diff --git a/packages/cli/package.json b/packages/cli/package.json
index 6af8fd90a3..c0e6d987f1 100644
--- a/packages/cli/package.json
+++ b/packages/cli/package.json
@@ -104,7 +104,7 @@
     "style-loader": "^1.2.1",
     "sucrase": "^3.18.2",
     "tar": "^6.1.2",
-    "terser-webpack-plugin": "^1.4.3",
+    "terser-webpack-plugin": "^5.1.3",
     "ts-loader": "^8.0.17",
     "typescript": "^4.0.3",
     "url-loader": "^4.1.0",
@@ -137,6 +137,7 @@
     "@types/rollup-plugin-peer-deps-external": "^2.2.0",
     "@types/rollup-plugin-postcss": "^2.0.0",
     "@types/tar": "^4.0.3",
+    "@types/terser-webpack-plugin": "^5.0.4",
     "@types/webpack": "^5.28.0",
     "@types/webpack-dev-server": "^3.11.5",
     "@types/yarnpkg__lockfile": "^1.1.4",
diff --git a/packages/cli/src/lib/bundler/optimization.ts b/packages/cli/src/lib/bundler/optimization.ts
index f42018e522..4d77f2cc73 100644
--- a/packages/cli/src/lib/bundler/optimization.ts
+++ b/packages/cli/src/lib/bundler/optimization.ts
@@ -14,7 +14,7 @@
  * limitations under the License.
  */
 
-import { WebpackOptionsNormalized } from 'webpack';
+import { WebpackOptionsNormalized, WebpackPluginInstance } from 'webpack';
 import TerserPlugin from 'terser-webpack-plugin';
 import { BundlingOptions } from './types';
 import { isParallelDefault } from '../parallel';
@@ -30,9 +30,9 @@ export const optimization = (
     ...(!isParallelDefault(options.parallel)
       ? {
           minimizer: [
-            new TerserPlugin({
+            (new TerserPlugin({
               parallel: options.parallel,
-            }),
+            }) as unknown) as WebpackPluginInstance,
           ],
         }
       : {}),
diff --git a/packages/cli/src/types.d.ts b/packages/cli/src/types.d.ts
index 07684bc15a..d3ef72646b 100644
--- a/packages/cli/src/types.d.ts
+++ b/packages/cli/src/types.d.ts
@@ -29,9 +29,6 @@ declare module '@svgr/rollup' {
 }
 
 declare module '@rollup/plugin-yaml';
-
-declare module 'terser-webpack-plugin';
-
 declare module 'react-dev-utils/formatWebpackMessages' {
   export default function (
     stats: any,
diff --git a/packages/config/package.json b/packages/config/package.json
index 5d9bf94446..ad1afbbce7 100644
--- a/packages/config/package.json
+++ b/packages/config/package.json
@@ -19,8 +19,8 @@
     "backstage"
   ],
   "license": "Apache-2.0",
-  "main": "src/index.ts",
-  "types": "src/index.ts",
+  "main": "dist/index.cjs.js",
+  "types": "dist/index.d.ts",
   "scripts": {
     "build": "backstage-cli build",
     "lint": "backstage-cli lint",
@@ -38,5 +38,6 @@
   },
   "files": [
     "dist"
-  ]
+  ],
+  "module": "dist/index.esm.js"
 }
diff --git a/yarn.lock b/yarn.lock
index 1d1738673e..9660983a75 100644
--- a/yarn.lock
+++ b/yarn.lock
@@ -7464,6 +7464,14 @@
   dependencies:
     "@types/estree" "*"
 
+"@types/terser-webpack-plugin@^5.0.4":
+  version "5.0.4"
+  resolved "https://registry.npmjs.org/@types/terser-webpack-plugin/-/terser-webpack-plugin-5.0.4.tgz#852949e1d124e6c895cfa8cb17eb6265e4fdfe59"
+  integrity sha512-1iyfZpMNNA/h/Q8uBpwuVhxKfKQHc98PD9NaCTrg22nj6d8aUvT79KBMtRLmR43v1PtCB0r1/gWGdNXrrMEK7A==
+  dependencies:
+    terser "^5.3.8"
+    webpack "^5.1.0"
+
 "@types/testing-library__jest-dom@^5.9.1":
   version "5.9.5"
   resolved "https://registry.npmjs.org/@types/testing-library__jest-dom/-/testing-library__jest-dom-5.9.5.tgz#5bf25c91ad2d7b38f264b12275e5c92a66d849b0"
@@ -25735,7 +25743,7 @@ terser@^4.1.2, terser@^4.6.3:
     source-map "~0.6.1"
     source-map-support "~0.5.12"
 
-terser@^5.3.4, terser@^5.7.0:
+terser@^5.3.4, terser@^5.3.8, terser@^5.7.0:
   version "5.7.1"
   resolved "https://registry.npmjs.org/terser/-/terser-5.7.1.tgz#2dc7a61009b66bb638305cb2a824763b116bf784"
   integrity sha512-b3e+d5JbHAe/JSjwsC3Zn55wsBIM7AsHLjKxT31kGCldgbpFePaFo+PiddtO6uwRZWRw7sPXmAN8dTW61xmnSg==
@@ -27326,6 +27334,36 @@ webpack@^5, webpack@^5.48.0:
     watchpack "^2.2.0"
     webpack-sources "^3.2.0"
 
+webpack@^5.1.0:
+  version "5.49.0"
+  resolved "https://registry.npmjs.org/webpack/-/webpack-5.49.0.tgz#e250362b781a9fb614ba0a97ed67c66b9c5310cd"
+  integrity sha512-XarsANVf28A7Q3KPxSnX80EkCcuOer5hTOEJWJNvbskOZ+EK3pobHarGHceyUZMxpsTHBHhlV7hiQyLZzGosYw==
+  dependencies:
+    "@types/eslint-scope" "^3.7.0"
+    "@types/estree" "^0.0.50"
+    "@webassemblyjs/ast" "1.11.1"
+    "@webassemblyjs/wasm-edit" "1.11.1"
+    "@webassemblyjs/wasm-parser" "1.11.1"
+    acorn "^8.4.1"
+    acorn-import-assertions "^1.7.6"
+    browserslist "^4.14.5"
+    chrome-trace-event "^1.0.2"
+    enhanced-resolve "^5.8.0"
+    es-module-lexer "^0.7.1"
+    eslint-scope "5.1.1"
+    events "^3.2.0"
+    glob-to-regexp "^0.4.1"
+    graceful-fs "^4.2.4"
+    json-parse-better-errors "^1.0.2"
+    loader-runner "^4.2.0"
+    mime-types "^2.1.27"
+    neo-async "^2.6.2"
+    schema-utils "^3.1.0"
+    tapable "^2.1.1"
+    terser-webpack-plugin "^5.1.3"
+    watchpack "^2.2.0"
+    webpack-sources "^3.2.0"
+
 websocket-driver@>=0.5.1:
   version "0.7.3"
   resolved "https://registry.npmjs.org/websocket-driver/-/websocket-driver-0.7.3.tgz#a2d4e0d4f4f116f1e6297eba58b05d430100e9f9"