diff --git a/.changeset/dry-games-end.md b/.changeset/dry-games-end.md
new file mode 100644
index 0000000000..dc2f86ee10
--- /dev/null
+++ b/.changeset/dry-games-end.md
@@ -0,0 +1,5 @@
+---
+'@backstage/plugin-scaffolder': patch
+---
+
+Fix bug with empty strings in `EntityPicker`
diff --git a/plugins/scaffolder/src/components/fields/EntityPicker/EntityPicker.tsx b/plugins/scaffolder/src/components/fields/EntityPicker/EntityPicker.tsx
index b7e3122c31..2aa72550c3 100644
--- a/plugins/scaffolder/src/components/fields/EntityPicker/EntityPicker.tsx
+++ b/plugins/scaffolder/src/components/fields/EntityPicker/EntityPicker.tsx
@@ -72,7 +72,7 @@ export const EntityPicker = (
 
   const onSelect = useCallback(
     (_: any, value: string | null) => {
-      onChange(value || '');
+      onChange(value ?? undefined);
     },
     [onChange],
   );