diff --git a/.changeset/polite-cooks-perform.md b/.changeset/polite-cooks-perform.md
new file mode 100644
index 0000000000..40766c84a3
--- /dev/null
+++ b/.changeset/polite-cooks-perform.md
@@ -0,0 +1,5 @@
+---
+'@backstage/frontend-app-api': minor
+---
+
+The `createApp` config option has been replaced by a new `configLoader` option. There is now also a `pluginLoader` option that can be used to dynamically load plugins into the app.
diff --git a/packages/frontend-app-api/api-report.md b/packages/frontend-app-api/api-report.md
index 12cf853f9d..2e77ef904b 100644
--- a/packages/frontend-app-api/api-report.md
+++ b/packages/frontend-app-api/api-report.md
@@ -12,7 +12,8 @@ import { JSX as JSX_2 } from 'react';
 // @public (undocumented)
 export function createApp(options: {
   plugins: BackstagePlugin[];
-  config?: ConfigApi;
+  configLoader?: () => Promise<ConfigApi>;
+  pluginLoader?: (ctx: { config: ConfigApi }) => Promise<BackstagePlugin[]>;
 }): {
   createRoot(): JSX_2.Element;
 };
diff --git a/packages/frontend-app-api/src/wiring/createApp.tsx b/packages/frontend-app-api/src/wiring/createApp.tsx
index 462bfcdccc..f722d3594e 100644
--- a/packages/frontend-app-api/src/wiring/createApp.tsx
+++ b/packages/frontend-app-api/src/wiring/createApp.tsx
@@ -247,50 +247,67 @@ export function createInstances(options: {
 /** @public */
 export function createApp(options: {
   plugins: BackstagePlugin[];
-  config?: ConfigApi;
+  configLoader?: () => Promise<ConfigApi>;
+  pluginLoader?: (ctx: { config: ConfigApi }) => Promise<BackstagePlugin[]>;
 }): {
   createRoot(): JSX.Element;
 } {
-  const discoveredPlugins = getAvailablePlugins();
-  const allPlugins = Array.from(
-    new Set([...discoveredPlugins, ...options.plugins]),
-  );
-  const appConfig =
-    options?.config ??
-    ConfigReader.fromConfigs(overrideBaseUrlConfigs(defaultConfigLoaderSync()));
+  async function appLoader() {
+    const config =
+      (await options?.configLoader?.()) ??
+      ConfigReader.fromConfigs(
+        overrideBaseUrlConfigs(defaultConfigLoaderSync()),
+      );
 
-  const { rootInstances } = createInstances({
-    plugins: allPlugins,
-    config: appConfig,
-  });
+    const discoveredPlugins = getAvailablePlugins();
+    const loadedPlugins = (await options.pluginLoader?.({ config })) ?? [];
+    const allPlugins = Array.from(
+      new Set([...discoveredPlugins, ...options.plugins, ...loadedPlugins]),
+    );
 
-  const routePaths = extractRouteInfoFromInstanceTree(rootInstances);
+    const { rootInstances } = createInstances({
+      plugins: allPlugins,
+      config,
+    });
 
-  const coreInstance = rootInstances.find(({ id }) => id === 'core');
-  if (!coreInstance) {
-    throw Error('Unable to find core extension instance');
+    const routePaths = extractRouteInfoFromInstanceTree(rootInstances);
+
+    const coreInstance = rootInstances.find(({ id }) => id === 'core');
+    if (!coreInstance) {
+      throw Error('Unable to find core extension instance');
+    }
+
+    const apiHolder = createApiHolder(coreInstance, config);
+
+    const appContext = createLegacyAppContext(allPlugins);
+
+    const rootElements = rootInstances
+      .map(e => e.getData(coreExtensionData.reactElement))
+      .filter((x): x is JSX.Element => !!x);
+
+    const App = () => (
+      <ApiProvider apis={apiHolder}>
+        <AppContextProvider appContext={appContext}>
+          <AppThemeProvider>
+            <RoutingProvider routePaths={routePaths}>
+              {/* TODO: set base path using the logic from AppRouter */}
+              <BrowserRouter>{rootElements}</BrowserRouter>
+            </RoutingProvider>
+          </AppThemeProvider>
+        </AppContextProvider>
+      </ApiProvider>
+    );
+
+    return { default: App };
   }
 
-  const apiHolder = createApiHolder(coreInstance, appConfig);
-
-  const appContext = createLegacyAppContext(allPlugins);
-
   return {
     createRoot() {
-      const rootElements = rootInstances
-        .map(e => e.getData(coreExtensionData.reactElement))
-        .filter((x): x is JSX.Element => !!x);
+      const LazyApp = React.lazy(appLoader);
       return (
-        <ApiProvider apis={apiHolder}>
-          <AppContextProvider appContext={appContext}>
-            <AppThemeProvider>
-              <RoutingProvider routePaths={routePaths}>
-                {/* TODO: set base path using the logic from AppRouter */}
-                <BrowserRouter>{rootElements}</BrowserRouter>
-              </RoutingProvider>
-            </AppThemeProvider>
-          </AppContextProvider>
-        </ApiProvider>
+        <React.Suspense fallback="Loading...">
+          <LazyApp />
+        </React.Suspense>
       );
     },
   };
diff --git a/packages/frontend-plugin-api/src/wiring/createPlugin.test.ts b/packages/frontend-plugin-api/src/wiring/createPlugin.test.ts
index 1d45c221af..b14838c17a 100644
--- a/packages/frontend-plugin-api/src/wiring/createPlugin.test.ts
+++ b/packages/frontend-plugin-api/src/wiring/createPlugin.test.ts
@@ -16,14 +16,14 @@
 
 import React from 'react';
 import { createApp } from '@backstage/frontend-app-api';
-import { render, screen } from '@testing-library/react';
+import { screen } from '@testing-library/react';
 import { createSchemaFromZod } from '../schema/createSchemaFromZod';
 import { createPlugin, BackstagePlugin } from './createPlugin';
 import { JsonObject } from '@backstage/types';
 import { createExtension } from './createExtension';
 import { createExtensionDataRef } from './createExtensionDataRef';
 import { coreExtensionData } from './coreExtensionData';
-import { MockConfigApi } from '@backstage/test-utils';
+import { MockConfigApi, renderWithEffects } from '@backstage/test-utils';
 import { createExtensionInput } from './createExtensionInput';
 
 const nameExtensionDataRef = createExtensionDataRef<string>('name');
@@ -112,7 +112,7 @@ function createTestAppRoot({
 }) {
   return createApp({
     plugins: plugins,
-    config: new MockConfigApi(config),
+    configLoader: async () => new MockConfigApi(config),
   }).createRoot();
 }
 
@@ -123,24 +123,26 @@ describe('createPlugin', () => {
     expect(plugin).toBeDefined();
   });
 
-  it('should create a plugin with extension instances', () => {
+  it('should create a plugin with extension instances', async () => {
     const plugin = createPlugin({
       id: 'empty',
       extensions: [TechRadarPage, CatalogPage, outputExtension],
     });
     expect(plugin).toBeDefined();
 
-    render(
+    await renderWithEffects(
       createTestAppRoot({
         plugins: [plugin],
         config: { app: { extensions: [{ 'core.layout': false }] } },
       }),
     );
 
-    expect(screen.getByText('Names: TechRadar, Catalog')).toBeInTheDocument();
+    await expect(
+      screen.findByText('Names: TechRadar, Catalog'),
+    ).resolves.toBeInTheDocument();
   });
 
-  it('should create a plugin with nested extension instances', () => {
+  it('should create a plugin with nested extension instances', async () => {
     const plugin = createPlugin({
       id: 'empty',
       extensions: [
@@ -153,7 +155,7 @@ describe('createPlugin', () => {
     });
     expect(plugin).toBeDefined();
 
-    render(
+    await renderWithEffects(
       createTestAppRoot({
         plugins: [plugin],
         config: {
@@ -171,10 +173,10 @@ describe('createPlugin', () => {
       }),
     );
 
-    expect(
-      screen.getByText(
+    await expect(
+      screen.findByText(
         'Names: TechRadar, CatalogRenamed, TechDocs-TechDocsAddon',
       ),
-    ).toBeInTheDocument();
+    ).resolves.toBeInTheDocument();
   });
 });