diff --git a/packages/cli/src/lib/create/factories/common/tasks.ts b/packages/cli/src/lib/create/factories/common/tasks.ts
index b644110a9f..6fe2e77fc7 100644
--- a/packages/cli/src/lib/create/factories/common/tasks.ts
+++ b/packages/cli/src/lib/create/factories/common/tasks.ts
@@ -16,6 +16,7 @@
 
 import fs from 'fs-extra';
 import chalk from 'chalk';
+import { resolve as resolvePath } from 'path';
 import { paths } from '../../../paths';
 import { Task, templatingTask } from '../../../tasks';
 import { Lockfile } from '../../../versioning';
@@ -63,6 +64,13 @@ export async function executePluginPackageTemplate(
     createPackageVersionProvider(lockfile),
   );
 
+  // Format package.json if it exists
+  const targetPkgJsonPath = resolvePath(targetDir, 'package.json');
+  if (await fs.pathExists(targetPkgJsonPath)) {
+    const pkgJson = await fs.readJson(targetPkgJsonPath);
+    await fs.writeJson(targetPkgJsonPath, pkgJson, { spaces: 2 });
+  }
+
   Task.section('Installing');
   await Task.forItem('moving', shortPluginDir, async () => {
     await fs.move(tempDir, targetDir).catch(error => {
diff --git a/packages/cli/templates/default-backend-plugin/package.json.hbs b/packages/cli/templates/default-backend-plugin/package.json.hbs
index 5cca7dcb07..37bcd94186 100644
--- a/packages/cli/templates/default-backend-plugin/package.json.hbs
+++ b/packages/cli/templates/default-backend-plugin/package.json.hbs
@@ -4,41 +4,43 @@
   "main": "src/index.ts",
   "types": "src/index.ts",
   "license": "Apache-2.0",
-  {{#if privatePackage}} "private": {{privatePackage}},
-  {{/if}}
+{{#if privatePackage}}
+  "private": {{privatePackage}},
+{{/if}}
   "publishConfig": {
-    {{#if npmRegistry}} "registry": "{{npmRegistry}}",
-    {{/if}}
-      "access": "public",
-      "main": "dist/index.cjs.js",
-      "types": "dist/index.d.ts"
-    },
-    "scripts": {
-      "start": "backstage-cli backend:dev",
-      "build": "backstage-cli backend:build",
-      "lint": "backstage-cli lint",
-      "test": "backstage-cli test",
-      "prepack": "backstage-cli prepack",
-      "postpack": "backstage-cli postpack",
-      "clean": "backstage-cli clean"
-    },
-    "dependencies": {
-      "@backstage/backend-common": "{{versionQuery '@backstage/backend-common'}}",
-      "@backstage/config": "{{versionQuery '@backstage/config'}}",
-      "@types/express": "{{versionQuery '@types/express' '4.17.6'}}",
-      "express": "{{versionQuery 'express' '4.17.1'}}",
-      "express-promise-router": "{{versionQuery 'express-promise-router' '4.1.0'}}",
-      "winston": "{{versionQuery 'winston' '3.2.1'}}",
-      "cross-fetch": "{{versionQuery 'cross-fetch' '3.0.6'}}",
-      "yn": "{{versionQuery 'yn' '4.0.0'}}"
-    },
-    "devDependencies": {
-      "@backstage/cli": "{{versionQuery '@backstage/cli'}}",
-      "@types/supertest": "{{versionQuery '@types/supertest' '2.0.8'}}",
-      "supertest": "{{versionQuery 'supertest' '4.0.2'}}",
-      "msw": "{{versionQuery 'msw' '0.35.0'}}"
-    },
-    "files": [
-      "dist"
-    ]
-  }
+{{#if npmRegistry}}
+    "registry": "{{npmRegistry}}",
+{{/if}}
+    "access": "public",
+    "main": "dist/index.cjs.js",
+    "types": "dist/index.d.ts"
+  },
+  "scripts": {
+    "start": "backstage-cli backend:dev",
+    "build": "backstage-cli backend:build",
+    "lint": "backstage-cli lint",
+    "test": "backstage-cli test",
+    "prepack": "backstage-cli prepack",
+    "postpack": "backstage-cli postpack",
+    "clean": "backstage-cli clean"
+  },
+  "dependencies": {
+    "@backstage/backend-common": "{{versionQuery '@backstage/backend-common'}}",
+    "@backstage/config": "{{versionQuery '@backstage/config'}}",
+    "@types/express": "{{versionQuery '@types/express' '4.17.6'}}",
+    "express": "{{versionQuery 'express' '4.17.1'}}",
+    "express-promise-router": "{{versionQuery 'express-promise-router' '4.1.0'}}",
+    "winston": "{{versionQuery 'winston' '3.2.1'}}",
+    "cross-fetch": "{{versionQuery 'cross-fetch' '3.0.6'}}",
+    "yn": "{{versionQuery 'yn' '4.0.0'}}"
+  },
+  "devDependencies": {
+    "@backstage/cli": "{{versionQuery '@backstage/cli'}}",
+    "@types/supertest": "{{versionQuery '@types/supertest' '2.0.8'}}",
+    "supertest": "{{versionQuery 'supertest' '4.0.2'}}",
+    "msw": "{{versionQuery 'msw' '0.35.0'}}"
+  },
+  "files": [
+    "dist"
+  ]
+}
diff --git a/packages/cli/templates/default-common-plugin-package/package.json.hbs b/packages/cli/templates/default-common-plugin-package/package.json.hbs
index c7ba25ac49..efaee496e7 100644
--- a/packages/cli/templates/default-common-plugin-package/package.json.hbs
+++ b/packages/cli/templates/default-common-plugin-package/package.json.hbs
@@ -5,10 +5,12 @@
   "main": "src/index.ts",
   "types": "src/index.ts",
   "license": "Apache-2.0",
-{{#if privatePackage}}  "private": {{privatePackage}},
+{{#if privatePackage}}
+  "private": {{privatePackage}},
 {{/if}}
   "publishConfig": {
-{{#if npmRegistry}}    "registry": "{{npmRegistry}}",
+{{#if npmRegistry}}
+    "registry": "{{npmRegistry}}",
 {{/if}}
     "access": "public",
     "main": "dist/index.cjs.js",
diff --git a/packages/cli/templates/default-plugin/package.json.hbs b/packages/cli/templates/default-plugin/package.json.hbs
index 41376821ba..624302da93 100644
--- a/packages/cli/templates/default-plugin/package.json.hbs
+++ b/packages/cli/templates/default-plugin/package.json.hbs
@@ -4,10 +4,12 @@
   "main": "src/index.ts",
   "types": "src/index.ts",
   "license": "Apache-2.0",
-{{#if privatePackage}}  "private": {{privatePackage}},
+{{#if privatePackage}}
+  "private": {{privatePackage}},
 {{/if}}
   "publishConfig": {
-{{#if npmRegistry}}    "registry": "{{npmRegistry}}",
+{{#if npmRegistry}}
+  "registry": "{{npmRegistry}}",
 {{/if}}
     "access": "public",
     "main": "dist/index.esm.js",