diff --git a/packages/cli/src/lib/versioning/Lockfile.test.ts b/packages/cli/src/lib/versioning/Lockfile.test.ts
index 30c6f6ffee..a60b71be85 100644
--- a/packages/cli/src/lib/versioning/Lockfile.test.ts
+++ b/packages/cli/src/lib/versioning/Lockfile.test.ts
@@ -586,4 +586,201 @@ d@^1:
       });
     });
   });
+
+  describe('createSimplifiedDependencyGraph', () => {
+    it('for modern lockfile', () => {
+      expect(
+        Lockfile.parse(
+          `${MODERN_HEADER}
+"@backstage/app-defaults@workspace:^, @backstage/app-defaults@workspace:packages/app-defaults":
+  version: 0.0.0-use.local
+  resolution: "@backstage/app-defaults@workspace:packages/app-defaults"
+  dependencies:
+    "@backstage/cli": "workspace:^"
+    "@backstage/core-app-api": "workspace:^"
+    "@backstage/core-components": "workspace:^"
+    "@backstage/core-plugin-api": "workspace:^"
+    "@backstage/plugin-permission-react": "workspace:^"
+    "@backstage/test-utils": "workspace:^"
+    "@backstage/theme": "workspace:^"
+    "@material-ui/core": ^4.12.2
+    "@material-ui/icons": ^4.9.1
+    "@testing-library/jest-dom": ^5.10.1
+    "@testing-library/react": ^12.1.3
+    "@types/node": ^16.11.26
+    "@types/react": ^16.13.1 || ^17.0.0
+  peerDependencies:
+    react: ^16.13.1 || ^17.0.0
+    react-dom: ^16.13.1 || ^17.0.0
+    react-router-dom: 6.0.0-beta.0 || ^6.3.0
+  languageName: unknown
+  linkType: soft
+
+"@backstage/backend-app-api@workspace:^, @backstage/backend-app-api@workspace:packages/backend-app-api":
+  version: 0.0.0-use.local
+  resolution: "@backstage/backend-app-api@workspace:packages/backend-app-api"
+  dependencies:
+    "@backstage/backend-common": "workspace:^"
+    "@backstage/backend-plugin-api": "workspace:^"
+    "@backstage/backend-tasks": "workspace:^"
+    "@backstage/cli": "workspace:^"
+    "@backstage/errors": "workspace:^"
+    "@backstage/plugin-permission-node": "workspace:^"
+    express: ^4.17.1
+    express-promise-router: ^4.1.0
+    winston: ^3.2.1
+  languageName: unknown
+  linkType: soft
+`,
+        ).createSimplifiedDependencyGraph(),
+      ).toEqual(
+        new Map([
+          [
+            '@backstage/app-defaults',
+            new Set([
+              '@backstage/cli',
+              '@backstage/core-app-api',
+              '@backstage/core-components',
+              '@backstage/core-plugin-api',
+              '@backstage/plugin-permission-react',
+              '@backstage/test-utils',
+              '@backstage/theme',
+              '@material-ui/core',
+              '@material-ui/icons',
+              '@testing-library/jest-dom',
+              '@testing-library/react',
+              '@types/node',
+              '@types/react',
+              'react',
+              'react-dom',
+              'react-router-dom',
+            ]),
+          ],
+          [
+            '@backstage/backend-app-api',
+            new Set([
+              '@backstage/backend-common',
+              '@backstage/backend-plugin-api',
+              '@backstage/backend-tasks',
+              '@backstage/cli',
+              '@backstage/errors',
+              '@backstage/plugin-permission-node',
+              'express',
+              'express-promise-router',
+              'winston',
+            ]),
+          ],
+        ]),
+      );
+    });
+
+    it('for simple lockfile without dependencies', () => {
+      expect(
+        Lockfile.parse(
+          `${MODERN_HEADER}
+"a@npm:^1":
+  version: "1.0.1"
+
+"b@npm:3":
+  version: "3.0.1"
+
+"b@npm:2.0.x":
+  version: "2.0.1"
+  checksum: sha512-abc2
+`,
+        ).createSimplifiedDependencyGraph(),
+      ).toEqual(
+        new Map([
+          ['a', new Set()],
+          ['b', new Set()],
+        ]),
+      );
+    });
+
+    it('for lockfile with dependencies', () => {
+      expect(
+        Lockfile.parse(
+          `${MODERN_HEADER}
+"a@npm:^1":
+  version: "1.0.1"
+  dependencies:
+    b: "^2"
+
+"b@npm:3":
+  version: "3.0.1"
+  checksum: sha512-abc1
+
+"b@npm:2.0.x":
+  version: "2.0.1"
+  checksum: sha512-abc2
+  dependencies:
+    c: "^1"
+
+"b@npm:^2":
+  version: "2.0.0"
+  checksum: sha512-abc3
+  peerDependencies:
+    d: "^1"
+
+"c@npm:^1":
+  version: "1.0.1"
+
+"d@npm:^1":
+  version: "1.0.2"
+`,
+        ).createSimplifiedDependencyGraph(),
+      ).toEqual(
+        new Map([
+          ['a', new Set(['b'])],
+          ['b', new Set(['c', 'd'])],
+          ['c', new Set()],
+          ['d', new Set()],
+        ]),
+      );
+    });
+
+    it('for legacy lockfile', () => {
+      expect(
+        Lockfile.parse(
+          `${LEGACY_HEADER}
+a@^1:
+  version "1.0.1"
+  dependencies:
+    b "^2"
+
+b@3:
+  version "3.0.1"
+  integrity sha512-abc1
+
+b@2.0.x:
+  version "2.0.1"
+  integrity sha512-abc2
+  dependencies:
+    c "^1"
+
+b@^2:
+  version "2.0.0"
+  integrity sha512-abc3
+  dependencies:
+    d "^1"
+
+c@^1:
+  version "1.0.1"
+  integrity x
+
+d@^1:
+  version "1.0.1"
+  integrity x
+`,
+        ).createSimplifiedDependencyGraph(),
+      ).toEqual(
+        new Map([
+          ['a', new Set(['b'])],
+          ['b', new Set(['c', 'd'])],
+          ['c', new Set()],
+          ['d', new Set()],
+        ]),
+      );
+    });
+  });
 });
diff --git a/packages/cli/src/lib/versioning/Lockfile.ts b/packages/cli/src/lib/versioning/Lockfile.ts
index 622aac36ae..4eadaf55f9 100644
--- a/packages/cli/src/lib/versioning/Lockfile.ts
+++ b/packages/cli/src/lib/versioning/Lockfile.ts
@@ -29,6 +29,7 @@ type LockfileData = {
     integrity?: string /* old */;
     checksum?: string /* new */;
     dependencies?: { [name: string]: string };
+    peerDependencies?: { [name: string]: string };
   };
 };
 
@@ -339,6 +340,25 @@ export class Lockfile {
     }
   }
 
+  createSimplifiedDependencyGraph(): Map<string, Set<string>> {
+    const graph = new Map<string, Set<string>>();
+
+    for (const [name, entries] of this.packages) {
+      const dependencies = new Set(
+        entries.flatMap(e => {
+          const data = this.data[e.dataKey];
+          return [
+            ...Object.keys(data?.dependencies ?? {}),
+            ...Object.keys(data?.peerDependencies ?? {}),
+          ];
+        }),
+      );
+      graph.set(name, dependencies);
+    }
+
+    return graph;
+  }
+
   /**
    * Diff with another lockfile, returning entries that have been
    * added, changed, and removed compared to the other lockfile.