diff --git a/packages/frontend-plugin-api/src/wiring/createExtension.test.ts b/packages/frontend-plugin-api/src/wiring/createExtension.test.ts
index 14b1fd2d50..104f03c84d 100644
--- a/packages/frontend-plugin-api/src/wiring/createExtension.test.ts
+++ b/packages/frontend-plugin-api/src/wiring/createExtension.test.ts
@@ -49,4 +49,42 @@ describe('createExtension', () => {
     });
     expect(extension.id).toBe('test');
   });
+
+  it('should create an extension with a some optional output', () => {
+    const extension = createExtension({
+      id: 'test',
+      at: 'root',
+      output: {
+        foo: stringData,
+        bar: stringData.optional(),
+      },
+      factory({ bind }) {
+        bind({
+          foo: 'bar',
+        });
+        bind({
+          foo: 'bar',
+          bar: 'baz',
+        });
+        bind({
+          // @ts-expect-error
+          foo: 3,
+        });
+        bind({
+          foo: 'bar',
+          // @ts-expect-error
+          bar: 3,
+        });
+        // @ts-expect-error
+        bind({ bar: 'bar' });
+        // @ts-expect-error
+        bind({});
+        // @ts-expect-error
+        bind();
+        // @ts-expect-error
+        bind('bar');
+      },
+    });
+    expect(extension.id).toBe('test');
+  });
 });
diff --git a/packages/frontend-plugin-api/src/wiring/createExtension.ts b/packages/frontend-plugin-api/src/wiring/createExtension.ts
index 1ef0d3c272..c545fe7fea 100644
--- a/packages/frontend-plugin-api/src/wiring/createExtension.ts
+++ b/packages/frontend-plugin-api/src/wiring/createExtension.ts
@@ -18,10 +18,26 @@ import { PortableSchema } from '../schema';
 import { BackstagePlugin } from './createPlugin';
 import { AnyExtensionDataMap, Extension } from './types';
 
+type OnlyRequiredKeys<TOutput extends AnyExtensionDataMap> = {
+  [K in keyof TOutput]: TOutput[K]['config']['optional'] extends true
+    ? never
+    : K;
+}[keyof TOutput];
+
+type OnlyOptionalKeys<TOutput extends AnyExtensionDataMap> = {
+  [K in keyof TOutput]: TOutput[K]['config']['optional'] extends false
+    ? never
+    : K;
+}[keyof TOutput];
+
 /** @public */
-export type ExtensionDataBind<TOutput extends AnyExtensionDataMap> = (outputs: {
-  [K in keyof TOutput]: TOutput[K]['T'];
-}) => void;
+export type ExtensionDataBind<TOutput extends AnyExtensionDataMap> = (
+  outputs: {
+    [K in OnlyRequiredKeys<TOutput>]: TOutput[K]['T'];
+  } & {
+    [K in OnlyOptionalKeys<TOutput>]?: TOutput[K]['T'];
+  },
+) => void;
 
 /** @public */
 export type ExtensionDataValue<TData extends AnyExtensionDataMap> = {
diff --git a/packages/frontend-plugin-api/src/wiring/createExtensionDataRef.ts b/packages/frontend-plugin-api/src/wiring/createExtensionDataRef.ts
index 10a931a65d..95e8bdeb95 100644
--- a/packages/frontend-plugin-api/src/wiring/createExtensionDataRef.ts
+++ b/packages/frontend-plugin-api/src/wiring/createExtensionDataRef.ts
@@ -15,14 +15,35 @@
  */
 
 /** @public */
-export type ExtensionDataRef<T> = {
+export type ExtensionDataRef<
+  TData,
+  TConfig extends { optional: boolean } = { optional: false },
+> = {
   id: string;
-  T: T;
+  T: TData;
+  config: TConfig;
   $$type: 'extension-data';
 };
 
 /** @public */
-// TODO: change to options object with ID.
-export function createExtensionDataRef<T>(id: string): ExtensionDataRef<T> {
-  return { id, $$type: 'extension-data' } as ExtensionDataRef<T>;
+export interface ConfigurableExtensionDataRef<
+  TData,
+  TConfig extends { optional: boolean },
+> extends ExtensionDataRef<TData, TConfig> {
+  optional(): ConfigurableExtensionDataRef<TData, TData & { optional: true }>;
+}
+
+/** @public */
+// TODO: change to options object with ID.
+export function createExtensionDataRef<TData>(
+  id: string,
+): ConfigurableExtensionDataRef<TData, { optional: false }> {
+  return {
+    id,
+    $$type: 'extension-data',
+    config: { optional: false },
+    optional() {
+      return { ...this, config: { ...this.config, optional: true } };
+    },
+  } as ConfigurableExtensionDataRef<TData, { optional: false }>;
 }
diff --git a/packages/frontend-plugin-api/src/wiring/types.ts b/packages/frontend-plugin-api/src/wiring/types.ts
index 3779a5c676..f3f5008f27 100644
--- a/packages/frontend-plugin-api/src/wiring/types.ts
+++ b/packages/frontend-plugin-api/src/wiring/types.ts
@@ -20,7 +20,7 @@ import { ExtensionDataRef } from './createExtensionDataRef';
 import { BackstagePlugin } from './createPlugin';
 
 /** @public */
-export type AnyExtensionDataMap = Record<string, ExtensionDataRef<any>>;
+export type AnyExtensionDataMap = Record<string, ExtensionDataRef<any, any>>;
 
 /** @public */
 export interface Extension<TConfig> {