diff --git a/plugins/scaffolder-react/src/next/components/Workflow/Workflow.tsx b/plugins/scaffolder-react/src/next/components/Workflow/Workflow.tsx
index ff6782c512..c10b4e081e 100644
--- a/plugins/scaffolder-react/src/next/components/Workflow/Workflow.tsx
+++ b/plugins/scaffolder-react/src/next/components/Workflow/Workflow.tsx
@@ -23,17 +23,12 @@ import {
 import { stringifyEntityRef } from '@backstage/catalog-model';
 import { makeStyles } from '@material-ui/core';
 import { BackstageTheme } from '@backstage/theme';
-import {
-  errorApiRef,
-  useApi,
-  featureFlagsApiRef,
-} from '@backstage/core-plugin-api';
+import { errorApiRef, useApi } from '@backstage/core-plugin-api';
 import { useTemplateParameterSchema } from '../../hooks/useTemplateParameterSchema';
 import { Stepper, type StepperProps } from '../Stepper/Stepper';
 import { SecretsContextProvider } from '../../../secrets/SecretsContext';
 import { ReviewStepProps } from '@backstage/plugin-scaffolder-react';
-import cloneDeep from 'lodash/cloneDeep';
-import { useMemo, useCallback } from 'react';
+import { useFeatureFlaggedProperties } from '../../hooks/useFeatureFlaggedProperties';
 
 const useStyles = makeStyles<BackstageTheme>(() => ({
   markdown: {
@@ -87,63 +82,7 @@ export const Workflow = (workflowProps: WorkflowProps): JSX.Element | null => {
 
   const { loading, manifest, error } = useTemplateParameterSchema(templateRef);
 
-  const featureFlagKey = 'backstage:featureFlag';
-  const featureFlagApi = useApi(featureFlagsApiRef);
-
-  // return manifest with updates steps
-  const filterOutStepProperties = useCallback(() => {
-    if (manifest) {
-      const filteredSteps = manifest.steps
-        .filter(step => {
-          const featureFlag = step.schema[featureFlagKey];
-          return (
-            typeof featureFlag !== 'string' ||
-            featureFlagApi.isActive(featureFlag)
-          );
-        })
-        .map(step => {
-          const filteredStep = cloneDeep(step);
-          const removedPropertyKeys: Array<string> = [];
-          if (filteredStep.schema.properties) {
-            filteredStep.schema.properties = Object.fromEntries(
-              Object.entries(filteredStep.schema.properties).filter(
-                ([key, value]) => {
-                  if (value[featureFlagKey]) {
-                    if (featureFlagApi.isActive(value[featureFlagKey])) {
-                      return true;
-                    }
-
-                    removedPropertyKeys.push(key);
-                    return false;
-                  }
-                  return true;
-                },
-              ),
-            );
-
-            // remove the feature flag property key from required if they are not active
-            filteredStep.schema.required = Array.isArray(
-              filteredStep.schema.required,
-            )
-              ? filteredStep.schema.required?.filter(
-                  r => !removedPropertyKeys.includes(r as string),
-                )
-              : filteredStep.schema.required;
-          }
-
-          return filteredStep;
-        });
-
-      return { ...manifest, steps: filteredSteps };
-    }
-
-    return manifest;
-  }, [manifest, featureFlagKey, featureFlagApi]);
-
-  const sortedManifest = useMemo(
-    () => filterOutStepProperties(),
-    [filterOutStepProperties],
-  );
+  const sortedManifest = useFeatureFlaggedProperties(manifest);
 
   useEffect(() => {
     if (error) {
diff --git a/plugins/scaffolder-react/src/next/hooks/index.ts b/plugins/scaffolder-react/src/next/hooks/index.ts
index ca8ce10eff..9e192c143f 100644
--- a/plugins/scaffolder-react/src/next/hooks/index.ts
+++ b/plugins/scaffolder-react/src/next/hooks/index.ts
@@ -19,3 +19,4 @@ export {
   type ParsedTemplateSchema,
 } from './useTemplateSchema';
 export { useTemplateParameterSchema } from './useTemplateParameterSchema';
+export { useFeatureFlaggedProperties } from './useFeatureFlaggedProperties';
diff --git a/plugins/scaffolder-react/src/next/hooks/useFeatureFlaggedProperties.ts b/plugins/scaffolder-react/src/next/hooks/useFeatureFlaggedProperties.ts
new file mode 100644
index 0000000000..ae1a6d9c67
--- /dev/null
+++ b/plugins/scaffolder-react/src/next/hooks/useFeatureFlaggedProperties.ts
@@ -0,0 +1,76 @@
+/*
+ * Copyright 2023 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 cloneDeep from 'lodash/cloneDeep';
+import { useApi, featureFlagsApiRef } from '@backstage/core-plugin-api';
+import { TemplateParameterSchema } from '@backstage/plugin-scaffolder-react';
+
+/**
+ * Returns manifest of software templates with steps without a featureFlag tag.
+ * @alpha
+ */
+
+export const useFeatureFlaggedProperties = (
+  manifest: TemplateParameterSchema | undefined,
+) => {
+  const featureFlagKey = 'backstage:featureFlag';
+  const featureFlagApi = useApi(featureFlagsApiRef);
+
+  if (!manifest) {
+    return null;
+  }
+
+  const filteredSteps = manifest?.steps
+    .filter(step => {
+      const featureFlag = step.schema[featureFlagKey];
+      return (
+        typeof featureFlag !== 'string' || featureFlagApi.isActive(featureFlag)
+      );
+    })
+    .map(step => {
+      const filteredStep = cloneDeep(step);
+      const removedPropertyKeys: Array<string> = [];
+      if (filteredStep.schema.properties) {
+        filteredStep.schema.properties = Object.fromEntries(
+          Object.entries(filteredStep.schema.properties).filter(
+            ([key, value]) => {
+              if (value[featureFlagKey]) {
+                if (featureFlagApi.isActive(value[featureFlagKey])) {
+                  return true;
+                }
+
+                removedPropertyKeys.push(key);
+                return false;
+              }
+              return true;
+            },
+          ),
+        );
+
+        // remove the feature flag property key from required if they are not active
+        filteredStep.schema.required = Array.isArray(
+          filteredStep.schema.required,
+        )
+          ? filteredStep.schema.required?.filter(
+              r => !removedPropertyKeys.includes(r as string),
+            )
+          : filteredStep.schema.required;
+      }
+
+      return filteredStep;
+    });
+
+  return { ...manifest, steps: filteredSteps };
+};