diff --git a/.changeset/thick-hotels-know.md b/.changeset/thick-hotels-know.md
new file mode 100644
index 0000000000..a2331b6df2
--- /dev/null
+++ b/.changeset/thick-hotels-know.md
@@ -0,0 +1,5 @@
+---
+'@backstage/plugin-scaffolder-backend': patch
+---
+
+Fix scaffolder action catalog:write to work in nested folders.
diff --git a/plugins/scaffolder-backend/src/scaffolder/actions/builtin/catalog/write.examples.test.ts b/plugins/scaffolder-backend/src/scaffolder/actions/builtin/catalog/write.examples.test.ts
index e6b4bcde47..f900e87a1d 100644
--- a/plugins/scaffolder-backend/src/scaffolder/actions/builtin/catalog/write.examples.test.ts
+++ b/plugins/scaffolder-backend/src/scaffolder/actions/builtin/catalog/write.examples.test.ts
@@ -55,8 +55,8 @@ describe('catalog:write', () => {
       input: yaml.parse(examples[0].example).steps[0].input,
     });
 
-    expect(fsMock.writeFile).toHaveBeenCalledTimes(1);
-    expect(fsMock.writeFile).toHaveBeenCalledWith(
+    expect(fsMock.outputFile).toHaveBeenCalledTimes(1);
+    expect(fsMock.outputFile).toHaveBeenCalledWith(
       resolvePath(mockContext.workspacePath, 'catalog-info.yaml'),
       yaml.stringify(entity),
     );
diff --git a/plugins/scaffolder-backend/src/scaffolder/actions/builtin/catalog/write.test.ts b/plugins/scaffolder-backend/src/scaffolder/actions/builtin/catalog/write.test.ts
index 658e4365bf..469b4d5c6d 100644
--- a/plugins/scaffolder-backend/src/scaffolder/actions/builtin/catalog/write.test.ts
+++ b/plugins/scaffolder-backend/src/scaffolder/actions/builtin/catalog/write.test.ts
@@ -59,8 +59,8 @@ describe('catalog:write', () => {
       },
     });
 
-    expect(fsMock.writeFile).toHaveBeenCalledTimes(1);
-    expect(fsMock.writeFile).toHaveBeenCalledWith(
+    expect(fsMock.outputFile).toHaveBeenCalledTimes(1);
+    expect(fsMock.outputFile).toHaveBeenCalledWith(
       resolvePath(mockContext.workspacePath, 'catalog-info.yaml'),
       yaml.stringify(entity),
     );
@@ -88,8 +88,8 @@ describe('catalog:write', () => {
       },
     });
 
-    expect(fsMock.writeFile).toHaveBeenCalledTimes(1);
-    expect(fsMock.writeFile).toHaveBeenCalledWith(
+    expect(fsMock.outputFile).toHaveBeenCalledTimes(1);
+    expect(fsMock.outputFile).toHaveBeenCalledWith(
       resolvePath(mockContext.workspacePath, 'some-dir/entity-info.yaml'),
       yaml.stringify(entity),
     );
@@ -118,8 +118,8 @@ describe('catalog:write', () => {
       'backstage.io/source-template': 'template:default/test-skeleton',
     };
 
-    expect(fsMock.writeFile).toHaveBeenCalledTimes(1);
-    expect(fsMock.writeFile).toHaveBeenCalledWith(
+    expect(fsMock.outputFile).toHaveBeenCalledTimes(1);
+    expect(fsMock.outputFile).toHaveBeenCalledWith(
       resolvePath(mockContext.workspacePath, 'catalog-info.yaml'),
       yaml.stringify(expectedEntity),
     );
diff --git a/plugins/scaffolder-backend/src/scaffolder/actions/builtin/catalog/write.ts b/plugins/scaffolder-backend/src/scaffolder/actions/builtin/catalog/write.ts
index a957adb71a..29ce6c986d 100644
--- a/plugins/scaffolder-backend/src/scaffolder/actions/builtin/catalog/write.ts
+++ b/plugins/scaffolder-backend/src/scaffolder/actions/builtin/catalog/write.ts
@@ -54,7 +54,7 @@ export function createCatalogWriteAction() {
       const path = filePath ?? 'catalog-info.yaml';
       ctx.logger.info(`Writing ${path}`);
 
-      await fs.writeFile(
+      await fs.outputFile(
         resolveSafeChildPath(ctx.workspacePath, path),
         yaml.stringify({
           ...entity,