diff --git a/.changeset/salty-worlds-float.md b/.changeset/salty-worlds-float.md
new file mode 100644
index 0000000000..a21d0b2e7c
--- /dev/null
+++ b/.changeset/salty-worlds-float.md
@@ -0,0 +1,5 @@
+---
+'@backstage/create-app': minor
+---
+
+Add .cache directory to shipped gitignore.
diff --git a/.changeset/six-mangos-yell.md b/.changeset/six-mangos-yell.md
new file mode 100644
index 0000000000..65ddae86f8
--- /dev/null
+++ b/.changeset/six-mangos-yell.md
@@ -0,0 +1,5 @@
+---
+'@backstage/repo-tools': minor
+---
+
+Add support for caching the per-package output from the `package-docs` command.
diff --git a/.github/workflows/deploy_microsite.yml b/.github/workflows/deploy_microsite.yml
index 5045e0c96f..67fcc5d709 100644
--- a/.github/workflows/deploy_microsite.yml
+++ b/.github/workflows/deploy_microsite.yml
@@ -80,6 +80,34 @@ jobs:
           if-no-files-found: error
           retention-days: 1
 
+      # Use the lower-level cache actions for the success cache, so that we can store the cache even on failed builds
+      - name: restore package-docs cache
+        uses: actions/cache/restore@5a3ec84eff668545956fd18022155c47e93e2684 # v4
+        with:
+          path: .cache/package-docs
+          key: ${{ runner.os }}-v${{ matrix.node-version }}-package-docs-stable-${{ github.run_id }}
+          restore-keys: |
+            ${{ runner.os }}-v${{ matrix.node-version }}-package-docs-stable-
+
+      - name: build API reference (beta)
+        run: yarn backstage-repo-tools package-docs
+
+      - name: upload API reference (beta)
+        uses: actions/upload-artifact@ea165f8d65b6e75b540449e92b4886f43607fa02 # v4
+        with:
+          name: stable-reference-beta
+          path: type-docs/
+          if-no-files-found: error
+          retention-days: 1
+
+      # Always save success cache even if there were failures, that way it can be used in re-triggered builds
+      - name: save package-docs cache
+        uses: actions/cache/save@5a3ec84eff668545956fd18022155c47e93e2684 # v4
+        if: always()
+        with:
+          path: .cache/package-docs
+          key: ${{ runner.os }}-v${{ matrix.node-version }}-package-docs-stable-${{ github.run_id }}
+
       - name: microsite yarn install
         run: yarn install --immutable
         working-directory: microsite
@@ -136,6 +164,34 @@ jobs:
           if-no-files-found: error
           retention-days: 1
 
+      # Use the lower-level cache actions for the success cache, so that we can store the cache even on failed builds
+      - name: restore package-docs cache
+        uses: actions/cache/restore@5a3ec84eff668545956fd18022155c47e93e2684 # v4
+        with:
+          path: .cache/package-docs
+          key: ${{ runner.os }}-v${{ matrix.node-version }}-package-docs-${{ github.run_id }}
+          restore-keys: |
+            ${{ runner.os }}-v${{ matrix.node-version }}-package-docs-
+
+      - name: build API reference (beta)
+        run: yarn backstage-repo-tools package-docs
+
+      - name: upload API reference (beta)
+        uses: actions/upload-artifact@ea165f8d65b6e75b540449e92b4886f43607fa02 # v4
+        with:
+          name: next-reference-beta
+          path: type-docs/
+          if-no-files-found: error
+          retention-days: 1
+
+      # Always save success cache even if there were failures, that way it can be used in re-triggered builds
+      - name: save package-docs cache
+        uses: actions/cache/save@5a3ec84eff668545956fd18022155c47e93e2684 # v4
+        if: always()
+        with:
+          path: .cache/package-docs
+          key: ${{ runner.os }}-v${{ matrix.node-version }}-package-docs-${{ github.run_id }}
+
         # Also build and upload storybook
       - name: storybook yarn install
         run: yarn install --immutable
@@ -265,8 +321,18 @@ jobs:
           name: storybook
           path: microsite/build/storybook
 
+      - uses: actions/download-artifact@95815c38cf2ff2164869cbab79da8d1f422bc89e # v4
+        with:
+          name: stable-reference-beta
+          path: microsite/build/api/stable/
+
+      - uses: actions/download-artifact@95815c38cf2ff2164869cbab79da8d1f422bc89e # v4
+        with:
+          name: next-reference-beta
+          path: microsite/build/api/next/
+
       - name: Check the build output
-        run: ls microsite/build && ls microsite/build/storybook
+        run: ls microsite/build && ls microsite/build/storybook && ls microsite/build/api/stable && ls microsite/build/api/next
 
       - name: Deploy both microsite and storybook to gh-pages
         uses: JamesIves/github-pages-deploy-action@6c2d9db40f9296374acc17b90404b6e8864128c8 # v4.7.3
diff --git a/.github/workflows/verify_microsite.yml b/.github/workflows/verify_microsite.yml
index c22648bb8c..df68cff2cf 100644
--- a/.github/workflows/verify_microsite.yml
+++ b/.github/workflows/verify_microsite.yml
@@ -85,6 +85,32 @@ jobs:
           if-no-files-found: error
           retention-days: 1
 
+      # Use the lower-level cache actions for the success cache, so that we can store the cache even on failed builds
+      - name: restore package-docs cache
+        uses: actions/cache/restore@5a3ec84eff668545956fd18022155c47e93e2684 # v4
+        with:
+          path: .cache/package-docs
+          key: ${{ runner.os }}-v${{ matrix.node-version }}-package-docs-stable-${{ github.run_id }}
+          restore-keys: |
+            ${{ runner.os }}-v${{ matrix.node-version }}-package-docs-stable-
+
+      - name: build API reference (beta)
+        run: yarn backstage-repo-tools package-docs
+
+      - name: upload API reference (beta)
+        uses: actions/upload-artifact@ea165f8d65b6e75b540449e92b4886f43607fa02 # v4
+        with:
+          name: stable-reference-beta
+          path: type-docs/
+
+      # Always save success cache even if there were failures, that way it can be used in re-triggered builds
+      - name: save package-docs cache
+        uses: actions/cache/save@5a3ec84eff668545956fd18022155c47e93e2684 # v4
+        if: always()
+        with:
+          path: .cache/package-docs
+          key: ${{ runner.os }}-v${{ matrix.node-version }}-package-docs-stable-${{ github.run_id }}
+
       - name: microsite yarn install
         run: yarn install --immutable
         working-directory: microsite
@@ -140,6 +166,32 @@ jobs:
           if-no-files-found: error
           retention-days: 1
 
+      # Use the lower-level cache actions for the success cache, so that we can store the cache even on failed builds
+      - name: restore package-docs cache
+        uses: actions/cache/restore@5a3ec84eff668545956fd18022155c47e93e2684 # v4
+        with:
+          path: .cache/package-docs
+          key: ${{ runner.os }}-v${{ matrix.node-version }}-package-docs-next-${{ github.run_id }}
+          restore-keys: |
+            ${{ runner.os }}-v${{ matrix.node-version }}-package-docs-next-
+
+      - name: build API reference (beta)
+        run: yarn backstage-repo-tools package-docs
+
+      - name: upload API reference (beta)
+        uses: actions/upload-artifact@ea165f8d65b6e75b540449e92b4886f43607fa02 # v4
+        with:
+          name: next-reference-beta
+          path: type-docs/
+
+      # Always save success cache even if there were failures, that way it can be used in re-triggered builds
+      - name: save package-docs cache
+        uses: actions/cache/save@5a3ec84eff668545956fd18022155c47e93e2684 # v4
+        if: always()
+        with:
+          path: .cache/package-docs
+          key: ${{ runner.os }}-v${{ matrix.node-version }}-package-docs-next-${{ github.run_id }}
+
         # Also build and upload storybook
       - name: storybook yarn install
         run: yarn install --immutable
@@ -271,3 +323,15 @@ jobs:
       - name: build microsite
         run: yarn build
         working-directory: microsite
+
+      - name: download stable reference (beta)
+        uses: actions/download-artifact@95815c38cf2ff2164869cbab79da8d1f422bc89e # v4
+        with:
+          name: stable-reference-beta
+          path: api/stable/
+
+      - name: download next reference (beta)
+        uses: actions/download-artifact@95815c38cf2ff2164869cbab79da8d1f422bc89e # v4
+        with:
+          name: next-reference-beta
+          path: api/next/
diff --git a/packages/create-app/templates/default-app/.gitignore.hbs b/packages/create-app/templates/default-app/.gitignore.hbs
index e506e00f92..2164e72f7d 100644
--- a/packages/create-app/templates/default-app/.gitignore.hbs
+++ b/packages/create-app/templates/default-app/.gitignore.hbs
@@ -51,3 +51,6 @@ site
 
 # E2E test reports
 e2e-test-report/
+
+# Cache
+.cache/
diff --git a/packages/repo-tools/package.json b/packages/repo-tools/package.json
index de7683e39b..2b7d7536d3 100644
--- a/packages/repo-tools/package.json
+++ b/packages/repo-tools/package.json
@@ -69,6 +69,7 @@
     "commander": "^12.0.0",
     "fs-extra": "^11.2.0",
     "glob": "^8.0.3",
+    "globby": "^11.0.0",
     "is-glob": "^4.0.3",
     "js-yaml": "^4.1.0",
     "just-diff": "^6.0.2",
@@ -81,7 +82,8 @@
     "portfinder": "^1.0.32",
     "tar": "^6.1.12",
     "ts-morph": "^24.0.0",
-    "yaml-diff-patch": "^2.0.0"
+    "yaml-diff-patch": "^2.0.0",
+    "zod": "^3.22.4"
   },
   "devDependencies": {
     "@backstage/backend-test-utils": "workspace:^",
diff --git a/packages/repo-tools/src/commands/package-docs/Cache.test.ts b/packages/repo-tools/src/commands/package-docs/Cache.test.ts
new file mode 100644
index 0000000000..3fe52dcabd
--- /dev/null
+++ b/packages/repo-tools/src/commands/package-docs/Cache.test.ts
@@ -0,0 +1,178 @@
+/*
+ * Copyright 2025 The Backstage Authors
+ *
+ * Licensed under the Apache License, Version 2.0 (the "License");
+ * you may not use this file except in compliance with the License.
+ * You may obtain a copy of the License at
+ *
+ *     http://www.apache.org/licenses/LICENSE-2.0
+ *
+ * Unless required by applicable law or agreed to in writing, software
+ * distributed under the License is distributed on an "AS IS" BASIS,
+ * WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+ * See the License for the specific language governing permissions and
+ * limitations under the License.
+ */
+
+import { Lockfile } from '@backstage/cli-node';
+import { PackageDocsCache } from './Cache';
+import {
+  createMockDirectory,
+  MockDirectory,
+} from '@backstage/backend-test-utils';
+import { readFile } from 'fs/promises';
+import { join as joinPath } from 'path';
+
+jest.mock('crypto', () => {
+  const hash = {
+    update: jest.fn(),
+    digest: jest.fn().mockReturnValue('test'),
+  };
+  return {
+    createHash: jest.fn().mockReturnValue(hash),
+  };
+});
+
+describe('PackageDocsCache', () => {
+  let testDir: MockDirectory;
+  beforeAll(async () => {
+    testDir = createMockDirectory();
+  });
+  afterEach(async () => {
+    testDir.clear();
+  });
+  it('should be able to parse cache files', async () => {
+    testDir.addContent({
+      '.cache': {
+        'package-docs': {
+          test: {
+            'cache.json': JSON.stringify({
+              hash: 'test',
+              packageName: 'test',
+              restoreTo: 'test',
+              version: '1',
+            }),
+          },
+        },
+      },
+      test: {
+        'package.json': JSON.stringify({
+          name: '@test/test',
+        }),
+      },
+    });
+    const lockfile = {
+      getDependencyTreeHash: () => 'test',
+    } as any as Lockfile;
+    const cache = await PackageDocsCache.loadAsync(testDir.path, lockfile);
+    expect(await cache.has('test')).toBe(true);
+  });
+
+  it('should be able to restore cache', async () => {
+    testDir.addContent({
+      '.cache': {
+        'package-docs': {
+          test: {
+            'cache.json': JSON.stringify({
+              hash: 'test',
+              packageName: 'test',
+              restoreTo: 'test',
+              version: '1',
+            }),
+            contents: {
+              'src/index.ts': 'export const test = "test";',
+            },
+          },
+        },
+      },
+      test: {
+        'package.json': JSON.stringify({
+          name: '@test/test',
+        }),
+      },
+    });
+    const lockfile = {
+      getDependencyTreeHash: () => 'test',
+    } as any as Lockfile;
+    const cache = await PackageDocsCache.loadAsync(testDir.path, lockfile);
+    await cache.restore('test');
+    expect(
+      await readFile(joinPath(testDir.path, 'test', 'src/index.ts'), 'utf-8'),
+    ).toBe('export const test = "test";');
+  });
+
+  it('should be able to write cache', async () => {
+    testDir.addContent({
+      '.cache': {},
+      test: {
+        'package.json': JSON.stringify({
+          name: '@test/test',
+        }),
+        'src/index.ts': 'export const test = "test";',
+      },
+    });
+    const lockfile = {
+      getDependencyTreeHash: () => 'test',
+    } as any as Lockfile;
+    const cache = await PackageDocsCache.loadAsync(testDir.path, lockfile);
+    await cache.write('test', joinPath(testDir.path, 'test'));
+    expect(
+      await readFile(
+        joinPath(testDir.path, '.cache', 'package-docs', 'test', 'cache.json'),
+        'utf-8',
+      ),
+    ).toBe(
+      JSON.stringify({
+        hash: 'test',
+        packageName: '@test/test',
+        restoreTo: 'test',
+        version: '1',
+      }),
+    );
+    expect(
+      await readFile(
+        joinPath(
+          testDir.path,
+          '.cache',
+          'package-docs',
+          'test',
+          'contents',
+          'src/index.ts',
+        ),
+        'utf-8',
+      ),
+    ).toBe('export const test = "test";');
+  });
+
+  it.each([
+    {
+      content: JSON.stringify({
+        hash: 'test',
+        packageName: 'test',
+        restoreTo: 'test',
+        version: '2',
+      }),
+    },
+    {
+      content: JSON.stringify({
+        hash: 'test',
+        packageName: 1,
+      }),
+    },
+  ])('should skip invalid cache files', async content => {
+    testDir.addContent({
+      '.cache': {},
+      test: {
+        'package.json': JSON.stringify({
+          name: '@test/test',
+        }),
+      },
+      'cache.json': content,
+    });
+    const lockfile = {
+      getDependencyTreeHash: () => 'test',
+    } as any as Lockfile;
+    const cache = await PackageDocsCache.loadAsync(testDir.path, lockfile);
+    expect(await cache.has('test')).toBe(false);
+  });
+});
diff --git a/packages/repo-tools/src/commands/package-docs/Cache.ts b/packages/repo-tools/src/commands/package-docs/Cache.ts
new file mode 100644
index 0000000000..487db81347
--- /dev/null
+++ b/packages/repo-tools/src/commands/package-docs/Cache.ts
@@ -0,0 +1,158 @@
+/*
+ * Copyright 2025 The Backstage Authors
+ *
+ * Licensed under the Apache License, Version 2.0 (the "License");
+ * you may not use this file except in compliance with the License.
+ * You may obtain a copy of the License at
+ *
+ *     http://www.apache.org/licenses/LICENSE-2.0
+ *
+ * Unless required by applicable law or agreed to in writing, software
+ * distributed under the License is distributed on an "AS IS" BASIS,
+ * WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+ * See the License for the specific language governing permissions and
+ * limitations under the License.
+ */
+import { readFile, writeFile, cp } from 'fs/promises';
+import globby from 'globby';
+import { dirname, join as joinPath, relative } from 'path';
+import crypto from 'crypto';
+import { Lockfile } from '@backstage/cli-node';
+import { exists, rm, mkdirp } from 'fs-extra';
+import { z } from 'zod';
+import { CACHE_DIR, CACHE_FILE } from './constants';
+
+const version = '1';
+
+interface CacheEntry {
+  hash: string;
+  packageName: string;
+  restoreTo: string;
+  version: string;
+}
+
+const cacheEntrySchema = z.object({
+  hash: z.string(),
+  packageName: z.string(),
+  restoreTo: z.string(),
+  version: z.string(),
+});
+
+export class PackageDocsCache {
+  // A map of package directory to package hash.
+  private keyCache: Map<string, string>;
+  constructor(
+    private readonly lockfile: Lockfile,
+    // A map of package directory to cache entry.
+    private readonly cache: Map<string, CacheEntry>,
+    private readonly baseDirectory: string,
+  ) {
+    this.keyCache = new Map();
+  }
+  static async loadAsync(baseDirectory: string, lockfile: Lockfile) {
+    const cacheDir = joinPath(baseDirectory, CACHE_DIR);
+    await mkdirp(cacheDir);
+    const cacheFiles = await globby(`**/${CACHE_FILE}`, {
+      cwd: cacheDir,
+    });
+    const map = new Map<string, CacheEntry>();
+    for (const file of cacheFiles) {
+      const pkg = dirname(file);
+      const cache = await readFile(joinPath(cacheDir, file), 'utf-8');
+      try {
+        const cacheJson = JSON.parse(cache);
+        const parsed = cacheEntrySchema.parse(cacheJson);
+        if (parsed.version !== version) {
+          console.warn(
+            `Skipping cache file ${file} due to version mismatch: ${parsed.version} !== ${version}`,
+          );
+          continue;
+        }
+        map.set(pkg, parsed);
+      } catch (e) {
+        console.error(`Skipping unparseable cache file ${file}: ${e}`);
+      }
+    }
+    return new PackageDocsCache(lockfile, map, baseDirectory);
+  }
+
+  async directoryToName(directory: string) {
+    const packageJson = await readFile(
+      joinPath(this.baseDirectory, directory, 'package.json'),
+      'utf-8',
+    );
+    return JSON.parse(packageJson).name;
+  }
+
+  private async toKey(pkg: string) {
+    if (this.keyCache.has(pkg)) {
+      return this.keyCache.get(pkg)!;
+    }
+    const name = await this.directoryToName(pkg);
+    const result = await globby('src/**', {
+      gitignore: true,
+      onlyFiles: true,
+      cwd: pkg,
+    });
+
+    const hash = crypto.createHash('sha1');
+    hash.update(version);
+    hash.update('\0');
+
+    for (const path of result.sort()) {
+      const absPath = joinPath(this.baseDirectory, pkg, path);
+      const pathInPackage = joinPath(absPath, path);
+      hash.update(pathInPackage);
+      hash.update('\0');
+      hash.update(await readFile(absPath));
+      hash.update('\0');
+    }
+    hash.update(this.lockfile.getDependencyTreeHash(name));
+    hash.update('\0');
+    const hashString = hash.digest('hex');
+    this.keyCache.set(pkg, hashString);
+    return hashString;
+  }
+
+  async has(pkg: string) {
+    const cache = this.cache.get(pkg);
+    if (!cache) {
+      return false;
+    }
+    const hashString = await this.toKey(pkg);
+    return cache.hash === hashString;
+  }
+
+  async restore(pkg: string) {
+    if (!this.has(pkg)) {
+      throw new Error(`Cache entry for ${pkg} not found`);
+    }
+    const cacheEntry = this.cache.get(pkg);
+    const restoreTo = cacheEntry!.restoreTo;
+    const cacheDir = joinPath(this.baseDirectory, CACHE_DIR, pkg);
+    const contentsDir = joinPath(cacheDir, 'contents');
+
+    const targetDir = joinPath(this.baseDirectory, restoreTo);
+    await mkdirp(targetDir);
+    await cp(contentsDir, targetDir, { recursive: true });
+  }
+
+  async write(pkg: string, contentDirectory: string) {
+    const cacheDir = joinPath(this.baseDirectory, CACHE_DIR, pkg);
+    const contentsDir = joinPath(cacheDir, 'contents');
+    if (await exists(contentsDir)) {
+      await rm(contentsDir, { recursive: true });
+    } else {
+      await mkdirp(contentsDir);
+    }
+    const hashString = await this.toKey(pkg);
+    await cp(contentDirectory, contentsDir, { recursive: true });
+    const cacheEntry: CacheEntry = {
+      hash: hashString,
+      packageName: await this.directoryToName(pkg),
+      restoreTo: relative(this.baseDirectory, contentDirectory),
+      version,
+    };
+    await writeFile(joinPath(cacheDir, CACHE_FILE), JSON.stringify(cacheEntry));
+  }
+}
diff --git a/packages/repo-tools/src/commands/package-docs/command.ts b/packages/repo-tools/src/commands/package-docs/command.ts
index 8c30b06145..d02bcad396 100644
--- a/packages/repo-tools/src/commands/package-docs/command.ts
+++ b/packages/repo-tools/src/commands/package-docs/command.ts
@@ -17,8 +17,11 @@ import { exec } from 'child_process';
 import { promisify } from 'util';
 import { paths as cliPaths, resolvePackagePaths } from '../../lib/paths';
 import { createTemporaryTsConfig } from './utils';
-import { mkdir, readFile, writeFile } from 'fs/promises';
+import { readFile, writeFile } from 'fs/promises';
 import pLimit from 'p-limit';
+import { mkdirp } from 'fs-extra';
+import { PackageDocsCache } from './Cache';
+import { Lockfile } from '@backstage/cli-node';
 
 const limit = pLimit(8);
 
@@ -38,6 +41,7 @@ const EXCLUDE = [
   'packages/techdocs-cli-embedded-app',
   'packages/yarn-plugin',
   'packages/backend',
+  'packages/backend-legacy',
 ];
 
 const HIGHLIGHT_LANGUAGES = [
@@ -75,41 +79,35 @@ async function generateDocJson(pkg: string) {
     !exports.length ||
     !exports.some(e => e.startsWith('src') || e.startsWith('./src'))
   ) {
-    return;
+    return false;
   }
 
-  try {
-    await mkdir(cliPaths.resolveTargetRoot(`dist-types`, pkg), {
-      recursive: true,
-    });
+  await mkdirp(cliPaths.resolveTargetRoot(`dist-types`, pkg));
 
-    const { stdout, stderr } = await execAsync(
-      [
-        cliPaths.resolveTargetRoot('node_modules/.bin/typedoc'),
-        '--json',
-        cliPaths.resolveTargetRoot(`dist-types`, pkg, 'docs.json'),
-        '--tsconfig',
-        temporaryTsConfigPath,
-        '--basePath',
-        cliPaths.targetRoot,
-        '--skipErrorChecking',
-        ...(getExports(packageJson).flatMap(e => [
-          '--entryPoints',
-          e,
-        ]) as string[]),
-      ].join(' '),
-      {
-        cwd: pkg,
-        env: { ...process.env, NODE_OPTIONS: '--max-old-space-size=12288' },
-      },
-    );
-    console.log(`### Processed ${pkg}`);
-    console.log(stdout);
-    console.error(stderr);
-  } catch (e) {
-    console.error('Failed to generate docs for', pkg);
-    console.error(e);
-  }
+  const { stdout, stderr } = await execAsync(
+    [
+      cliPaths.resolveTargetRoot('node_modules/.bin/typedoc'),
+      '--json',
+      cliPaths.resolveTargetRoot(`dist-types`, pkg, 'docs.json'),
+      '--tsconfig',
+      temporaryTsConfigPath,
+      '--basePath',
+      cliPaths.targetRoot,
+      '--skipErrorChecking',
+      ...(getExports(packageJson).flatMap(e => [
+        '--entryPoints',
+        e,
+      ]) as string[]),
+    ].join(' '),
+    {
+      cwd: pkg,
+      env: { ...process.env, NODE_OPTIONS: '--max-old-space-size=12288' },
+    },
+  );
+  console.log(`### Processed ${pkg}`);
+  console.log(stdout);
+  console.error(stderr);
+  return true;
 }
 
 export default async function packageDocs(paths: string[] = [], opts: any) {
@@ -120,6 +118,11 @@ export default async function packageDocs(paths: string[] = [], opts: any) {
     exclude: opts.exclude,
   });
 
+  const cache = await PackageDocsCache.loadAsync(
+    cliPaths.resolveTargetRoot(),
+    await Lockfile.load(cliPaths.resolveTargetRoot('yarn.lock')),
+  );
+
   console.log(`### Generating docs.`);
   await Promise.all(
     selectedPackageDirs.map(pkg =>
@@ -127,8 +130,29 @@ export default async function packageDocs(paths: string[] = [], opts: any) {
         if (EXCLUDE.includes(pkg)) {
           return;
         }
-        console.log(`### Processing ${pkg}`);
-        await generateDocJson(pkg);
+        if (await cache.has(pkg)) {
+          console.log(`### Skipping ${pkg} due to cache hit`);
+          try {
+            await cache.restore(pkg);
+            return;
+          } catch (e) {
+            console.error('Failed to restore cache for', pkg);
+            console.error(e);
+          }
+        }
+        try {
+          console.log(`### Processing ${pkg}`);
+          const success = await generateDocJson(pkg);
+          if (success) {
+            await cache.write(
+              pkg,
+              cliPaths.resolveTargetRoot(`dist-types`, pkg),
+            );
+          }
+        } catch (e) {
+          console.error('Failed to generate docs for', pkg);
+          console.error(e);
+        }
       }),
     ),
   );
diff --git a/packages/repo-tools/src/commands/package-docs/constants.ts b/packages/repo-tools/src/commands/package-docs/constants.ts
new file mode 100644
index 0000000000..a8372afad8
--- /dev/null
+++ b/packages/repo-tools/src/commands/package-docs/constants.ts
@@ -0,0 +1,18 @@
+/*
+ * Copyright 2025 The Backstage Authors
+ *
+ * Licensed under the Apache License, Version 2.0 (the "License");
+ * you may not use this file except in compliance with the License.
+ * You may obtain a copy of the License at
+ *
+ *     http://www.apache.org/licenses/LICENSE-2.0
+ *
+ * Unless required by applicable law or agreed to in writing, software
+ * distributed under the License is distributed on an "AS IS" BASIS,
+ * WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+ * See the License for the specific language governing permissions and
+ * limitations under the License.
+ */
+
+export const CACHE_FILE = 'cache.json';
+export const CACHE_DIR = '.cache/package-docs';
diff --git a/yarn.lock b/yarn.lock
index ffcb53f6cd..5276e3d24a 100644
--- a/yarn.lock
+++ b/yarn.lock
@@ -8473,6 +8473,7 @@ __metadata:
     commander: "npm:^12.0.0"
     fs-extra: "npm:^11.2.0"
     glob: "npm:^8.0.3"
+    globby: "npm:^11.0.0"
     is-glob: "npm:^4.0.3"
     js-yaml: "npm:^4.1.0"
     just-diff: "npm:^6.0.2"
@@ -8487,6 +8488,7 @@ __metadata:
     ts-morph: "npm:^24.0.0"
     typedoc: "npm:^0.28.0"
     yaml-diff-patch: "npm:^2.0.0"
+    zod: "npm:^3.22.4"
   peerDependencies:
     "@microsoft/api-extractor-model": "*"
     "@microsoft/tsdoc": "*"
@@ -48920,9 +48922,9 @@ __metadata:
   linkType: hard
 
 "zod@npm:^3.22.4":
-  version: 3.23.8
-  resolution: "zod@npm:3.23.8"
-  checksum: 10/846fd73e1af0def79c19d510ea9e4a795544a67d5b34b7e1c4d0425bf6bfd1c719446d94cdfa1721c1987d891321d61f779e8236fde517dc0e524aa851a6eff1
+  version: 3.24.4
+  resolution: "zod@npm:3.24.4"
+  checksum: 10/3d545792fa54bb27ee5dbc34a5709e81f603185fcc94c8204b5d95c20dc4c81d870ff9c51f3884a30ef05cdc601449f4c4df254ac4783f0827b1faed7c1cdb48
   languageName: node
   linkType: hard