diff --git a/.changeset/beige-queens-crash.md b/.changeset/beige-queens-crash.md
new file mode 100644
index 0000000000..7bc2e2da94
--- /dev/null
+++ b/.changeset/beige-queens-crash.md
@@ -0,0 +1,13 @@
+---
+'@backstage/create-app': patch
+---
+
+Optimized the `yarn install` step in the backend `Dockerfile`.
+
+To apply these changes to an existing app, make the following changes to `packages/backend/Dockerfile`:
+
+Replace the `RUN yarn install ...` line with the following:
+
+```bash
+RUN yarn install --frozen-lockfile --production --network-timeout 600000 && rm -rf "$(yarn cache dir)"
+```
diff --git a/packages/backend/Dockerfile b/packages/backend/Dockerfile
index 93929ceb86..165fd021ff 100644
--- a/packages/backend/Dockerfile
+++ b/packages/backend/Dockerfile
@@ -7,7 +7,7 @@ WORKDIR /usr/src/app
 # and along with yarn.lock and the root package.json, that's enough to run yarn install.
 ADD yarn.lock package.json skeleton.tar ./
 
-RUN yarn install --frozen-lockfile --production
+RUN yarn install --frozen-lockfile --production --network-timeout 600000 && rm -rf "$(yarn cache dir)"
 
 # This will copy the contents of the dist-workspace when running the build-image command.
 # Do not use this Dockerfile outside of that command, as it will copy in the source code instead.
diff --git a/packages/create-app/templates/default-app/packages/backend/Dockerfile b/packages/create-app/templates/default-app/packages/backend/Dockerfile
index 0fcd23f0e1..58f522adc9 100644
--- a/packages/create-app/templates/default-app/packages/backend/Dockerfile
+++ b/packages/create-app/templates/default-app/packages/backend/Dockerfile
@@ -7,7 +7,7 @@ WORKDIR /usr/src/app
 # and along with yarn.lock and the root package.json, that's enough to run yarn install.
 ADD yarn.lock package.json skeleton.tar ./
 
-RUN yarn install --frozen-lockfile --production
+RUN yarn install --frozen-lockfile --production --network-timeout 600000 && rm -rf "$(yarn cache dir)"
 
 # This will copy the contents of the dist-workspace when running the build-image command.
 # Do not use this Dockerfile outside of that command, as it will copy in the source code instead.