diff --git a/packages/frontend-app-api/src/apis/implementations/IconsApi/DefaultIconsApi.test.ts b/packages/frontend-app-api/src/apis/implementations/IconsApi/DefaultIconsApi.test.ts
index e8c5e0a8b9..cfe6236b95 100644
--- a/packages/frontend-app-api/src/apis/implementations/IconsApi/DefaultIconsApi.test.ts
+++ b/packages/frontend-app-api/src/apis/implementations/IconsApi/DefaultIconsApi.test.ts
@@ -14,7 +14,7 @@
  * limitations under the License.
  */
 
-import { createElement } from 'react';
+import { createElement, memo, forwardRef } from 'react';
 import { DefaultIconsApi } from './DefaultIconsApi';
 
 describe('DefaultIconsApi', () => {
@@ -107,4 +107,31 @@ describe('DefaultIconsApi', () => {
 
     expect(warnSpy).not.toHaveBeenCalled();
   });
+
+  it('should treat React.memo components as IconComponent', () => {
+    const warnSpy = jest.spyOn(console, 'warn').mockImplementation(() => {});
+    const MemoIcon = memo(() => createElement('svg'));
+    const api = new DefaultIconsApi({ myIcon: MemoIcon });
+
+    const el = api.icon('myIcon');
+    expect(el).toBeTruthy();
+    // @ts-expect-error accessing internal React element structure
+    expect(el.type).toBe(MemoIcon);
+
+    expect(warnSpy).toHaveBeenCalledWith(expect.stringContaining('myIcon'));
+  });
+
+  it('should treat React.forwardRef components as IconComponent', () => {
+    const warnSpy = jest.spyOn(console, 'warn').mockImplementation(() => {});
+    const RefIcon = forwardRef(() => createElement('svg'));
+    // @ts-expect-error forwardRef is not strictly IconComponent but should be handled
+    const api = new DefaultIconsApi({ myIcon: RefIcon });
+
+    const el = api.icon('myIcon');
+    expect(el).toBeTruthy();
+    // @ts-expect-error accessing internal React element structure
+    expect(el.type).toBe(RefIcon);
+
+    expect(warnSpy).toHaveBeenCalledWith(expect.stringContaining('myIcon'));
+  });
 });
diff --git a/packages/frontend-app-api/src/apis/implementations/IconsApi/DefaultIconsApi.ts b/packages/frontend-app-api/src/apis/implementations/IconsApi/DefaultIconsApi.ts
index 49fde51bf2..cc5ef69b6f 100644
--- a/packages/frontend-app-api/src/apis/implementations/IconsApi/DefaultIconsApi.ts
+++ b/packages/frontend-app-api/src/apis/implementations/IconsApi/DefaultIconsApi.ts
@@ -19,7 +19,7 @@ import {
   IconElement,
   IconsApi,
 } from '@backstage/frontend-plugin-api';
-import { createElement } from 'react';
+import { createElement, isValidElement } from 'react';
 
 /**
  * Implementation for the {@link IconsApi}
@@ -35,11 +35,11 @@ export class DefaultIconsApi implements IconsApi {
 
     this.#icons = new Map(
       Object.entries(icons).map(([key, value]) => {
-        if (typeof value === 'function') {
-          deprecatedKeys.push(key);
-          return [key, createElement(value)];
+        if (value === null || isValidElement(value)) {
+          return [key, value];
         }
-        return [key, value];
+        deprecatedKeys.push(key);
+        return [key, createElement(value as IconComponent)];
       }),
     );