diff --git a/plugins/scaffolder-react/package.json b/plugins/scaffolder-react/package.json
index 631fa2031e..24a5441488 100644
--- a/plugins/scaffolder-react/package.json
+++ b/plugins/scaffolder-react/package.json
@@ -94,7 +94,6 @@
     "@testing-library/dom": "^9.0.0",
     "@testing-library/jest-dom": "^6.0.0",
     "@testing-library/react": "^14.0.0",
-    "@testing-library/react-hooks": "^8.0.0",
     "@testing-library/user-event": "^14.0.0",
     "@types/humanize-duration": "^3.18.1",
     "@types/luxon": "^3.0.0"
diff --git a/plugins/scaffolder-react/src/next/hooks/useFilteredSchemaProperties.test.tsx b/plugins/scaffolder-react/src/next/hooks/useFilteredSchemaProperties.test.tsx
index 1264e7d2e2..3e568fa7bd 100644
--- a/plugins/scaffolder-react/src/next/hooks/useFilteredSchemaProperties.test.tsx
+++ b/plugins/scaffolder-react/src/next/hooks/useFilteredSchemaProperties.test.tsx
@@ -14,12 +14,21 @@
  * limitations under the License.
  */
 
-import { renderHook } from '@testing-library/react-hooks';
+import { renderHook } from '@testing-library/react';
 import { useFilteredSchemaProperties } from './useFilteredSchemaProperties';
 import { TemplateParameterSchema } from '../../types';
+import { TestApiProvider } from '@backstage/test-utils';
+import React from 'react';
+import { featureFlagsApiRef } from '@backstage/core-plugin-api';
+
+const mockFeatureFlagApi = {
+  isActive: jest.fn(),
+};
 
 describe('useFilteredSchemaProperties', () => {
-  it('should hide "Fill in some steps" from steps of template', () => {
+  it('should return the same manifest if no feature flag is set', () => {
+    mockFeatureFlagApi.isActive.mockReturnValue(true);
+
     const manifest: TemplateParameterSchema = {
       title: 'Test Action template',
       description: 'scaffolder v1beta3 template demo',
@@ -55,8 +64,147 @@ describe('useFilteredSchemaProperties', () => {
       ],
     };
 
-    const sortedManifest = renderHook(() =>
-      useFilteredSchemaProperties(manifest),
+    const filteredManifest = renderHook(
+      () => useFilteredSchemaProperties(manifest),
+      {
+        wrapper: ({ children }) => (
+          <TestApiProvider apis={[[featureFlagsApiRef, mockFeatureFlagApi]]}>
+            {children}
+          </TestApiProvider>
+        ),
+      },
+    );
+
+    expect(filteredManifest.result.current).toEqual(manifest);
+  });
+
+  it('should hide individual fields from steps of template', () => {
+    mockFeatureFlagApi.isActive.mockReturnValue(false);
+
+    const manifest: TemplateParameterSchema = {
+      title: 'Test Action template',
+      description: 'scaffolder v1beta3 template demo',
+      steps: [
+        {
+          title: 'Fill in some steps',
+          schema: {
+            type: 'object',
+            properties: {
+              name: {
+                description: 'Unique name of the component',
+                title: 'Name',
+                type: 'string',
+                'ui:autofocus': true,
+              },
+            },
+          },
+        },
+        {
+          title: 'Choose a location',
+          schema: {
+            type: 'object',
+            properties: {
+              repoUrl: {
+                type: 'string',
+                title: 'Repository Location',
+                'ui:field': 'RepoUrlPicker',
+                'backstage:featureFlag': 'experimental-feature',
+              },
+            },
+          },
+        },
+      ],
+    };
+
+    const filteredManifest = renderHook(
+      () => useFilteredSchemaProperties(manifest),
+      {
+        wrapper: ({ children }) => (
+          <TestApiProvider apis={[[featureFlagsApiRef, mockFeatureFlagApi]]}>
+            {children}
+          </TestApiProvider>
+        ),
+      },
+    );
+
+    const expectedManifest: TemplateParameterSchema = {
+      title: 'Test Action template',
+      description: 'scaffolder v1beta3 template demo',
+      steps: [
+        {
+          title: 'Fill in some steps',
+          schema: {
+            type: 'object',
+            properties: {
+              name: {
+                description: 'Unique name of the component',
+                title: 'Name',
+                type: 'string',
+                'ui:autofocus': true,
+              },
+            },
+          },
+        },
+        {
+          title: 'Choose a location',
+          schema: {
+            type: 'object',
+            properties: {},
+          },
+        },
+      ],
+    };
+
+    expect(filteredManifest.result.current).toEqual(expectedManifest);
+  });
+
+  it('should hide "Fill in some steps" from steps of template', () => {
+    mockFeatureFlagApi.isActive.mockReturnValue(false);
+
+    const manifest: TemplateParameterSchema = {
+      title: 'Test Action template',
+      description: 'scaffolder v1beta3 template demo',
+      steps: [
+        {
+          title: 'Fill in some steps',
+          schema: {
+            type: 'object',
+            'backstage:featureFlag': 'experimental-feature',
+            properties: {
+              name: {
+                description: 'Unique name of the component',
+                title: 'Name',
+                type: 'string',
+                'ui:autofocus': true,
+              },
+            },
+          },
+        },
+        {
+          title: 'Choose a location',
+          schema: {
+            type: 'object',
+            properties: {
+              repoUrl: {
+                type: 'string',
+                title: 'Repository Location',
+                'ui:field': 'RepoUrlPicker',
+              },
+            },
+          },
+        },
+      ],
+    };
+
+    const filteredManifest = renderHook(
+      () => useFilteredSchemaProperties(manifest),
+      {
+        wrapper: ({ children }) => (
+          <TestApiProvider apis={[[featureFlagsApiRef, mockFeatureFlagApi]]}>
+            {children}
+          </TestApiProvider>
+        ),
+      },
     );
 
     const expectedManifest: TemplateParameterSchema = {
@@ -79,6 +227,6 @@ describe('useFilteredSchemaProperties', () => {
       ],
     };
 
-    expect(sortedManifest).toEqual(expectedManifest);
+    expect(filteredManifest.result.current).toEqual(expectedManifest);
   });
 });
diff --git a/yarn.lock b/yarn.lock
index 07ae34399d..81b6b6affa 100644
--- a/yarn.lock
+++ b/yarn.lock
@@ -8973,7 +8973,6 @@ __metadata:
     "@testing-library/dom": ^9.0.0
     "@testing-library/jest-dom": ^6.0.0
     "@testing-library/react": ^14.0.0
-    "@testing-library/react-hooks": ^8.0.0
     "@testing-library/user-event": ^14.0.0
     "@types/humanize-duration": ^3.18.1
     "@types/json-schema": ^7.0.9