diff --git a/plugins/scaffolder/src/components/fields/OwnershipEntityRefPicker/OwnershipEntityRefPicker.test.tsx b/plugins/scaffolder/src/components/fields/OwnershipEntityRefPicker/OwnershipEntityRefPicker.test.tsx
index 81bbb21438..40e7b09d8f 100644
--- a/plugins/scaffolder/src/components/fields/OwnershipEntityRefPicker/OwnershipEntityRefPicker.test.tsx
+++ b/plugins/scaffolder/src/components/fields/OwnershipEntityRefPicker/OwnershipEntityRefPicker.test.tsx
@@ -22,7 +22,12 @@ import { OwnershipEntityRefPicker } from './OwnershipEntityRefPicker';
 import { TestApiProvider } from '@backstage/test-utils';
 import { catalogApiRef } from '@backstage/plugin-catalog-react';
 import { Entity } from '@backstage/catalog-model';
-import { IdentityApi, identityApiRef } from '@backstage/core-plugin-api';
+import {
+  ErrorApi,
+  IdentityApi,
+  errorApiRef,
+  identityApiRef,
+} from '@backstage/core-plugin-api';
 import userEvent from '@testing-library/user-event';
 
 // Create a mock IdentityApi
@@ -52,9 +57,14 @@ describe('<OwnershipEntityRefPicker />', () => {
   const required = false;
 
   const catalogApi: jest.Mocked<CatalogApi> = {
-    getEntities: jest.fn(async () => ({ items: entities })),
+    getEntitiesByRefs: jest.fn(async () => ({ items: entities })),
   } as any;
 
+  const mockErrorApi: jest.Mocked<ErrorApi> = {
+    post: jest.fn(),
+    error$: jest.fn(),
+  };
+
   beforeEach(() => {
     entities = [
       {
@@ -78,7 +88,7 @@ describe('<OwnershipEntityRefPicker />', () => {
     ];
 
     onChange.mockClear();
-    catalogApi.getEntities.mockClear();
+    catalogApi.getEntitiesByRefs.mockClear();
   });
 
   afterEach(() => {
@@ -93,7 +103,7 @@ describe('<OwnershipEntityRefPicker />', () => {
         entity.spec.members.includes('Bob'),
     );
 
-    catalogApi.getEntities.mockResolvedValue({ items: userGroups });
+    catalogApi.getEntitiesByRefs.mockResolvedValue({ items: userGroups });
 
     const props = {
       onChange,
@@ -106,6 +116,7 @@ describe('<OwnershipEntityRefPicker />', () => {
         apis={[
           [identityApiRef, mockIdentityApi],
           [catalogApiRef, catalogApi],
+          [errorApiRef, mockErrorApi],
         ]}
       >
         <OwnershipEntityRefPicker {...props} />
@@ -113,38 +124,35 @@ describe('<OwnershipEntityRefPicker />', () => {
     );
 
     await waitFor(() =>
-      expect(catalogApi.getEntities).toHaveBeenCalledTimes(1),
+      expect(catalogApi.getEntitiesByRefs).toHaveBeenCalledTimes(1),
     );
 
-    expect(catalogApi.getEntities).toHaveBeenCalledWith({
-      filter: {
-        kind: ['Group'],
-        'relations.hasMember': ['group:default/group1', 'group:default/group2'],
-      },
+    expect(catalogApi.getEntitiesByRefs).toHaveBeenCalledWith({
+      entityRefs: ['group:default/group1', 'group:default/group2'],
     });
 
     // Check that getEntities was set up to return the correct data
-    await expect(catalogApi.getEntities.mock.results[0].value).resolves.toEqual(
-      {
-        items: [
-          {
-            apiVersion: 'backstage.io/v1alpha1',
-            kind: 'Group',
-            metadata: { name: 'group1' },
-            spec: { members: ['Bob'] },
-          },
-          {
-            apiVersion: 'backstage.io/v1alpha1',
-            kind: 'Group',
-            metadata: { name: 'group2' },
-            spec: { members: ['Bob'] },
-          },
-        ],
-      },
-    );
+    await expect(
+      catalogApi.getEntitiesByRefs.mock.results[0].value,
+    ).resolves.toEqual({
+      items: [
+        {
+          apiVersion: 'backstage.io/v1alpha1',
+          kind: 'Group',
+          metadata: { name: 'group1' },
+          spec: { members: ['Bob'] },
+        },
+        {
+          apiVersion: 'backstage.io/v1alpha1',
+          kind: 'Group',
+          metadata: { name: 'group2' },
+          spec: { members: ['Bob'] },
+        },
+      ],
+    });
 
     await expect(
-      catalogApi.getEntities.mock.results[0].value,
+      catalogApi.getEntitiesByRefs.mock.results[0].value,
     ).resolves.not.toEqual(
       expect.objectContaining({
         items: expect.arrayContaining([
@@ -163,7 +171,7 @@ describe('<OwnershipEntityRefPicker />', () => {
         Array.isArray(entity.spec.members) &&
         entity.spec.members.includes('Bob'),
     );
-    catalogApi.getEntities.mockResolvedValue({ items: userGroups });
+    catalogApi.getEntitiesByRefs.mockResolvedValue({ items: userGroups });
 
     const props = {
       onChange,
@@ -176,6 +184,7 @@ describe('<OwnershipEntityRefPicker />', () => {
         apis={[
           [identityApiRef, mockIdentityApi],
           [catalogApiRef, catalogApi],
+          [errorApiRef, mockErrorApi],
         ]}
       >
         <OwnershipEntityRefPicker {...props} />
@@ -183,7 +192,7 @@ describe('<OwnershipEntityRefPicker />', () => {
     );
 
     await waitFor(() =>
-      expect(catalogApi.getEntities).toHaveBeenCalledTimes(1),
+      expect(catalogApi.getEntitiesByRefs).toHaveBeenCalledTimes(1),
     );
 
     // Simulate user input
@@ -202,4 +211,62 @@ describe('<OwnershipEntityRefPicker />', () => {
     // Assert that 'group3' is not rendered in the component
     expect(queryByText('group3')).not.toBeInTheDocument();
   });
+
+  it('should call the onChange handler with the correct entityRef and and use a nice display name', async () => {
+    const userGroups = [
+      {
+        apiVersion: 'backstage.io/v1alpha1',
+        kind: 'Group',
+        metadata: { name: 'group1', title: 'My First Group' },
+        spec: { members: ['Bob'] },
+      },
+      {
+        apiVersion: 'backstage.io/v1alpha1',
+        kind: 'Group',
+        metadata: { name: 'group2', title: 'My Second Group' },
+        spec: { members: ['Bob'] },
+      },
+    ];
+
+    catalogApi.getEntitiesByRefs.mockResolvedValue({ items: userGroups });
+
+    const props = {
+      onChange,
+      schema,
+      required,
+    } as unknown as FieldProps<any>;
+
+    const { getByRole } = render(
+      <TestApiProvider
+        apis={[
+          [identityApiRef, mockIdentityApi],
+          [catalogApiRef, catalogApi],
+          [errorApiRef, mockErrorApi],
+        ]}
+      >
+        <OwnershipEntityRefPicker {...props} />
+      </TestApiProvider>,
+    );
+
+    await waitFor(() =>
+      expect(catalogApi.getEntitiesByRefs).toHaveBeenCalledTimes(1),
+    );
+
+    const inputField = getByRole('combobox');
+    userEvent.click(inputField);
+    userEvent.type(inputField, 'group');
+
+    await waitFor(() => {
+      const option = getByRole('option', { name: 'My First Group' });
+      expect(option).toBeInTheDocument();
+    });
+
+    const option = getByRole('option', { name: 'My First Group' });
+    userEvent.click(option);
+
+    await waitFor(() => {
+      expect(onChange).toHaveBeenCalledTimes(1);
+      expect(onChange).toHaveBeenCalledWith('group:default/group1');
+    });
+  });
 });
diff --git a/plugins/scaffolder/src/components/fields/OwnershipEntityRefPicker/OwnershipEntityRefPicker.tsx b/plugins/scaffolder/src/components/fields/OwnershipEntityRefPicker/OwnershipEntityRefPicker.tsx
index f89c6ff789..299e8e66d7 100644
--- a/plugins/scaffolder/src/components/fields/OwnershipEntityRefPicker/OwnershipEntityRefPicker.tsx
+++ b/plugins/scaffolder/src/components/fields/OwnershipEntityRefPicker/OwnershipEntityRefPicker.tsx
@@ -14,8 +14,12 @@
  * limitations under the License.
  */
 
-import React, { useEffect, useState } from 'react';
-import { identityApiRef, useApi } from '@backstage/core-plugin-api';
+import React, { useState } from 'react';
+import {
+  errorApiRef,
+  identityApiRef,
+  useApi,
+} from '@backstage/core-plugin-api';
 import { TextField, FormControl } from '@material-ui/core';
 import {
   OwnershipEntityRefPickerProps,
@@ -24,6 +28,8 @@ import {
 import { Autocomplete } from '@material-ui/lab';
 import { catalogApiRef } from '@backstage/plugin-catalog-react';
 import { NotFoundError } from '@backstage/errors';
+import useAsync from 'react-use/lib/useAsync';
+import { Entity, stringifyEntityRef } from '@backstage/catalog-model';
 
 export { OwnershipEntityRefPickerSchema };
 
@@ -34,34 +40,52 @@ export const OwnershipEntityRefPicker = (
     schema: { title, description },
     required,
     rawErrors,
+    onChange,
   } = props;
 
   const identityApi = useApi(identityApiRef);
   const catalogApi = useApi(catalogApiRef);
-  const [groups, setGroups] = useState<string[]>([]);
-  const [selectedGroup, setSelectedGroup] = useState<string | null>(null);
+  const errorApi = useApi(errorApiRef);
+  const [groups, setGroups] = useState<
+    {
+      label: string;
+      ref: string;
+    }[]
+  >([]);
+  const [selectedGroup, setSelectedGroup] = useState<null | {
+    label: string;
+    ref: string;
+  }>(null);
 
-  useEffect(() => {
-    const fetchUserGroups = async () => {
-      const identity = await identityApi.getBackstageIdentity();
-      const userIdentity = identity.ownershipEntityRefs;
+  useAsync(async () => {
+    const { ownershipEntityRefs } = await identityApi.getBackstageIdentity();
 
-      if (!userIdentity) {
-        throw new NotFoundError('No ownership entity refs found');
-      }
+    if (!ownershipEntityRefs || !ownershipEntityRefs.length) {
+      errorApi.post(new NotFoundError('No ownership entity refs found'));
+      return;
+    }
 
-      const userOwnedGroups = await catalogApi.getEntities({
-        filter: {
-          kind: ['Group'],
-          'relations.hasMember': userIdentity,
-        },
-      });
-      const groupValues = userOwnedGroups.items.map(item => item.metadata.name);
-      setGroups(groupValues);
-    };
+    const { items } = await catalogApi.getEntitiesByRefs({
+      entityRefs: ownershipEntityRefs,
+    });
 
-    fetchUserGroups();
-  }, [identityApi, catalogApi]);
+    const groupValues = items
+      .filter((e): e is Entity => Boolean(e))
+      .map(item => ({
+        label: item.metadata.title ?? item.metadata.name,
+        ref: stringifyEntityRef(item),
+      }));
+
+    setGroups(groupValues);
+  });
+
+  const updateChange = (
+    _: React.ChangeEvent<{}>,
+    value: { label: string; ref: string } | null,
+  ) => {
+    setSelectedGroup(value);
+    onChange(value?.ref ?? '');
+  };
 
   return (
     <FormControl
@@ -73,8 +97,8 @@ export const OwnershipEntityRefPicker = (
         id="OwnershipEntityRefPicker-dropdown"
         options={groups || []}
         value={selectedGroup}
-        onChange={(_, value) => setSelectedGroup(value || '')}
-        getOptionLabel={group => group}
+        onChange={updateChange}
+        getOptionLabel={group => group.label}
         renderInput={params => (
           <TextField
             {...params}