diff --git a/.changeset/nine-dots-suffer.md b/.changeset/nine-dots-suffer.md
new file mode 100644
index 0000000000..3efd307a10
--- /dev/null
+++ b/.changeset/nine-dots-suffer.md
@@ -0,0 +1,14 @@
+---
+'@backstage/create-app': patch
+---
+
+Updated the app template to no longer include the `--no-private` flag for the `create-plugin` command.
+
+To apply this change to an existing application, remove the `--no-private` flag from the `create-plugin` command in the root `package.json`:
+
+```diff
+   "prettier:check": "prettier --check .",
+-  "create-plugin": "backstage-cli create-plugin --scope internal --no-private",
++  "create-plugin": "backstage-cli create-plugin --scope internal",
+   "remove-plugin": "backstage-cli remove-plugin"
+```
diff --git a/packages/create-app/templates/default-app/package.json.hbs b/packages/create-app/templates/default-app/package.json.hbs
index 5ed066a30b..1db9a98c41 100644
--- a/packages/create-app/templates/default-app/package.json.hbs
+++ b/packages/create-app/templates/default-app/package.json.hbs
@@ -20,7 +20,7 @@
     "lint": "lerna run lint --since origin/master --",
     "lint:all": "lerna run lint --",
     "prettier:check": "prettier --check .",
-    "create-plugin": "backstage-cli create-plugin --scope internal --no-private",
+    "create-plugin": "backstage-cli create-plugin --scope internal",
     "remove-plugin": "backstage-cli remove-plugin"
   },
   "resolutions": {