diff --git a/.changeset/wise-tables-add.md b/.changeset/wise-tables-add.md
new file mode 100644
index 0000000000..987c74cf53
--- /dev/null
+++ b/.changeset/wise-tables-add.md
@@ -0,0 +1,5 @@
+---
+'@backstage/backend-plugin-api': patch
+---
+
+Service factory functions are now marked as feature factories that can be installed in the backend.
diff --git a/packages/backend-plugin-api/src/services/system/types.ts b/packages/backend-plugin-api/src/services/system/types.ts
index bea53dc1ed..b8fb12fe44 100644
--- a/packages/backend-plugin-api/src/services/system/types.ts
+++ b/packages/backend-plugin-api/src/services/system/types.ts
@@ -241,7 +241,7 @@ export function createServiceFactory<
     | (() => PluginServiceFactoryConfig<TService, TContext, TImpl, TDeps>),
 ): (options: TOpts) => ServiceFactory {
   const configCallback = typeof config === 'function' ? config : () => config;
-  return (
+  const factory = (
     options: TOpts,
   ): InternalServiceFactory<TService, 'plugin' | 'root'> => {
     const anyConf = configCallback(options);
@@ -275,4 +275,8 @@ export function createServiceFactory<
       factory: async (deps: TDeps, ctx: TContext) => c.factory(deps, ctx),
     };
   };
+
+  factory.$$type = '@backstage/BackendFeatureFactory';
+
+  return factory;
 }