diff --git a/.changeset/funny-dolls-draw.md b/.changeset/funny-dolls-draw.md
new file mode 100644
index 0000000000..f194b30750
--- /dev/null
+++ b/.changeset/funny-dolls-draw.md
@@ -0,0 +1,19 @@
+---
+'@backstage/create-app': patch
+---
+
+The scaffolder plugin has just released the beta 3 version of software templates, which replaces the handlebars templating syntax. As part of this change, the template entity schema is no longer included in the core catalog-model as with previous versions. The decoupling of the template entities version will allow us to more easily make updates in the future.
+
+In order to use the new beta 3 templates, the following changes are **required** for any existing installation, inside `packages/backend/src/plugins/catalog.ts`:
+
+```diff
++import { ScaffolderEntitiesProcessor } from '@backstage/plugin-scaffolder-backend';
+
+...
+
+   const builder = await CatalogBuilder.create(env);
++  builder.addProcessor(new ScaffolderEntitiesProcessor());
+   const { processingEngine, router } = await builder.build();
+```
+
+If you're interested in learning more about creating custom kinds, please check out the [extending the model](https://backstage.io/docs/features/software-catalog/extending-the-model) documentation.
diff --git a/packages/backend/src/plugins/catalog.ts b/packages/backend/src/plugins/catalog.ts
index 6a903d0df8..7beeb4f35e 100644
--- a/packages/backend/src/plugins/catalog.ts
+++ b/packages/backend/src/plugins/catalog.ts
@@ -15,6 +15,7 @@
  */
 
 import { CatalogBuilder } from '@backstage/plugin-catalog-backend';
+import { ScaffolderEntitiesProcessor } from '@backstage/plugin-scaffolder-backend';
 import { Router } from 'express';
 import { PluginEnvironment } from '../types';
 
@@ -22,6 +23,7 @@ export default async function createPlugin(
   env: PluginEnvironment,
 ): Promise<Router> {
   const builder = await CatalogBuilder.create(env);
+  builder.addProcessor(new ScaffolderEntitiesProcessor());
   const { processingEngine, router } = await builder.build();
   await processingEngine.start();
   return router;
diff --git a/packages/create-app/templates/default-app/packages/backend/src/plugins/catalog.ts b/packages/create-app/templates/default-app/packages/backend/src/plugins/catalog.ts
index d1ded511da..876cb6bccc 100644
--- a/packages/create-app/templates/default-app/packages/backend/src/plugins/catalog.ts
+++ b/packages/create-app/templates/default-app/packages/backend/src/plugins/catalog.ts
@@ -1,4 +1,5 @@
 import { CatalogBuilder } from '@backstage/plugin-catalog-backend';
+import { ScaffolderEntitiesProcessor } from '@backstage/plugin-scaffolder-backend';
 import { Router } from 'express';
 import { PluginEnvironment } from '../types';
 
@@ -6,6 +7,7 @@ export default async function createPlugin(
   env: PluginEnvironment,
 ): Promise<Router> {
   const builder = await CatalogBuilder.create(env);
+  builder.addProcessor(new ScaffolderEntitiesProcessor());
   const { processingEngine, router } = await builder.build();
   await processingEngine.start();
   return router;