diff --git a/.changeset/silver-kiwis-float.md b/.changeset/silver-kiwis-float.md
new file mode 100644
index 0000000000..6a45dfb1a6
--- /dev/null
+++ b/.changeset/silver-kiwis-float.md
@@ -0,0 +1,5 @@
+---
+'@backstage/frontend-plugin-api': minor
+---
+
+Extensions now return their output from the factory function rather than calling `bind(...)`.
diff --git a/.changeset/strange-gifts-try.md b/.changeset/strange-gifts-try.md
new file mode 100644
index 0000000000..7f9aa89ad4
--- /dev/null
+++ b/.changeset/strange-gifts-try.md
@@ -0,0 +1,9 @@
+---
+'@backstage/frontend-app-api': patch
+'@backstage/plugin-catalog': patch
+'@backstage/plugin-catalog-react': patch
+'@backstage/plugin-graphiql': patch
+'@backstage/plugin-search-react': patch
+---
+
+Internal updates to match changes in the experimental `@backstage/frontend-plugin-api`.
diff --git a/packages/app-next/src/App.tsx b/packages/app-next/src/App.tsx
index 1275722da4..978c40ef44 100644
--- a/packages/app-next/src/App.tsx
+++ b/packages/app-next/src/App.tsx
@@ -79,8 +79,8 @@ const homePageExtension = createExtension({
     children: coreExtensionData.reactElement,
     title: titleExtensionDataRef,
   },
-  factory({ bind }) {
-    bind({ children: homePage, title: 'just a title' });
+  factory() {
+    return { children: homePage, title: 'just a title' };
   },
 });
 
diff --git a/packages/core-compat-api/src/convertLegacyApp.ts b/packages/core-compat-api/src/convertLegacyApp.ts
index 59cb136c65..93521b3955 100644
--- a/packages/core-compat-api/src/convertLegacyApp.ts
+++ b/packages/core-compat-api/src/convertLegacyApp.ts
@@ -113,18 +113,18 @@ export function convertLegacyApp(
     output: {
       element: coreExtensionData.reactElement,
     },
-    factory({ bind, inputs }) {
+    factory({ inputs }) {
       // Clone the root element, this replaces the FlatRoutes declared in the app with out content input
-      bind({
+      return {
         element: React.cloneElement(rootEl, undefined, inputs.content.element),
-      });
+      };
     },
   });
   const CoreNavOverride = createExtension({
     id: 'core.nav',
     attachTo: { id: 'core.layout', input: 'nav' },
     output: {},
-    factory() {},
+    factory: () => ({}),
     disabled: true,
   });
 
diff --git a/packages/frontend-app-api/src/extensions/Core.tsx b/packages/frontend-app-api/src/extensions/Core.tsx
index f48aa2ea6b..60772d435c 100644
--- a/packages/frontend-app-api/src/extensions/Core.tsx
+++ b/packages/frontend-app-api/src/extensions/Core.tsx
@@ -40,9 +40,9 @@ export const Core = createExtension({
   output: {
     root: coreExtensionData.reactElement,
   },
-  factory({ bind, inputs }) {
-    bind({
+  factory({ inputs }) {
+    return {
       root: inputs.root.element,
-    });
+    };
   },
 });
diff --git a/packages/frontend-app-api/src/extensions/CoreLayout.tsx b/packages/frontend-app-api/src/extensions/CoreLayout.tsx
index bf0f382cfc..97f49acac9 100644
--- a/packages/frontend-app-api/src/extensions/CoreLayout.tsx
+++ b/packages/frontend-app-api/src/extensions/CoreLayout.tsx
@@ -42,14 +42,14 @@ export const CoreLayout = createExtension({
   output: {
     element: coreExtensionData.reactElement,
   },
-  factory({ bind, inputs }) {
-    bind({
+  factory({ inputs }) {
+    return {
       element: (
         <SidebarPage>
           {inputs.nav.element}
           {inputs.content.element}
         </SidebarPage>
       ),
-    });
+    };
   },
 });
diff --git a/packages/frontend-app-api/src/extensions/CoreNav.tsx b/packages/frontend-app-api/src/extensions/CoreNav.tsx
index cd12ca129a..37ce50276b 100644
--- a/packages/frontend-app-api/src/extensions/CoreNav.tsx
+++ b/packages/frontend-app-api/src/extensions/CoreNav.tsx
@@ -82,8 +82,8 @@ export const CoreNav = createExtension({
   output: {
     element: coreExtensionData.reactElement,
   },
-  factory({ bind, inputs }) {
-    bind({
+  factory({ inputs }) {
+    return {
       element: (
         <Sidebar>
           <SidebarLogo />
@@ -93,6 +93,6 @@ export const CoreNav = createExtension({
           ))}
         </Sidebar>
       ),
-    });
+    };
   },
 });
diff --git a/packages/frontend-app-api/src/extensions/CoreRoutes.tsx b/packages/frontend-app-api/src/extensions/CoreRoutes.tsx
index 8d22b40eec..985fd07be9 100644
--- a/packages/frontend-app-api/src/extensions/CoreRoutes.tsx
+++ b/packages/frontend-app-api/src/extensions/CoreRoutes.tsx
@@ -35,7 +35,7 @@ export const CoreRoutes = createExtension({
   output: {
     element: coreExtensionData.reactElement,
   },
-  factory({ bind, inputs }) {
+  factory({ inputs }) {
     const Routes = () => {
       const element = useRoutes(
         inputs.routes.map(route => ({
@@ -46,8 +46,8 @@ export const CoreRoutes = createExtension({
 
       return element;
     };
-    bind({
+    return {
       element: <Routes />,
-    });
+    };
   },
 });
diff --git a/packages/frontend-app-api/src/graph/createAppGraph.test.ts b/packages/frontend-app-api/src/graph/createAppGraph.test.ts
index 2c9f062199..1a046b210b 100644
--- a/packages/frontend-app-api/src/graph/createAppGraph.test.ts
+++ b/packages/frontend-app-api/src/graph/createAppGraph.test.ts
@@ -26,7 +26,7 @@ const extBase = {
   id: 'test',
   attachTo: { id: 'core', input: 'root' },
   output: {},
-  factory() {},
+  factory: () => ({}),
 };
 
 describe('createAppGraph', () => {
@@ -62,7 +62,7 @@ describe('createAppGraph', () => {
             attachTo: { id: 'core.routes', input: 'route' },
             inputs: {},
             output: {},
-            factory() {},
+            factory: () => ({}),
           }),
         ],
       }),
diff --git a/packages/frontend-app-api/src/graph/instantiateAppNodeTree.test.ts b/packages/frontend-app-api/src/graph/instantiateAppNodeTree.test.ts
index 21f364dda2..9be3482b5d 100644
--- a/packages/frontend-app-api/src/graph/instantiateAppNodeTree.test.ts
+++ b/packages/frontend-app-api/src/graph/instantiateAppNodeTree.test.ts
@@ -45,8 +45,8 @@ const simpleExtension = createExtension({
       other: z.number().optional(),
     }),
   ),
-  factory({ bind, config }) {
-    bind({ test: config.output, other: config.other });
+  factory({ config }) {
+    return { test: config.output, other: config.other };
   },
 });
 
@@ -114,8 +114,8 @@ describe('instantiateAppNodeTree', () => {
             output: {
               inputMirror: inputMirrorDataRef,
             },
-            factory({ bind, inputs }) {
-              bind({ inputMirror: inputs });
+            factory({ inputs }) {
+              return { inputMirror: inputs };
             },
           }),
         ),
@@ -158,8 +158,8 @@ describe('instantiateAppNodeTree', () => {
             output: {
               inputMirror: inputMirrorDataRef,
             },
-            factory({ bind, inputs }) {
-              bind({ inputMirror: inputs });
+            factory({ inputs }) {
+              return { inputMirror: inputs };
             },
           }),
         ),
@@ -264,8 +264,8 @@ describe('createAppNodeInstance', () => {
           output: {
             inputMirror: inputMirrorDataRef,
           },
-          factory({ bind, inputs }) {
-            bind({ inputMirror: inputs });
+          factory({ inputs }) {
+            return { inputMirror: inputs };
           },
         }),
       ),
@@ -326,8 +326,8 @@ describe('createAppNodeInstance', () => {
               test1: testDataRef,
               test2: testDataRef,
             },
-            factory({ bind }) {
-              bind({ test1: 'test', test2: 'test2' });
+            factory({}) {
+              return { test1: 'test', test2: 'test2' };
             },
           }),
         ),
@@ -348,8 +348,8 @@ describe('createAppNodeInstance', () => {
             output: {
               test: testDataRef,
             },
-            factory({ bind }) {
-              bind({ nonexistent: 'test' } as any);
+            factory({}) {
+              return { nonexistent: 'test' } as any;
             },
           }),
         ),
@@ -376,7 +376,7 @@ describe('createAppNodeInstance', () => {
               ),
             },
             output: {},
-            factory() {},
+            factory: () => ({}),
           }),
         ),
         attachments: new Map(),
@@ -417,7 +417,7 @@ describe('createAppNodeInstance', () => {
               }),
             },
             output: {},
-            factory() {},
+            factory: () => ({}),
           }),
         ),
       }),
@@ -447,7 +447,7 @@ describe('createAppNodeInstance', () => {
             id: 'core.test',
             attachTo: { id: 'ignored', input: 'ignored' },
             output: {},
-            factory() {},
+            factory: () => ({}),
           }),
         ),
       }),
@@ -481,7 +481,7 @@ describe('createAppNodeInstance', () => {
               ),
             },
             output: {},
-            factory() {},
+            factory: () => ({}),
           }),
         ),
       }),
@@ -515,7 +515,7 @@ describe('createAppNodeInstance', () => {
               ),
             },
             output: {},
-            factory() {},
+            factory: () => ({}),
           }),
         ),
       }),
@@ -543,7 +543,7 @@ describe('createAppNodeInstance', () => {
               ),
             },
             output: {},
-            factory() {},
+            factory: () => ({}),
           }),
         ),
       }),
diff --git a/packages/frontend-app-api/src/graph/instantiateAppNodeTree.ts b/packages/frontend-app-api/src/graph/instantiateAppNodeTree.ts
index ba0c85692e..bf6028554b 100644
--- a/packages/frontend-app-api/src/graph/instantiateAppNodeTree.ts
+++ b/packages/frontend-app-api/src/graph/instantiateAppNodeTree.ts
@@ -113,26 +113,25 @@ export function createAppNodeInstance(options: {
   }
 
   try {
-    extension.factory({
+    const namedOutputs = extension.factory({
       source,
       config: parsedConfig,
-      bind: namedOutputs => {
-        for (const [name, output] of Object.entries(namedOutputs)) {
-          const ref = extension.output[name];
-          if (!ref) {
-            throw new Error(`unknown output provided via '${name}'`);
-          }
-          if (extensionData.has(ref.id)) {
-            throw new Error(
-              `duplicate extension data '${ref.id}' received via output '${name}'`,
-            );
-          }
-          extensionData.set(ref.id, output);
-          extensionDataRefs.add(ref);
-        }
-      },
       inputs: resolveInputs(extension.inputs, attachments),
     });
+
+    for (const [name, output] of Object.entries(namedOutputs)) {
+      const ref = extension.output[name];
+      if (!ref) {
+        throw new Error(`unknown output provided via '${name}'`);
+      }
+      if (extensionData.has(ref.id)) {
+        throw new Error(
+          `duplicate extension data '${ref.id}' received via output '${name}'`,
+        );
+      }
+      extensionData.set(ref.id, output);
+      extensionDataRefs.add(ref);
+    }
   } catch (e) {
     throw new Error(
       `Failed to instantiate extension '${id}'${
diff --git a/packages/frontend-app-api/src/graph/resolveAppGraph.test.ts b/packages/frontend-app-api/src/graph/resolveAppGraph.test.ts
index 2668c51863..2b7257446e 100644
--- a/packages/frontend-app-api/src/graph/resolveAppGraph.test.ts
+++ b/packages/frontend-app-api/src/graph/resolveAppGraph.test.ts
@@ -21,7 +21,7 @@ const extBaseConfig = {
   id: 'test',
   attachTo: { id: 'nonexistent', input: 'nonexistent' },
   output: {},
-  factory() {},
+  factory: () => ({}),
 };
 
 const extension = createExtension(extBaseConfig);
diff --git a/packages/frontend-app-api/src/routing/extractRouteInfoFromAppNode.test.ts b/packages/frontend-app-api/src/routing/extractRouteInfoFromAppNode.test.ts
index e0adf3062a..c6b025e8b3 100644
--- a/packages/frontend-app-api/src/routing/extractRouteInfoFromAppNode.test.ts
+++ b/packages/frontend-app-api/src/routing/extractRouteInfoFromAppNode.test.ts
@@ -62,12 +62,12 @@ function createTestExtension(options: {
         element: coreExtensionData.reactElement,
       }),
     },
-    factory({ bind }) {
-      bind({
+    factory() {
+      return {
         path: options.path,
         routeRef: options.routeRef,
         element: React.createElement('div'),
-      });
+      };
     },
   });
 }
diff --git a/packages/frontend-plugin-api/api-report.md b/packages/frontend-plugin-api/api-report.md
index ac8d164fae..250ce5f676 100644
--- a/packages/frontend-plugin-api/api-report.md
+++ b/packages/frontend-plugin-api/api-report.md
@@ -170,10 +170,9 @@ export interface CreateExtensionOptions<
   // (undocumented)
   factory(options: {
     source?: BackstagePlugin;
-    bind(values: Expand<ExtensionDataValues<TOutput>>): void;
     config: TConfig;
     inputs: Expand<ExtensionInputValues<TInputs>>;
-  }): void;
+  }): Expand<ExtensionDataValues<TOutput>>;
   // (undocumented)
   id: string;
   // (undocumented)
@@ -313,13 +312,12 @@ export interface Extension<TConfig> {
   // (undocumented)
   factory(options: {
     source?: BackstagePlugin;
-    bind(values: ExtensionInputValues<any>): void;
     config: TConfig;
     inputs: Record<
       string,
       undefined | Record<string, unknown> | Array<Record<string, unknown>>
     >;
-  }): void;
+  }): ExtensionDataValues<any>;
   // (undocumented)
   id: string;
   // (undocumented)
diff --git a/packages/frontend-plugin-api/src/components/ExtensionBoundary.test.tsx b/packages/frontend-plugin-api/src/components/ExtensionBoundary.test.tsx
index 704cafda2d..7b27c79360 100644
--- a/packages/frontend-plugin-api/src/components/ExtensionBoundary.test.tsx
+++ b/packages/frontend-plugin-api/src/components/ExtensionBoundary.test.tsx
@@ -66,8 +66,8 @@ const wrapInBoundaryExtension = (element: JSX.Element) => {
       path: coreExtensionData.routePath,
       routeRef: coreExtensionData.routeRef.optional(),
     },
-    factory({ bind, source }) {
-      bind({
+    factory({ source }) {
+      return {
         routeRef,
         path: '/',
         element: (
@@ -75,7 +75,7 @@ const wrapInBoundaryExtension = (element: JSX.Element) => {
             {element}
           </ExtensionBoundary>
         ),
-      });
+      };
     },
   });
 };
diff --git a/packages/frontend-plugin-api/src/extensions/createApiExtension.ts b/packages/frontend-plugin-api/src/extensions/createApiExtension.ts
index f728261072..7b6dded022 100644
--- a/packages/frontend-plugin-api/src/extensions/createApiExtension.ts
+++ b/packages/frontend-plugin-api/src/extensions/createApiExtension.ts
@@ -58,12 +58,11 @@ export function createApiExtension<
     output: {
       api: coreExtensionData.apiFactory,
     },
-    factory({ bind, config, inputs }) {
+    factory({ config, inputs }) {
       if (typeof factory === 'function') {
-        bind({ api: factory({ config, inputs }) });
-      } else {
-        bind({ api: factory });
+        return { api: factory({ config, inputs }) };
       }
+      return { api: factory };
     },
   });
 }
diff --git a/packages/frontend-plugin-api/src/extensions/createNavItemExtension.tsx b/packages/frontend-plugin-api/src/extensions/createNavItemExtension.tsx
index ee38dda016..84fbe5ffee 100644
--- a/packages/frontend-plugin-api/src/extensions/createNavItemExtension.tsx
+++ b/packages/frontend-plugin-api/src/extensions/createNavItemExtension.tsx
@@ -41,14 +41,12 @@ export function createNavItemExtension(options: {
     output: {
       navTarget: coreExtensionData.navTarget,
     },
-    factory: ({ bind, config }) => {
-      bind({
-        navTarget: {
-          title: config.title,
-          icon,
-          routeRef,
-        },
-      });
-    },
+    factory: ({ config }) => ({
+      navTarget: {
+        title: config.title,
+        icon,
+        routeRef,
+      },
+    }),
   });
 }
diff --git a/packages/frontend-plugin-api/src/extensions/createPageExtension.test.tsx b/packages/frontend-plugin-api/src/extensions/createPageExtension.test.tsx
index 37d97e7621..81843558da 100644
--- a/packages/frontend-plugin-api/src/extensions/createPageExtension.test.tsx
+++ b/packages/frontend-plugin-api/src/extensions/createPageExtension.test.tsx
@@ -20,7 +20,6 @@ import { useAnalytics } from '@backstage/core-plugin-api';
 import { waitFor } from '@testing-library/react';
 import { PortableSchema } from '../schema';
 import {
-  ExtensionInputValues,
   coreExtensionData,
   createExtensionInput,
   createPlugin,
@@ -127,16 +126,14 @@ describe('createPageExtension', () => {
       loader: async () => <div>Component</div>,
     });
 
-    extension.factory({
-      bind: (values: ExtensionInputValues<any>) =>
-        renderWithEffects(
-          wrapInTestApp(values.element as unknown as JSX.Element),
-        ),
+    const output = extension.factory({
       source: createPlugin({ id: 'plugin ' }),
       config: { path: '/' },
       inputs: {},
     });
 
+    renderWithEffects(wrapInTestApp(output.element as unknown as JSX.Element));
+
     await waitFor(() =>
       expect(captureEvent).toHaveBeenCalledWith(
         '_ROUTABLE-EXTENSION-RENDERED',
diff --git a/packages/frontend-plugin-api/src/extensions/createPageExtension.tsx b/packages/frontend-plugin-api/src/extensions/createPageExtension.tsx
index f05182149b..f5e258a1e4 100644
--- a/packages/frontend-plugin-api/src/extensions/createPageExtension.tsx
+++ b/packages/frontend-plugin-api/src/extensions/createPageExtension.tsx
@@ -75,14 +75,14 @@ export function createPageExtension<
       path: coreExtensionData.routePath,
       routeRef: coreExtensionData.routeRef.optional(),
     },
-    factory({ bind, config, inputs, source }) {
+    factory({ config, inputs, source }) {
       const ExtensionComponent = lazy(() =>
         options
           .loader({ config, inputs })
           .then(element => ({ default: () => element })),
       );
 
-      bind({
+      return {
         path: config.path,
         routeRef: options.routeRef,
         element: (
@@ -90,7 +90,7 @@ export function createPageExtension<
             <ExtensionComponent />
           </ExtensionBoundary>
         ),
-      });
+      };
     },
   });
 }
diff --git a/packages/frontend-plugin-api/src/extensions/createThemeExtension.ts b/packages/frontend-plugin-api/src/extensions/createThemeExtension.ts
index 38763688a4..d41121d51c 100644
--- a/packages/frontend-plugin-api/src/extensions/createThemeExtension.ts
+++ b/packages/frontend-plugin-api/src/extensions/createThemeExtension.ts
@@ -25,8 +25,6 @@ export function createThemeExtension(theme: AppTheme) {
     output: {
       theme: coreExtensionData.theme,
     },
-    factory({ bind }) {
-      bind({ theme });
-    },
+    factory: () => ({ theme }),
   });
 }
diff --git a/packages/frontend-plugin-api/src/wiring/createExtension.test.ts b/packages/frontend-plugin-api/src/wiring/createExtension.test.ts
index 757bcd7e3d..071272d58f 100644
--- a/packages/frontend-plugin-api/src/wiring/createExtension.test.ts
+++ b/packages/frontend-plugin-api/src/wiring/createExtension.test.ts
@@ -24,71 +24,211 @@ function unused(..._any: any[]) {}
 
 describe('createExtension', () => {
   it('should create an extension with a simple output', () => {
-    const extension = createExtension({
+    const baseConfig = {
       id: 'test',
       attachTo: { id: 'root', input: 'default' },
       output: {
         foo: stringData,
       },
-      factory({ bind }) {
-        bind({
+    };
+    const extension = createExtension({
+      ...baseConfig,
+      factory() {
+        return {
           foo: 'bar',
-        });
-        bind({
-          // @ts-expect-error
-          foo: 3,
-        });
-        bind({
-          // @ts-expect-error
-          bar: 'bar',
-        });
-        // @ts-expect-error
-        bind({});
-        // @ts-expect-error
-        bind();
-        // @ts-expect-error
-        bind('bar');
+        };
       },
     });
     expect(extension.id).toBe('test');
+
+    // When declared as an error function without a block the TypeScript errors
+    // are a more specific and will point at the property that is problematic.
+    createExtension({
+      ...baseConfig,
+      factory: () => ({
+        // @ts-expect-error
+        foo: 3,
+      }),
+    });
+    createExtension({
+      ...baseConfig,
+      factory: () =>
+        // @ts-expect-error
+        ({
+          bar: 'bar',
+        }),
+    });
+    createExtension({
+      ...baseConfig,
+      factory: () =>
+        // @ts-expect-error
+        ({}),
+    });
+    createExtension({
+      ...baseConfig,
+      factory: () =>
+        // @ts-expect-error
+        undefined,
+    });
+    createExtension({
+      ...baseConfig,
+      factory: () =>
+        // @ts-expect-error
+        'bar',
+    });
+
+    // When declared as a function with a block the TypeScript error will instead
+    // be tied to the factory function declaration itself, but the error messages
+    // is still helpful and points to part of the return type that is problematic.
+    createExtension({
+      ...baseConfig,
+      // @ts-expect-error
+      factory() {
+        return {
+          foo: 3,
+        };
+      },
+    });
+    createExtension({
+      ...baseConfig,
+      // @ts-expect-error
+      factory() {
+        return {
+          bar: 'bar',
+        };
+      },
+    });
+    createExtension({
+      ...baseConfig,
+      // @ts-expect-error
+      factory() {
+        return {};
+      },
+    });
+    createExtension({
+      ...baseConfig,
+      // @ts-expect-error
+      factory() {
+        return {};
+      },
+    });
+    createExtension({
+      ...baseConfig,
+      // @ts-expect-error
+      factory() {
+        return 'bar';
+      },
+    });
+
+    createExtension({
+      ...baseConfig,
+      // @ts-expect-error
+      factory: () => {
+        return {
+          foo: 3,
+        };
+      },
+    });
+    createExtension({
+      ...baseConfig,
+      // @ts-expect-error
+      factory: () => {
+        return {
+          bar: 'bar',
+        };
+      },
+    });
+    createExtension({
+      ...baseConfig,
+      // @ts-expect-error
+      factory: () => {
+        return {};
+      },
+    });
+    createExtension({
+      ...baseConfig,
+      // @ts-expect-error
+      factory: () => {
+        return {};
+      },
+    });
+    createExtension({
+      ...baseConfig,
+      // @ts-expect-error
+      factory: () => {
+        return 'bar';
+      },
+    });
   });
 
   it('should create an extension with a some optional output', () => {
-    const extension = createExtension({
+    const baseConfig = {
       id: 'test',
       attachTo: { id: 'root', input: 'default' },
       output: {
         foo: stringData,
         bar: stringData.optional(),
       },
-      factory({ bind }) {
-        bind({
-          foo: 'bar',
-        });
-        bind({
-          foo: 'bar',
-          bar: 'baz',
-        });
-        bind({
-          // @ts-expect-error
-          foo: 3,
-        });
-        bind({
-          foo: 'bar',
-          // @ts-expect-error
-          bar: 3,
-        });
-        // @ts-expect-error
-        bind({ bar: 'bar' });
-        // @ts-expect-error
-        bind({});
-        // @ts-expect-error
-        bind();
-        // @ts-expect-error
-        bind('bar');
-      },
+    };
+    const extension = createExtension({
+      ...baseConfig,
+      factory: () => ({
+        foo: 'bar',
+      }),
     });
     expect(extension.id).toBe('test');
+
+    createExtension({
+      ...baseConfig,
+      factory: () => ({
+        foo: 'bar',
+        bar: 'baz',
+      }),
+    });
+    createExtension({
+      ...baseConfig,
+      factory: () => ({
+        // @ts-expect-error
+        foo: 3,
+      }),
+    });
+    createExtension({
+      ...baseConfig,
+      factory: () => ({
+        foo: 'bar',
+        // @ts-expect-error
+        bar: 3,
+      }),
+    });
+    createExtension({
+      ...baseConfig,
+      factory: () =>
+        // @ts-expect-error
+        ({ bar: 'bar' }),
+    });
+    createExtension({
+      ...baseConfig,
+      factory: () =>
+        // @ts-expect-error
+        ({}),
+    });
+    createExtension({
+      ...baseConfig,
+      factory: () =>
+        // @ts-expect-error
+        undefined,
+    });
+    createExtension({
+      ...baseConfig,
+      // @ts-expect-error
+      factory: () => {},
+    });
+    createExtension({
+      ...baseConfig,
+      factory: () =>
+        // @ts-expect-error
+        'bar',
+    });
   });
 
   it('should create an extension with input', () => {
@@ -110,7 +250,7 @@ describe('createExtension', () => {
       output: {
         foo: stringData,
       },
-      factory({ bind, inputs }) {
+      factory({ inputs }) {
         const a1: string = inputs.mixed?.[0].required;
         // @ts-expect-error
         const a2: number = inputs.mixed?.[0].required;
@@ -141,9 +281,9 @@ describe('createExtension', () => {
         const d4: number | undefined = inputs.onlyOptional?.[0].optional;
         unused(d1, d2, d3, d4);
 
-        bind({
+        return {
           foo: 'bar',
-        });
+        };
       },
     });
     expect(extension.id).toBe('test');
diff --git a/packages/frontend-plugin-api/src/wiring/createExtension.ts b/packages/frontend-plugin-api/src/wiring/createExtension.ts
index fa24a24797..ff011a5875 100644
--- a/packages/frontend-plugin-api/src/wiring/createExtension.ts
+++ b/packages/frontend-plugin-api/src/wiring/createExtension.ts
@@ -81,10 +81,9 @@ export interface CreateExtensionOptions<
   configSchema?: PortableSchema<TConfig>;
   factory(options: {
     source?: BackstagePlugin;
-    bind(values: Expand<ExtensionDataValues<TOutput>>): void;
     config: TConfig;
     inputs: Expand<ExtensionInputValues<TInputs>>;
-  }): void;
+  }): Expand<ExtensionDataValues<TOutput>>;
 }
 
 /** @public */
@@ -98,13 +97,12 @@ export interface Extension<TConfig> {
   configSchema?: PortableSchema<TConfig>;
   factory(options: {
     source?: BackstagePlugin;
-    bind(values: ExtensionInputValues<any>): void;
     config: TConfig;
     inputs: Record<
       string,
       undefined | Record<string, unknown> | Array<Record<string, unknown>>
     >;
-  }): void;
+  }): ExtensionDataValues<any>;
 }
 
 /** @public */
@@ -120,12 +118,11 @@ export function createExtension<
     disabled: options.disabled ?? false,
     $$type: '@backstage/Extension',
     inputs: options.inputs ?? {},
-    factory({ bind, config, inputs }) {
+    factory({ inputs, ...rest }) {
       // TODO: Simplify this, but TS wouldn't infer the input type for some reason
       return options.factory({
-        bind,
-        config,
         inputs: inputs as Expand<ExtensionInputValues<TInputs>>,
+        ...rest,
       });
     },
   };
diff --git a/packages/frontend-plugin-api/src/wiring/createExtensionOverrides.test.ts b/packages/frontend-plugin-api/src/wiring/createExtensionOverrides.test.ts
index fa430a7834..eb69f954e4 100644
--- a/packages/frontend-plugin-api/src/wiring/createExtensionOverrides.test.ts
+++ b/packages/frontend-plugin-api/src/wiring/createExtensionOverrides.test.ts
@@ -39,7 +39,7 @@ describe('createExtensionOverrides', () => {
             id: 'a',
             attachTo: { id: 'core', input: 'apis' },
             output: {},
-            factory() {},
+            factory: () => ({}),
           }),
         ],
       }),
@@ -72,7 +72,7 @@ describe('createExtensionOverrides', () => {
           id: 'a',
           attachTo: { id: 'core', input: 'apis' },
           output: {},
-          factory() {},
+          factory: () => ({}),
         }),
       ],
     });
diff --git a/packages/frontend-plugin-api/src/wiring/createPlugin.test.ts b/packages/frontend-plugin-api/src/wiring/createPlugin.test.ts
index 7f73c45544..42648fcd96 100644
--- a/packages/frontend-plugin-api/src/wiring/createPlugin.test.ts
+++ b/packages/frontend-plugin-api/src/wiring/createPlugin.test.ts
@@ -34,8 +34,8 @@ const TechRadarPage = createExtension({
   output: {
     name: nameExtensionDataRef,
   },
-  factory({ bind }) {
-    bind({ name: 'TechRadar' });
+  factory() {
+    return { name: 'TechRadar' };
   },
 });
 
@@ -48,8 +48,8 @@ const CatalogPage = createExtension({
   configSchema: createSchemaFromZod(z =>
     z.object({ name: z.string().default('Catalog') }),
   ),
-  factory({ bind, config }) {
-    bind({ name: config.name });
+  factory({ config }) {
+    return { name: config.name };
   },
 });
 
@@ -62,8 +62,8 @@ const TechDocsAddon = createExtension({
   configSchema: createSchemaFromZod(z =>
     z.object({ name: z.string().default('TechDocsAddon') }),
   ),
-  factory({ bind, config }) {
-    bind({ name: config.name });
+  factory({ config }) {
+    return { name: config.name };
   },
 });
 
@@ -78,8 +78,8 @@ const TechDocsPage = createExtension({
   output: {
     name: nameExtensionDataRef,
   },
-  factory({ bind, inputs }) {
-    bind({ name: `TechDocs-${inputs.addons.map(n => n.name).join('-')}` });
+  factory({ inputs }) {
+    return { name: `TechDocs-${inputs.addons.map(n => n.name).join('-')}` };
   },
 });
 
@@ -94,12 +94,12 @@ const outputExtension = createExtension({
   output: {
     element: coreExtensionData.reactElement,
   },
-  factory({ bind, inputs }) {
-    bind({
+  factory({ inputs }) {
+    return {
       element: React.createElement('span', {}, [
         `Names: ${inputs.names.map(n => n.name).join(', ')}`,
       ]),
-    });
+    };
   },
 });
 
diff --git a/plugins/catalog-react/src/alpha.tsx b/plugins/catalog-react/src/alpha.tsx
index 8ea477d573..8d0436e4be 100644
--- a/plugins/catalog-react/src/alpha.tsx
+++ b/plugins/catalog-react/src/alpha.tsx
@@ -113,21 +113,21 @@ export function createEntityCardExtension<
           .optional(),
       }),
     ),
-    factory({ bind, config, inputs, source }) {
+    factory({ config, inputs, source }) {
       const ExtensionComponent = lazy(() =>
         options
           .loader({ inputs })
           .then(element => ({ default: () => element })),
       );
 
-      bind({
+      return {
         element: (
           <ExtensionBoundary id={id} source={source}>
             <ExtensionComponent />
           </ExtensionBoundary>
         ),
         filter: buildFilter(config, options.filter),
-      });
+      };
     },
   });
 }
@@ -179,14 +179,14 @@ export function createEntityContentExtension<
           .optional(),
       }),
     ),
-    factory({ bind, config, inputs, source }) {
+    factory({ config, inputs, source }) {
       const ExtensionComponent = lazy(() =>
         options
           .loader({ inputs })
           .then(element => ({ default: () => element })),
       );
 
-      bind({
+      return {
         path: config.path,
         title: config.title,
         routeRef: options.routeRef,
@@ -196,7 +196,7 @@ export function createEntityContentExtension<
           </ExtensionBoundary>
         ),
         filter: buildFilter(config, options.filter),
-      });
+      };
     },
   });
 }
diff --git a/plugins/catalog/src/alpha/createCatalogFilterExtension.tsx b/plugins/catalog/src/alpha/createCatalogFilterExtension.tsx
index 5a6328078c..cf3dbd318a 100644
--- a/plugins/catalog/src/alpha/createCatalogFilterExtension.tsx
+++ b/plugins/catalog/src/alpha/createCatalogFilterExtension.tsx
@@ -43,20 +43,20 @@ export function createCatalogFilterExtension<
     output: {
       element: coreExtensionData.reactElement,
     },
-    factory({ bind, config, source }) {
+    factory({ config, source }) {
       const ExtensionComponent = lazy(() =>
         options
           .loader({ config })
           .then(element => ({ default: () => element })),
       );
 
-      bind({
+      return {
         element: (
           <ExtensionBoundary id={id} source={source}>
             <ExtensionComponent />
           </ExtensionBoundary>
         ),
-      });
+      };
     },
   });
 }
diff --git a/plugins/graphiql/src/alpha.tsx b/plugins/graphiql/src/alpha.tsx
index 58b6686daa..8b2b962355 100644
--- a/plugins/graphiql/src/alpha.tsx
+++ b/plugins/graphiql/src/alpha.tsx
@@ -88,10 +88,10 @@ export function createEndpointExtension<TConfig extends {}>(options: {
     output: {
       endpoint: endpointDataRef,
     },
-    factory({ bind, config }) {
-      bind({
+    factory({ config }) {
+      return {
         endpoint: options.factory({ config }).endpoint,
-      });
+      };
     },
   });
 }
diff --git a/plugins/search-react/src/alpha.tsx b/plugins/search-react/src/alpha.tsx
index f937ef99cc..80e464fe4e 100644
--- a/plugins/search-react/src/alpha.tsx
+++ b/plugins/search-react/src/alpha.tsx
@@ -107,14 +107,14 @@ export function createSearchResultListItemExtension<
     output: {
       item: searchResultItemExtensionData,
     },
-    factory({ bind, config, source }) {
+    factory({ config, source }) {
       const ExtensionComponent = lazy(() =>
         options
           .component({ config })
           .then(component => ({ default: component })),
       ) as unknown as SearchResultItemExtensionComponent;
 
-      bind({
+      return {
         item: {
           predicate: options.predicate,
           component: props => (
@@ -129,7 +129,7 @@ export function createSearchResultListItemExtension<
             </ExtensionBoundary>
           ),
         },
-      });
+      };
     },
   });
 }