diff --git a/.changeset/strange-papayas-study.md b/.changeset/strange-papayas-study.md
new file mode 100644
index 0000000000..8a8734d430
--- /dev/null
+++ b/.changeset/strange-papayas-study.md
@@ -0,0 +1,5 @@
+---
+'@backstage/cli': patch
+---
+
+Corrected path when trying to add dependency to respective `package.json` when using `yarn new` templates
diff --git a/packages/cli/src/lib/new/execution/installNewPackage.ts b/packages/cli/src/lib/new/execution/installNewPackage.ts
index 6ed60541c1..39983e29cf 100644
--- a/packages/cli/src/lib/new/execution/installNewPackage.ts
+++ b/packages/cli/src/lib/new/execution/installNewPackage.ts
@@ -30,18 +30,18 @@ export async function installNewPackage(input: PortableTemplateInput) {
     case 'plugin-common-library':
       return; // No installation action needed for library packages
     case 'frontend-plugin':
-      await addDependency(input, 'package/app/package.json');
+      await addDependency(input, 'packages/app/package.json');
       await tryAddFrontendLegacy(input);
       return;
     case 'frontend-plugin-module':
-      await addDependency(input, 'package/app/package.json');
+      await addDependency(input, 'packages/app/package.json');
       return;
     case 'backend-plugin':
-      await addDependency(input, 'package/backend/package.json');
+      await addDependency(input, 'packages/backend/package.json');
       await tryAddBackend(input);
       return;
     case 'backend-plugin-module':
-      await addDependency(input, 'package/backend/package.json');
+      await addDependency(input, 'packages/backend/package.json');
       await tryAddBackend(input);
       return;
     default: