diff --git a/.changeset/few-mails-help.md b/.changeset/few-mails-help.md
new file mode 100644
index 0000000000..221481c596
--- /dev/null
+++ b/.changeset/few-mails-help.md
@@ -0,0 +1,5 @@
+---
+'@backstage/cli': patch
+---
+
+Updated backend plugin ID during creation to match user-entered input.
diff --git a/packages/cli/src/lib/new/factories/backendPlugin.test.ts b/packages/cli/src/lib/new/factories/backendPlugin.test.ts
index f85d52c935..f326de88b8 100644
--- a/packages/cli/src/lib/new/factories/backendPlugin.test.ts
+++ b/packages/cli/src/lib/new/factories/backendPlugin.test.ts
@@ -100,6 +100,15 @@ describe('backendPlugin factory', () => {
         'backstage-plugin-test-backend': '^1.0.0',
       },
     });
+    const standaloneServerFile = await fs.readFile(
+      '/root/plugins/test-backend/src/service/standaloneServer.ts',
+      'utf-8',
+    );
+
+    expect(standaloneServerFile).toContain(
+      `const logger = options.logger.child({ service: 'test-backend' });`,
+    );
+    expect(standaloneServerFile).toContain(`.addRouter('/test', router);`);
 
     expect(Task.forCommand).toHaveBeenCalledTimes(2);
     expect(Task.forCommand).toHaveBeenCalledWith('yarn install', {
diff --git a/packages/cli/src/lib/new/factories/backendPlugin.ts b/packages/cli/src/lib/new/factories/backendPlugin.ts
index 4d03a4da7b..c5c9b5bd0e 100644
--- a/packages/cli/src/lib/new/factories/backendPlugin.ts
+++ b/packages/cli/src/lib/new/factories/backendPlugin.ts
@@ -38,17 +38,18 @@ export const backendPlugin = createFactory<Options>({
   }),
   optionsPrompts: [pluginIdPrompt(), ownerPrompt()],
   async create(options: Options, ctx: CreateContext) {
-    const id = `${options.id}-backend`;
+    const { id } = options;
+    const pluginId = `${id}-backend`;
     const name = ctx.scope
-      ? `@${ctx.scope}/plugin-${id}`
-      : `backstage-plugin-${id}`;
+      ? `@${ctx.scope}/plugin-${pluginId}`
+      : `backstage-plugin-${pluginId}`;
 
     Task.log();
     Task.log(`Creating backend plugin ${chalk.cyan(name)}`);
 
     const targetDir = ctx.isMonoRepo
-      ? paths.resolveTargetRoot('plugins', id)
-      : paths.resolveTargetRoot(`backstage-plugin-${id}`);
+      ? paths.resolveTargetRoot('plugins', pluginId)
+      : paths.resolveTargetRoot(`backstage-plugin-${pluginId}`);
 
     await executePluginPackageTemplate(ctx, {
       targetDir,