diff --git a/packages/backend-common/src/reading/GithubUrlReader.test.ts b/packages/backend-common/src/reading/GithubUrlReader.test.ts
index 26ba91bd29..0b7d56480f 100644
--- a/packages/backend-common/src/reading/GithubUrlReader.test.ts
+++ b/packages/backend-common/src/reading/GithubUrlReader.test.ts
@@ -108,7 +108,12 @@ describe('GithubUrlReader', () => {
 
   describe('readTree', () => {
     const repoBuffer = fs.readFileSync(
-      path.resolve('src', 'reading', '__fixtures__', 'mock-main.tar.gz'),
+      path.resolve(
+        'src',
+        'reading',
+        '__fixtures__',
+        'backstage-mock-etag123.tar.gz',
+      ),
     );
 
     const reposGithubApiResponse = {
@@ -117,12 +122,16 @@ describe('GithubUrlReader', () => {
       default_branch: 'main',
       branches_url:
         'https://api.github.com/repos/backstage/mock/branches{/branch}',
+      archive_url:
+        'https://api.github.com/repos/backstage/mock/{archive_format}{/ref}',
     };
 
     const reposGheApiResponse = {
       ...reposGithubApiResponse,
       branches_url:
         'https://ghe.github.com/api/v3/repos/backstage/mock/branches{/branch}',
+      archive_url:
+        'https://ghe.github.com/api/v3/repos/backstage/mock/{archive_format}{/ref}',
     };
 
     const branchesApiResponse = {
@@ -134,15 +143,6 @@ describe('GithubUrlReader', () => {
 
     beforeEach(() => {
       worker.use(
-        rest.get(
-          'https://github.com/backstage/mock/archive/main.tar.gz',
-          (_, res, ctx) =>
-            res(
-              ctx.status(200),
-              ctx.set('Content-Type', 'application/x-gzip'),
-              ctx.body(repoBuffer),
-            ),
-        ),
         rest.get('https://api.github.com/repos/backstage/mock', (_, res, ctx) =>
           res(
             ctx.status(200),
@@ -159,12 +159,21 @@ describe('GithubUrlReader', () => {
               ctx.json(branchesApiResponse),
             ),
         ),
+        rest.get(
+          'https://api.github.com/repos/backstage/mock/tarball/etag123abc',
+          (_, res, ctx) =>
+            res(
+              ctx.status(200),
+              ctx.set('Content-Type', 'application/x-gzip'),
+              ctx.body(repoBuffer),
+            ),
+        ),
         rest.get(
           'https://api.github.com/repos/backstage/mock/branches/branchDoesNotExist',
           (_, res, ctx) => res(ctx.status(404)),
         ),
         rest.get(
-          'https://ghe.github.com/backstage/mock/archive/main.tar.gz',
+          'https://ghe.github.com/api/v3/repos/backstage/mock/tarball/etag123abc',
           (_, res, ctx) =>
             res(
               ctx.status(200),
@@ -224,7 +233,7 @@ describe('GithubUrlReader', () => {
 
       worker.use(
         rest.get(
-          'https://ghe.github.com/backstage/mock/archive/main.tar.gz',
+          'https://ghe.github.com/api/v3/repos/backstage/mock/tarball/etag123abc',
           (req, res, ctx) => {
             expect(req.headers.get('authorization')).toBe(
               mockHeaders.Authorization,
diff --git a/packages/backend-common/src/reading/GithubUrlReader.ts b/packages/backend-common/src/reading/GithubUrlReader.ts
index d6612a9da2..b5b4e9c1a7 100644
--- a/packages/backend-common/src/reading/GithubUrlReader.ts
+++ b/packages/backend-common/src/reading/GithubUrlReader.ts
@@ -98,14 +98,9 @@ export class GithubUrlReader implements UrlReader {
     url: string,
     options?: ReadTreeOptions,
   ): Promise<ReadTreeResponse> {
-    const {
-      protocol,
-      resource,
-      name: repoName,
-      ref,
-      filepath,
-      full_name,
-    } = parseGitUrl(url);
+    const { ref, filepath, full_name } = parseGitUrl(url);
+    // Caveat: The ref will totally be incorrect if the branch name includes a /
+    // Thus, readTree can not work on url containing branch name that has a /
 
     const { headers } = await this.deps.credentialsProvider.getCredentials({
       url,
@@ -132,6 +127,7 @@ export class GithubUrlReader implements UrlReader {
     // Use GitHub API to get the default branch of the repository.
     const branch = ref || repoResponseJson.default_branch;
     const branchesApiUrl = repoResponseJson.branches_url;
+    const archiveApiUrl = repoResponseJson.archive_url;
 
     // Fetch the latest commit in the provided or default branch to compare against
     // the provided sha.
@@ -155,19 +151,12 @@ export class GithubUrlReader implements UrlReader {
       throw new NotModifiedError();
     }
 
-    // Note: the API way of downloading an archive URL does not return a real time archive.
-    // https://github.community/t/archive-downloaded-via-v3-rest-api-is-not-real-time/14827
-    // It looks like this https://api.github.com/repos/owner/repo/{archive_format}{/ref}
-    // and can be used from `repoResponseJson.archive_url`.
-    // Continue using the "direct" way i.e. https://github.com/:owner/:repo/archive/branch.tar.gz
-    // until the bug? is fixed.
     const archive = await fetch(
-      new URL(
-        `${protocol}://${resource}/${full_name}/archive/${branch}.tar.gz`,
-      ).toString(),
-      {
-        headers,
-      },
+      // archiveApiUrl looks like "https://api.github.com/repos/owner/repo/{archive_format}{/ref}"
+      archiveApiUrl
+        .replace('{archive_format}', 'tarball')
+        .replace('{/ref}', `/${commitSha}`),
+      { headers },
     );
     if (!archive.ok) {
       const message = `Failed to read tree (archive) from ${url}, ${archive.status} ${archive.statusText}`;
@@ -177,7 +166,18 @@ export class GithubUrlReader implements UrlReader {
       throw new Error(message);
     }
 
-    const path = `${repoName}-${branch}/${filepath}`;
+    // Note that repoResponseJson.full_name must be used over full_name because the path
+    // is case sensitive and full_name may not be inq the correct case.
+    // TODO(OrkoHunter): The directory name inside the tarball should be retrieved from the tar
+    // instead of being constructed here. Same goes for GitLab, Bitbucket and Azure.
+    const extractedDirName = `${repoResponseJson.full_name.replace(
+      '/',
+      '-',
+    )}-${commitSha.substr(0, 7)}`;
+
+    // The path includes the name of the directory inside the tarball and a sub path
+    // if requested in readTree.
+    const path = `${extractedDirName}/${filepath}`;
 
     return await this.deps.treeResponseFactory.fromTarArchive({
       // TODO(Rugvip): Underlying implementation of fetch will be node-fetch, we probably want
diff --git a/packages/backend-common/src/reading/__fixtures__/backstage-mock-etag123.tar.gz b/packages/backend-common/src/reading/__fixtures__/backstage-mock-etag123.tar.gz
new file mode 100644
index 0000000000..e1ac2579de
Binary files /dev/null and b/packages/backend-common/src/reading/__fixtures__/backstage-mock-etag123.tar.gz differ