diff --git a/.changeset/alert-remove-surface.md b/.changeset/alert-remove-surface.md
new file mode 100644
index 0000000000..ed32bd38d2
--- /dev/null
+++ b/.changeset/alert-remove-surface.md
@@ -0,0 +1,12 @@
+---
+'@backstage/ui': minor
+---
+
+**BREAKING**: Alert no longer accepts a `surface` prop
+
+The Alert component's background is now driven entirely by its `status` prop. The `surface` prop has been removed.
+
+```diff
+- <Alert surface="1" status="info" />
++ <Alert status="info" />
+```
diff --git a/.changeset/clean-bags-occur.md b/.changeset/clean-bags-occur.md
index 37325426e1..d3623a9a9d 100644
--- a/.changeset/clean-bags-occur.md
+++ b/.changeset/clean-bags-occur.md
@@ -4,7 +4,7 @@
 
 **BREAKING**: Replaced `Surface` / `onSurface` system with new `ContainerBg` background system
 
-The old `Surface` type (`'0'`–`'3'`, `'auto'`) and its associated props (`surface`, `onSurface`) have been replaced by a new `ContainerBg` type with semantic neutral levels (`'neutral-1'` through `'neutral-3'`) and intents (`'danger'`, `'warning'`, `'success'`). Containers are capped at `neutral-3`; the `neutral-4` level is reserved for leaf component CSS only. Leaf components like Button no longer need an explicit prop — they receive a `data-on-bg` attribute matching the parent container's bg, and CSS handles the visual step-up.
+The old `Surface` type (`'0'`–`'3'`, `'auto'`) and its associated props (`surface`, `onSurface`) have been replaced by `ContainerBg` — a union of `'neutral-1'` | `'neutral-2'` | `'neutral-3'` | `'danger'` | `'warning'` | `'success'`. There is no `neutral-4` value; containers are capped at `neutral-3`. Leaf components like Button no longer accept a bg prop — they inherit the parent container's bg via a `data-on-bg` attribute, and CSS handles the visual step-up to the next neutral level.
 
 New `useBg` hook and `BgProvider` replace the deleted `useSurface` hook and `SurfaceProvider`.
 
@@ -26,7 +26,7 @@ Rename the `surface` prop to `bg` on container components and update values:
 + <Grid.Root bg="neutral-1">
 ```
 
-Remove `onSurface` from leaf components — it is now fully automatic:
+Remove `onSurface` from leaf components — they now always inherit from the parent container and can no longer override the value:
 
 ```diff
 - <Button onSurface="1" variant="secondary">
@@ -39,13 +39,6 @@ Remove `onSurface` from leaf components — it is now fully automatic:
 + <ToggleButton>
 ```
 
-Alert no longer accepts a `surface` prop (its background is driven by `status`):
-
-```diff
-- <Alert surface="1" status="info" />
-+ <Alert status="info" />
-```
-
 Update type imports:
 
 ```diff
@@ -72,10 +65,10 @@ Update CSS selectors targeting surface data attributes:
 - [data-surface='1'] { ... }
 + [data-bg='neutral-1'] { ... }
 
-- [data-on-surface='2'] { ... }
+- [data-on-surface='1'] { ... }
 + [data-on-bg='neutral-1'] { ... }
 ```
 
-Note: Container components use `data-bg` for their own background level. Leaf components now use `data-on-bg` which reflects the parent container's bg (not an auto-incremented value).
+Note: Container components use `data-bg` (values: `neutral-1` through `neutral-3`, plus intents). Leaf components use `data-on-bg`, which reflects the parent container's bg directly (no auto-increment).
 
-**Affected components:** Box, Button, ButtonIcon, ButtonLink, ToggleButton, Card, Alert, Flex, Grid
+**Affected components:** Box, Button, ButtonIcon, ButtonLink, ToggleButton, Card, Flex, Grid
diff --git a/packages/ui/src/components/Flex/Flex.stories.tsx b/packages/ui/src/components/Flex/Flex.stories.tsx
index 158110d20a..3ea311da0e 100644
--- a/packages/ui/src/components/Flex/Flex.stories.tsx
+++ b/packages/ui/src/components/Flex/Flex.stories.tsx
@@ -282,21 +282,16 @@ export const BgAutoIncrement = meta.story({
   render: args => (
     <Flex direction="column">
       <div style={{ maxWidth: '600px', marginBottom: '16px' }}>
-        Nested Flex components automatically increment their neutral background
-        level. No explicit bg prop is needed on inner Flex components.
+        Flex is a layout primitive and is transparent to the bg system by
+        default. Only an explicit bg prop establishes a new bg level. Nested
+        Flex components without a bg prop inherit the parent context unchanged.
       </div>
       <Flex {...args} bg="neutral-1" direction="column">
         <div>Neutral 1 (explicit)</div>
-        <Flex {...args} direction="column">
-          <div>Auto (becomes neutral-2)</div>
-          <Flex {...args} direction="column">
-            <div>Auto (becomes neutral-3)</div>
-            <Flex {...args} direction="column">
-              <div>Auto (becomes neutral-4)</div>
-              <Flex {...args} direction="column">
-                <div>Auto (stays neutral-4 - capped)</div>
-              </Flex>
-            </Flex>
+        <Flex {...args} bg="neutral-2" direction="column">
+          <div>Neutral 2 (explicit)</div>
+          <Flex {...args} bg="neutral-3" direction="column">
+            <div>Neutral 3 (explicit, capped)</div>
           </Flex>
         </Flex>
       </Flex>
diff --git a/packages/ui/src/components/Flex/Flex.tsx b/packages/ui/src/components/Flex/Flex.tsx
index a1bffa2a13..c4b8f9744c 100644
--- a/packages/ui/src/components/Flex/Flex.tsx
+++ b/packages/ui/src/components/Flex/Flex.tsx
@@ -24,8 +24,11 @@ import { BgProvider, useBg } from '../../hooks/useBg';
 
 /** @public */
 export const Flex = forwardRef<HTMLDivElement, FlexProps>((props, ref) => {
-  // Resolve the bg this Flex creates for its children
-  const { bg: resolvedBg } = useBg({ mode: 'container', bg: props.bg });
+  // Only establish bg context when an explicit bg prop is provided.
+  // Flex is a layout primitive — it should be transparent to the bg system by default.
+  const { bg: resolvedBg } = useBg(
+    props.bg !== undefined ? { mode: 'container', bg: props.bg } : undefined,
+  );
 
   const { classNames, dataAttributes, utilityClasses, style, cleanedProps } =
     useStyles(FlexDefinition, {
diff --git a/packages/ui/src/components/Grid/Grid.stories.tsx b/packages/ui/src/components/Grid/Grid.stories.tsx
index fe5b96dfe1..187a97dbbd 100644
--- a/packages/ui/src/components/Grid/Grid.stories.tsx
+++ b/packages/ui/src/components/Grid/Grid.stories.tsx
@@ -182,15 +182,16 @@ export const BgAutoIncrement = meta.story({
   render: args => (
     <Flex direction="column">
       <div style={{ maxWidth: '600px', marginBottom: '16px' }}>
-        Nested Grid components automatically increment their neutral background.
-        Each nested Grid.Item inherits and increments from its parent's bg.
+        Grid is a layout primitive and is transparent to the bg system by
+        default. Only an explicit bg prop establishes a new bg level. Nested
+        grids without a bg prop inherit the parent context unchanged.
       </div>
       <Grid.Root {...args} bg="neutral-1">
         <Grid.Item>Neutral 1 (Grid.Root)</Grid.Item>
         <Grid.Item>
-          <Grid.Root {...args}>
-            <Grid.Item>Nested: Auto (becomes neutral-2)</Grid.Item>
-            <Grid.Item>Nested: Auto (becomes neutral-2)</Grid.Item>
+          <Grid.Root {...args} bg="neutral-2">
+            <Grid.Item>Nested: neutral-2 (explicit)</Grid.Item>
+            <Grid.Item>Nested: neutral-2 (explicit)</Grid.Item>
           </Grid.Root>
         </Grid.Item>
       </Grid.Root>
diff --git a/packages/ui/src/components/Grid/Grid.tsx b/packages/ui/src/components/Grid/Grid.tsx
index ddea92ce19..3e3ad7f300 100644
--- a/packages/ui/src/components/Grid/Grid.tsx
+++ b/packages/ui/src/components/Grid/Grid.tsx
@@ -23,8 +23,11 @@ import styles from './Grid.module.css';
 import { BgProvider, useBg } from '../../hooks/useBg';
 
 const GridRoot = forwardRef<HTMLDivElement, GridProps>((props, ref) => {
-  // Resolve the bg this Grid creates for its children
-  const { bg: resolvedBg } = useBg({ mode: 'container', bg: props.bg });
+  // Only establish bg context when an explicit bg prop is provided.
+  // Grid is a layout primitive — it should be transparent to the bg system by default.
+  const { bg: resolvedBg } = useBg(
+    props.bg !== undefined ? { mode: 'container', bg: props.bg } : undefined,
+  );
 
   const { classNames, dataAttributes, utilityClasses, style, cleanedProps } =
     useStyles(GridDefinition, {
@@ -59,8 +62,11 @@ const GridRoot = forwardRef<HTMLDivElement, GridProps>((props, ref) => {
 });
 
 const GridItem = forwardRef<HTMLDivElement, GridItemProps>((props, ref) => {
-  // Resolve the bg this GridItem creates for its children
-  const { bg: resolvedBg } = useBg({ mode: 'container', bg: props.bg });
+  // Only establish bg context when an explicit bg prop is provided.
+  // GridItem is a layout slot — it should be transparent to the bg system by default.
+  const { bg: resolvedBg } = useBg(
+    props.bg !== undefined ? { mode: 'container', bg: props.bg } : undefined,
+  );
 
   const { classNames, dataAttributes, utilityClasses, style, cleanedProps } =
     useStyles(GridItemDefinition, {
diff --git a/packages/ui/src/components/ToggleButton/ToggleButton.tsx b/packages/ui/src/components/ToggleButton/ToggleButton.tsx
index c9956b4f22..d783681778 100644
--- a/packages/ui/src/components/ToggleButton/ToggleButton.tsx
+++ b/packages/ui/src/components/ToggleButton/ToggleButton.tsx
@@ -21,7 +21,6 @@ import type { ToggleButtonProps } from './types';
 import { useStyles } from '../../hooks/useStyles';
 import { ToggleButtonDefinition } from './definition';
 import styles from './ToggleButton.module.css';
-import { useBg } from '../../hooks/useBg';
 
 /** @public */
 export const ToggleButton = forwardRef(
@@ -36,14 +35,11 @@ export const ToggleButton = forwardRef(
 
     const { children, className, iconStart, iconEnd, ...rest } = cleanedProps;
 
-    const { bg } = useBg({ mode: 'leaf' });
-
     return (
       <AriaToggleButton
         className={clsx(classNames.root, styles[classNames.root], className)}
         ref={ref}
         {...dataAttributes}
-        {...(bg ? { 'data-on-bg': bg } : {})}
         {...rest}
       >
         {renderProps => {
diff --git a/packages/ui/src/hooks/useBg.tsx b/packages/ui/src/hooks/useBg.tsx
index fd3d4319e5..3cec51302b 100644
--- a/packages/ui/src/hooks/useBg.tsx
+++ b/packages/ui/src/hooks/useBg.tsx
@@ -62,11 +62,9 @@ const BgContext = createVersionedContext<{
  * Increments a neutral bg level by one, capping at 'neutral-3'.
  * Intent backgrounds (danger, warning, success) pass through unchanged.
  *
- * Only used by container components for auto-increment. The 'neutral-4'
- * level is reserved for leaf components and is never set on containers.
+ * The 'neutral-4' level is reserved for leaf component CSS and is never
+ * set on containers.
  *
- * @param bg - The current bg value
- * @returns The incremented bg value
  * @internal
  */
 function incrementNeutralBg(
@@ -81,44 +79,29 @@ function incrementNeutralBg(
 }
 
 /**
- * Resolves the bg value for a container component.
+ * Resolves the bg for a container component.
  *
- * - If an explicit bg prop is provided, use that.
- * - If no bg prop is provided but there is a parent context, auto-increment from parent.
- * - If no bg prop and no context, return undefined (no bg).
+ * Uses the explicit `bg` prop if provided. Otherwise auto-increments from
+ * the parent context, capping at `neutral-3`. Returns undefined when there
+ * is no prop and no parent context.
  *
  * @internal
  */
-function resolveBgForContainer(
-  contextBg: ContainerBg | undefined,
+function resolveContainerBg(
+  context: BgContextValue,
   propBg: ContainerBg | undefined,
-): ContainerBg | undefined {
+): BgContextValue {
   // Explicit bg prop takes priority
   if (propBg !== undefined) {
-    return propBg;
+    return { bg: propBg };
   }
 
   // No explicit bg: auto-increment from context if available
-  if (contextBg === undefined) {
-    return undefined;
+  if (context.bg === undefined) {
+    return { bg: undefined };
   }
 
-  return incrementNeutralBg(contextBg);
-}
-
-/**
- * Resolves the bg value for a leaf component.
- *
- * Returns the parent context bg unchanged. The leaf component's CSS
- * handles the visual step-up (e.g. on neutral-1 surface → use neutral-2 tokens).
- * If no context, returns undefined.
- *
- * @internal
- */
-function resolveBgForLeaf(
-  contextBg: ContainerBg | undefined,
-): ContainerBg | undefined {
-  return contextBg;
+  return { bg: incrementNeutralBg(context.bg) };
 }
 
 /**
@@ -137,9 +120,6 @@ export const BgProvider = ({ bg, children }: BgProviderProps) => {
 /**
  * Hook to access and resolve the current bg context.
  *
- * All bg resolution logic lives here — callers only need to specify the mode
- * and (for containers) the explicit bg prop value.
- *
  * - **Container mode** — uses explicit `bg` if provided, otherwise auto-increments
  *   from parent context. Caps at `neutral-3`.
  * - **Leaf mode** — returns the parent context bg unchanged. No prop needed.
@@ -157,15 +137,17 @@ export const useBg = (options?: UseBgOptions): BgContextValue => {
     return context;
   }
 
+  // Leaf mode: return the parent context bg unchanged.
+  // The leaf component's CSS handles the visual step-up.
+  if (options.mode === 'leaf') {
+    return context;
+  }
+
   // Resolve responsive prop value to a scalar for the current breakpoint
-  const resolvedPropBg =
+  const propBg =
     options.bg !== undefined
       ? resolveResponsiveValue(options.bg, breakpoint)
       : undefined;
 
-  if (options.mode === 'leaf') {
-    return { bg: resolveBgForLeaf(context.bg) };
-  }
-
-  return { bg: resolveBgForContainer(context.bg, resolvedPropBg) };
+  return resolveContainerBg(context, propBg);
 };