diff --git a/docs/reference/createPlugin-feature-flags.md b/docs/reference/createPlugin-feature-flags.md
index 8226efc129..bbf7f17c32 100644
--- a/docs/reference/createPlugin-feature-flags.md
+++ b/docs/reference/createPlugin-feature-flags.md
@@ -8,9 +8,23 @@ export type FeatureFlagsHooks = {
 };
 ```
 
+Here's a code sample:
+
+```typescript
+import { createPlugin } from '@backstage/core';
+
+export default createPlugin({
+  id: 'welcome',
+  register({ router, featureFlags }) {
+    // router.registerRoute('/', Component);
+    featureFlags.registerFeatureFlag('enable-example-feature');
+  },
+});
+```
+
 ## Using with useApi
 
-This is the **recommended** way of using the API. It's officially supported by Backstage. To use it, you'll first need to register the `FeatureFlags` API via `ApiRegistry` in your `apis.ts` in your App:
+To use it, you'll first need to register the `FeatureFlags` API via `ApiRegistry` in your `apis.ts` in your App:
 
 ```tsx
 import {
@@ -34,8 +48,12 @@ import { Button } from '@material-ui/core';
 import { featureFlagsApiRef, useApi } from '@backstage/core';
 
 const ExampleButton: FC<{}> = () => {
-  const featureFlagsApi = useApi(featureFlagsApiRef);
-  const handleClick = () => featureFlagsApi.set('enable-example-feature', .Enabled);
+  const { useFeatureFlag } = useApi(featureFlagsApiRef);
+  const [flagState, setFlagState] = useFeatureFlag('enable-example-feature');
+
+  const handleClick = () => {
+    setFlagState(FeatureFlagState.Enabled);
+  };
 
   return (
     <Button variant="contained" color="primary" onClick={handleClick}>
@@ -45,24 +63,6 @@ const ExampleButton: FC<{}> = () => {
 };
 ```
 
-## Using directly with the `FeatureFlags` object
-
-This is **only** for backwards-compatibility support for Spotify's internal Backstage plugins. This may be deprecated in the distant future so generally we advise against using it.
-
-```tsx
-import React, { FC } from 'react';
-import { Button } from '@material-ui/core';
-import { FeatureFlags } from '@backstage/core';
-
-const ExampleButton: FC<{}> = () => {
-  const handleClick = () => FeatureFlags.set('enable-example-feature', .Enabled);
-
-  return (
-    <Button variant="contained" color="primary" onClick={handleClick}>
-      Enable the 'enable-example-feature' feature flag
-    </Button>
-  );
-};
-```
+Note that you must register it with `registerFeatureFlag` otherwise the `useFeatureFlag` will throw an error.
 
 [Back to References](README.md)
diff --git a/packages/core/src/api/app/FeatureFlags.test.tsx b/packages/core/src/api/app/FeatureFlags.test.tsx
index 3e3bb3e50d..b803b27b3a 100644
--- a/packages/core/src/api/app/FeatureFlags.test.tsx
+++ b/packages/core/src/api/app/FeatureFlags.test.tsx
@@ -14,142 +14,362 @@
  * limitations under the License.
  */
 
-import React, { useContext } from 'react';
+import React, { ReactNode, useContext, useEffect, useRef } from 'react';
 import { render } from '@testing-library/react';
 import {
   FeatureFlags,
+  FeatureFlagsEntry,
   FeatureFlagsContext,
   FeatureFlagsContextProvider,
 } from './FeatureFlags';
 import { FeatureFlagState } from '../apis/definitions/featureFlags';
 
+function useRenderCount() {
+  const renderCount = useRef(-1);
+  renderCount.current += 1;
+  return renderCount.current;
+}
+
+function withFeatureFlags(
+  children: ReactNode,
+  featureFlags: Set<FeatureFlagsEntry> = new Set([
+    { name: 'feature-flag-one', pluginId: 'plugin-one' },
+    { name: 'feature-flag-two', pluginId: 'plugin-two' },
+    { name: 'feature-flag-three', pluginId: 'plugin-two' },
+  ]),
+) {
+  return (
+    <FeatureFlagsContextProvider featureFlags={featureFlags}>
+      {children}
+    </FeatureFlagsContextProvider>
+  );
+}
+
 describe('FeatureFlags', () => {
   beforeEach(() => {
     window.localStorage.clear();
   });
 
-  describe('#get', () => {
-    it('defaults to .NotEnabled', () => {
-      expect(FeatureFlags.get('enable-feature-flag')).toBe(
-        FeatureFlagState.NotEnabled,
-      );
+  describe('#getEnabledFeatureFlags', () => {
+    it('returns an empty set', () => {
+      expect(FeatureFlags.getEnabledFeatureFlags()).toEqual(new Set());
     });
 
-    it('returns a .Enabled state', () => {
-      FeatureFlags.set('enable-feature-flag', FeatureFlagState.Enabled);
-      expect(FeatureFlags.get('enable-feature-flag')).toBe(
-        FeatureFlagState.Enabled,
+    it('returns enabled feature flags', () => {
+      window.localStorage.setItem(
+        'featureFlags',
+        JSON.stringify({
+          'feature-flag-one': true,
+          'feature-flag-three': true,
+        }),
       );
-    });
 
-    it('returns a .NotEnabled state', () => {
-      FeatureFlags.set('enable-feature-flag', FeatureFlagState.NotEnabled);
-      expect(FeatureFlags.get('enable-feature-flag')).toBe(
-        FeatureFlagState.NotEnabled,
+      expect(FeatureFlags.getEnabledFeatureFlags()).toEqual(
+        new Set(['feature-flag-one', 'feature-flag-three']),
       );
     });
   });
 
-  describe('#set', () => {
-    it('fails if name is less than three characters', () => {
-      expect(() => {
-        FeatureFlags.set('ab', FeatureFlagState.NotEnabled);
-      }).toThrow(/minimum length of three characters/i);
+  describe('#checkFeatureFlagNameErrors', () => {
+    it('returns an error if less than three characters', () => {
+      const errors = FeatureFlags.checkFeatureFlagNameErrors('ab');
+      expect(errors[0]).toMatch(/minimum length of three characters/i);
     });
 
-    it('fails if name is greater than 150 characters', () => {
-      expect(() => {
-        FeatureFlags.set(
-          'loremipsumdolorsitametconsecteturadipiscingelitnuncvitaeportaexaullamcorperturpismaurisutmattisnequemorbisediaculisauguevivamuspulvinarcursuseratblandithendreritquisqueuttinciduntmagnavestibulumblanditaugueat',
-          FeatureFlagState.NotEnabled,
+    it('returns an error if greater than 150 characters', () => {
+      const errors = FeatureFlags.checkFeatureFlagNameErrors(
+        'loremipsumdolorsitametconsecteturadipiscingelitnuncvitaeportaexaullamcorperturpismaurisutmattisnequemorbisediaculisauguevivamuspulvinarcursuseratblandithendreritquisqueuttinciduntmagnavestibulumblanditaugueat',
+      );
+      expect(errors[0]).toMatch(/not exceed 150 characters/i);
+    });
+
+    it('returns an error if name does not start with a lowercase letter', () => {
+      const errors = FeatureFlags.checkFeatureFlagNameErrors('123456789');
+      expect(errors[0]).toMatch(/start with a lowercase letter/i);
+    });
+
+    it('returns an error if name contains characters other than lowercase letters, numbers and hyphens', () => {
+      const errors = FeatureFlags.checkFeatureFlagNameErrors(
+        'Invalid_Feature_Flag',
+      );
+      expect(errors[0]).toMatch(
+        /only contain lowercase letters, numbers and hyphens/i,
+      );
+    });
+
+    it('returns no errors', () => {
+      const errors = FeatureFlags.checkFeatureFlagNameErrors(
+        'valid-feature-flag',
+      );
+      expect(errors.length).toBe(0);
+    });
+  });
+
+  describe('#useFeatureFlag', () => {
+    it('throws an error if the feature flag is not registered', () => {
+      const Component = () => {
+        expect(() => {
+          FeatureFlags.useFeatureFlag('feature-flag-four');
+        }).toThrow(/'feature-flag-four' feature flag is not registered/i);
+
+        return null;
+      };
+
+      render(withFeatureFlags(<Component />));
+    });
+
+    it('throws an error if changing value is not recognized', () => {
+      const Component = () => {
+        const [, setState] = FeatureFlags.useFeatureFlag('feature-flag-one');
+        const renderCount = useRenderCount();
+        if (renderCount === 1) {
+          // @ts-ignore
+          expect(() => setState('not valid')).toThrow(
+            /requires a recognized value from the FeatureFlagState/i,
+          );
+        }
+        return null;
+      };
+
+      render(withFeatureFlags(<Component />));
+    });
+
+    it('defaults to .NotEnabled', () => {
+      const Component = () => {
+        const renderCount = useRenderCount();
+        const [state] = FeatureFlags.useFeatureFlag('feature-flag-one');
+        if (renderCount === 1) {
+          expect(state).toEqual(FeatureFlagState.NotEnabled);
+        }
+        return null;
+      };
+
+      render(withFeatureFlags(<Component />));
+    });
+
+    it('returns an .Enabled state', () => {
+      window.localStorage.setItem('featureFlags', '{"feature-flag-one":true}');
+
+      const Component = () => {
+        const [state] = FeatureFlags.useFeatureFlag('feature-flag-one');
+        const renderCount = useRenderCount();
+        if (renderCount === 1) {
+          expect(state).toEqual(FeatureFlagState.Enabled);
+        }
+        return null;
+      };
+
+      render(withFeatureFlags(<Component />));
+    });
+
+    it('returns an .NotEnabled state', () => {
+      const Component = () => {
+        const [state] = FeatureFlags.useFeatureFlag('feature-flag-one');
+        const renderCount = useRenderCount();
+        if (renderCount === 1) {
+          expect(state).toEqual(FeatureFlagState.NotEnabled);
+        }
+        return null;
+      };
+
+      render(withFeatureFlags(<Component />));
+    });
+
+    it('changes state to .Enabled', () => {
+      const Component = () => {
+        const [state, setState] = FeatureFlags.useFeatureFlag(
+          'feature-flag-one',
         );
-      }).toThrow(/not exceed 150 characters/i);
+        const renderCount = useRenderCount();
+        if (renderCount === 1) setState(FeatureFlagState.Enabled);
+        if (renderCount === 2) expect(state).toEqual(FeatureFlagState.Enabled);
+        return null;
+      };
+
+      render(withFeatureFlags(<Component />));
     });
 
-    it('fails if name does not start with a lowercase letter', () => {
-      expect(() => {
-        FeatureFlags.set('123456789', FeatureFlagState.NotEnabled);
-      }).toThrow(/start with a lowercase letter/i);
+    it('changes state to .NotEnabled', () => {
+      window.localStorage.setItem('featureFlags', '{"feature-flag-one":true}');
+
+      const Component = () => {
+        const [state, setState] = FeatureFlags.useFeatureFlag(
+          'feature-flag-one',
+        );
+        const renderCount = useRenderCount();
+        if (renderCount === 1) setState(FeatureFlagState.NotEnabled);
+        if (renderCount === 2)
+          expect(state).toEqual(FeatureFlagState.NotEnabled);
+        return null;
+      };
+
+      render(withFeatureFlags(<Component />));
     });
 
-    it('fails if name contains characters other than lowercase letters, numbers and hyphens', () => {
-      expect(() => {
-        FeatureFlags.set('Invalid_Feature_Flag', FeatureFlagState.NotEnabled);
-      }).toThrow(/only contain lowercase letters, numbers and hyphens/i);
+    it('changes state to .Enabled then .NotEnabled', () => {
+      const Component = () => {
+        const [state, setState] = FeatureFlags.useFeatureFlag(
+          'feature-flag-one',
+        );
+        const renderCount = useRenderCount();
+        if (renderCount === 1) setState(FeatureFlagState.Enabled);
+        if (renderCount === 2) setState(FeatureFlagState.NotEnabled);
+        if (renderCount === 3)
+          expect(state).toEqual(FeatureFlagState.NotEnabled);
+        return null;
+      };
+
+      render(withFeatureFlags(<Component />));
     });
 
-    it('fails if state is not recognized from FeatureFlagState', () => {
-      expect(() => {
-        // @ts-ignore
-        FeatureFlags.set('valid-feature-flag', 'invalid state');
-      }).toThrow(/requires a recognized value from the FeatureFlagState/i);
-    });
+    it('changes multiple feature flag states', () => {
+      expect.assertions(3);
 
-    it('sets a feature flag to enabled', () => {
-      expect(window.localStorage.featureFlags).toBeUndefined();
-      FeatureFlags.set('valid-feature-flag', FeatureFlagState.Enabled);
-      expect(window.localStorage.featureFlags).toBe(
-        '{"valid-feature-flag":true}',
-      );
-    });
+      const Component = () => {
+        const renderCount = useRenderCount();
+        const [stateA, setStateA] = FeatureFlags.useFeatureFlag(
+          'feature-flag-one',
+        );
+        const [stateB, setStateB] = FeatureFlags.useFeatureFlag(
+          'feature-flag-two',
+        );
 
-    it('sets a feature flag to disabled', () => {
-      expect(window.localStorage.featureFlags).toBeUndefined();
-      FeatureFlags.set('valid-feature-flag', FeatureFlagState.NotEnabled);
-      expect(window.localStorage.featureFlags).toBe('{}');
-    });
+        useEffect(() => {
+          if (renderCount === 1) {
+            setStateA(FeatureFlagState.Enabled);
+            setStateB(FeatureFlagState.Enabled);
+          }
+          if (renderCount === 2) {
+            expect(stateA).toEqual(FeatureFlagState.Enabled);
+            expect(stateB).toEqual(FeatureFlagState.Enabled);
+            expect(window.localStorage.getItem('featureFlags')).toEqual(
+              '{"feature-flag-one":true,"feature-flag-two":true}',
+            );
+          }
+        }, [renderCount]);
 
-    it('sets a feature flag to disabled then enabled', () => {
-      expect(window.localStorage.featureFlags).toBeUndefined();
-      FeatureFlags.set('valid-feature-flag', FeatureFlagState.NotEnabled);
-      FeatureFlags.set('valid-feature-flag', FeatureFlagState.Enabled);
-      expect(window.localStorage.featureFlags).toBe(
-        '{"valid-feature-flag":true}',
-      );
-    });
+        return null;
+      };
 
-    it('sets multiple feature flags', () => {
-      expect(window.localStorage.featureFlags).toBeUndefined();
-      FeatureFlags.set('valid-feature-flag', FeatureFlagState.Enabled);
-      FeatureFlags.set('another-valid-feature-flag', FeatureFlagState.Enabled);
-      expect(window.localStorage.featureFlags).toBe(
-        '{"valid-feature-flag":true,"another-valid-feature-flag":true}',
-      );
+      render(withFeatureFlags(<Component />));
     });
   });
 });
 
 describe('FeatureFlagsContext', () => {
-  it('returns an empty list without the context', () => {
-    expect.assertions(1);
+  beforeEach(() => {
+    window.localStorage.clear();
+  });
 
+  it('returns an empty set without the context', () => {
     const Component = () => {
       const { featureFlags } = useContext(FeatureFlagsContext);
-      expect(featureFlags).toEqual([]);
+      expect(featureFlags).toEqual(new Set());
       return null;
     };
 
     render(<Component />);
   });
 
-  it('returns a list of registered feature flags', () => {
-    expect.assertions(1);
+  it('returns a set of registered feature flags', () => {
+    expect.assertions(2);
 
-    const mockFeatureFlags = [
+    const mockFeatureFlags = new Set<FeatureFlagsEntry>([
       { name: 'feature-flag-one', pluginId: 'plugin-one' },
       { name: 'feature-flag-two', pluginId: 'plugin-two' },
-    ];
+    ]);
 
     const Component = () => {
       const { featureFlags } = useContext(FeatureFlagsContext);
-      expect(featureFlags).toBe(mockFeatureFlags);
+      expect(featureFlags).toEqual(mockFeatureFlags);
       return null;
     };
 
-    render(
-      <FeatureFlagsContextProvider featureFlags={mockFeatureFlags}>
-        <Component />
-      </FeatureFlagsContextProvider>,
+    render(withFeatureFlags(<Component />, mockFeatureFlags));
+  });
+
+  it('returns a set of user enabled feature flags', () => {
+    expect.assertions(1);
+
+    window.localStorage.setItem(
+      'featureFlags',
+      JSON.stringify({
+        'feature-flag-one': true,
+        'feature-flag-three': true,
+      }),
     );
+
+    const Component = () => {
+      const { enabledFeatureFlags } = useContext(FeatureFlagsContext);
+
+      if (enabledFeatureFlags.size > 0) {
+        expect(enabledFeatureFlags).toEqual(
+          new Set(['feature-flag-one', 'feature-flag-three']),
+        );
+      }
+
+      return null;
+    };
+
+    render(withFeatureFlags(<Component />));
+  });
+
+  it('correctly re-renders when calling refreshEnabledFeatureFlags', () => {
+    // First is the initial context
+    // Second is the context with the state from FeatureFlagsContextProvider
+    // Third is from calling refreshEnabledFeatureFlags
+    expect.assertions(3);
+
+    const FirstRender = ({ context: { enabledFeatureFlags } }) => {
+      useEffect(() => {
+        expect(enabledFeatureFlags).toEqual(new Set());
+      }, []);
+      return null;
+    };
+
+    const SecondRender = ({
+      context: { enabledFeatureFlags, refreshEnabledFeatureFlags },
+    }) => {
+      useEffect(() => {
+        expect(enabledFeatureFlags).toEqual(new Set());
+
+        // Change localStorage
+        window.localStorage.setItem(
+          'featureFlags',
+          JSON.stringify({
+            'feature-flag-one': true,
+            'feature-flag-three': true,
+          }),
+        );
+
+        // Refresh
+        refreshEnabledFeatureFlags();
+      }, []);
+
+      return null;
+    };
+
+    const ThirdRender = ({ context: { enabledFeatureFlags } }) => {
+      useEffect(() => {
+        expect(enabledFeatureFlags).toEqual(
+          new Set(['feature-flag-one', 'feature-flag-three']),
+        );
+      }, []);
+
+      return null;
+    };
+
+    const Component = () => {
+      const context = useContext(FeatureFlagsContext);
+      const renderCount = useRenderCount();
+
+      if (renderCount === 0) return <FirstRender context={context} />;
+      if (renderCount === 1) return <SecondRender context={context} />;
+      if (renderCount === 2) return <ThirdRender context={context} />;
+
+      return null;
+    };
+
+    render(withFeatureFlags(<Component />));
   });
 });
diff --git a/packages/core/src/api/app/FeatureFlags.tsx b/packages/core/src/api/app/FeatureFlags.tsx
index e5a2063621..4f2b7da7d0 100644
--- a/packages/core/src/api/app/FeatureFlags.tsx
+++ b/packages/core/src/api/app/FeatureFlags.tsx
@@ -156,21 +156,19 @@ class FeatureFlagsImpl implements FeatureFlagsApi {
   // We don't make this private as we need this to validate
   // in the `registerFeatureFlag` method in the Plugin API.
   checkFeatureFlagNameErrors(name: FeatureFlagName): string[] {
-    const errors = [];
+    const errors: string[] = [];
 
     if (name.length < 3) {
-      errors.push(
-        'The `name` argument must have a minimum length of three characters.',
-      );
+      errors.push('The name must have a minimum length of three characters.');
     }
 
     if (name.length > 150) {
-      errors.push('The `name` argument must not exceed 150 characters.');
+      errors.push('The name must not exceed 150 characters.');
     }
 
     if (!name.match(/^[a-z]+[a-z0-9-]+$/)) {
       errors.push(
-        'The `name` argument must start with a lowercase letter and only contain lowercase letters, numbers and hyphens. ' +
+        'The name must start with a lowercase letter and only contain lowercase letters, numbers and hyphens. ' +
           'Examples: feature-flag-one, alpha, release-2020',
       );
     }