diff --git a/.changeset/strong-crabs-flow.md b/.changeset/strong-crabs-flow.md
new file mode 100644
index 0000000000..6f73678f96
--- /dev/null
+++ b/.changeset/strong-crabs-flow.md
@@ -0,0 +1,5 @@
+---
+'@backstage/plugin-scaffolder-react': minor
+---
+
+Fixed typescript casting bug for useTemplateParameterSchema hook
diff --git a/plugins/scaffolder-react/alpha-api-report.md b/plugins/scaffolder-react/alpha-api-report.md
index f988eb0831..58a3c8e208 100644
--- a/plugins/scaffolder-react/alpha-api-report.md
+++ b/plugins/scaffolder-react/alpha-api-report.md
@@ -289,7 +289,7 @@ export const useFormDataFromQuery: (
 
 // @alpha (undocumented)
 export const useTemplateParameterSchema: (templateRef: string) => {
-  manifest: TemplateParameterSchema;
+  manifest: TemplateParameterSchema | undefined;
   loading: boolean;
   error: Error | undefined;
 };
diff --git a/plugins/scaffolder-react/src/next/hooks/useTemplateParameterSchema.ts b/plugins/scaffolder-react/src/next/hooks/useTemplateParameterSchema.ts
index d060b9a09f..73452f1670 100644
--- a/plugins/scaffolder-react/src/next/hooks/useTemplateParameterSchema.ts
+++ b/plugins/scaffolder-react/src/next/hooks/useTemplateParameterSchema.ts
@@ -29,5 +29,9 @@ export const useTemplateParameterSchema = (templateRef: string) => {
     [scaffolderApi, templateRef],
   );
 
-  return { manifest: value as TemplateParameterSchema, loading, error };
+  return {
+    manifest: value as TemplateParameterSchema | undefined,
+    loading,
+    error,
+  };
 };