diff --git a/packages/core-components/api-report.md b/packages/core-components/api-report.md
index f11cb6f3cc..0c2f009092 100644
--- a/packages/core-components/api-report.md
+++ b/packages/core-components/api-report.md
@@ -1990,6 +1990,7 @@ export type SidebarSubItemDropDownItem = {
 // @public
 export const SidebarSubmenu: ({
   title,
+  backgroundColor,
   children,
 }: PropsWithChildren<SidebarSubmenuProps>) => JSX.Element;
 
@@ -2009,6 +2010,7 @@ export type SidebarSubmenuItemProps = {
 // @public
 export type SidebarSubmenuProps = {
   title?: string;
+  backgroundColor?: string;
   children: ReactNode;
 };
 
diff --git a/packages/core-components/src/layout/Sidebar/Items.tsx b/packages/core-components/src/layout/Sidebar/Items.tsx
index 544d7010fe..f4e2124ab6 100644
--- a/packages/core-components/src/layout/Sidebar/Items.tsx
+++ b/packages/core-components/src/layout/Sidebar/Items.tsx
@@ -61,112 +61,114 @@ export type SidebarItemClassKey =
   | 'secondaryAction'
   | 'selected';
 
-const useStyles = makeStyles<BackstageTheme>(
-  theme => {
-    const {
-      selectedIndicatorWidth,
-      drawerWidthClosed,
-      drawerWidthOpen,
-      iconContainerWidth,
-    } = sidebarConfig;
-    return {
-      root: {
-        color: theme.palette.navigation.color,
-        display: 'flex',
-        flexFlow: 'row nowrap',
-        alignItems: 'center',
-        height: 48,
-        cursor: 'pointer',
-      },
-      buttonItem: {
-        background: 'none',
-        border: 'none',
-        width: 'auto',
-        margin: 0,
-        padding: 0,
-        textAlign: 'inherit',
-        font: 'inherit',
-      },
-      closed: {
-        width: drawerWidthClosed,
-        justifyContent: 'center',
-      },
-      open: {
-        width: drawerWidthOpen,
-      },
-      highlightable: {
-        '&:hover': {
-          background: theme.palette.navigation.navItem.hoverBackground,
+const useStyles = (props: { hoverBackgroundColor?: string }) =>
+  makeStyles<BackstageTheme>(
+    theme => {
+      const {
+        selectedIndicatorWidth,
+        drawerWidthClosed,
+        drawerWidthOpen,
+        iconContainerWidth,
+      } = sidebarConfig;
+      return {
+        root: {
+          color: theme.palette.navigation.color,
+          display: 'flex',
+          flexFlow: 'row nowrap',
+          alignItems: 'center',
+          height: 48,
+          cursor: 'pointer',
         },
-      },
-      highlighted: {
-        background: theme.palette.navigation.navItem.hoverBackground,
-      },
-      label: {
-        // XXX (@koroeskohr): I can't seem to achieve the desired font-weight from the designs
-        fontWeight: 'bold',
-        whiteSpace: 'nowrap',
-        lineHeight: 'auto',
-        flex: '3 1 auto',
-        width: '110px',
-        overflow: 'hidden',
-        'text-overflow': 'ellipsis',
-      },
-      iconContainer: {
-        boxSizing: 'border-box',
-        height: '100%',
-        width: iconContainerWidth,
-        marginRight: -theme.spacing(2),
-        display: 'flex',
-        alignItems: 'center',
-        justifyContent: 'center',
-      },
-      searchRoot: {
-        marginBottom: 12,
-      },
-      searchField: {
-        color: '#b5b5b5',
-        fontWeight: 'bold',
-        fontSize: theme.typography.fontSize,
-      },
-      searchFieldHTMLInput: {
-        padding: `${theme.spacing(2)} 0 ${theme.spacing(2)}`,
-      },
-      searchContainer: {
-        width: drawerWidthOpen - iconContainerWidth,
-      },
-      secondaryAction: {
-        width: theme.spacing(6),
-        textAlign: 'center',
-        marginRight: theme.spacing(1),
-      },
-      closedItemIcon: {
-        width: '100%',
-        justifyContent: 'center',
-      },
-      submenuArrow: {
-        position: 'absolute',
-        right: 0,
-      },
-      selected: {
-        '&$root': {
-          borderLeft: `solid ${selectedIndicatorWidth}px ${theme.palette.navigation.indicator}`,
-          color: theme.palette.navigation.selectedColor,
+        buttonItem: {
+          background: 'none',
+          border: 'none',
+          width: 'auto',
+          margin: 0,
+          padding: 0,
+          textAlign: 'inherit',
+          font: 'inherit',
         },
-        '&$closed': {
+        closed: {
           width: drawerWidthClosed,
+          justifyContent: 'center',
         },
-        '& $closedItemIcon': {
-          paddingRight: selectedIndicatorWidth,
+        open: {
+          width: drawerWidthOpen,
         },
-        '& $iconContainer': {
-          marginLeft: -selectedIndicatorWidth,
+        highlightable: {
+          '&:hover': {
+            // Ideally this would be added to the pallette but would cause a breaking change
+            background: props.hoverBackgroundColor || '#404040',
+          },
         },
-      },
-    };
-  },
-  { name: 'BackstageSidebarItem' },
-);
+        highlighted: {
+          background: props.hoverBackgroundColor || '#404040',
+        },
+        label: {
+          // XXX (@koroeskohr): I can't seem to achieve the desired font-weight from the designs
+          fontWeight: 'bold',
+          whiteSpace: 'nowrap',
+          lineHeight: 'auto',
+          flex: '3 1 auto',
+          width: '110px',
+          overflow: 'hidden',
+          'text-overflow': 'ellipsis',
+        },
+        iconContainer: {
+          boxSizing: 'border-box',
+          height: '100%',
+          width: iconContainerWidth,
+          marginRight: -theme.spacing(2),
+          display: 'flex',
+          alignItems: 'center',
+          justifyContent: 'center',
+        },
+        searchRoot: {
+          marginBottom: 12,
+        },
+        searchField: {
+          color: '#b5b5b5',
+          fontWeight: 'bold',
+          fontSize: theme.typography.fontSize,
+        },
+        searchFieldHTMLInput: {
+          padding: `${theme.spacing(2)} 0 ${theme.spacing(2)}`,
+        },
+        searchContainer: {
+          width: drawerWidthOpen - iconContainerWidth,
+        },
+        secondaryAction: {
+          width: theme.spacing(6),
+          textAlign: 'center',
+          marginRight: theme.spacing(1),
+        },
+        closedItemIcon: {
+          width: '100%',
+          justifyContent: 'center',
+        },
+        submenuArrow: {
+          position: 'absolute',
+          right: 0,
+        },
+        selected: {
+          '&$root': {
+            borderLeft: `solid ${selectedIndicatorWidth}px ${theme.palette.navigation.indicator}`,
+            color: theme.palette.navigation.selectedColor,
+          },
+          '&$closed': {
+            width: drawerWidthClosed,
+          },
+          '& $closedItemIcon': {
+            paddingRight: selectedIndicatorWidth,
+          },
+          '& $iconContainer': {
+            marginLeft: -selectedIndicatorWidth,
+          },
+        },
+      };
+    },
+    { name: 'BackstageSidebarItem' },
+  );
 
 function isItemWithSubmenuActive(submenu: ReactNode, locationPathname: string) {
   // Item is active if any of submenu items have active paths
@@ -197,10 +199,11 @@ function isItemWithSubmenuActive(submenu: ReactNode, locationPathname: string) {
 const ItemWithSubmenu = ({
   text,
   hasNotifications = false,
+  hoverBackgroundColor,
   icon: Icon,
   children,
 }: PropsWithChildren<ItemWithSubmenuProps>) => {
-  const classes = useStyles();
+  const classes = useStyles({ hoverBackgroundColor })();
   const [isHoveredOn, setIsHoveredOn] = useState(false);
   const { pathname: locationPathname } = useLocation();
   const isActive = isItemWithSubmenuActive(children, locationPathname);
@@ -277,6 +280,7 @@ type SidebarItemBaseProps = {
   text?: string;
   hasNotifications?: boolean;
   disableHighlight?: boolean;
+  hoverBackgroundColor?: string;
   className?: string;
 };
 
@@ -366,12 +370,13 @@ export const SidebarItem = forwardRef<any, SidebarItemProps>((props, ref) => {
     text,
     hasNotifications = false,
     disableHighlight = false,
+    hoverBackgroundColor,
     onClick,
     children,
     className,
     ...navLinkProps
   } = props;
-  const classes = useStyles();
+  const classes = useStyles({ hoverBackgroundColor })();
   // XXX (@koroeskohr): unsure this is optimal. But I just really didn't want to have the item component
   // depend on the current location, and at least have it being optionally forced to selected.
   // Still waiting on a Q answered to fine tune the implementation
@@ -449,6 +454,7 @@ export const SidebarItem = forwardRef<any, SidebarItemProps>((props, ref) => {
         text={text}
         icon={Icon}
         hasNotifications={hasNotifications}
+        hoverBackgroundColor={hoverBackgroundColor}
       >
         {submenu}
       </ItemWithSubmenu>
@@ -485,7 +491,7 @@ type SidebarSearchFieldProps = {
 
 export function SidebarSearchField(props: SidebarSearchFieldProps) {
   const [input, setInput] = useState('');
-  const classes = useStyles();
+  const classes = useStyles({})();
   const Icon = props.icon ? props.icon : SearchIcon;
 
   const search = () => {
diff --git a/packages/core-components/src/layout/Sidebar/SidebarSubmenu.tsx b/packages/core-components/src/layout/Sidebar/SidebarSubmenu.tsx
index 9b8b9ca145..a53bf2328d 100644
--- a/packages/core-components/src/layout/Sidebar/SidebarSubmenu.tsx
+++ b/packages/core-components/src/layout/Sidebar/SidebarSubmenu.tsx
@@ -25,7 +25,7 @@ import {
 } from './config';
 import { BackstageTheme } from '@backstage/theme';
 
-const useStyles = (props: { left: number }) =>
+const useStyles = (props: { left: number; backgroundColor?: string }) =>
   makeStyles<BackstageTheme>(theme => ({
     root: {
       zIndex: 1000,
@@ -42,7 +42,7 @@ const useStyles = (props: { left: number }) =>
       top: 0,
       bottom: 0,
       padding: 0,
-      background: theme.palette.navigation.submenu.background,
+      background: props.backgroundColor || '#404040',
       overflowX: 'hidden',
       msOverflowStyle: 'none',
       scrollbarWidth: 'none',
@@ -75,6 +75,7 @@ const useStyles = (props: { left: number }) =>
  */
 export type SidebarSubmenuProps = {
   title?: string;
+  backgroundColor?: string;
   children: ReactNode;
 };
 
@@ -85,13 +86,14 @@ export type SidebarSubmenuProps = {
  */
 export const SidebarSubmenu = ({
   title,
+  backgroundColor,
   children,
 }: PropsWithChildren<SidebarSubmenuProps>) => {
   const { isOpen } = useContext(SidebarContext);
   const left = isOpen
     ? sidebarConfig.drawerWidthOpen
     : sidebarConfig.drawerWidthClosed;
-  const props = { left: left };
+  const props = { left, backgroundColor };
   const classes = useStyles(props)();
 
   const { isHoveredOn } = useContext(ItemWithSubmenuContext);
diff --git a/packages/theme/api-report.md b/packages/theme/api-report.md
index 4331278e60..2dc6ab7b55 100644
--- a/packages/theme/api-report.md
+++ b/packages/theme/api-report.md
@@ -41,12 +41,6 @@ export type BackstagePaletteAdditions = {
     indicator: string;
     color: string;
     selectedColor: string;
-    navItem: {
-      hoverBackground: string;
-    };
-    submenu: {
-      background: string;
-    };
   };
   tabbar: {
     indicator: string;
diff --git a/packages/theme/src/themes.ts b/packages/theme/src/themes.ts
index b048c70fec..7e99ce8e8a 100644
--- a/packages/theme/src/themes.ts
+++ b/packages/theme/src/themes.ts
@@ -76,12 +76,6 @@ export const lightTheme = createTheme({
       indicator: '#9BF0E1',
       color: '#b5b5b5',
       selectedColor: '#FFF',
-      navItem: {
-        hoverBackground: '#404040',
-      },
-      submenu: {
-        background: '#404040',
-      },
     },
     pinSidebarButton: {
       icon: '#181818',
@@ -157,12 +151,6 @@ export const darkTheme = createTheme({
       indicator: '#9BF0E1',
       color: '#b5b5b5',
       selectedColor: '#FFF',
-      navItem: {
-        hoverBackground: '#404040',
-      },
-      submenu: {
-        background: '#404040',
-      },
     },
     pinSidebarButton: {
       icon: '#404040',
diff --git a/packages/theme/src/types.ts b/packages/theme/src/types.ts
index 44d9165417..e1acba3a01 100644
--- a/packages/theme/src/types.ts
+++ b/packages/theme/src/types.ts
@@ -53,12 +53,6 @@ export type BackstagePaletteAdditions = {
     indicator: string;
     color: string;
     selectedColor: string;
-    navItem: {
-      hoverBackground: string;
-    };
-    submenu: {
-      background: string;
-    };
   };
   tabbar: {
     indicator: string;