with React 17`);
-  await runOutput(['yarn', 'tsc'], { cwd: appDir });
-
-  print(`Running 'yarn test:e2e' with React 17`);
-  await runOutput(['yarn', 'test:e2e'], {
-    cwd: appDir,
-    env: { ...process.env, CI: undefined },
-  });
-
   if (
     Boolean(process.env.POSTGRES_USER) ||
     Boolean(process.env.MYSQL_CONNECTION)
@@ -412,37 +398,6 @@ async function createPlugin(options: {
   }
 }
 
-/**
- * Switch the entire project to use React 17
- */
-async function switchToReact17(appDir: string) {
-  const rootPkg = await fs.readJson(resolvePath(appDir, 'package.json'));
-  rootPkg.resolutions = {
-    ...(rootPkg.resolutions || {}),
-    react: '^17.0.0',
-    'react-dom': '^17.0.0',
-    '@types/react': '^17.0.0',
-    '@types/react-dom': '^17.0.0',
-    'swagger-ui-react/react': '17.0.2',
-    'swagger-ui-react/react-dom': '17.0.2',
-    'swagger-ui-react/react-redux': '^8',
-  };
-  await fs.writeJson(resolvePath(appDir, 'package.json'), rootPkg, {
-    spaces: 2,
-  });
-
-  await fs.writeFile(
-    resolvePath(appDir, 'packages/app/src/index.tsx'),
-    `import '@backstage/cli/asset-types';
-import ReactDOM from 'react-dom';
-import App from './App';
-
-ReactDOM.render(<App />, document.getElementById('root'));
-`,
-    'utf8',
-  );
-}
-
 /** Drops PG databases */
 async function dropDB(database: string, client: string) {
   try {