diff --git a/plugins/catalog-react/src/components/EntityTypePicker/EntityTypePicker.tsx b/plugins/catalog-react/src/components/EntityTypePicker/EntityTypePicker.tsx
index 52b8ec8ff1..0a7e94d142 100644
--- a/plugins/catalog-react/src/components/EntityTypePicker/EntityTypePicker.tsx
+++ b/plugins/catalog-react/src/components/EntityTypePicker/EntityTypePicker.tsx
@@ -15,7 +15,7 @@
  */
 
 import React from 'react';
-import { capitalize } from 'lodash';
+import capitalize from 'lodash/capitalize';
 import { Box } from '@material-ui/core';
 import { useEntityTypeFilter } from '../../hooks/useEntityTypeFilter';
 
@@ -24,9 +24,14 @@ import { Select } from '@backstage/core-components';
 
 export const EntityTypePicker = () => {
   const alertApi = useApi(alertApiRef);
-  const { error, types, selectedType, setType } = useEntityTypeFilter();
+  const {
+    error,
+    availableTypes,
+    selectedTypes,
+    setSelectedTypes,
+  } = useEntityTypeFilter();
 
-  if (!types) return null;
+  if (!availableTypes) return null;
 
   if (error) {
     alertApi.post({
@@ -38,7 +43,7 @@ export const EntityTypePicker = () => {
 
   const items = [
     { value: 'all', label: 'All' },
-    ...types.map((type: string) => ({
+    ...availableTypes.map((type: string) => ({
       value: type,
       label: capitalize(type),
     })),
@@ -49,8 +54,10 @@ export const EntityTypePicker = () => {
       <Select
         label="Type"
         items={items}
-        selected={selectedType ?? 'all'}
-        onChange={value => setType(value === 'all' ? undefined : String(value))}
+        selected={selectedTypes.length ? selectedTypes[0] : 'all'}
+        onChange={value =>
+          setSelectedTypes(value === 'all' ? [] : [String(value)])
+        }
       />
     </Box>
   );
diff --git a/plugins/catalog-react/src/filters.ts b/plugins/catalog-react/src/filters.ts
index 418afeab92..9b57e0f560 100644
--- a/plugins/catalog-react/src/filters.ts
+++ b/plugins/catalog-react/src/filters.ts
@@ -34,7 +34,8 @@ export class EntityKindFilter implements EntityFilter {
 export class EntityTypeFilter implements EntityFilter {
   constructor(readonly value: string | string[]) {}
 
-  getTypes() {
+  // Simplify `string | string[]` for consumers, always returns an array
+  getTypes(): string[] {
     return Array.isArray(this.value) ? this.value : [this.value];
   }
 
diff --git a/plugins/catalog-react/src/hooks/useEntityListProvider.tsx b/plugins/catalog-react/src/hooks/useEntityListProvider.tsx
index 0aa52d2227..33c951acce 100644
--- a/plugins/catalog-react/src/hooks/useEntityListProvider.tsx
+++ b/plugins/catalog-react/src/hooks/useEntityListProvider.tsx
@@ -178,7 +178,7 @@ export const EntityListProvider = <EntityFilters extends DefaultEntityFilters>({
 };
 
 export function useEntityListProvider<
-  EntityFilters extends DefaultEntityFilters
+  EntityFilters extends DefaultEntityFilters = DefaultEntityFilters
 >(): EntityListContextProps<EntityFilters> {
   const context = useContext(EntityListContext);
   if (!context)
diff --git a/plugins/catalog-react/src/hooks/useEntityTypeFilter.tsx b/plugins/catalog-react/src/hooks/useEntityTypeFilter.tsx
index e925103ebd..53f3109930 100644
--- a/plugins/catalog-react/src/hooks/useEntityTypeFilter.tsx
+++ b/plugins/catalog-react/src/hooks/useEntityTypeFilter.tsx
@@ -27,10 +27,9 @@ import { EntityTypeFilter } from '../filters';
 type EntityTypeReturn = {
   loading: boolean;
   error?: Error;
-  types: string[];
-  selectedType: string | undefined;
-  setType: (type: string | undefined) => void;
-  setTypes: (types: string[]) => void;
+  availableTypes: string[];
+  selectedTypes: string[];
+  setSelectedTypes: (types: string[]) => void;
 };
 
 /**
@@ -44,7 +43,7 @@ export function useEntityTypeFilter(): EntityTypeReturn {
     updateFilters,
   } = useEntityListProvider();
 
-  const [allTypes, setAllTypes] = useState<string[]>([]);
+  const [availableTypes, setAvailableTypes] = useState<string[]>([]);
   const kind = useMemo(() => kindFilter?.value, [kindFilter]);
 
   // Load all valid spec.type values straight from the catalogApi, paying attention to only the
@@ -65,12 +64,23 @@ export function useEntityTypeFilter(): EntityTypeReturn {
   useEffect(() => {
     // Resolve the unique set of types from returned entities; could be optimized by a new endpoint
     // in the catalog-backend that does this, rather than loading entities with redundant types.
-    const newTypes = [
-      ...new Set(
-        (entities ?? []).map(e => e.spec?.type).filter(Boolean) as string[],
-      ),
-    ].sort();
-    setAllTypes(newTypes);
+    if (!entities) return;
+
+    // Sort by entity count descending, so the most common types appear on top
+    const countByType = entities.reduce((acc, entity) => {
+      if (typeof entity.spec?.type !== 'string') return acc;
+
+      if (!acc[entity.spec.type]) {
+        acc[entity.spec.type] = 0;
+      }
+      acc[entity.spec.type] += 1;
+      return acc;
+    }, {} as Record<string, number>);
+
+    const newTypes = Object.entries(countByType)
+      .sort(([, count1], [, count2]) => count2 - count1)
+      .map(([type]) => type);
+    setAvailableTypes(newTypes);
 
     // Update type filter to only valid values when the list of available types has changed
     updateFilters((oldFilters: DefaultEntityFilters) => {
@@ -89,25 +99,19 @@ export function useEntityTypeFilter(): EntityTypeReturn {
     });
   }, [updateFilters, entities]);
 
-  const setTypes = useCallback(
+  const setSelectedTypes = useCallback(
     (types: string[]) =>
       updateFilters({
-        type: types.length ? undefined : new EntityTypeFilter(types),
+        type: types.length ? new EntityTypeFilter(types) : undefined,
       }),
     [updateFilters],
   );
 
-  const setType = (type: string | undefined) =>
-    setTypes(type === undefined ? [] : [type]);
-
-  // TODO(timbonicus): selectedType should be selectedTypes
-  // TODO(timbonicus): remove setType, make this only array-based
   return {
     loading,
     error,
-    types: allTypes,
-    selectedType: typeFilter?.value,
-    setType,
-    setTypes,
+    availableTypes,
+    selectedTypes: typeFilter?.getTypes() ?? [],
+    setSelectedTypes,
   };
 }
diff --git a/plugins/catalog/src/components/CatalogTable/CatalogTable.tsx b/plugins/catalog/src/components/CatalogTable/CatalogTable.tsx
index bde116ea09..31a9457e2b 100644
--- a/plugins/catalog/src/components/CatalogTable/CatalogTable.tsx
+++ b/plugins/catalog/src/components/CatalogTable/CatalogTable.tsx
@@ -60,7 +60,7 @@ export const CatalogTable = ({ columns, actions }: CatalogTableProps) => {
   const { loading, error, entities, filters } = useEntityListProvider();
 
   const showTypeColumn = filters.type === undefined;
-  // TODO(timbonicus): we should show filter chips for all filters instead
+  // TODO(timbonicus): remove the title from the CatalogTable once using EntitySearchBar
   const titlePreamble = capitalize(filters.user?.value ?? 'all');
 
   if (error) {
diff --git a/plugins/scaffolder/src/components/TemplateTypePicker/TemplateTypePicker.tsx b/plugins/scaffolder/src/components/TemplateTypePicker/TemplateTypePicker.tsx
index 780f9d2d1e..d2658c0c1e 100644
--- a/plugins/scaffolder/src/components/TemplateTypePicker/TemplateTypePicker.tsx
+++ b/plugins/scaffolder/src/components/TemplateTypePicker/TemplateTypePicker.tsx
@@ -15,31 +15,40 @@
  */
 
 import React from 'react';
+import capitalize from 'lodash/capitalize';
+import { Progress } from '@backstage/core-components';
 import {
-  Typography,
-  List,
-  ListItem,
+  Box,
+  Checkbox,
+  FormControlLabel,
+  FormGroup,
   makeStyles,
   Theme,
-  Checkbox,
-  ListItemText,
+  Typography,
 } from '@material-ui/core';
 import { useEntityTypeFilter } from '@backstage/plugin-catalog-react';
 import { alertApiRef, useApi } from '@backstage/core-plugin-api';
 
 const useStyles = makeStyles<Theme>(theme => ({
   checkbox: {
-    padding: theme.spacing(0, 1, 0, 1),
+    padding: theme.spacing(1, 1, 1, 2),
   },
 }));
 
 export const TemplateTypePicker = () => {
   const classes = useStyles();
   const alertApi = useApi(alertApiRef);
-  // TODO(timbonicus): Use new setTypes returned from the hook
-  const { error, types, selectedType } = useEntityTypeFilter();
+  const {
+    error,
+    loading,
+    availableTypes,
+    selectedTypes,
+    setSelectedTypes,
+  } = useEntityTypeFilter();
 
-  if (!types) return null;
+  if (loading) return <Progress />;
+
+  if (!availableTypes) return null;
 
   if (error) {
     alertApi.post({
@@ -49,49 +58,33 @@ export const TemplateTypePicker = () => {
     return null;
   }
 
+  function toggleSelection(type: string) {
+    setSelectedTypes(
+      selectedTypes.includes(type)
+        ? selectedTypes.filter(t => t !== type)
+        : [...selectedTypes, type],
+    );
+  }
+
   return (
-    <>
+    <Box pb={1} pt={1}>
       <Typography variant="button">Categories</Typography>
-      <List disablePadding dense>
-        {types.map(type => {
-          const labelId = `checkbox-list-label-${type}`;
-          return (
-            <ListItem
-              key={type}
-              dense
-              button
-              onClick={() => {}}
-              // TODO(timbonicus): Update to use setTypes
-              // setSelectedCategories(
-              //   selectedCategories.includes(type)
-              //     ? selectedCategories.filter(
-              //         selectedCategory => selectedCategory !== type,
-              //       )
-              //     : [...selectedCategories, type],
-              // )
-              // }
-            >
+      <FormGroup>
+        {availableTypes.map(type => (
+          <FormControlLabel
+            control={
               <Checkbox
-                edge="start"
-                color="primary"
-                // TODO: Fix me
-                // checked={selectedTypes.includes(type)}
-                checked={type === selectedType}
-                tabIndex={-1}
-                disableRipple
+                checked={selectedTypes.includes(type)}
+                onChange={() => toggleSelection(type)}
+                name={`entity-type-option-${type}`}
                 className={classes.checkbox}
-                inputProps={{ 'aria-labelledby': labelId }}
               />
-              <ListItemText
-                id={labelId}
-                primary={
-                  type.charAt(0).toLocaleUpperCase('en-US') + type.slice(1)
-                }
-              />
-            </ListItem>
-          );
-        })}
-      </List>
-    </>
+            }
+            label={capitalize(type)}
+            key={type}
+          />
+        ))}
+      </FormGroup>
+    </Box>
   );
 };