diff --git a/.changeset/wild-pears-enjoy.md b/.changeset/wild-pears-enjoy.md
new file mode 100644
index 0000000000..01a8b8a4a1
--- /dev/null
+++ b/.changeset/wild-pears-enjoy.md
@@ -0,0 +1,5 @@
+---
+'@backstage/core-app-api': patch
+---
+
+Made `WebStorage` notify its subscribers when `localStorage` values change in other tabs/windows
diff --git a/packages/core-app-api/src/apis/implementations/StorageApi/WebStorage.ts b/packages/core-app-api/src/apis/implementations/StorageApi/WebStorage.ts
index b0cbfbd883..3477853241 100644
--- a/packages/core-app-api/src/apis/implementations/StorageApi/WebStorage.ts
+++ b/packages/core-app-api/src/apis/implementations/StorageApi/WebStorage.ts
@@ -35,6 +35,8 @@ export class WebStorage implements StorageApi {
     private readonly errorApi: ErrorApi,
   ) {}
 
+  private static hasSubscribed = false;
+
   static create(options: {
     errorApi: ErrorApi;
     namespace?: string;
@@ -42,6 +44,16 @@ export class WebStorage implements StorageApi {
     return new WebStorage(options.namespace ?? '', options.errorApi);
   }
 
+  private static addStorageEventListener() {
+    window.addEventListener('storage', event => {
+      for (const [bucketPath, webStorage] of buckets.entries()) {
+        if (event.key?.startsWith(bucketPath)) {
+          webStorage.handleStorageChange(event.key);
+        }
+      }
+    });
+  }
+
   get<T>(key: string): T | undefined {
     return this.snapshot(key).value as T | undefined;
   }
@@ -89,9 +101,19 @@ export class WebStorage implements StorageApi {
   observe$<T extends JsonValue>(
     key: string,
   ): Observable<StorageValueSnapshot<T>> {
+    if (!WebStorage.hasSubscribed) {
+      WebStorage.addStorageEventListener();
+      WebStorage.hasSubscribed = true;
+    }
     return this.observable.filter(({ key: messageKey }) => messageKey === key);
   }
 
+  private handleStorageChange(eventKey: StorageEvent['key']) {
+    if (!eventKey?.startsWith(this.namespace)) return;
+    const key = eventKey?.replace(`${this.namespace}/`, '');
+    this.notifyChanges(key);
+  }
+
   private getKeyName(key: string) {
     return `${this.namespace}/${encodeURIComponent(key)}`;
   }