diff --git a/.changeset/empty-mugs-agree.md b/.changeset/empty-mugs-agree.md
new file mode 100644
index 0000000000..80dd35b8cf
--- /dev/null
+++ b/.changeset/empty-mugs-agree.md
@@ -0,0 +1,5 @@
+---
+'@backstage/plugin-scaffolder': patch
+---
+
+Filter MultiEntityPicker options based on rendered option value
diff --git a/plugins/scaffolder/src/components/fields/MultiEntityPicker/MultiEntityPicker.test.tsx b/plugins/scaffolder/src/components/fields/MultiEntityPicker/MultiEntityPicker.test.tsx
index acae3418b9..a02d793a34 100644
--- a/plugins/scaffolder/src/components/fields/MultiEntityPicker/MultiEntityPicker.test.tsx
+++ b/plugins/scaffolder/src/components/fields/MultiEntityPicker/MultiEntityPicker.test.tsx
@@ -947,4 +947,81 @@ describe('<MultiEntityPicker />', () => {
       expect(getByText(description.fromUiSchema)).toBeInTheDocument();
     });
   });
+
+  describe('entity presentation', () => {
+    beforeEach(() => {
+      uiSchema = {
+        'ui:options': {
+          defaultKind: 'Group',
+        },
+      };
+      props = {
+        onChange,
+        schema,
+        required,
+        uiSchema,
+        rawErrors,
+        formData,
+      } as unknown as FieldProps<any>;
+    });
+
+    it('renders and filters selection displayName', async () => {
+      catalogApi.getEntities.mockResolvedValue({
+        items: entities.map(item => ({
+          ...item,
+          spec: {
+            profile: { displayName: item.metadata.name.replace('-', ' ') },
+          },
+        })),
+      });
+
+      const { getByRole, getByText } = await renderInTestApp(
+        <Wrapper>
+          <MultiEntityPicker {...props} />
+        </Wrapper>,
+      );
+
+      const input = getByRole('textbox');
+
+      fireEvent.change(input, { target: { value: 'team a' } });
+
+      expect(getByText('team a')).toBeInTheDocument();
+
+      fireEvent.change(input, { target: { value: 'squad b' } });
+
+      expect(getByText('squad b')).toBeInTheDocument();
+
+      fireEvent.blur(input);
+    });
+
+    it('renders and filters selection title', async () => {
+      catalogApi.getEntities.mockResolvedValue({
+        items: entities.map(item => ({
+          ...item,
+          metadata: {
+            ...item.metadata,
+            title: item.metadata.name.replace('-', ' ').toUpperCase(),
+          },
+        })),
+      });
+
+      const { getByRole, getByText } = await renderInTestApp(
+        <Wrapper>
+          <MultiEntityPicker {...props} />
+        </Wrapper>,
+      );
+
+      const input = getByRole('textbox');
+
+      fireEvent.change(input, { target: { value: 'team a' } });
+
+      expect(getByText('TEAM A')).toBeInTheDocument();
+
+      fireEvent.change(input, { target: { value: 'squad b' } });
+
+      expect(getByText('SQUAD B')).toBeInTheDocument();
+
+      fireEvent.blur(input);
+    });
+  });
 });
diff --git a/plugins/scaffolder/src/components/fields/MultiEntityPicker/MultiEntityPicker.tsx b/plugins/scaffolder/src/components/fields/MultiEntityPicker/MultiEntityPicker.tsx
index e7dcf0f996..57c4b87d6d 100644
--- a/plugins/scaffolder/src/components/fields/MultiEntityPicker/MultiEntityPicker.tsx
+++ b/plugins/scaffolder/src/components/fields/MultiEntityPicker/MultiEntityPicker.tsx
@@ -32,6 +32,7 @@ import {
 import TextField from '@material-ui/core/TextField';
 import Autocomplete, {
   AutocompleteChangeReason,
+  createFilterOptions,
 } from '@material-ui/lab/Autocomplete';
 import { useCallback, useEffect, useState } from 'react';
 import useAsync from 'react-use/esm/useAsync';
@@ -203,6 +204,11 @@ export const MultiEntityPicker = (props: MultiEntityPickerProps) => {
             }}
           />
         )}
+        filterOptions={createFilterOptions<Entity>({
+          stringify: option =>
+            entities?.entityRefToPresentation.get(stringifyEntityRef(option))
+              ?.primaryTitle!,
+        })}
         ListboxComponent={VirtualizedListbox}
       />
     </ScaffolderField>