diff --git a/.changeset/fluffy-ducks-joke.md b/.changeset/fluffy-ducks-joke.md
new file mode 100644
index 0000000000..932cbb5298
--- /dev/null
+++ b/.changeset/fluffy-ducks-joke.md
@@ -0,0 +1,5 @@
+---
+'@backstage/plugin-scaffolder-backend-module-gitlab': patch
+---
+
+Add examples for `publish:gitlab:merge-request` scaffolder action & improve related tests
diff --git a/plugins/scaffolder-backend-module-gitlab/src/actions/gitlabMergeRequest.examples.test.ts b/plugins/scaffolder-backend-module-gitlab/src/actions/gitlabMergeRequest.examples.test.ts
new file mode 100644
index 0000000000..6f26bc1c68
--- /dev/null
+++ b/plugins/scaffolder-backend-module-gitlab/src/actions/gitlabMergeRequest.examples.test.ts
@@ -0,0 +1,305 @@
+/*
+ * Copyright 2022 The Backstage Authors
+ *
+ * Licensed under the Apache License, Version 2.0 (the "License");
+ * you may not use this file except in compliance with the License.
+ * You may obtain a copy of the License at
+ *
+ *     http://www.apache.org/licenses/LICENSE-2.0
+ *
+ * Unless required by applicable law or agreed to in writing, software
+ * distributed under the License is distributed on an "AS IS" BASIS,
+ * WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+ * See the License for the specific language governing permissions and
+ * limitations under the License.
+ */
+import { createRootLogger } from '@backstage/backend-common';
+import { ConfigReader } from '@backstage/config';
+import { ScmIntegrations } from '@backstage/integration';
+import { TemplateAction } from '@backstage/plugin-scaffolder-node';
+import { createPublishGitlabMergeRequestAction } from './gitlabMergeRequest';
+import { createMockDirectory } from '@backstage/backend-test-utils';
+import { createMockActionContext } from '@backstage/plugin-scaffolder-node-test-utils';
+import { examples } from './gitlabMergeRequest.examples';
+import yaml from 'yaml';
+
+// Make sure root logger is initialized ahead of FS mock
+createRootLogger();
+
+const mockGitlabClient = {
+  Namespaces: {
+    show: jest.fn(),
+  },
+  Branches: {
+    create: jest.fn(),
+  },
+  Commits: {
+    create: jest.fn(),
+  },
+  MergeRequests: {
+    create: jest.fn(async (_: any) => {
+      return {
+        default_branch: 'main',
+      };
+    }),
+  },
+  Projects: {
+    create: jest.fn(),
+    show: jest.fn(async (_: any) => {
+      return {
+        default_branch: 'main',
+      };
+    }),
+  },
+  Users: {
+    current: jest.fn(),
+    username: jest.fn(async (user: string) => {
+      const users: string[] = ['John Smith', 'my-assignee'];
+      if (!users.includes(user)) throw new Error('user does not exist');
+      else
+        return [
+          {
+            id: 123,
+          },
+        ];
+    }),
+  },
+};
+
+jest.mock('@gitbeaker/node', () => ({
+  Gitlab: class {
+    constructor() {
+      return mockGitlabClient;
+    }
+  },
+}));
+
+describe('createGitLabMergeRequest', () => {
+  let instance: TemplateAction<any>;
+
+  const mockDir = createMockDirectory();
+  const workspacePath = mockDir.resolve('workspace');
+
+  beforeEach(() => {
+    jest.clearAllMocks();
+
+    mockDir.clear();
+
+    const config = new ConfigReader({
+      integrations: {
+        gitlab: [
+          {
+            host: 'gitlab.com',
+            token: 'token',
+            apiBaseUrl: 'https://api.gitlab.com',
+          },
+          {
+            host: 'hosted.gitlab.com',
+            apiBaseUrl: 'https://api.hosted.gitlab.com',
+          },
+        ],
+      },
+    });
+
+    const integrations = ScmIntegrations.fromConfig(config);
+    instance = createPublishGitlabMergeRequestAction({ integrations });
+  });
+
+  describe('createGitLabMergeRequestWithAssignee', () => {
+    it(`Should ${examples[0].description}`, async () => {
+      mockDir.setContent({
+        [workspacePath]: {
+          source: { 'foo.txt': 'Hello there!' },
+          irrelevant: { 'bar.txt': 'Nothing to see here' },
+        },
+      });
+
+      const input = yaml.parse(examples[0].example).steps[0].input;
+      const ctx = createMockActionContext({ input, workspacePath });
+      await instance.handler(ctx);
+
+      expect(mockGitlabClient.MergeRequests.create).toHaveBeenCalledWith(
+        'owner/repo',
+        'new-mr',
+        'main',
+        'Create my new MR',
+        {
+          description: 'This MR is really good',
+          removeSourceBranch: false,
+          assigneeId: 123,
+        },
+      );
+    });
+
+    it('assignee is not set when a valid assignee username is not passed in options', async () => {
+      const input = {
+        repoUrl: 'gitlab.com?repo=repo&owner=owner',
+        title: 'Create my new MR',
+        branchName: 'new-mr',
+        description: 'This is an important change',
+        removeSourceBranch: false,
+        targetPath: 'Subdirectory',
+        assingnee: 'John Doe',
+      };
+      mockDir.setContent({
+        [workspacePath]: {
+          source: { 'foo.txt': 'Hello there!' },
+          irrelevant: { 'bar.txt': 'Nothing to see here' },
+        },
+      });
+
+      const ctx = createMockActionContext({ input, workspacePath });
+      await instance.handler(ctx);
+
+      expect(mockGitlabClient.MergeRequests.create).toHaveBeenCalledWith(
+        'owner/repo',
+        'new-mr',
+        'main',
+        'Create my new MR',
+        {
+          description: 'This is an important change',
+          removeSourceBranch: false,
+          assigneeId: undefined,
+        },
+      );
+    });
+  });
+
+  describe('createGitLabMergeRequestWithRemoveBranch', () => {
+    it(`Should ${examples[1].description}`, async () => {
+      const input = yaml.parse(examples[1].example).steps[0].input;
+      mockDir.setContent({
+        [workspacePath]: {
+          source: { 'foo.txt': 'Hello there!' },
+          irrelevant: { 'bar.txt': 'Nothing to see here' },
+        },
+      });
+
+      const ctx = createMockActionContext({ input, workspacePath });
+      await instance.handler(ctx);
+
+      expect(mockGitlabClient.MergeRequests.create).toHaveBeenCalledWith(
+        'owner/repo',
+        'new-mr',
+        'main',
+        'Create my new MR',
+        { description: 'This MR is really good', removeSourceBranch: true },
+      );
+    });
+  });
+
+  describe('createGitLabMergeRequestWithSpecifiedTargetBranch', () => {
+    it(`Should ${examples[2].description}`, async () => {
+      const input = yaml.parse(examples[2].example).steps[0].input;
+      mockDir.setContent({
+        [workspacePath]: {
+          source: { 'foo.txt': 'Hello there!' },
+          irrelevant: { 'bar.txt': 'Nothing to see here' },
+        },
+      });
+      const ctx = createMockActionContext({ input, workspacePath });
+      await instance.handler(ctx);
+
+      expect(mockGitlabClient.Projects.show).not.toHaveBeenCalled();
+      expect(mockGitlabClient.Branches.create).toHaveBeenCalledWith(
+        'owner/repo',
+        'new-mr',
+        'test',
+      );
+      expect(mockGitlabClient.MergeRequests.create).toHaveBeenCalledWith(
+        'owner/repo',
+        'new-mr',
+        'test',
+        'Create my new MR',
+        { description: 'This MR is really good', removeSourceBranch: false },
+      );
+      expect(ctx.output).toHaveBeenCalledWith('targetBranchName', 'test');
+    });
+  });
+
+  describe('createGitLabMergeRequestWithCommitAction', () => {
+    it(`Should ${examples[3].description}`, async () => {
+      const input = yaml.parse(examples[3].example).steps[0].input;
+      mockDir.setContent({
+        [workspacePath]: {
+          source: { 'foo.txt': 'Hello there!' },
+          irrelevant: { 'bar.txt': 'Nothing to see here' },
+        },
+      });
+
+      const ctx = createMockActionContext({ input, workspacePath });
+      await instance.handler(ctx);
+
+      expect(mockGitlabClient.Commits.create).toHaveBeenCalledWith(
+        'owner/repo',
+        'new-mr',
+        'Create my new MR',
+        [
+          {
+            action: 'create',
+            filePath: 'source/foo.txt',
+            content: 'SGVsbG8gdGhlcmUh',
+            encoding: 'base64',
+            execute_filemode: false,
+          },
+        ],
+      );
+    });
+
+    it(`Should ${examples[4].description}`, async () => {
+      const input = yaml.parse(examples[4].example).steps[0].input;
+      mockDir.setContent({
+        [workspacePath]: {
+          source: { 'foo.txt': 'Hello there!' },
+          irrelevant: { 'bar.txt': 'Nothing to see here' },
+        },
+      });
+
+      const ctx = createMockActionContext({ input, workspacePath });
+      await instance.handler(ctx);
+
+      expect(mockGitlabClient.Commits.create).toHaveBeenCalledWith(
+        'owner/repo',
+        'new-mr',
+        'Create my new MR',
+        [
+          {
+            action: 'delete',
+            filePath: 'source/foo.txt',
+            content: 'SGVsbG8gdGhlcmUh',
+            encoding: 'base64',
+            execute_filemode: false,
+          },
+        ],
+      );
+    });
+
+    it(`Should ${examples[5].description}`, async () => {
+      const input = yaml.parse(examples[5].example).steps[0].input;
+      mockDir.setContent({
+        [workspacePath]: {
+          source: { 'foo.txt': 'Hello there!' },
+          irrelevant: { 'bar.txt': 'Nothing to see here' },
+        },
+      });
+
+      const ctx = createMockActionContext({ input, workspacePath });
+      await instance.handler(ctx);
+
+      expect(mockGitlabClient.Commits.create).toHaveBeenCalledWith(
+        'owner/repo',
+        'new-mr',
+        'Create my new MR',
+        [
+          {
+            action: 'update',
+            filePath: 'source/foo.txt',
+            content: 'SGVsbG8gdGhlcmUh',
+            encoding: 'base64',
+            execute_filemode: false,
+          },
+        ],
+      );
+    });
+  });
+});
diff --git a/plugins/scaffolder-backend-module-gitlab/src/actions/gitlabMergeRequest.examples.ts b/plugins/scaffolder-backend-module-gitlab/src/actions/gitlabMergeRequest.examples.ts
new file mode 100644
index 0000000000..8bed461d25
--- /dev/null
+++ b/plugins/scaffolder-backend-module-gitlab/src/actions/gitlabMergeRequest.examples.ts
@@ -0,0 +1,142 @@
+/*
+ * Copyright 2023 The Backstage Authors
+ *
+ * Licensed under the Apache License, Version 2.0 (the "License");
+ * you may not use this file except in compliance with the License.
+ * You may obtain a copy of the License at
+ *
+ *     http://www.apache.org/licenses/LICENSE-2.0
+ *
+ * Unless required by applicable law or agreed to in writing, software
+ * distributed under the License is distributed on an "AS IS" BASIS,
+ * WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+ * See the License for the specific language governing permissions and
+ * limitations under the License.
+ */
+import { TemplateExample } from '@backstage/plugin-scaffolder-node';
+import yaml from 'yaml';
+
+export const examples: TemplateExample[] = [
+  {
+    description: 'Create a merge request with a specific assignee',
+    example: yaml.stringify({
+      steps: [
+        {
+          id: 'createMergeRequest',
+          action: 'publish:gitlab:merge-request',
+          name: 'Create a Merge Request',
+          input: {
+            repoUrl: 'gitlab.com?repo=repo&owner=owner',
+            title: 'Create my new MR',
+            description: 'This MR is really good',
+            sourcePath: './path/to/my/changes',
+            branchName: 'new-mr',
+            assignee: 'my-assignee',
+          },
+        },
+      ],
+    }),
+  },
+  {
+    description:
+      'Create a merge request with removal of source branch after merge',
+    example: yaml.stringify({
+      steps: [
+        {
+          id: 'createMergeRequest',
+          action: 'publish:gitlab:merge-request',
+          name: 'Create a Merge Request',
+          input: {
+            repoUrl: 'gitlab.com?repo=repo&owner=owner',
+            title: 'Create my new MR',
+            description: 'This MR is really good',
+            sourcePath: './path/to/my/changes',
+            branchName: 'new-mr',
+            removeSourceBranch: true,
+          },
+        },
+      ],
+    }),
+  },
+  {
+    description: 'Create a merge request with a target branch',
+    example: yaml.stringify({
+      steps: [
+        {
+          id: 'createMergeRequest',
+          action: 'publish:gitlab:merge-request',
+          name: 'Create a Merge Request',
+          input: {
+            repoUrl: 'gitlab.com?repo=repo&owner=owner',
+            title: 'Create my new MR',
+            description: 'This MR is really good',
+            sourcePath: './path/to/my/changes',
+            branchName: 'new-mr',
+            targetBranchName: 'test',
+            targetPath: 'Subdirectory',
+          },
+        },
+      ],
+    }),
+  },
+  {
+    description: 'Create a merge request with a commit action as create',
+    example: yaml.stringify({
+      steps: [
+        {
+          id: 'createMergeRequest',
+          action: 'publish:gitlab:merge-request',
+          name: 'Create a Merge Request',
+          input: {
+            repoUrl: 'gitlab.com?repo=repo&owner=owner',
+            title: 'Create my new MR',
+            branchName: 'new-mr',
+            description: 'MR description',
+            commitAction: 'create',
+            targetPath: 'source',
+          },
+        },
+      ],
+    }),
+  },
+  {
+    description: 'Create a merge request with a commit action as delete',
+    example: yaml.stringify({
+      steps: [
+        {
+          id: 'createMergeRequest',
+          action: 'publish:gitlab:merge-request',
+          name: 'Create a Merge Request',
+          input: {
+            repoUrl: 'gitlab.com?repo=repo&owner=owner',
+            title: 'Create my new MR',
+            branchName: 'new-mr',
+            description: 'MR description',
+            commitAction: 'delete',
+            targetPath: 'source',
+          },
+        },
+      ],
+    }),
+  },
+  {
+    description: 'Create a merge request with a commit action as update',
+    example: yaml.stringify({
+      steps: [
+        {
+          id: 'createMergeRequest',
+          action: 'publish:gitlab:merge-request',
+          name: 'Create a Merge Request',
+          input: {
+            repoUrl: 'gitlab.com?repo=repo&owner=owner',
+            title: 'Create my new MR',
+            branchName: 'new-mr',
+            description: 'MR description',
+            commitAction: 'update',
+            targetPath: 'source',
+          },
+        },
+      ],
+    }),
+  },
+];
diff --git a/plugins/scaffolder-backend-module-gitlab/src/actions/gitlabMergeRequest.ts b/plugins/scaffolder-backend-module-gitlab/src/actions/gitlabMergeRequest.ts
index 86f69ee357..c9b8ce68a9 100644
--- a/plugins/scaffolder-backend-module-gitlab/src/actions/gitlabMergeRequest.ts
+++ b/plugins/scaffolder-backend-module-gitlab/src/actions/gitlabMergeRequest.ts
@@ -25,6 +25,7 @@ import { ScmIntegrationRegistry } from '@backstage/integration';
 import { InputError } from '@backstage/errors';
 import { resolveSafeChildPath } from '@backstage/backend-common';
 import { createGitlabApi } from './helpers';
+import { examples } from './gitlabMergeRequest.examples';
 
 /**
  * Create a new action that creates a gitlab merge request.
@@ -52,6 +53,7 @@ export const createPublishGitlabMergeRequestAction = (options: {
     assignee?: string;
   }>({
     id: 'publish:gitlab:merge-request',
+    examples,
     schema: {
       input: {
         required: ['repoUrl', 'branchName'],