diff --git a/plugins/catalog-react/api-report.md b/plugins/catalog-react/api-report.md
index 8550b6a5c6..129f7b36af 100644
--- a/plugins/catalog-react/api-report.md
+++ b/plugins/catalog-react/api-report.md
@@ -6,7 +6,6 @@
 /// <reference types="react" />
 
 import { ApiRef } from '@backstage/core-plugin-api';
-import { AsyncPermissionResult } from '@backstage/plugin-permission-react';
 import { AsyncState } from 'react-use/lib/useAsync';
 import { CATALOG_FILTER_EXISTS } from '@backstage/catalog-client';
 import { CatalogApi } from '@backstage/catalog-client';
@@ -882,9 +881,11 @@ export function useEntityOwnership(): {
 };
 
 // @public
-export function useEntityPermission(
-  permission: Permission,
-): AsyncPermissionResult;
+export function useEntityPermission(permission: Permission): {
+  loading: boolean;
+  allowed: boolean;
+  error?: Error;
+};
 
 // Warning: (ae-forgotten-export) The symbol "EntityTypeReturn" needs to be exported by the entry point index.d.ts
 // Warning: (ae-missing-release-tag) "useEntityTypeFilter" is exported by the package, but it is missing a release tag (@alpha, @beta, @public, or @internal)
diff --git a/plugins/catalog-react/src/hooks/useEntityPermission.test.tsx b/plugins/catalog-react/src/hooks/useEntityPermission.test.tsx
index db7202de20..553d999b61 100644
--- a/plugins/catalog-react/src/hooks/useEntityPermission.test.tsx
+++ b/plugins/catalog-react/src/hooks/useEntityPermission.test.tsx
@@ -14,51 +14,84 @@
  * limitations under the License.
  */
 
-import React, { PropsWithChildren } from 'react';
 import { catalogEntityDeletePermission } from '@backstage/plugin-catalog-common';
 import { renderHook } from '@testing-library/react-hooks';
 import { useEntityPermission } from './useEntityPermission';
-import { MockPermissionApi, TestApiProvider } from '@backstage/test-utils';
-import { permissionApiRef } from '@backstage/plugin-permission-react';
-import { Entity } from '@backstage/catalog-model';
-import { EntityProvider } from './useEntity';
+import { useEntity } from './useEntity';
+import { usePermission } from '@backstage/plugin-permission-react';
 
-const mockPermissionApi = new MockPermissionApi();
-
-function createWrapper(entity?: Entity) {
-  return ({ children }: PropsWithChildren<{}>) => (
-    <TestApiProvider apis={[[permissionApiRef, mockPermissionApi]]}>
-      <EntityProvider entity={entity} children={children} />
-    </TestApiProvider>
-  );
-}
+jest.mock('./useEntity', () => ({
+  ...jest.requireActual('./useEntity'),
+  useEntity: jest.fn(),
+}));
+jest.mock('@backstage/plugin-permission-react', () => ({
+  ...jest.requireActual('@backstage/plugin-permission-react'),
+  usePermission: jest.fn(),
+}));
+const useEntityMock = useEntity as jest.Mock;
+const usePermissionMock = usePermission as jest.Mock;
 
 describe('useEntityPermission', () => {
-  it('returns authorization result', async () => {
-    const { result, waitForValueToChange } = renderHook(
-      () => useEntityPermission(catalogEntityDeletePermission),
-      {
-        wrapper: createWrapper({
-          apiVersion: 'a',
-          kind: 'b',
-          metadata: { name: 'c' },
-        }),
-      },
+  afterEach(() => {
+    jest.resetAllMocks();
+  });
+
+  it('returns loading when entity is loading', () => {
+    useEntityMock.mockReturnValue({ loading: true, entity: undefined });
+    usePermissionMock.mockReturnValue({ loading: false, allowed: false });
+    const { result } = renderHook(() =>
+      useEntityPermission(catalogEntityDeletePermission),
     );
 
-    await waitForValueToChange(() => result.current);
+    expect(result.current.loading).toBe(true);
+  });
+
+  it('returns loading when permission is loading', () => {
+    useEntityMock.mockReturnValue({
+      loading: false,
+      entity: {
+        apiVersion: 'a',
+        kind: 'b',
+        metadata: { name: 'c' },
+      },
+    });
+    usePermissionMock.mockReturnValue({ loading: true, allowed: false });
+    const { result } = renderHook(() =>
+      useEntityPermission(catalogEntityDeletePermission),
+    );
+
+    expect(result.current.loading).toBe(true);
+  });
+
+  it('does not authorize when there is an entity error', () => {
+    useEntityMock.mockReturnValue({
+      loading: false,
+      entity: undefined,
+      error: new Error(),
+    });
+    usePermissionMock.mockReturnValue({ loading: false, allowed: false });
+    const { result } = renderHook(() =>
+      useEntityPermission(catalogEntityDeletePermission),
+    );
+
+    expect(result.current.error).toBeInstanceOf(Error);
+    expect(result.current.allowed).toBe(false);
+  });
+
+  it('returns authorization result', () => {
+    useEntityMock.mockReturnValue({
+      loading: false,
+      entity: {
+        apiVersion: 'a',
+        kind: 'b',
+        metadata: { name: 'c' },
+      },
+    });
+    usePermissionMock.mockReturnValue({ loading: false, allowed: true });
+    const { result } = renderHook(() =>
+      useEntityPermission(catalogEntityDeletePermission),
+    );
 
     expect(result.current.allowed).toBe(true);
   });
-
-  it('throws error if no entity is found', async () => {
-    const { waitForNextUpdate } = renderHook(
-      () => useEntityPermission(catalogEntityDeletePermission),
-      {
-        wrapper: createWrapper(),
-      },
-    );
-
-    await expect(() => waitForNextUpdate()).rejects.toThrowError();
-  });
 });
diff --git a/plugins/catalog-react/src/hooks/useEntityPermission.ts b/plugins/catalog-react/src/hooks/useEntityPermission.ts
index 1783526e34..c1f62cfc39 100644
--- a/plugins/catalog-react/src/hooks/useEntityPermission.ts
+++ b/plugins/catalog-react/src/hooks/useEntityPermission.ts
@@ -24,12 +24,32 @@ import { useEntity } from './useEntity';
  * {@link @backstage/plugin-permission-react#usePermission} hook which uses the
  * current entity in context to make an authorization request for the given
  * permission.
+ *
+ * Note: this hook blocks the permission request until the entity has loaded in
+ * context. If you have the entityRef and need concurrent requests, use the
+ * `usePermission` hook directly.
  * @public
  */
-export function useEntityPermission(permission: Permission) {
-  const { entity } = useEntity();
-  if (!entity) {
-    throw new Error('No entity in current context.');
+export function useEntityPermission(permission: Permission): {
+  loading: boolean;
+  allowed: boolean;
+  error?: Error;
+} {
+  const { entity, loading: loadingEntity, error: entityError } = useEntity();
+  const {
+    allowed,
+    loading: loadingPermission,
+    error: permissionError,
+  } = usePermission(
+    permission,
+    entity ? stringifyEntityRef(entity) : undefined,
+  );
+
+  if (loadingEntity || loadingPermission) {
+    return { loading: true, allowed: false };
   }
-  return usePermission(permission, stringifyEntityRef(entity));
+  if (entityError) {
+    return { loading: false, allowed: false, error: entityError };
+  }
+  return { loading: false, allowed, error: permissionError };
 }