diff --git a/.changeset/nasty-colts-tell.md b/.changeset/nasty-colts-tell.md
new file mode 100644
index 0000000000..eeb7818f4c
--- /dev/null
+++ b/.changeset/nasty-colts-tell.md
@@ -0,0 +1,5 @@
+---
+'@backstage/cli': patch
+---
+
+Add `backend:bundle` command for bundling a backend package with dependencies into a deployment archive.
diff --git a/docs/cli/commands.md b/docs/cli/commands.md
index c505bf8ae7..726f2a922c 100644
--- a/docs/cli/commands.md
+++ b/docs/cli/commands.md
@@ -28,6 +28,7 @@ app:diff                 Diff an existing app with the creation template
 app:serve                Serve an app for local development
 
 backend:build            Build a backend plugin
+backend:bundle           Bundle the backend into a deployment archive
 backend:build-image      Bundles the package into a docker image
 backend:dev              Start local development server with HMR for the backend
 
@@ -166,7 +167,7 @@ Options:
 
 ## backend:build
 
-Scope: `backend`, `backend-plugin`
+Scope: `backend-plugin`
 
 This builds a backend package for publishing and use in production. The build
 output is written to `dist/`. Be sure to list any additional file that the
@@ -180,6 +181,52 @@ Options:
   -h, --help  display help for command
 ```
 
+## backend:bundle
+
+Scope: `backend`
+
+Bundle the backend and all of its local dependencies into a deployment archive.
+The archive is written to `dist/bundle.tar.gz`, and contains the packaged
+version of all dependencies of the target package, along with the target package
+itself. The layout of the packages in the archive is the same as the directory
+layout in the target monorepo, and the bundle also contains the root
+`package.json` and `yarn.lock`.
+
+To use the bundle, extract it into a target directory, run
+`yarn install --production`, and then start the target backend package using for
+example `node package/backend`.
+
+The `dist/bundle.tar.gz` is accompanied by a `dist/skeleton.tar.gz`, which has
+the same layout, but only contains `package.json` files and `yarn.lock`. This
+can be used to run a `yarn install` in environments that will benefit from the
+caching that this enables, such as Docker image builds. To use the skeleton
+archive, simply extract it first, run install, and then extract the main bundle.
+
+The following is an example of a `Dockerfile` that can be used to package the
+output of `backstage-cli backend:bundle` into an image:
+
+```Dockerfile
+FROM node:14-buster
+WORKDIR /app
+
+ADD yarn.lock package.json packages/backend/dist/skeleton.tar.gz ./
+RUN yarn install --production --network-timeout 600000 && rm -rf "$(yarn cache dir)"
+
+ADD packages/backend/dist/bundle.tar.gz app-config.yaml ./
+
+CMD node packages/backend
+```
+
+```text
+Usage: backstage-cli backend:bundle [options]
+
+Bundle the backend into a deployment archive
+
+Options:
+  --build-dependencies  Build all local package dependencies before bundling the backend
+  -h, --help            display help for command
+```
+
 ## backend:build-image
 
 Scope: `backend`
diff --git a/packages/cli/src/commands/backend/bundle.ts b/packages/cli/src/commands/backend/bundle.ts
index 4d298f3735..25322045e1 100644
--- a/packages/cli/src/commands/backend/bundle.ts
+++ b/packages/cli/src/commands/backend/bundle.ts
@@ -38,7 +38,7 @@ export default async (cmd: Command) => {
   try {
     await createDistWorkspace([pkg.name], {
       targetDir: tmpDir,
-      buildDependencies: Boolean(cmd.build),
+      buildDependencies: Boolean(cmd.buildDependencies),
       buildExcludes: [pkg.name],
       parallel: parseParallel(process.env[PARALLEL_ENV_VAR]),
       skeleton: SKELETON_FILE,
diff --git a/packages/cli/src/commands/index.ts b/packages/cli/src/commands/index.ts
index e090c454f9..ac8e214d26 100644
--- a/packages/cli/src/commands/index.ts
+++ b/packages/cli/src/commands/index.ts
@@ -45,9 +45,12 @@ export function registerCommands(program: CommanderStatic) {
     .action(lazy(() => import('./backend/build').then(m => m.default)));
 
   program
-    .command('backend:__experimental__bundle__', { hidden: true })
-    .description('Bundle all backend packages into dist-workspace')
-    .option('--build', 'Build packages before packing them into the image')
+    .command('backend:bundle')
+    .description('Bundle the backend into a deployment archive')
+    .option(
+      '--build-dependencies',
+      'Build all local package dependencies before bundling the backend',
+    )
     .action(lazy(() => import('./backend/bundle').then(m => m.default)));
 
   program