diff --git a/.changeset/loose-bees-see.md b/.changeset/loose-bees-see.md
new file mode 100644
index 0000000000..35fd134816
--- /dev/null
+++ b/.changeset/loose-bees-see.md
@@ -0,0 +1,5 @@
+---
+'@backstage/create-app': patch
+---
+
+Added Notifications and Signals to be installed by default
diff --git a/docs/notifications/index.md b/docs/notifications/index.md
index c31d2716e4..59ff2962ed 100644
--- a/docs/notifications/index.md
+++ b/docs/notifications/index.md
@@ -33,6 +33,12 @@ Example of use-cases:
 
 ## Installation
 
+:::note
+
+As of the `1.42.0` release of Backstage, Notifications and Signals are installed as part of the default `@backstage/create-app` instance which means you won't need to follow the installations steps outlined here. The only exception to this is adding the [Notifications tab to User Settings](#user-specific-notification-settings) to allow managing these settings.
+
+:::
+
 The following sections will walk you through the installation of the various parts of the Backstage Notification System.
 
 ### Add Notifications Backend
@@ -173,6 +179,52 @@ notifications:
 
 If the retention is set to false, notifications will not be automatically deleted.
 
+## Scaffolder Action
+
+:::note
+
+As of the `1.42.0` release of Backstage, the Notifications Scaffolder action is installed as part of the default `@backstage/create-app` instance which means you won't need to follow the installations steps outlined here. Feel free to skip to the [Basic Example](#basic-example).
+
+:::
+
+There is also a Scaffolder action that you can use to send a notification as part of your Software Template.
+
+First we need to add the backend package:
+
+```bash title="From your Backstage root directory"
+yarn --cwd packages/backend add @backstage/plugin-scaffolder-backend-module-notifications
+```
+
+Then we need to add it to our backend:
+
+```ts title="packages/backend/src/index.ts"
+const backend = createBackend();
+// ...
+backend.add(
+  import('@backstage/plugin-scaffolder-backend-module-notifications'),
+);
+```
+
+### Basic Example
+
+Here's an example of how you can use it in your Software Template, more details and examples can be found in the "Installed actions" screen in your Backstage instances:
+
+```yaml title="template.yaml"
+steps:
+  - id: notify
+    name: Notify
+    action: notification:send
+    input:
+      recipients: entity
+      entityRefs:
+        - user:default/guest
+      title: 'Template executed'
+      info: 'Your template has been executed'
+      severity: 'normal'
+```
+
+The example above would send a notification to the Guest user (`user:default/guest`)
+
 ## Additional info
 
 An example of a backend plugin sending notifications can be found in the [`@backstage/plugin-scaffolder-backend-module-notifications` package](https://github.com/backstage/backstage/tree/master/plugins/scaffolder-backend-module-notifications).
diff --git a/packages/create-app/src/lib/tasks.test.ts b/packages/create-app/src/lib/tasks.test.ts
index c5d5092410..86a7008b4d 100644
--- a/packages/create-app/src/lib/tasks.test.ts
+++ b/packages/create-app/src/lib/tasks.test.ts
@@ -89,12 +89,17 @@ jest.mock('./versions', () => ({
     '@backstage/plugin-catalog-react': '1.0.0',
     '@backstage/plugin-kubernetes': '1.0.0',
     '@backstage/plugin-kubernetes-backend': '1.0.0',
+    '@backstage/plugin-notifications': '1.0.0',
+    '@backstage/plugin-notifications-backend': '1.0.0',
     '@backstage/plugin-org': '1.0.0',
     '@backstage/plugin-scaffolder': '1.0.0',
     '@backstage/plugin-scaffolder-backend-module-github': '1.0.0',
+    '@backstage/plugin-scaffolder-backend-module-notifications': '1.0.0',
     '@backstage/plugin-permission-react': '1.0.0',
     '@backstage/plugin-search': '1.0.0',
     '@backstage/plugin-search-react': '1.0.0',
+    '@backstage/plugin-signals': '1.0.0',
+    '@backstage/plugin-signals-backend': '1.0.0',
     '@backstage/plugin-techdocs': '1.0.0',
     '@backstage/plugin-techdocs-react': '1.0.0',
     '@backstage/plugin-techdocs-module-addons-contrib': '1.0.0',
diff --git a/packages/create-app/src/lib/versions.ts b/packages/create-app/src/lib/versions.ts
index bd0ea7eb41..6785fb9b52 100644
--- a/packages/create-app/src/lib/versions.ts
+++ b/packages/create-app/src/lib/versions.ts
@@ -68,6 +68,8 @@ import { version as pluginCatalogGraph } from '../../../../plugins/catalog-graph
 import { version as pluginCatalogImport } from '../../../../plugins/catalog-import/package.json';
 import { version as pluginKubernetes } from '../../../../plugins/kubernetes/package.json';
 import { version as pluginKubernetesBackend } from '../../../../plugins/kubernetes-backend/package.json';
+import { version as pluginNotifications } from '../../../../plugins/notifications/package.json';
+import { version as pluginNotificationsBackend } from '../../../../plugins/notifications-backend/package.json';
 import { version as pluginOrg } from '../../../../plugins/org/package.json';
 import { version as pluginPermissionBackend } from '../../../../plugins/permission-backend/package.json';
 import { version as pluginPermissionBackendModulePolicyAllowAll } from '../../../../plugins/permission-backend-module-policy-allow-all/package.json';
@@ -78,6 +80,7 @@ import { version as pluginProxyBackend } from '../../../../plugins/proxy-backend
 import { version as pluginScaffolder } from '../../../../plugins/scaffolder/package.json';
 import { version as pluginScaffolderBackend } from '../../../../plugins/scaffolder-backend/package.json';
 import { version as pluginScaffolderBackendModuleGithub } from '../../../../plugins/scaffolder-backend-module-github/package.json';
+import { version as pluginScaffolderBackendModuleNotifications } from '../../../../plugins/scaffolder-backend-module-notifications/package.json';
 import { version as pluginSearch } from '../../../../plugins/search/package.json';
 import { version as pluginSearchReact } from '../../../../plugins/search-react/package.json';
 import { version as pluginSearchBackend } from '../../../../plugins/search-backend/package.json';
@@ -85,6 +88,8 @@ import { version as pluginSearchBackendModuleCatalog } from '../../../../plugins
 import { version as pluginSearchBackendModulePg } from '../../../../plugins/search-backend-module-pg/package.json';
 import { version as pluginSearchBackendModuleTechdocs } from '../../../../plugins/search-backend-module-techdocs/package.json';
 import { version as pluginSearchBackendNode } from '../../../../plugins/search-backend-node/package.json';
+import { version as pluginSignals } from '../../../../plugins/signals/package.json';
+import { version as pluginSignalsBackend } from '../../../../plugins/signals-backend/package.json';
 import { version as pluginTechdocs } from '../../../../plugins/techdocs/package.json';
 import { version as pluginTechdocsReact } from '../../../../plugins/techdocs-react/package.json';
 import { version as pluginTechdocsModuleAddonsContrib } from '../../../../plugins/techdocs-module-addons-contrib/package.json';
@@ -130,6 +135,8 @@ export const packageVersions = {
   '@backstage/plugin-catalog-import': pluginCatalogImport,
   '@backstage/plugin-kubernetes': pluginKubernetes,
   '@backstage/plugin-kubernetes-backend': pluginKubernetesBackend,
+  '@backstage/plugin-notifications': pluginNotifications,
+  '@backstage/plugin-notifications-backend': pluginNotificationsBackend,
   '@backstage/plugin-org': pluginOrg,
   '@backstage/plugin-permission-backend': pluginPermissionBackend,
   '@backstage/plugin-permission-backend-module-allow-all-policy':
@@ -142,6 +149,8 @@ export const packageVersions = {
   '@backstage/plugin-scaffolder-backend': pluginScaffolderBackend,
   '@backstage/plugin-scaffolder-backend-module-github':
     pluginScaffolderBackendModuleGithub,
+  '@backstage/plugin-scaffolder-backend-module-notifications':
+    pluginScaffolderBackendModuleNotifications,
   '@backstage/plugin-search': pluginSearch,
   '@backstage/plugin-search-react': pluginSearchReact,
   '@backstage/plugin-search-backend': pluginSearchBackend,
@@ -151,6 +160,8 @@ export const packageVersions = {
   '@backstage/plugin-search-backend-module-techdocs':
     pluginSearchBackendModuleTechdocs,
   '@backstage/plugin-search-backend-node': pluginSearchBackendNode,
+  '@backstage/plugin-signals': pluginSignals,
+  '@backstage/plugin-signals-backend': pluginSignalsBackend,
   '@backstage/plugin-techdocs': pluginTechdocs,
   '@backstage/plugin-techdocs-react': pluginTechdocsReact,
   '@backstage/plugin-techdocs-module-addons-contrib':
diff --git a/packages/create-app/templates/default-app/examples/template/template.yaml b/packages/create-app/templates/default-app/examples/template/template.yaml
index f04c3241c5..efb33be866 100644
--- a/packages/create-app/templates/default-app/examples/template/template.yaml
+++ b/packages/create-app/templates/default-app/examples/template/template.yaml
@@ -66,6 +66,18 @@ spec:
         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
+      action: notification:send
+      input:
+        recipients: entity
+        entityRefs:
+          - user:default/guest
+        title: 'Template executed'
+        info: 'Your template has been executed'
+        severity: 'normal'
+
   # Outputs are displayed to the user after a successful execution of the template.
   output:
     links:
diff --git a/packages/create-app/templates/default-app/packages/app/package.json.hbs b/packages/create-app/templates/default-app/packages/app/package.json.hbs
index b7d16f8a84..5152113098 100644
--- a/packages/create-app/templates/default-app/packages/app/package.json.hbs
+++ b/packages/create-app/templates/default-app/packages/app/package.json.hbs
@@ -28,11 +28,13 @@
     "@backstage/plugin-catalog-import": "^{{version '@backstage/plugin-catalog-import'}}",
     "@backstage/plugin-catalog-react": "^{{version '@backstage/plugin-catalog-react'}}",
     "@backstage/plugin-kubernetes": "^{{version '@backstage/plugin-kubernetes'}}",
+    "@backstage/plugin-notifications": "^{{ version '@backstage/plugin-notifications'}}",
     "@backstage/plugin-org": "^{{version '@backstage/plugin-org'}}",
     "@backstage/plugin-permission-react": "^{{version '@backstage/plugin-permission-react'}}",
     "@backstage/plugin-scaffolder": "^{{version '@backstage/plugin-scaffolder'}}",
     "@backstage/plugin-search": "^{{version '@backstage/plugin-search'}}",
     "@backstage/plugin-search-react": "^{{version '@backstage/plugin-search-react'}}",
+    "@backstage/plugin-signals": "^{{ version '@backstage/plugin-signals'}}",
     "@backstage/plugin-techdocs": "^{{version '@backstage/plugin-techdocs'}}",
     "@backstage/plugin-techdocs-module-addons-contrib": "^{{version '@backstage/plugin-techdocs-module-addons-contrib'}}",
     "@backstage/plugin-techdocs-react": "^{{version '@backstage/plugin-techdocs-react'}}",
diff --git a/packages/create-app/templates/default-app/packages/app/src/App.tsx b/packages/create-app/templates/default-app/packages/app/src/App.tsx
index 89b199c8d3..bb9c98eff8 100644
--- a/packages/create-app/templates/default-app/packages/app/src/App.tsx
+++ b/packages/create-app/templates/default-app/packages/app/src/App.tsx
@@ -35,6 +35,8 @@ import { AppRouter, FlatRoutes } from '@backstage/core-app-api';
 import { CatalogGraphPage } from '@backstage/plugin-catalog-graph';
 import { RequirePermission } from '@backstage/plugin-permission-react';
 import { catalogEntityCreatePermission } from '@backstage/plugin-catalog-common/alpha';
+import { NotificationsPage } from '@backstage/plugin-notifications';
+import { SignalsDisplay } from '@backstage/plugin-signals';
 
 const app = createApp({
   apis,
@@ -94,6 +96,7 @@ const routes = (
     </Route>
     <Route path="/settings" element={<UserSettingsPage />} />
     <Route path="/catalog-graph" element={<CatalogGraphPage />} />
+    <Route path="/notifications" element={<NotificationsPage />} />
   </FlatRoutes>
 );
 
@@ -101,6 +104,7 @@ export default app.createRoot(
   <>
     <AlertDisplay />
     <OAuthRequestDialog />
+    <SignalsDisplay />
     <AppRouter>
       <Root>{routes}</Root>
     </AppRouter>
diff --git a/packages/create-app/templates/default-app/packages/app/src/components/Root/Root.tsx b/packages/create-app/templates/default-app/packages/app/src/components/Root/Root.tsx
index 31fc08db7f..4163f34ede 100644
--- a/packages/create-app/templates/default-app/packages/app/src/components/Root/Root.tsx
+++ b/packages/create-app/templates/default-app/packages/app/src/components/Root/Root.tsx
@@ -27,6 +27,7 @@ import MenuIcon from '@material-ui/icons/Menu';
 import SearchIcon from '@material-ui/icons/Search';
 import { MyGroupsSidebarItem } from '@backstage/plugin-org';
 import GroupIcon from '@material-ui/icons/People';
+import { NotificationsSidebarItem } from '@backstage/plugin-notifications';
 
 const useSidebarLogoStyles = makeStyles({
   root: {
@@ -83,6 +84,8 @@ export const Root = ({ children }: PropsWithChildren<{}>) => (
       </SidebarGroup>
       <SidebarSpace />
       <SidebarDivider />
+      <NotificationsSidebarItem />
+      <SidebarDivider />
       <SidebarGroup
         label="Settings"
         icon={<UserSettingsSignInAvatar />}
diff --git a/packages/create-app/templates/default-app/packages/backend/package.json.hbs b/packages/create-app/templates/default-app/packages/backend/package.json.hbs
index 8949a2ed0d..518683ffd7 100644
--- a/packages/create-app/templates/default-app/packages/backend/package.json.hbs
+++ b/packages/create-app/templates/default-app/packages/backend/package.json.hbs
@@ -27,6 +27,7 @@
     "@backstage/plugin-catalog-backend-module-logs": "^{{version '@backstage/plugin-catalog-backend-module-logs'}}",
     "@backstage/plugin-catalog-backend-module-scaffolder-entity-model": "^{{version '@backstage/plugin-catalog-backend-module-scaffolder-entity-model'}}",
     "@backstage/plugin-kubernetes-backend": "^{{version '@backstage/plugin-kubernetes-backend'}}",
+    "@backstage/plugin-notifications-backend": "^{{version '@backstage/plugin-notifications-backend'}}",
     "@backstage/plugin-permission-backend": "^{{version '@backstage/plugin-permission-backend'}}",
     "@backstage/plugin-permission-backend-module-allow-all-policy": "^{{version '@backstage/plugin-permission-backend-module-allow-all-policy'}}",
     "@backstage/plugin-permission-common": "^{{version '@backstage/plugin-permission-common'}}",
@@ -34,11 +35,13 @@
     "@backstage/plugin-proxy-backend": "^{{version '@backstage/plugin-proxy-backend'}}",
     "@backstage/plugin-scaffolder-backend": "^{{version '@backstage/plugin-scaffolder-backend'}}",
     "@backstage/plugin-scaffolder-backend-module-github": "^{{version '@backstage/plugin-scaffolder-backend-module-github'}}",
+    "@backstage/plugin-scaffolder-backend-module-notifications": "^{{version '@backstage/plugin-scaffolder-backend-module-notifications'}}",
     "@backstage/plugin-search-backend": "^{{version '@backstage/plugin-search-backend'}}",
     "@backstage/plugin-search-backend-module-catalog": "^{{version '@backstage/plugin-search-backend-module-catalog'}}",
     "@backstage/plugin-search-backend-module-pg": "^{{version '@backstage/plugin-search-backend-module-pg'}}",
     "@backstage/plugin-search-backend-module-techdocs": "^{{version '@backstage/plugin-search-backend-module-techdocs'}}",
     "@backstage/plugin-search-backend-node": "^{{version '@backstage/plugin-search-backend-node'}}",
+    "@backstage/plugin-signals-backend": "^{{version '@backstage/plugin-signals-backend'}}",
     "@backstage/plugin-techdocs-backend": "^{{version '@backstage/plugin-techdocs-backend'}}",
     "app": "link:../app",
     "better-sqlite3": "^12.0.0",
diff --git a/packages/create-app/templates/default-app/packages/backend/src/index.ts b/packages/create-app/templates/default-app/packages/backend/src/index.ts
index 6d0a6f4ca5..8cb615b1fd 100644
--- a/packages/create-app/templates/default-app/packages/backend/src/index.ts
+++ b/packages/create-app/templates/default-app/packages/backend/src/index.ts
@@ -12,8 +12,13 @@ const backend = createBackend();
 
 backend.add(import('@backstage/plugin-app-backend'));
 backend.add(import('@backstage/plugin-proxy-backend'));
+
+// scaffolder plugin
 backend.add(import('@backstage/plugin-scaffolder-backend'));
 backend.add(import('@backstage/plugin-scaffolder-backend-module-github'));
+backend.add(import('@backstage/plugin-scaffolder-backend-module-notifications'));
+
+// techdocs plugin
 backend.add(import('@backstage/plugin-techdocs-backend'));
 
 // auth plugin
@@ -49,7 +54,11 @@ backend.add(import('@backstage/plugin-search-backend-module-pg'));
 backend.add(import('@backstage/plugin-search-backend-module-catalog'));
 backend.add(import('@backstage/plugin-search-backend-module-techdocs'));
 
-// kubernetes
+// kubernetes plugin
 backend.add(import('@backstage/plugin-kubernetes-backend'));
 
+// notifications and signals plugins
+backend.add(import('@backstage/plugin-notifications-backend'));
+backend.add(import('@backstage/plugin-signals-backend'));
+
 backend.start();
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 f04c3241c5..2a20bd45ed 100644
--- a/packages/create-app/templates/next-app/examples/template/template.yaml
+++ b/packages/create-app/templates/next-app/examples/template/template.yaml
@@ -65,6 +65,18 @@ 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
+      action: notification:send
+      input:
+        recipients: entity
+        entityRefs:
+          - user:default/guest
+        title: 'Template executed'
+        info: 'Your template has been executed'
+        severity: 'normal'
 
   # Outputs are displayed to the user after a successful execution of the template.
   output:
diff --git a/packages/create-app/templates/next-app/packages/app/package.json.hbs b/packages/create-app/templates/next-app/packages/app/package.json.hbs
index 51a8956263..eb214e4ad1 100644
--- a/packages/create-app/templates/next-app/packages/app/package.json.hbs
+++ b/packages/create-app/templates/next-app/packages/app/package.json.hbs
@@ -19,9 +19,11 @@
     "@backstage/frontend-defaults": "^{{ version '@backstage/frontend-defaults'}}",
     "@backstage/frontend-plugin-api": "^{{ version '@backstage/frontend-plugin-api'}}",
     "@backstage/plugin-catalog": "^{{ version '@backstage/plugin-catalog'}}",
+    "@backstage/plugin-notifications": "^{{ version '@backstage/plugin-notifications'}}",
     "@backstage/plugin-org": "^{{ version '@backstage/plugin-org'}}",
     "@backstage/plugin-scaffolder": "^{{ version '@backstage/plugin-scaffolder'}}",
     "@backstage/plugin-search": "^{{ version '@backstage/plugin-search'}}",
+    "@backstage/plugin-signals": "^{{ version '@backstage/plugin-signals'}}",
     "@backstage/plugin-user-settings": "^{{ version '@backstage/plugin-user-settings'}}",
     "@backstage/ui": "^{{ version '@backstage/ui'}}",
     "@material-ui/core": "^4.12.2",
diff --git a/packages/create-app/templates/next-app/packages/backend/package.json.hbs b/packages/create-app/templates/next-app/packages/backend/package.json.hbs
index 42afefd3b8..483c0b7a4e 100644
--- a/packages/create-app/templates/next-app/packages/backend/package.json.hbs
+++ b/packages/create-app/templates/next-app/packages/backend/package.json.hbs
@@ -27,6 +27,7 @@
     "@backstage/plugin-catalog-backend-module-logs": "^{{version '@backstage/plugin-catalog-backend-module-logs'}}",
     "@backstage/plugin-catalog-backend-module-scaffolder-entity-model": "^{{version '@backstage/plugin-catalog-backend-module-scaffolder-entity-model'}}",
     "@backstage/plugin-kubernetes-backend": "^{{version '@backstage/plugin-kubernetes-backend'}}",
+    "@backstage/plugin-notifications-backend": "^{{version '@backstage/plugin-notifications-backend'}}",
     "@backstage/plugin-permission-backend": "^{{version '@backstage/plugin-permission-backend'}}",
     "@backstage/plugin-permission-backend-module-allow-all-policy": "^{{version '@backstage/plugin-permission-backend-module-allow-all-policy'}}",
     "@backstage/plugin-permission-common": "^{{version '@backstage/plugin-permission-common'}}",
@@ -34,11 +35,13 @@
     "@backstage/plugin-proxy-backend": "^{{version '@backstage/plugin-proxy-backend'}}",
     "@backstage/plugin-scaffolder-backend": "^{{version '@backstage/plugin-scaffolder-backend'}}",
     "@backstage/plugin-scaffolder-backend-module-github": "^{{version '@backstage/plugin-scaffolder-backend-module-github'}}",
+    "@backstage/plugin-scaffolder-backend-module-notifications": "^{{version '@backstage/plugin-scaffolder-backend-module-notifications'}}",
     "@backstage/plugin-search-backend": "^{{version '@backstage/plugin-search-backend'}}",
     "@backstage/plugin-search-backend-module-catalog": "^{{version '@backstage/plugin-search-backend-module-catalog'}}",
     "@backstage/plugin-search-backend-module-pg": "^{{version '@backstage/plugin-search-backend-module-pg'}}",
     "@backstage/plugin-search-backend-module-techdocs": "^{{version '@backstage/plugin-search-backend-module-techdocs'}}",
     "@backstage/plugin-search-backend-node": "^{{version '@backstage/plugin-search-backend-node'}}",
+    "@backstage/plugin-signals-backend": "^{{version '@backstage/plugin-signals-backend'}}",
     "@backstage/plugin-techdocs-backend": "^{{version '@backstage/plugin-techdocs-backend'}}",
     "app": "link:../app",
     "better-sqlite3": "^9.0.0",
diff --git a/packages/create-app/templates/next-app/packages/backend/src/index.ts b/packages/create-app/templates/next-app/packages/backend/src/index.ts
index 6d0a6f4ca5..8cb615b1fd 100644
--- a/packages/create-app/templates/next-app/packages/backend/src/index.ts
+++ b/packages/create-app/templates/next-app/packages/backend/src/index.ts
@@ -12,8 +12,13 @@ const backend = createBackend();
 
 backend.add(import('@backstage/plugin-app-backend'));
 backend.add(import('@backstage/plugin-proxy-backend'));
+
+// scaffolder plugin
 backend.add(import('@backstage/plugin-scaffolder-backend'));
 backend.add(import('@backstage/plugin-scaffolder-backend-module-github'));
+backend.add(import('@backstage/plugin-scaffolder-backend-module-notifications'));
+
+// techdocs plugin
 backend.add(import('@backstage/plugin-techdocs-backend'));
 
 // auth plugin
@@ -49,7 +54,11 @@ backend.add(import('@backstage/plugin-search-backend-module-pg'));
 backend.add(import('@backstage/plugin-search-backend-module-catalog'));
 backend.add(import('@backstage/plugin-search-backend-module-techdocs'));
 
-// kubernetes
+// kubernetes plugin
 backend.add(import('@backstage/plugin-kubernetes-backend'));
 
+// notifications and signals plugins
+backend.add(import('@backstage/plugin-notifications-backend'));
+backend.add(import('@backstage/plugin-signals-backend'));
+
 backend.start();