diff --git a/packages/frontend-plugin-api/src/wiring/createExtension.ts b/packages/frontend-plugin-api/src/wiring/createExtension.ts
index a8bf4ef17c..101c5cd43a 100644
--- a/packages/frontend-plugin-api/src/wiring/createExtension.ts
+++ b/packages/frontend-plugin-api/src/wiring/createExtension.ts
@@ -148,7 +148,9 @@ export interface LegacyCreateExtensionOptions<
 /** @ignore */
 export type VerifyExtensionFactoryOutput<
   UDeclaredOutput extends AnyExtensionDataRef,
-  UFactoryOutput extends ExtensionDataValue<any, any>,
+  UFactoryOutput extends
+    | ExtensionDataValue<any, any>
+    | ExtensionDataContainer<any>,
 > = (
   UDeclaredOutput extends any
     ? UDeclaredOutput['config']['optional'] extends true
@@ -156,21 +158,29 @@ export type VerifyExtensionFactoryOutput<
       : UDeclaredOutput['id']
     : never
 ) extends infer IRequiredOutputIds
-  ? [IRequiredOutputIds] extends [UFactoryOutput['id']]
-    ? [UFactoryOutput['id']] extends [UDeclaredOutput['id']]
-      ? {}
+  ? (
+      UFactoryOutput extends ExtensionDataValue<any, any>
+        ? UFactoryOutput['id']
+        : UFactoryOutput extends ExtensionDataContainer<infer IDataRefs>
+        ? IDataRefs['id']
+        : never
+    ) extends infer IFactoryOutputIds
+    ? [IRequiredOutputIds] extends [IFactoryOutputIds]
+      ? [IFactoryOutputIds] extends [UDeclaredOutput['id']]
+        ? {}
+        : {
+            'Error: The extension factory has undeclared output(s)': Exclude<
+              IFactoryOutputIds,
+              UDeclaredOutput['id']
+            >;
+          }
       : {
-          'Error: The extension factory has undeclared output(s)': Exclude<
-            UFactoryOutput['id'],
-            UDeclaredOutput['id']
+          'Error: The extension factory is missing the following output(s)': Exclude<
+            IRequiredOutputIds,
+            IFactoryOutputIds
           >;
         }
-    : {
-        'Error: The extension factory is missing the following output(s)': Exclude<
-          IRequiredOutputIds,
-          UFactoryOutput['id']
-        >;
-      }
+    : never
   : never;
 
 /** @public */
diff --git a/packages/frontend-plugin-api/src/wiring/createExtensionBlueprint.test.tsx b/packages/frontend-plugin-api/src/wiring/createExtensionBlueprint.test.tsx
index 5f1324fe7c..fed8185df1 100644
--- a/packages/frontend-plugin-api/src/wiring/createExtensionBlueprint.test.tsx
+++ b/packages/frontend-plugin-api/src/wiring/createExtensionBlueprint.test.tsx
@@ -21,6 +21,7 @@ import { createExtensionTester } from '@backstage/frontend-test-utils';
 import { createExtensionDataRef } from './createExtensionDataRef';
 import { createExtensionInput } from './createExtensionInput';
 import { RouteRef } from '../routing';
+import { toInternalExtensionDefinition } from './createExtension';
 
 function unused(..._any: any[]) {}
 
@@ -450,4 +451,79 @@ describe('createExtensionBlueprint', () => {
 
     expect(true).toBe(true);
   });
+
+  it('should replace the outputs when provided through make', () => {
+    const testDataRef1 = createExtensionDataRef<string>().with({ id: 'test1' });
+    const testDataRef2 = createExtensionDataRef<string>().with({ id: 'test2' });
+
+    const blueprint = createExtensionBlueprint({
+      kind: 'test-extension',
+      attachTo: { id: 'test', input: 'default' },
+      output: [testDataRef1],
+      factory() {
+        return [testDataRef1('foo')];
+      },
+    });
+
+    const ext = toInternalExtensionDefinition(
+      blueprint.make({
+        output: [testDataRef2],
+        factory(origFactory) {
+          const parent = origFactory({});
+          return [testDataRef2(`${parent.get(testDataRef1)}bar`)];
+        },
+      }),
+    );
+
+    expect(ext.output).toEqual([testDataRef2]);
+  });
+
+  it('should allow returning of the parent data container', () => {
+    const testDataRef1 = createExtensionDataRef<string>().with({ id: 'test1' });
+    const testDataRef2 = createExtensionDataRef<string>().with({ id: 'test2' });
+
+    const blueprint = createExtensionBlueprint({
+      kind: 'test-extension',
+      attachTo: { id: 'test', input: 'default' },
+      output: [testDataRef1],
+      factory() {
+        return [testDataRef1('foo')];
+      },
+    });
+
+    blueprint.make({
+      output: [testDataRef1, testDataRef2],
+      *factory(origFactory) {
+        yield origFactory({});
+        yield testDataRef2('bar');
+      },
+    });
+
+    expect(true).toBe(true);
+    // todo: test that the data is actually available
+  });
+
+  it('should not allow returning parent output if outputs are overridden', () => {
+    const testDataRef1 = createExtensionDataRef<string>().with({ id: 'test1' });
+    const testDataRef2 = createExtensionDataRef<string>().with({ id: 'test2' });
+
+    const blueprint = createExtensionBlueprint({
+      kind: 'test-extension',
+      attachTo: { id: 'test', input: 'default' },
+      output: [testDataRef1.optional()],
+      factory() {
+        return [testDataRef1('foo')];
+      },
+    });
+
+    blueprint.make({
+      output: [testDataRef2.optional()],
+      *factory(origFactory) {
+        // yield testDataRef1('bar');
+        yield testDataRef2('bar');
+      },
+    });
+
+    expect(true).toBe(true);
+  });
 });
diff --git a/packages/frontend-plugin-api/src/wiring/createExtensionBlueprint.ts b/packages/frontend-plugin-api/src/wiring/createExtensionBlueprint.ts
index 465bb10ee6..e56c30410d 100644
--- a/packages/frontend-plugin-api/src/wiring/createExtensionBlueprint.ts
+++ b/packages/frontend-plugin-api/src/wiring/createExtensionBlueprint.ts
@@ -204,7 +204,7 @@ class ExtensionBlueprintImpl<
       [key in string]: (zImpl: typeof z) => z.ZodType;
     },
     UFactoryOutput extends ExtensionDataValue<any, any>,
-    UExtraOutput extends AnyExtensionDataRef,
+    UNewOutput extends AnyExtensionDataRef,
     TExtraInputs extends {
       [inputName in string]: ExtensionInput<
         AnyExtensionDataRef,
@@ -220,7 +220,7 @@ class ExtensionBlueprintImpl<
       [KName in keyof TInputs]?: `Error: Input '${KName &
         string}' is already defined in parent definition`;
     };
-    output?: Array<UExtraOutput>;
+    output?: Array<UNewOutput>;
     params?: TParams;
     config?: {
       schema: TExtensionConfigSchema;
@@ -296,7 +296,7 @@ class ExtensionBlueprintImpl<
       attachTo: args.attachTo ?? this.options.attachTo,
       disabled: args.disabled ?? this.options.disabled,
       inputs: { ...args.inputs, ...this.options.inputs },
-      output: [...(args.output ?? []), ...this.options.output],
+      output: args.output ?? this.options.output,
       config: Object.keys(schema).length === 0 ? undefined : { schema },
       factory: ({ node, config, inputs }) => {
         if (args.factory) {