diff --git a/.changeset/sour-phones-fix.md b/.changeset/sour-phones-fix.md
new file mode 100644
index 0000000000..d2519f2ef5
--- /dev/null
+++ b/.changeset/sour-phones-fix.md
@@ -0,0 +1,5 @@
+---
+'@backstage/plugin-scaffolder-backend-module-gitlab': patch
+---
+
+Updated `gitlab:group:ensureExists` action to instead use oauth client.
diff --git a/plugins/scaffolder-backend-module-gitlab/src/actions/gitlabGroupEnsureExists.examples.test.ts b/plugins/scaffolder-backend-module-gitlab/src/actions/gitlabGroupEnsureExists.examples.test.ts
index b9377fd97b..202b397d19 100644
--- a/plugins/scaffolder-backend-module-gitlab/src/actions/gitlabGroupEnsureExists.examples.test.ts
+++ b/plugins/scaffolder-backend-module-gitlab/src/actions/gitlabGroupEnsureExists.examples.test.ts
@@ -27,7 +27,8 @@ const mockGitlabClient = {
     create: jest.fn(),
   },
 };
-jest.mock('@gitbeaker/node', () => ({
+
+jest.mock('@gitbeaker/rest', () => ({
   Gitlab: class {
     constructor() {
       return mockGitlabClient;
@@ -38,8 +39,8 @@ jest.mock('@gitbeaker/node', () => ({
 describe('gitlab:group:ensureExists', () => {
   const mockContext = createMockActionContext();
 
-  afterEach(() => {
-    jest.resetAllMocks();
+  beforeEach(() => {
+    jest.clearAllMocks();
   });
 
   it(`Should ${examples[0].description}`, async () => {
@@ -55,7 +56,7 @@ describe('gitlab:group:ensureExists', () => {
           {
             host: 'gitlab.com',
             token: 'tokenlols',
-            apiBaseUrl: 'https://api.gitlab.com',
+            apiBaseUrl: 'https://gitlab.com/api/v4',
           },
         ],
       },
@@ -114,7 +115,7 @@ describe('gitlab:group:ensureExists', () => {
       'group2',
       'group2',
       {
-        parent_id: 1,
+        parentId: 1,
       },
     );
 
@@ -161,7 +162,7 @@ describe('gitlab:group:ensureExists', () => {
       'group3',
       'group3',
       {
-        parent_id: 2,
+        parentId: 2,
       },
     );
 
diff --git a/plugins/scaffolder-backend-module-gitlab/src/actions/gitlabGroupEnsureExists.test.ts b/plugins/scaffolder-backend-module-gitlab/src/actions/gitlabGroupEnsureExists.test.ts
index a92637ba46..1192052e6d 100644
--- a/plugins/scaffolder-backend-module-gitlab/src/actions/gitlabGroupEnsureExists.test.ts
+++ b/plugins/scaffolder-backend-module-gitlab/src/actions/gitlabGroupEnsureExists.test.ts
@@ -18,6 +18,7 @@ import { ConfigReader } from '@backstage/core-app-api';
 import { ScmIntegrations } from '@backstage/integration';
 import { createMockActionContext } from '@backstage/plugin-scaffolder-node-test-utils';
 import { createGitlabGroupEnsureExistsAction } from './gitlabGroupEnsureExists';
+import { getClient } from '../util';
 
 const mockGitlabClient = {
   Groups: {
@@ -25,7 +26,8 @@ const mockGitlabClient = {
     create: jest.fn(),
   },
 };
-jest.mock('@gitbeaker/node', () => ({
+
+jest.mock('@gitbeaker/rest', () => ({
   Gitlab: class {
     constructor() {
       return mockGitlabClient;
@@ -33,13 +35,33 @@ jest.mock('@gitbeaker/node', () => ({
   },
 }));
 
-describe('gitlab:group:ensureExists', () => {
-  const mockContext = createMockActionContext();
+jest.mock('../util', () => ({
+  getClient: jest.fn().mockImplementation(() => mockGitlabClient),
+  parseRepoUrl: () => ({ host: 'gitlab.com', owner: 'owner', repo: 'repo' }),
+}));
 
-  afterEach(() => {
-    jest.resetAllMocks();
+describe('gitlab:group:ensureExists', () => {
+  beforeEach(() => {
+    jest.clearAllMocks();
   });
 
+  const config = new ConfigReader({
+    integrations: {
+      gitlab: [
+        {
+          host: 'gitlab.com',
+          token: 'tokenlols',
+          apiBaseUrl: 'https://gitlab.com/api/v4',
+        },
+      ],
+    },
+  });
+  const integrations = ScmIntegrations.fromConfig(config);
+
+  const action = createGitlabGroupEnsureExistsAction({ integrations });
+
+  const mockContext = createMockActionContext();
+
   it('should create a new group if it does not exists', async () => {
     mockGitlabClient.Groups.search.mockResolvedValue([
       {
@@ -57,31 +79,16 @@ describe('gitlab:group:ensureExists', () => {
       full_path: 'foo/bar',
     });
 
-    const config = new ConfigReader({
-      integrations: {
-        gitlab: [
-          {
-            host: 'gitlab.com',
-            token: 'tokenlols',
-            apiBaseUrl: 'https://api.gitlab.com',
-          },
-        ],
-      },
-    });
-    const integrations = ScmIntegrations.fromConfig(config);
-
-    const action = createGitlabGroupEnsureExistsAction({ integrations });
-
     await action.handler({
       ...mockContext,
       input: {
-        repoUrl: 'gitlab.com',
+        repoUrl: 'gitlab.com?repo=repo&owner=owner',
         path: ['foo', 'bar'],
       },
     });
 
     expect(mockGitlabClient.Groups.create).toHaveBeenCalledWith('bar', 'bar', {
-      parent_id: 2,
+      parentId: 2,
     });
 
     expect(mockContext.output).toHaveBeenCalledWith('groupId', 3);
@@ -103,25 +110,10 @@ describe('gitlab:group:ensureExists', () => {
       },
     ]);
 
-    const config = new ConfigReader({
-      integrations: {
-        gitlab: [
-          {
-            host: 'gitlab.com',
-            token: 'tokenlols',
-            apiBaseUrl: 'https://api.gitlab.com',
-          },
-        ],
-      },
-    });
-    const integrations = ScmIntegrations.fromConfig(config);
-
-    const action = createGitlabGroupEnsureExistsAction({ integrations });
-
     await action.handler({
       ...mockContext,
       input: {
-        repoUrl: 'gitlab.com',
+        repoUrl: 'gitlab.com?repo=repo&owner=owner',
         path: ['foo', 'bar'],
       },
     });
@@ -132,26 +124,11 @@ describe('gitlab:group:ensureExists', () => {
   });
 
   it('should not call API on dryRun', async () => {
-    const config = new ConfigReader({
-      integrations: {
-        gitlab: [
-          {
-            host: 'gitlab.com',
-            token: 'tokenlols',
-            apiBaseUrl: 'https://api.gitlab.com',
-          },
-        ],
-      },
-    });
-    const integrations = ScmIntegrations.fromConfig(config);
-
-    const action = createGitlabGroupEnsureExistsAction({ integrations });
-
     await action.handler({
       ...mockContext,
       isDryRun: true,
       input: {
-        repoUrl: 'gitlab.com',
+        repoUrl: 'gitlab.com?repo=repo&owner=owner',
         path: ['foo', 'bar'],
       },
     });
@@ -161,4 +138,51 @@ describe('gitlab:group:ensureExists', () => {
 
     expect(mockContext.output).toHaveBeenCalledWith('groupId', 42);
   });
+
+  it('should use the token from the integration config when none is provided', async () => {
+    mockGitlabClient.Groups.search.mockResolvedValue([
+      {
+        id: 1,
+        full_path: 'foobar',
+      },
+    ]);
+
+    await action.handler({
+      ...mockContext,
+      input: {
+        repoUrl: 'gitlab.com?repo=repo&owner=owner',
+        path: ['foobar'],
+      },
+    });
+
+    expect(getClient).toHaveBeenCalledWith(
+      expect.not.objectContaining({
+        token: expect.anything(),
+      }),
+    );
+  });
+
+  it('should use a provided token as bearer authentication', async () => {
+    mockGitlabClient.Groups.search.mockResolvedValue([
+      {
+        id: 1,
+        full_path: 'foobar',
+      },
+    ]);
+
+    await action.handler({
+      ...mockContext,
+      input: {
+        repoUrl: 'gitlab.com?repo=repo&owner=owner',
+        path: ['foobar'],
+        token: 'mysecrettoken',
+      },
+    });
+
+    expect(getClient).toHaveBeenCalledWith(
+      expect.objectContaining({
+        token: 'mysecrettoken',
+      }),
+    );
+  });
 });
diff --git a/plugins/scaffolder-backend-module-gitlab/src/actions/gitlabGroupEnsureExists.ts b/plugins/scaffolder-backend-module-gitlab/src/actions/gitlabGroupEnsureExists.ts
index 29f260fb75..41bc5755c9 100644
--- a/plugins/scaffolder-backend-module-gitlab/src/actions/gitlabGroupEnsureExists.ts
+++ b/plugins/scaffolder-backend-module-gitlab/src/actions/gitlabGroupEnsureExists.ts
@@ -17,10 +17,9 @@
 import { ScmIntegrationRegistry } from '@backstage/integration';
 import { createTemplateAction } from '@backstage/plugin-scaffolder-node';
 import { GroupSchema } from '@gitbeaker/core/dist/types/resources/Groups';
-import { Gitlab } from '@gitbeaker/node';
 import { z } from 'zod';
 import commonGitlabConfig from '../commonGitlabConfig';
-import { getToken } from '../util';
+import { getClient, parseRepoUrl } from '../util';
 import { examples } from './gitlabGroupEnsureExists.examples';
 
 /**
@@ -60,16 +59,14 @@ export const createGitlabGroupEnsureExistsAction = (options: {
         return;
       }
 
-      const { path } = ctx.input;
-      const { token, integrationConfig } = getToken(ctx.input, integrations);
+      const { token, repoUrl, path } = ctx.input;
 
-      const api = new Gitlab({
-        host: integrationConfig.config.baseUrl,
-        token: token,
-      });
+      const { host } = parseRepoUrl(repoUrl, integrations);
+
+      const api = getClient({ host, integrations, token });
 
       let currentPath: string | null = null;
-      let parent: GroupSchema | null = null;
+      let parentId: number | null = null;
       for (const pathElement of path) {
         const fullPath: string = currentPath
           ? `${currentPath}/${pathElement}`
@@ -82,22 +79,24 @@ export const createGitlabGroupEnsureExistsAction = (options: {
         );
         if (!subGroup) {
           ctx.logger.info(`creating missing group ${fullPath}`);
-          parent = await api.Groups.create(
-            pathElement,
-            pathElement,
-            parent
-              ? {
-                  parent_id: parent.id,
-                }
-              : {},
-          );
+          parentId = (
+            await api.Groups.create(
+              pathElement,
+              pathElement,
+              parentId
+                ? {
+                    parentId: parentId,
+                  }
+                : {},
+            )
+          )?.id;
         } else {
-          parent = subGroup;
+          parentId = subGroup.id;
         }
         currentPath = fullPath;
       }
-      if (parent !== null) {
-        ctx.output('groupId', parent?.id);
+      if (parentId !== null) {
+        ctx.output('groupId', parentId);
       }
     },
   });