diff --git a/packages/cli/src/commands/versions/bump.test.ts b/packages/cli/src/commands/versions/bump.test.ts
index 776523742c..bba349fa8e 100644
--- a/packages/cli/src/commands/versions/bump.test.ts
+++ b/packages/cli/src/commands/versions/bump.test.ts
@@ -31,6 +31,7 @@ import { rest } from 'msw';
 
 // Remove log coloring to simplify log matching
 jest.mock('chalk', () => ({
+  red: (str: string) => str,
   blue: (str: string) => str,
   cyan: (str: string) => str,
   green: (str: string) => str,
@@ -38,6 +39,18 @@ jest.mock('chalk', () => ({
   yellow: (str: string) => str,
 }));
 
+jest.mock('ora', () => ({
+  __esModule: true,
+  default({ prefixText }: any) {
+    console.log(prefixText);
+    return {
+      start: () => ({
+        succeed: () => {},
+      }),
+    };
+  },
+}));
+
 const REGISTRY_VERSIONS: { [name: string]: string } = {
   '@backstage/core': '1.0.6',
   '@backstage/core-api': '1.0.7',
@@ -177,7 +190,11 @@ describe('bump', () => {
     );
 
     expect(runObj.run).toHaveBeenCalledTimes(1);
-    expect(runObj.run).toHaveBeenCalledWith('yarn', ['install']);
+    expect(runObj.run).toHaveBeenCalledWith(
+      'yarn',
+      ['install'],
+      expect.any(Object),
+    );
 
     const lockfileContents = await fs.readFile('/yarn.lock', 'utf8');
     expect(lockfileContents).toBe(lockfileMockResult);
@@ -296,7 +313,11 @@ describe('bump', () => {
     );
 
     expect(runObj.run).toHaveBeenCalledTimes(1);
-    expect(runObj.run).toHaveBeenCalledWith('yarn', ['install']);
+    expect(runObj.run).toHaveBeenCalledWith(
+      'yarn',
+      ['install'],
+      expect.any(Object),
+    );
 
     const lockfileContents = await fs.readFile('/yarn.lock', 'utf8');
     expect(lockfileContents).toBe(lockfileMockResult);
@@ -398,7 +419,11 @@ describe('bump', () => {
     ]);
 
     expect(runObj.run).toHaveBeenCalledTimes(1);
-    expect(runObj.run).toHaveBeenCalledWith('yarn', ['install']);
+    expect(runObj.run).toHaveBeenCalledWith(
+      'yarn',
+      ['install'],
+      expect.any(Object),
+    );
 
     const packageA = await fs.readJson('/packages/a/package.json');
     expect(packageA).toEqual({
@@ -645,7 +670,11 @@ describe('bump', () => {
     );
 
     expect(runObj.run).toHaveBeenCalledTimes(1);
-    expect(runObj.run).toHaveBeenCalledWith('yarn', ['install']);
+    expect(runObj.run).toHaveBeenCalledWith(
+      'yarn',
+      ['install'],
+      expect.any(Object),
+    );
 
     const lockfileContents = await fs.readFile('/yarn.lock', 'utf8');
     expect(lockfileContents).toEqual(customLockfileMockResult);
diff --git a/packages/cli/src/commands/versions/bump.ts b/packages/cli/src/commands/versions/bump.ts
index a0e8185920..b292bcd435 100644
--- a/packages/cli/src/commands/versions/bump.ts
+++ b/packages/cli/src/commands/versions/bump.ts
@@ -16,6 +16,7 @@
 
 import fs from 'fs-extra';
 import chalk from 'chalk';
+import ora from 'ora';
 import semver from 'semver';
 import minimatch from 'minimatch';
 import { Command } from 'commander';
@@ -259,21 +260,8 @@ export default async (cmd: Command) => {
         ),
       );
     }
-    console.log();
-    console.log(
-      `Running ${chalk.blue('yarn install')} to install new versions`,
-    );
-    console.log();
-    await run('yarn', ['install'], {
-      env: {
-        FORCE_COLOR: 'true',
-        ...Object.fromEntries(
-          Object.entries(process.env).map(([name, value]) =>
-            name.startsWith('npm_') ? [name, undefined] : [name, value],
-          ),
-        ),
-      },
-    });
+
+    await runYarnInstall();
 
     if (breakingUpdates.size > 0) {
       console.log();
@@ -465,3 +453,32 @@ export async function bumpBackstageJsonVersion(version: string) {
     },
   );
 }
+
+async function runYarnInstall() {
+  const spinner = ora({
+    prefixText: `Running ${chalk.blue('yarn install')} to install new versions`,
+    spinner: 'arc',
+    color: 'green',
+  }).start();
+
+  const installOutput = new Array<Buffer>();
+  try {
+    await run('yarn', ['install'], {
+      env: {
+        FORCE_COLOR: 'true',
+        ...Object.fromEntries(
+          Object.entries(process.env).map(([name, value]) =>
+            name.startsWith('npm_') ? [name, undefined] : [name, value],
+          ),
+        ),
+      },
+      stdoutLogFunc: data => installOutput.push(data),
+      stderrLogFunc: data => installOutput.push(data),
+    });
+    spinner.succeed();
+  } catch (error) {
+    spinner.fail();
+    process.stdout.write(Buffer.concat(installOutput));
+    throw error;
+  }
+}
diff --git a/packages/cli/src/lib/logging.ts b/packages/cli/src/lib/logging.ts
index 8745585d1e..59473d7f64 100644
--- a/packages/cli/src/lib/logging.ts
+++ b/packages/cli/src/lib/logging.ts
@@ -14,7 +14,7 @@
  * limitations under the License.
  */
 
-export type LogFunc = (data: Buffer | string) => void;
+export type LogFunc = (data: Buffer) => void;
 export type LogPipe = (dst: NodeJS.WriteStream) => LogFunc;
 
 export type LogOptions = {