diff --git a/.changeset/cool-deers-cough.md b/.changeset/cool-deers-cough.md
new file mode 100644
index 0000000000..6d3e923d7d
--- /dev/null
+++ b/.changeset/cool-deers-cough.md
@@ -0,0 +1,7 @@
+---
+'@backstage/plugin-catalog-react': minor
+'@backstage/plugin-catalog': patch
+---
+
+Introduce a new `StarredEntitiesApi` that is used in the `useStarredEntities` hook.
+The `@backstage/plugin-catalog` installs a default implementation that is backed by the `StorageApi`, but one can also override the `starredEntitiesApiRef`.
diff --git a/packages/app/src/components/catalog/EntityPage.test.tsx b/packages/app/src/components/catalog/EntityPage.test.tsx
index 955e477f3c..089cb9c7cf 100644
--- a/packages/app/src/components/catalog/EntityPage.test.tsx
+++ b/packages/app/src/components/catalog/EntityPage.test.tsx
@@ -14,13 +14,17 @@
  * limitations under the License.
  */
 
-import React from 'react';
-import { EntityLayout } from '@backstage/plugin-catalog';
-import { EntityProvider } from '@backstage/plugin-catalog-react';
-import { renderInTestApp } from '@backstage/test-utils';
-import { cicdContent } from './EntityPage';
-import { githubActionsApiRef } from '@backstage/plugin-github-actions';
 import { ApiProvider, ApiRegistry } from '@backstage/core-app-api';
+import { EntityLayout } from '@backstage/plugin-catalog';
+import {
+  DefaultStarredEntitiesApi,
+  EntityProvider,
+  starredEntitiesApiRef,
+} from '@backstage/plugin-catalog-react';
+import { githubActionsApiRef } from '@backstage/plugin-github-actions';
+import { MockStorageApi, renderInTestApp } from '@backstage/test-utils';
+import React from 'react';
+import { cicdContent } from './EntityPage';
 
 describe('EntityPage Test', () => {
   const entity = {
@@ -48,7 +52,10 @@ describe('EntityPage Test', () => {
     downloadJobLogsForWorkflowRun: jest.fn(),
   } as jest.Mocked<typeof githubActionsApiRef.T>;
 
-  const apis = ApiRegistry.with(githubActionsApiRef, mockedApi);
+  const apis = ApiRegistry.with(githubActionsApiRef, mockedApi).with(
+    starredEntitiesApiRef,
+    new DefaultStarredEntitiesApi({ storageApi: MockStorageApi.create() }),
+  );
 
   describe('cicdContent', () => {
     it('Should render GitHub Actions View', async () => {
diff --git a/plugins/api-docs/src/components/ApiExplorerPage/ApiExplorerPage.test.tsx b/plugins/api-docs/src/components/ApiExplorerPage/ApiExplorerPage.test.tsx
index d0b7523ead..292d03c838 100644
--- a/plugins/api-docs/src/components/ApiExplorerPage/ApiExplorerPage.test.tsx
+++ b/plugins/api-docs/src/components/ApiExplorerPage/ApiExplorerPage.test.tsx
@@ -15,30 +15,31 @@
  */
 
 import { Entity, RELATION_MEMBER_OF } from '@backstage/catalog-model';
-import {
-  CatalogApi,
-  catalogApiRef,
-  entityRouteRef,
-} from '@backstage/plugin-catalog-react';
-import { MockStorageApi, wrapInTestApp } from '@backstage/test-utils';
-import { render } from '@testing-library/react';
-import React from 'react';
-import { apiDocsConfigRef } from '../../config';
-import { ApiExplorerPage } from './ApiExplorerPage';
-
 import {
   ApiProvider,
   ApiRegistry,
   ConfigReader,
 } from '@backstage/core-app-api';
+import { TableColumn, TableProps } from '@backstage/core-components';
 import {
-  storageApiRef,
   ConfigApi,
   configApiRef,
+  storageApiRef,
 } from '@backstage/core-plugin-api';
-import { TableColumn, TableProps } from '@backstage/core-components';
-import DashboardIcon from '@material-ui/icons/Dashboard';
 import { CatalogTableRow } from '@backstage/plugin-catalog';
+import {
+  CatalogApi,
+  catalogApiRef,
+  DefaultStarredEntitiesApi,
+  entityRouteRef,
+} from '@backstage/plugin-catalog-react';
+import { starredEntitiesApiRef } from '@backstage/plugin-catalog-react/src/apis';
+import { MockStorageApi, wrapInTestApp } from '@backstage/test-utils';
+import DashboardIcon from '@material-ui/icons/Dashboard';
+import { render } from '@testing-library/react';
+import React from 'react';
+import { apiDocsConfigRef } from '../../config';
+import { ApiExplorerPage } from './ApiExplorerPage';
 
 describe('ApiCatalogPage', () => {
   const catalogApi: Partial<CatalogApi> = {
@@ -82,6 +83,8 @@ describe('ApiCatalogPage', () => {
     getApiDefinitionWidget: () => undefined,
   };
 
+  const storageApi = MockStorageApi.create();
+
   const renderWrapped = (children: React.ReactNode) =>
     render(
       wrapInTestApp(
@@ -89,7 +92,11 @@ describe('ApiCatalogPage', () => {
           apis={ApiRegistry.from([
             [catalogApiRef, catalogApi],
             [configApiRef, configApi],
-            [storageApiRef, MockStorageApi.create()],
+            [storageApiRef, storageApi],
+            [
+              starredEntitiesApiRef,
+              new DefaultStarredEntitiesApi({ storageApi }),
+            ],
             [apiDocsConfigRef, apiDocsConfig],
           ])}
         >
diff --git a/plugins/catalog-react/api-report.md b/plugins/catalog-react/api-report.md
index ce7282276e..e176d56129 100644
--- a/plugins/catalog-react/api-report.md
+++ b/plugins/catalog-react/api-report.md
@@ -16,11 +16,13 @@ import { Entity } from '@backstage/catalog-model';
 import { EntityName } from '@backstage/catalog-model';
 import { IconButton } from '@material-ui/core';
 import { LinkProps } from '@backstage/core-components';
+import { Observable } from '@backstage/core-plugin-api';
 import { PropsWithChildren } from 'react';
 import { default as React_2 } from 'react';
 import { ReactNode } from 'react';
 import { RouteRef } from '@backstage/core-plugin-api';
 import { ScmIntegrationRegistry } from '@backstage/integration';
+import { StorageApi } from '@backstage/core-plugin-api';
 import { SystemEntity } from '@backstage/catalog-model';
 import { TableColumn } from '@backstage/core-components';
 import { UserEntity } from '@backstage/catalog-model';
@@ -131,6 +133,23 @@ export type DefaultEntityFilters = {
   text?: EntityTextFilter;
 };
 
+// Warning: (ae-missing-release-tag) "DefaultStarredEntitiesApi" is exported by the package, but it is missing a release tag (@alpha, @beta, @public, or @internal)
+//
+// @public (undocumented)
+export class DefaultStarredEntitiesApi implements StarredEntitiesApi {
+  constructor(opts: { storageApi: StorageApi });
+  // (undocumented)
+  isStarred(entity: Entity): boolean;
+  // (undocumented)
+  star(entity: Entity): Promise<void>;
+  // (undocumented)
+  starredEntities$(): Observable<StarredEntitiesApiObservable>;
+  // (undocumented)
+  toggleStarred(entity: Entity): Promise<void>;
+  // (undocumented)
+  unstar(entity: Entity): Promise<void>;
+}
+
 // Warning: (ae-forgotten-export) The symbol "EntityLoadingStatus" needs to be exported by the entry point index.d.ts
 //
 // @public @deprecated (undocumented)
@@ -742,6 +761,27 @@ export function reduceEntityFilters(
 // @public (undocumented)
 export const rootRoute: RouteRef<undefined>;
 
+// @public
+export interface StarredEntitiesApi {
+  star(entity: Entity): Promise<void>;
+  starredEntities$(): Observable<StarredEntitiesApiObservable>;
+  toggleStarred(entity: Entity): Promise<void>;
+  unstar(entity: Entity): Promise<void>;
+}
+
+// Warning: (ae-missing-release-tag) "StarredEntitiesApiObservable" is exported by the package, but it is missing a release tag (@alpha, @beta, @public, or @internal)
+//
+// @public (undocumented)
+export type StarredEntitiesApiObservable = {
+  starredEntities: Set<string>;
+  isStarred: (entity: Entity) => boolean;
+};
+
+// Warning: (ae-missing-release-tag) "starredEntitiesApiRef" is exported by the package, but it is missing a release tag (@alpha, @beta, @public, or @internal)
+//
+// @public (undocumented)
+export const starredEntitiesApiRef: ApiRef<StarredEntitiesApi>;
+
 // Warning: (ae-forgotten-export) The symbol "Props" needs to be exported by the entry point index.d.ts
 // Warning: (ae-missing-release-tag) "UnregisterEntityDialog" is exported by the package, but it is missing a release tag (@alpha, @beta, @public, or @internal)
 //
diff --git a/plugins/catalog-react/package.json b/plugins/catalog-react/package.json
index f6b36a7191..9ddee679c3 100644
--- a/plugins/catalog-react/package.json
+++ b/plugins/catalog-react/package.json
@@ -45,7 +45,8 @@
     "qs": "^6.9.4",
     "react": "^16.13.1",
     "react-router": "6.0.0-beta.0",
-    "react-use": "^17.2.4"
+    "react-use": "^17.2.4",
+    "zen-observable": "^0.8.15"
   },
   "devDependencies": {
     "@backstage/cli": "^0.7.15",
@@ -56,6 +57,7 @@
     "@testing-library/user-event": "^13.1.8",
     "@types/jest": "^26.0.7",
     "@types/jwt-decode": "^3.1.0",
+    "@types/zen-observable": "^0.8.0",
     "cross-fetch": "^3.0.6",
     "react-test-renderer": "^16.13.1"
   },
diff --git a/plugins/catalog-react/src/apis/StarredEntitiesApi/DefaultStarredEntitiesApi.test.ts b/plugins/catalog-react/src/apis/StarredEntitiesApi/DefaultStarredEntitiesApi.test.ts
new file mode 100644
index 0000000000..6a4f90200b
--- /dev/null
+++ b/plugins/catalog-react/src/apis/StarredEntitiesApi/DefaultStarredEntitiesApi.test.ts
@@ -0,0 +1,145 @@
+/*
+ * Copyright 2021 The Backstage Authors
+ *
+ * Licensed under the Apache License, Version 2.0 (the "License");
+ * you may not use this file except in compliance with the License.
+ * You may obtain a copy of the License at
+ *
+ *     http://www.apache.org/licenses/LICENSE-2.0
+ *
+ * Unless required by applicable law or agreed to in writing, software
+ * distributed under the License is distributed on an "AS IS" BASIS,
+ * WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+ * See the License for the specific language governing permissions and
+ * limitations under the License.
+ */
+
+import { Entity } from '@backstage/catalog-model';
+import { StorageApi } from '@backstage/core-plugin-api';
+import { MockStorageApi } from '@backstage/test-utils';
+import { DefaultStarredEntitiesApi } from './DefaultStarredEntitiesApi';
+
+describe('DefaultStarredEntitiesApi', () => {
+  let mockStorage: StorageApi;
+  let starredEntitiesApi: DefaultStarredEntitiesApi;
+
+  const mockEntity: Entity = {
+    apiVersion: '1',
+    kind: 'Component',
+    metadata: {
+      name: 'mock',
+    },
+  };
+
+  beforeEach(() => {
+    mockStorage = MockStorageApi.create();
+    starredEntitiesApi = new DefaultStarredEntitiesApi({
+      storageApi: mockStorage,
+    });
+  });
+
+  afterEach(() => {
+    jest.resetAllMocks();
+  });
+
+  describe('toggleStarred', () => {
+    it('should star unstarred entity', async () => {
+      expect(starredEntitiesApi.isStarred(mockEntity)).toBe(false);
+
+      await starredEntitiesApi.toggleStarred(mockEntity);
+
+      expect(starredEntitiesApi.isStarred(mockEntity)).toBe(true);
+    });
+
+    it('should unstar starred entity', async () => {
+      const bucket = mockStorage.forBucket('settings');
+      await bucket.set('starredEntities', ['entity:Component:default:mock']);
+
+      expect(starredEntitiesApi.isStarred(mockEntity)).toBe(true);
+
+      await starredEntitiesApi.toggleStarred(mockEntity);
+
+      expect(starredEntitiesApi.isStarred(mockEntity)).toBe(false);
+    });
+  });
+
+  describe('star', () => {
+    it('should star unstarred entity', async () => {
+      expect(starredEntitiesApi.isStarred(mockEntity)).toBe(false);
+
+      await starredEntitiesApi.star(mockEntity);
+
+      expect(starredEntitiesApi.isStarred(mockEntity)).toBe(true);
+    });
+
+    it('should keep starred entity', async () => {
+      const bucket = mockStorage.forBucket('settings');
+      await bucket.set('starredEntities', ['entity:Component:default:mock']);
+
+      expect(starredEntitiesApi.isStarred(mockEntity)).toBe(true);
+
+      await starredEntitiesApi.star(mockEntity);
+
+      expect(starredEntitiesApi.isStarred(mockEntity)).toBe(true);
+    });
+  });
+
+  describe('unstar', () => {
+    it('should unstar starred entity', async () => {
+      const bucket = mockStorage.forBucket('settings');
+      await bucket.set('starredEntities', ['entity:Component:default:mock']);
+
+      expect(starredEntitiesApi.isStarred(mockEntity)).toBe(true);
+
+      await starredEntitiesApi.unstar(mockEntity);
+
+      expect(starredEntitiesApi.isStarred(mockEntity)).toBe(false);
+    });
+
+    it('should keep unstarred entity', async () => {
+      expect(starredEntitiesApi.isStarred(mockEntity)).toBe(false);
+
+      await starredEntitiesApi.unstar(mockEntity);
+
+      expect(starredEntitiesApi.isStarred(mockEntity)).toBe(false);
+    });
+  });
+
+  describe('starredEntities$', () => {
+    const handler = jest.fn();
+
+    beforeEach(async () => {
+      await new Promise<void>(resolve => {
+        starredEntitiesApi.starredEntities$().subscribe({
+          next: (...args) => {
+            handler(...args);
+
+            if (handler.mock.calls.length >= 2) {
+              resolve();
+            }
+          },
+        });
+
+        const bucket = mockStorage.forBucket('settings');
+        bucket.set('starredEntities', ['entity:Component:default:mock']).then();
+      });
+    });
+
+    it('should receive updates', async () => {
+      expect(handler).toBeCalledTimes(2);
+      expect(handler).toBeCalledWith({
+        starredEntities: new Set(),
+        isStarred: expect.any(Function),
+      });
+      expect(handler).toBeCalledWith({
+        starredEntities: new Set(['entity:Component:default:mock']),
+        isStarred: expect.any(Function),
+      });
+    });
+
+    it('should receive isStarred function that operates on the latest state', async () => {
+      expect(handler.mock.calls[0][0].isStarred(mockEntity)).toBe(true);
+      expect(handler.mock.calls[1][0].isStarred(mockEntity)).toBe(true);
+    });
+  });
+});
diff --git a/plugins/catalog-react/src/apis/StarredEntitiesApi/DefaultStarredEntitiesApi.ts b/plugins/catalog-react/src/apis/StarredEntitiesApi/DefaultStarredEntitiesApi.ts
new file mode 100644
index 0000000000..fce6541dca
--- /dev/null
+++ b/plugins/catalog-react/src/apis/StarredEntitiesApi/DefaultStarredEntitiesApi.ts
@@ -0,0 +1,116 @@
+/*
+ * Copyright 2021 The Backstage Authors
+ *
+ * Licensed under the Apache License, Version 2.0 (the "License");
+ * you may not use this file except in compliance with the License.
+ * You may obtain a copy of the License at
+ *
+ *     http://www.apache.org/licenses/LICENSE-2.0
+ *
+ * Unless required by applicable law or agreed to in writing, software
+ * distributed under the License is distributed on an "AS IS" BASIS,
+ * WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+ * See the License for the specific language governing permissions and
+ * limitations under the License.
+ */
+
+import { Entity } from '@backstage/catalog-model';
+import { Observable, StorageApi } from '@backstage/core-plugin-api';
+import ObservableImpl from 'zen-observable';
+import {
+  StarredEntitiesApi,
+  StarredEntitiesApiObservable,
+} from './StarredEntitiesApi';
+
+const buildEntityKey = (component: Entity) =>
+  `entity:${component.kind}:${component.metadata.namespace ?? 'default'}:${
+    component.metadata.name
+  }`;
+
+export class DefaultStarredEntitiesApi implements StarredEntitiesApi {
+  private readonly settingsStore: StorageApi;
+  private starredEntities: Set<string>;
+
+  constructor(opts: { storageApi: StorageApi }) {
+    this.settingsStore = opts.storageApi.forBucket('settings');
+
+    this.starredEntities = new Set(
+      this.settingsStore.get<string[]>('starredEntities') ?? [],
+    );
+
+    this.settingsStore.observe$<string[]>('starredEntities').subscribe({
+      next: next => {
+        this.starredEntities = new Set(next.newValue ?? []);
+        this.notifyChanges();
+      },
+    });
+  }
+
+  async toggleStarred(entity: Entity): Promise<void> {
+    const entityKey = buildEntityKey(entity);
+
+    if (this.starredEntities.has(entityKey)) {
+      await this.unstar(entity);
+    } else {
+      await this.star(entity);
+    }
+  }
+
+  async star(entity: Entity): Promise<void> {
+    const entityKey = buildEntityKey(entity);
+
+    this.starredEntities.add(entityKey);
+
+    await this.settingsStore.set(
+      'starredEntities',
+      Array.from(this.starredEntities),
+    );
+  }
+
+  async unstar(entity: Entity): Promise<void> {
+    const entityKey = buildEntityKey(entity);
+
+    this.starredEntities.delete(entityKey);
+
+    await this.settingsStore.set(
+      'starredEntities',
+      Array.from(this.starredEntities),
+    );
+  }
+
+  starredEntities$(): Observable<StarredEntitiesApiObservable> {
+    return this.observable;
+  }
+
+  isStarred(entity: Entity): boolean {
+    const entityKey = buildEntityKey(entity);
+    return this.starredEntities.has(entityKey);
+  }
+
+  private readonly subscribers = new Set<
+    ZenObservable.SubscriptionObserver<StarredEntitiesApiObservable>
+  >();
+
+  private readonly observable =
+    new ObservableImpl<StarredEntitiesApiObservable>(subscriber => {
+      // forward the the latest value
+      subscriber.next({
+        starredEntities: this.starredEntities,
+        isStarred: e => this.isStarred(e),
+      });
+
+      this.subscribers.add(subscriber);
+      return () => {
+        this.subscribers.delete(subscriber);
+      };
+    });
+
+  private notifyChanges() {
+    for (const subscription of this.subscribers) {
+      subscription.next({
+        starredEntities: this.starredEntities,
+        isStarred: e => this.isStarred(e),
+      });
+    }
+  }
+}
diff --git a/plugins/catalog-react/src/apis/StarredEntitiesApi/StarredEntitiesApi.ts b/plugins/catalog-react/src/apis/StarredEntitiesApi/StarredEntitiesApi.ts
new file mode 100644
index 0000000000..bf29a425ed
--- /dev/null
+++ b/plugins/catalog-react/src/apis/StarredEntitiesApi/StarredEntitiesApi.ts
@@ -0,0 +1,71 @@
+/*
+ * Copyright 2021 The Backstage Authors
+ *
+ * Licensed under the Apache License, Version 2.0 (the "License");
+ * you may not use this file except in compliance with the License.
+ * You may obtain a copy of the License at
+ *
+ *     http://www.apache.org/licenses/LICENSE-2.0
+ *
+ * Unless required by applicable law or agreed to in writing, software
+ * distributed under the License is distributed on an "AS IS" BASIS,
+ * WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+ * See the License for the specific language governing permissions and
+ * limitations under the License.
+ */
+
+import { Entity } from '@backstage/catalog-model';
+import { ApiRef, createApiRef, Observable } from '@backstage/core-plugin-api';
+
+export const starredEntitiesApiRef: ApiRef<StarredEntitiesApi> = createApiRef({
+  id: 'catalog-react.starred-entities',
+});
+
+export type StarredEntitiesApiObservable = {
+  /**
+   * A set of starred entities
+   */
+  starredEntities: Set<string>;
+
+  /**
+   * A function to check if an entity is starred.
+   *
+   * @param entity - the entity to check
+   * @returns true, if the entity is starred.
+   */
+  isStarred: (entity: Entity) => boolean;
+};
+
+/**
+ * An API to store and retrieve starred entities
+ *
+ * @public
+ */
+export interface StarredEntitiesApi {
+  /**
+   * Toggle the star state of the entity
+   *
+   * @param entity - the entity to be toggled
+   */
+  toggleStarred(entity: Entity): Promise<void>;
+
+  /**
+   * Star the entity
+   *
+   * @param entity - the entity to be starred
+   */
+  star(entity: Entity): Promise<void>;
+
+  /**
+   * Unstar the entity
+   *
+   * @param entity - the entity to be unstarred
+   */
+  unstar(entity: Entity): Promise<void>;
+
+  /**
+   * Observe the state of starred entities and receive a handler
+   * to check the star state of an entity.
+   */
+  starredEntities$(): Observable<StarredEntitiesApiObservable>;
+}
diff --git a/plugins/catalog-react/src/apis/StarredEntitiesApi/index.ts b/plugins/catalog-react/src/apis/StarredEntitiesApi/index.ts
new file mode 100644
index 0000000000..c71a795b9e
--- /dev/null
+++ b/plugins/catalog-react/src/apis/StarredEntitiesApi/index.ts
@@ -0,0 +1,22 @@
+/*
+ * Copyright 2021 The Backstage Authors
+ *
+ * Licensed under the Apache License, Version 2.0 (the "License");
+ * you may not use this file except in compliance with the License.
+ * You may obtain a copy of the License at
+ *
+ *     http://www.apache.org/licenses/LICENSE-2.0
+ *
+ * Unless required by applicable law or agreed to in writing, software
+ * distributed under the License is distributed on an "AS IS" BASIS,
+ * WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+ * See the License for the specific language governing permissions and
+ * limitations under the License.
+ */
+
+export { DefaultStarredEntitiesApi } from './DefaultStarredEntitiesApi';
+export { starredEntitiesApiRef } from './StarredEntitiesApi';
+export type {
+  StarredEntitiesApi,
+  StarredEntitiesApiObservable,
+} from './StarredEntitiesApi';
diff --git a/plugins/catalog-react/src/apis/index.ts b/plugins/catalog-react/src/apis/index.ts
new file mode 100644
index 0000000000..5c7e980890
--- /dev/null
+++ b/plugins/catalog-react/src/apis/index.ts
@@ -0,0 +1,17 @@
+/*
+ * Copyright 2021 The Backstage Authors
+ *
+ * Licensed under the Apache License, Version 2.0 (the "License");
+ * you may not use this file except in compliance with the License.
+ * You may obtain a copy of the License at
+ *
+ *     http://www.apache.org/licenses/LICENSE-2.0
+ *
+ * Unless required by applicable law or agreed to in writing, software
+ * distributed under the License is distributed on an "AS IS" BASIS,
+ * WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+ * See the License for the specific language governing permissions and
+ * limitations under the License.
+ */
+
+export * from './StarredEntitiesApi';
diff --git a/plugins/catalog-react/src/hooks/useEntityListProvider.test.tsx b/plugins/catalog-react/src/hooks/useEntityListProvider.test.tsx
index 5d711016a4..e448ee73f1 100644
--- a/plugins/catalog-react/src/hooks/useEntityListProvider.test.tsx
+++ b/plugins/catalog-react/src/hooks/useEntityListProvider.test.tsx
@@ -14,21 +14,8 @@
  * limitations under the License.
  */
 
-import React, { PropsWithChildren } from 'react';
-import qs from 'qs';
-import { act, renderHook } from '@testing-library/react-hooks';
-import { MockStorageApi } from '@backstage/test-utils';
 import { CatalogApi } from '@backstage/catalog-client';
 import { Entity } from '@backstage/catalog-model';
-import {
-  EntityListProvider,
-  useEntityListProvider,
-} from './useEntityListProvider';
-import { catalogApiRef } from '../api';
-import { UserListFilterKind } from '../types';
-import { EntityKindFilter, EntityTypeFilter, UserListFilter } from '../filters';
-import { EntityKindPicker, UserListPicker } from '../components';
-
 import { ApiProvider, ApiRegistry } from '@backstage/core-app-api';
 import {
   ConfigApi,
@@ -37,6 +24,19 @@ import {
   identityApiRef,
   storageApiRef,
 } from '@backstage/core-plugin-api';
+import { MockStorageApi } from '@backstage/test-utils';
+import { act, renderHook } from '@testing-library/react-hooks';
+import qs from 'qs';
+import React, { PropsWithChildren } from 'react';
+import { catalogApiRef } from '../api';
+import { DefaultStarredEntitiesApi, starredEntitiesApiRef } from '../apis';
+import { EntityKindPicker, UserListPicker } from '../components';
+import { EntityKindFilter, EntityTypeFilter, UserListFilter } from '../filters';
+import { UserListFilterKind } from '../types';
+import {
+  EntityListProvider,
+  useEntityListProvider,
+} from './useEntityListProvider';
 
 const entities: Entity[] = [
   {
@@ -81,6 +81,10 @@ const apis = ApiRegistry.from([
   [catalogApiRef, mockCatalogApi],
   [identityApiRef, mockIdentityApi],
   [storageApiRef, MockStorageApi.create()],
+  [
+    starredEntitiesApiRef,
+    new DefaultStarredEntitiesApi({ storageApi: MockStorageApi.create() }),
+  ],
 ]);
 
 const wrapper = ({
diff --git a/plugins/catalog-react/src/hooks/useStarredEntities.test.tsx b/plugins/catalog-react/src/hooks/useStarredEntities.test.tsx
index 50662312da..0379e49351 100644
--- a/plugins/catalog-react/src/hooks/useStarredEntities.test.tsx
+++ b/plugins/catalog-react/src/hooks/useStarredEntities.test.tsx
@@ -14,16 +14,18 @@
  * limitations under the License.
  */
 
-import React, { PropsWithChildren } from 'react';
-import { renderHook, act } from '@testing-library/react-hooks';
-import { useStarredEntities } from './useStarredEntities';
-import { storageApiRef, StorageApi } from '@backstage/core-plugin-api';
-import { MockErrorApi } from '@backstage/test-utils';
 import { Entity } from '@backstage/catalog-model';
-import { ApiProvider, ApiRegistry, WebStorage } from '@backstage/core-app-api';
+import { ApiProvider, ApiRegistry } from '@backstage/core-app-api';
+import { StorageApi } from '@backstage/core-plugin-api';
+import { MockStorageApi } from '@backstage/test-utils';
+import { act, renderHook } from '@testing-library/react-hooks';
+import React, { PropsWithChildren } from 'react';
+import { DefaultStarredEntitiesApi, starredEntitiesApiRef } from '../apis';
+import { useStarredEntities } from './useStarredEntities';
 
 describe('useStarredEntities', () => {
-  let mockStorage: StorageApi | undefined;
+  let mockStorage: StorageApi;
+  let wrapper: React.ComponentType;
 
   const mockEntity: Entity = {
     apiVersion: '1',
@@ -42,41 +44,56 @@ describe('useStarredEntities', () => {
     },
   };
 
-  const wrapper = ({ children }: PropsWithChildren<{}>) => {
-    return (
-      <ApiProvider apis={ApiRegistry.with(storageApiRef, mockStorage)}>
+  beforeEach(() => {
+    mockStorage = MockStorageApi.create();
+    wrapper = ({ children }: PropsWithChildren<{}>) => (
+      <ApiProvider
+        apis={ApiRegistry.with(
+          starredEntitiesApiRef,
+          new DefaultStarredEntitiesApi({ storageApi: mockStorage }),
+        )}
+      >
         {children}
       </ApiProvider>
     );
-  };
-
-  beforeEach(() => {
-    mockStorage = new WebStorage('@backstage', new MockErrorApi()).forBucket(
-      Date.now().toString(), // TODO(blam): need something that changes every test run for now until the MockStorage is implemented
-    );
   });
+
   it('should return an empty set for when there is no items in storage', async () => {
-    const { result } = renderHook(() => useStarredEntities(), { wrapper });
+    const { result, waitForNextUpdate } = renderHook(
+      () => useStarredEntities(),
+      { wrapper },
+    );
+
+    await waitForNextUpdate();
 
     expect(result.current.starredEntities.size).toBe(0);
   });
+
   it('should return a set with the current items when there are items in storage', async () => {
     const expectedIds = ['i', 'am', 'some', 'test', 'ids'];
     const store = mockStorage?.forBucket('settings');
     await store?.set('starredEntities', expectedIds);
 
-    const { result } = renderHook(() => useStarredEntities(), { wrapper });
+    const { result, waitForNextUpdate } = renderHook(
+      () => useStarredEntities(),
+      { wrapper },
+    );
+
+    await waitForNextUpdate();
 
     for (const item of expectedIds) {
       expect(result.current.starredEntities.has(item)).toBeTruthy();
     }
   });
+
   it('should listen to changes when the storage is set elsewhere', async () => {
     const { result, waitForNextUpdate } = renderHook(
       () => useStarredEntities(),
       { wrapper },
     );
 
+    await waitForNextUpdate();
+
     expect(result.current.starredEntities.size).toBe(0);
     expect(result.current.isStarredEntity(mockEntity)).toBeFalsy();
 
@@ -91,18 +108,26 @@ describe('useStarredEntities', () => {
   });
 
   it('should write new entries to the local store when adding a toggling entity', async () => {
-    const { result } = renderHook(() => useStarredEntities(), { wrapper });
+    const { result, waitForNextUpdate } = renderHook(
+      () => useStarredEntities(),
+      { wrapper },
+    );
 
     act(() => {
       result.current.toggleStarredEntity(mockEntity);
     });
 
+    await waitForNextUpdate();
+
     expect(result.current.isStarredEntity(mockEntity)).toBeTruthy();
     expect(result.current.isStarredEntity(secondMockEntity)).toBeFalsy();
   });
 
   it('should remove an existing entity when toggling entries', async () => {
-    const { result } = renderHook(() => useStarredEntities(), { wrapper });
+    const { result, waitForNextUpdate } = renderHook(
+      () => useStarredEntities(),
+      { wrapper },
+    );
 
     act(() => {
       result.current.toggleStarredEntity(mockEntity);
@@ -110,6 +135,8 @@ describe('useStarredEntities', () => {
       result.current.toggleStarredEntity(mockEntity);
     });
 
+    await waitForNextUpdate();
+
     expect(result.current.isStarredEntity(mockEntity)).toBeFalsy();
     expect(result.current.isStarredEntity(secondMockEntity)).toBeTruthy();
   });
diff --git a/plugins/catalog-react/src/hooks/useStarredEntities.ts b/plugins/catalog-react/src/hooks/useStarredEntities.ts
index 6f7b895fc8..56a0ee6c3c 100644
--- a/plugins/catalog-react/src/hooks/useStarredEntities.ts
+++ b/plugins/catalog-react/src/hooks/useStarredEntities.ts
@@ -15,56 +15,24 @@
  */
 
 import { Entity } from '@backstage/catalog-model';
-import { storageApiRef, useApi } from '@backstage/core-plugin-api';
-import { useCallback, useEffect, useState } from 'react';
+import { useApi } from '@backstage/core-plugin-api';
+import { useCallback } from 'react';
 import { useObservable } from 'react-use';
-
-const buildEntityKey = (component: Entity) =>
-  `entity:${component.kind}:${component.metadata.namespace ?? 'default'}:${
-    component.metadata.name
-  }`;
+import { starredEntitiesApiRef } from '../apis';
 
 export const useStarredEntities = () => {
-  const storageApi = useApi(storageApiRef);
-  const settingsStore = storageApi.forBucket('settings');
-  const rawStarredEntityKeys =
-    settingsStore.get<string[]>('starredEntities') ?? [];
+  const starredEntitiesApi = useApi(starredEntitiesApiRef);
 
-  const [starredEntities, setStarredEntities] = useState(
-    new Set(rawStarredEntityKeys),
+  const { starredEntities, isStarred: isStarredEntity } = useObservable(
+    starredEntitiesApi.starredEntities$(),
+    { starredEntities: new Set<string>(), isStarred: _ => false },
   );
 
-  const observedItems = useObservable(
-    settingsStore.observe$<string[]>('starredEntities'),
-  );
-
-  useEffect(() => {
-    if (observedItems?.newValue) {
-      const currentValue = observedItems?.newValue ?? [];
-      setStarredEntities(new Set(currentValue));
-    }
-  }, [observedItems?.newValue]);
-
   const toggleStarredEntity = useCallback(
     (entity: Entity) => {
-      const entityKey = buildEntityKey(entity);
-      if (starredEntities.has(entityKey)) {
-        starredEntities.delete(entityKey);
-      } else {
-        starredEntities.add(entityKey);
-      }
-
-      settingsStore.set('starredEntities', Array.from(starredEntities));
+      starredEntitiesApi.toggleStarred(entity).then();
     },
-    [starredEntities, settingsStore],
-  );
-
-  const isStarredEntity = useCallback(
-    (entity: Entity) => {
-      const entityKey = buildEntityKey(entity);
-      return starredEntities.has(entityKey);
-    },
-    [starredEntities],
+    [starredEntitiesApi],
   );
 
   return {
diff --git a/plugins/catalog-react/src/index.ts b/plugins/catalog-react/src/index.ts
index 1ac67d514b..cf7a679f7a 100644
--- a/plugins/catalog-react/src/index.ts
+++ b/plugins/catalog-react/src/index.ts
@@ -23,6 +23,7 @@
 export type { CatalogApi } from '@backstage/catalog-client';
 export { CATALOG_FILTER_EXISTS } from '@backstage/catalog-client';
 export { catalogApiRef } from './api';
+export * from './apis';
 export * from './components';
 export * from './hooks';
 export * from './filters';
diff --git a/plugins/catalog/src/components/CatalogPage/CatalogPage.test.tsx b/plugins/catalog/src/components/CatalogPage/CatalogPage.test.tsx
index 48ec1ef176..6b33b33b08 100644
--- a/plugins/catalog/src/components/CatalogPage/CatalogPage.test.tsx
+++ b/plugins/catalog/src/components/CatalogPage/CatalogPage.test.tsx
@@ -20,28 +20,32 @@ import {
   RELATION_MEMBER_OF,
   RELATION_OWNED_BY,
 } from '@backstage/catalog-model';
-import { TableColumn, TableProps } from '@backstage/core-components';
-import { catalogApiRef, entityRouteRef } from '@backstage/plugin-catalog-react';
-import {
-  MockStorageApi,
-  renderWithEffects,
-  wrapInTestApp,
-  mockBreakpoint,
-} from '@backstage/test-utils';
-import { fireEvent, screen } from '@testing-library/react';
-import React from 'react';
-import { createComponentRouteRef } from '../../routes';
-import { EntityRow } from '../CatalogTable/types';
-import { CatalogPage } from './CatalogPage';
-import DashboardIcon from '@material-ui/icons/Dashboard';
-
 import { ApiProvider, ApiRegistry } from '@backstage/core-app-api';
+import { TableColumn, TableProps } from '@backstage/core-components';
 import {
   IdentityApi,
   identityApiRef,
   ProfileInfo,
   storageApiRef,
 } from '@backstage/core-plugin-api';
+import {
+  catalogApiRef,
+  DefaultStarredEntitiesApi,
+  entityRouteRef,
+  starredEntitiesApiRef,
+} from '@backstage/plugin-catalog-react';
+import {
+  mockBreakpoint,
+  MockStorageApi,
+  renderWithEffects,
+  wrapInTestApp,
+} from '@backstage/test-utils';
+import DashboardIcon from '@material-ui/icons/Dashboard';
+import { fireEvent, screen } from '@testing-library/react';
+import React from 'react';
+import { createComponentRouteRef } from '../../routes';
+import { EntityRow } from '../CatalogTable';
+import { CatalogPage } from './CatalogPage';
 
 describe('CatalogPage', () => {
   const origReplaceState = window.history.replaceState;
@@ -120,6 +124,7 @@ describe('CatalogPage', () => {
     getIdToken: async () => undefined,
     getProfile: () => testProfile,
   };
+  const storageApi = MockStorageApi.create();
 
   const renderWrapped = (children: React.ReactNode) =>
     renderWithEffects(
@@ -128,7 +133,11 @@ describe('CatalogPage', () => {
           apis={ApiRegistry.from([
             [catalogApiRef, catalogApi],
             [identityApiRef, identityApi],
-            [storageApiRef, MockStorageApi.create()],
+            [storageApiRef, storageApi],
+            [
+              starredEntitiesApiRef,
+              new DefaultStarredEntitiesApi({ storageApi }),
+            ],
           ])}
         >
           {children}
diff --git a/plugins/catalog/src/components/CatalogTable/CatalogTable.test.tsx b/plugins/catalog/src/components/CatalogTable/CatalogTable.test.tsx
index 6c80e64fa9..822913a385 100644
--- a/plugins/catalog/src/components/CatalogTable/CatalogTable.test.tsx
+++ b/plugins/catalog/src/components/CatalogTable/CatalogTable.test.tsx
@@ -15,19 +15,22 @@
  */
 
 import {
+  EDIT_URL_ANNOTATION,
   Entity,
   VIEW_URL_ANNOTATION,
-  EDIT_URL_ANNOTATION,
 } from '@backstage/catalog-model';
-import { act, fireEvent } from '@testing-library/react';
-import { renderInTestApp } from '@backstage/test-utils';
-import * as React from 'react';
-import { CatalogTable } from './CatalogTable';
+import { ApiProvider, ApiRegistry } from '@backstage/core-app-api';
 import {
   entityRouteRef,
+  DefaultStarredEntitiesApi,
   MockEntityListContextProvider,
+  starredEntitiesApiRef,
   UserListFilter,
 } from '@backstage/plugin-catalog-react';
+import { MockStorageApi, renderInTestApp } from '@backstage/test-utils';
+import { act, fireEvent } from '@testing-library/react';
+import * as React from 'react';
+import { CatalogTable } from './CatalogTable';
 
 const entities: Entity[] = [
   {
@@ -48,6 +51,11 @@ const entities: Entity[] = [
 ];
 
 describe('CatalogTable component', () => {
+  const mockApis = ApiRegistry.with(
+    starredEntitiesApiRef,
+    new DefaultStarredEntitiesApi({ storageApi: MockStorageApi.create() }),
+  );
+
   beforeEach(() => {
     window.open = jest.fn();
   });
@@ -58,9 +66,11 @@ describe('CatalogTable component', () => {
 
   it('should render error message', async () => {
     const rendered = await renderInTestApp(
-      <MockEntityListContextProvider value={{ error: new Error('error') }}>
-        <CatalogTable />
-      </MockEntityListContextProvider>,
+      <ApiProvider apis={mockApis}>
+        <MockEntityListContextProvider value={{ error: new Error('error') }}>
+          <CatalogTable />
+        </MockEntityListContextProvider>
+      </ApiProvider>,
       {
         mountedRoutes: {
           '/catalog/:namespace/:kind/:name': entityRouteRef,
@@ -75,20 +85,22 @@ describe('CatalogTable component', () => {
 
   it('should display entity names when loading has finished and no error occurred', async () => {
     const rendered = await renderInTestApp(
-      <MockEntityListContextProvider
-        value={{
-          entities,
-          filters: {
-            user: new UserListFilter(
-              'owned',
-              () => false,
-              () => false,
-            ),
-          },
-        }}
-      >
-        <CatalogTable />
-      </MockEntityListContextProvider>,
+      <ApiProvider apis={mockApis}>
+        <MockEntityListContextProvider
+          value={{
+            entities,
+            filters: {
+              user: new UserListFilter(
+                'owned',
+                () => false,
+                () => false,
+              ),
+            },
+          }}
+        >
+          <CatalogTable />
+        </MockEntityListContextProvider>
+      </ApiProvider>,
       {
         mountedRoutes: {
           '/catalog/:namespace/:kind/:name': entityRouteRef,
@@ -112,9 +124,11 @@ describe('CatalogTable component', () => {
     };
 
     const { getByTitle } = await renderInTestApp(
-      <MockEntityListContextProvider value={{ entities: [entity] }}>
-        <CatalogTable />
-      </MockEntityListContextProvider>,
+      <ApiProvider apis={mockApis}>
+        <MockEntityListContextProvider value={{ entities: [entity] }}>
+          <CatalogTable />
+        </MockEntityListContextProvider>
+      </ApiProvider>,
       {
         mountedRoutes: {
           '/catalog/:namespace/:kind/:name': entityRouteRef,
@@ -142,9 +156,11 @@ describe('CatalogTable component', () => {
     };
 
     const { getByTitle } = await renderInTestApp(
-      <MockEntityListContextProvider value={{ entities: [entity] }}>
-        <CatalogTable />
-      </MockEntityListContextProvider>,
+      <ApiProvider apis={mockApis}>
+        <MockEntityListContextProvider value={{ entities: [entity] }}>
+          <CatalogTable />
+        </MockEntityListContextProvider>
+      </ApiProvider>,
       {
         mountedRoutes: {
           '/catalog/:namespace/:kind/:name': entityRouteRef,
diff --git a/plugins/catalog/src/components/EntityLayout/EntityLayout.test.tsx b/plugins/catalog/src/components/EntityLayout/EntityLayout.test.tsx
index 7722f6ba17..2216070984 100644
--- a/plugins/catalog/src/components/EntityLayout/EntityLayout.test.tsx
+++ b/plugins/catalog/src/components/EntityLayout/EntityLayout.test.tsx
@@ -13,24 +13,26 @@
  * See the License for the specific language governing permissions and
  * limitations under the License.
  */
+
 import { CatalogApi } from '@backstage/catalog-client';
 import { Entity } from '@backstage/catalog-model';
+import { ApiProvider, ApiRegistry } from '@backstage/core-app-api';
+import { AlertApi, alertApiRef } from '@backstage/core-plugin-api';
 import {
-  catalogApiRef,
-  EntityProvider,
   AsyncEntityProvider,
+  catalogApiRef,
+  DefaultStarredEntitiesApi,
+  EntityProvider,
   entityRouteRef,
+  starredEntitiesApiRef,
 } from '@backstage/plugin-catalog-react';
-import { renderInTestApp } from '@backstage/test-utils';
+import { MockStorageApi, renderInTestApp } from '@backstage/test-utils';
 import { fireEvent } from '@testing-library/react';
 import React from 'react';
 import { act } from 'react-dom/test-utils';
 import { Route, Routes } from 'react-router';
 import { EntityLayout } from './EntityLayout';
 
-import { AlertApi, alertApiRef } from '@backstage/core-plugin-api';
-import { ApiProvider, ApiRegistry } from '@backstage/core-app-api';
-
 const mockEntity = {
   kind: 'MyKind',
   metadata: {
@@ -38,10 +40,12 @@ const mockEntity = {
   },
 } as Entity;
 
-const mockApis = ApiRegistry.with(catalogApiRef, {} as CatalogApi).with(
-  alertApiRef,
-  {} as AlertApi,
-);
+const mockApis = ApiRegistry.with(catalogApiRef, {} as CatalogApi)
+  .with(alertApiRef, {} as AlertApi)
+  .with(
+    starredEntitiesApiRef,
+    new DefaultStarredEntitiesApi({ storageApi: MockStorageApi.create() }),
+  );
 
 describe('EntityLayout', () => {
   it('renders simplest case', async () => {
diff --git a/plugins/catalog/src/plugin.ts b/plugins/catalog/src/plugin.ts
index 9b90a44aff..20f937b2e7 100644
--- a/plugins/catalog/src/plugin.ts
+++ b/plugins/catalog/src/plugin.ts
@@ -18,7 +18,9 @@ import { CatalogClient } from '@backstage/catalog-client';
 import {
   catalogApiRef,
   catalogRouteRef,
+  DefaultStarredEntitiesApi,
   entityRouteRef,
+  starredEntitiesApiRef,
 } from '@backstage/plugin-catalog-react';
 import { CatalogClientWrapper } from './CatalogClientWrapper';
 import { createComponentRouteRef, viewTechDocRouteRef } from './routes';
@@ -29,6 +31,7 @@ import {
   createRoutableExtension,
   discoveryApiRef,
   identityApiRef,
+  storageApiRef,
 } from '@backstage/core-plugin-api';
 
 export const catalogPlugin = createPlugin({
@@ -43,6 +46,13 @@ export const catalogPlugin = createPlugin({
           identityApi,
         }),
     }),
+
+    createApiFactory({
+      api: starredEntitiesApiRef,
+      deps: { storageApi: storageApiRef },
+      factory: ({ storageApi }) =>
+        new DefaultStarredEntitiesApi({ storageApi }),
+    }),
   ],
   routes: {
     catalogIndex: catalogRouteRef,
diff --git a/plugins/techdocs/src/home/components/DefaultTechDocsHome.test.tsx b/plugins/techdocs/src/home/components/DefaultTechDocsHome.test.tsx
index 48ea67585b..0ba1f510cd 100644
--- a/plugins/techdocs/src/home/components/DefaultTechDocsHome.test.tsx
+++ b/plugins/techdocs/src/home/components/DefaultTechDocsHome.test.tsx
@@ -14,12 +14,6 @@
  * limitations under the License.
  */
 
-import { CatalogApi, catalogApiRef } from '@backstage/plugin-catalog-react';
-import { MockStorageApi, renderInTestApp } from '@backstage/test-utils';
-import { screen } from '@testing-library/react';
-import React from 'react';
-import { DefaultTechDocsHome } from './DefaultTechDocsHome';
-
 import {
   ApiProvider,
   ApiRegistry,
@@ -30,7 +24,17 @@ import {
   configApiRef,
   storageApiRef,
 } from '@backstage/core-plugin-api';
+import {
+  CatalogApi,
+  catalogApiRef,
+  DefaultStarredEntitiesApi,
+  starredEntitiesApiRef,
+} from '@backstage/plugin-catalog-react';
+import { MockStorageApi, renderInTestApp } from '@backstage/test-utils';
+import { screen } from '@testing-library/react';
+import React from 'react';
 import { rootDocsRouteRef } from '../../routes';
+import { DefaultTechDocsHome } from './DefaultTechDocsHome';
 
 jest.mock('@backstage/plugin-catalog-react', () => {
   const actual = jest.requireActual('@backstage/plugin-catalog-react');
@@ -63,10 +67,13 @@ describe('TechDocs Home', () => {
     },
   });
 
+  const storageApi = MockStorageApi.create();
+
   const apiRegistry = ApiRegistry.from([
     [catalogApiRef, mockCatalogApi],
     [configApiRef, configApi],
     [storageApiRef, MockStorageApi.create()],
+    [starredEntitiesApiRef, new DefaultStarredEntitiesApi({ storageApi })],
   ]);
 
   it('should render a TechDocs home page', async () => {