diff --git a/.changeset/fruity-snails-laugh.md b/.changeset/fruity-snails-laugh.md
new file mode 100644
index 0000000000..3b7775efac
--- /dev/null
+++ b/.changeset/fruity-snails-laugh.md
@@ -0,0 +1,5 @@
+---
+'@backstage/plugin-scaffolder-backend-module-gitlab': minor
+---
+
+fix scaffolder action createDeployToken to allow usage of oauth tokens
diff --git a/plugins/scaffolder-backend-module-gitlab/src/actions/gitlabProjectDeployTokenCreate.test.ts b/plugins/scaffolder-backend-module-gitlab/src/actions/gitlabProjectDeployTokenCreate.test.ts
index 4b1c5b52a1..2bd263049c 100644
--- a/plugins/scaffolder-backend-module-gitlab/src/actions/gitlabProjectDeployTokenCreate.test.ts
+++ b/plugins/scaffolder-backend-module-gitlab/src/actions/gitlabProjectDeployTokenCreate.test.ts
@@ -79,6 +79,37 @@ describe('gitlab:create-deploy-token', () => {
         name: 'tokenname',
         username: 'tokenuser',
         scopes: ['read_repository'],
+        token: 'oidctoken',
+      },
+    });
+
+    expect(mockGitlabClient.DeployTokens.create).toHaveBeenCalledWith(
+      'tokenname',
+      ['read_repository'],
+      {
+        projectId: '123',
+        username: 'tokenuser',
+      },
+    );
+
+    expect(mockContext.output).toHaveBeenCalledWith('deploy_token', 'TOKEN');
+    expect(mockContext.output).toHaveBeenCalledWith('user', 'User');
+  });
+
+  it('should work when there is not a token provided through ctx.input e.g. integration token', async () => {
+    mockGitlabClient.DeployTokens.create.mockResolvedValue({
+      token: 'TOKEN',
+      username: 'User',
+    });
+
+    await action.handler({
+      ...mockContext,
+      input: {
+        repoUrl: 'gitlab.com?repo=bob&owner=owner',
+        projectId: '123',
+        name: 'tokenname',
+        username: 'tokenuser',
+        scopes: ['read_repository'],
       },
     });
 
diff --git a/plugins/scaffolder-backend-module-gitlab/src/actions/gitlabProjectDeployTokenCreate.ts b/plugins/scaffolder-backend-module-gitlab/src/actions/gitlabProjectDeployTokenCreate.ts
index ad7f98483d..d35475c36d 100644
--- a/plugins/scaffolder-backend-module-gitlab/src/actions/gitlabProjectDeployTokenCreate.ts
+++ b/plugins/scaffolder-backend-module-gitlab/src/actions/gitlabProjectDeployTokenCreate.ts
@@ -17,8 +17,8 @@
 import { InputError } from '@backstage/errors';
 import { ScmIntegrationRegistry } from '@backstage/integration';
 import { createTemplateAction } from '@backstage/plugin-scaffolder-node';
-import { DeployTokenScope, Gitlab } from '@gitbeaker/rest';
-import { getToken } from '../util';
+import { DeployTokenScope } from '@gitbeaker/rest';
+import { getClient, parseRepoUrl } from '../util';
 import { examples } from './gitlabProjectDeployTokenCreate.examples';
 
 /**
@@ -78,8 +78,7 @@ export const createGitlabProjectDeployTokenAction = (options: {
     },
     async handler(ctx) {
       ctx.logger.info(`Creating Token for Project "${ctx.input.projectId}"`);
-      const { projectId, name, username, scopes } = ctx.input;
-      const { token, integrationConfig } = getToken(ctx.input, integrations);
+      const { projectId, name, username, scopes, repoUrl, token } = ctx.input;
 
       if (scopes.length === 0) {
         throw new InputError(
@@ -87,10 +86,8 @@ export const createGitlabProjectDeployTokenAction = (options: {
         );
       }
 
-      const api = new Gitlab({
-        host: integrationConfig.config.baseUrl,
-        token: token,
-      });
+      const { host } = parseRepoUrl(repoUrl, integrations);
+      const api = getClient({ host, integrations, token });
 
       const { deployToken, deployUsername } = await ctx.checkpoint({
         key: `create.deploy.token.${projectId}.${name}`,