diff --git a/.changeset/tame-jokes-do.md b/.changeset/tame-jokes-do.md
new file mode 100644
index 0000000000..8e9b5a6056
--- /dev/null
+++ b/.changeset/tame-jokes-do.md
@@ -0,0 +1,6 @@
+---
+'@backstage/plugin-scaffolder-backend': minor
+---
+
+Improved the `parseEntityRef` Scaffolder filter by introducing the ability for users to provide default kind and/or namespace values. The filter now takes
+2 arguments, similarly to the original [parseEntityRef](https://github.com/backstage/backstage/blob/v1.17.2/packages/catalog-model/src/entity/ref.ts#L77).
diff --git a/docs/features/software-templates/writing-templates.md b/docs/features/software-templates/writing-templates.md
index 135d508513..7019ecfb28 100644
--- a/docs/features/software-templates/writing-templates.md
+++ b/docs/features/software-templates/writing-templates.md
@@ -627,3 +627,98 @@ output things. You can grab that output using `steps.$stepId.output.$property`.
 You can read more about all the `inputs` and `outputs` defined in the actions in
 code part of the `JSONSchema`, or you can read more about our
 [built in actions](./builtin-actions.md).
+
+## Built in Filters
+
+Template filters are functions that help you transform data, extract specific information,
+and perform various operations in Scaffolder Templates.
+
+This section introduces the built-in filters provided by Backstage and offers examples of
+how to use them in the Scaffolder templates. It's important to mention that Backstage also leverages the
+native filters from the Nunjucks library. For a complete list of these native filters and their usage,
+refer to the [Nunjucks documentation](https://mozilla.github.io/nunjucks/templating.html#builtin-filters).
+
+### parseRepoUrl
+
+The `parseRepoUrl` filter parse a repository URL into
+its components, such as `owner`, repository `name`, and more.
+
+**Usage Example:**
+
+```yaml
+- id: log
+  name: Parse Repo URL
+  action: debug:log
+  input:
+    extra: ${{ parameters.repoUrl | parseRepoUrl }}
+```
+
+- **Input**: `github.com?repo=backstage&org=backstage`
+- **Output**: [RepoSpec](https://github.com/backstage/backstage/blob/v1.17.2/plugins/scaffolder-backend/src/scaffolder/actions/builtin/publish/util.ts#L39)
+
+### parseEntityRef
+
+The `parseEntityRef` filter allows you to extract different parts of
+an entity reference, such as the `kind`, `namespace`, and `name`.
+
+**Usage example**
+
+1. Without context
+
+```yaml
+- id: log
+  name: Parse Entity Reference
+  action: debug:log
+  input:
+    extra: ${{ parameters.owner | parseEntityRef }}
+```
+
+- **Input**: `group:techdocs`
+- **Output**: [CompoundEntityRef](https://github.com/backstage/backstage/blob/v1.17.2/packages/catalog-model/src/types.ts#L23)
+
+2. With context
+
+```yaml
+- id: log
+  name: Parse Entity Reference
+  action: debug:log
+  input:
+    extra: ${{ parameters.owner | parseEntityRef({ defaultKind:"group", defaultNamespace:"another-namespace" }) }}
+```
+
+- **Input**: `techdocs`
+- **Output**: [CompoundEntityRef](https://github.com/backstage/backstage/blob/v1.17.2/packages/catalog-model/src/types.ts#L23)
+
+### pick
+
+This `pick` filter allows you to select specific properties from an object.
+
+**Usage Example**
+
+```yaml
+- id: log
+  name: Pick
+  action: debug:log
+  input:
+    extra: ${{ parameters.owner | parseEntityRef | pick('name') }}
+```
+
+- **Input**: `{ kind: 'Group', namespace: 'default', name: 'techdocs' }`
+- **Output**: `techdocs`
+
+### projectSlug
+
+The `projectSlug` filter generates a project slug from a repository URL
+
+**Usage Example**
+
+```yaml
+- id: log
+  name: Project Slug
+  action: debug:log
+  input:
+    extra: ${{ parameters.repoUrl | projectSlug }}
+```
+
+- **Input**: `github.com?repo=backstage&org=backstage`
+- **Output**: `backstage/backstage`
diff --git a/plugins/scaffolder-backend/src/lib/templating/filters.ts b/plugins/scaffolder-backend/src/lib/templating/filters.ts
index 204d0015d8..7808d6d136 100644
--- a/plugins/scaffolder-backend/src/lib/templating/filters.ts
+++ b/plugins/scaffolder-backend/src/lib/templating/filters.ts
@@ -15,7 +15,7 @@
  */
 import { parseEntityRef } from '@backstage/catalog-model';
 import { ScmIntegrations } from '@backstage/integration';
-import { JsonValue } from '@backstage/types';
+import type { JsonObject, JsonValue } from '@backstage/types';
 import { TemplateFilter } from '..';
 import { parseRepoUrl } from '../../scaffolder/actions/builtin/publish/util';
 import get from 'lodash/get';
@@ -27,7 +27,8 @@ export const createDefaultFilters = ({
 }): Record<string, TemplateFilter> => {
   return {
     parseRepoUrl: url => parseRepoUrl(url as string, integrations),
-    parseEntityRef: ref => parseEntityRef(ref as string),
+    parseEntityRef: (ref: JsonValue, context?: JsonValue) =>
+      parseEntityRef(ref as string, context as JsonObject),
     pick: (obj: JsonValue, key: JsonValue) => get(obj, key as string),
     projectSlug: repoUrl => {
       const { owner, repo } = parseRepoUrl(repoUrl as string, integrations);
diff --git a/plugins/scaffolder-backend/src/scaffolder/tasks/NunjucksWorkflowRunner.test.ts b/plugins/scaffolder-backend/src/scaffolder/tasks/NunjucksWorkflowRunner.test.ts
index 253a6c4388..d94a8eac69 100644
--- a/plugins/scaffolder-backend/src/scaffolder/tasks/NunjucksWorkflowRunner.test.ts
+++ b/plugins/scaffolder-backend/src/scaffolder/tasks/NunjucksWorkflowRunner.test.ts
@@ -808,31 +808,174 @@ describe('DefaultWorkflowRunner', () => {
       });
     });
 
-    it('provides the parseEntityRef filter', async () => {
-      const task = createMockTaskWithSpec({
-        apiVersion: 'scaffolder.backstage.io/v1beta3',
-        steps: [
-          {
-            id: 'test',
-            name: 'name',
-            action: 'output-action',
-            input: {},
+    describe('parseEntityRef', () => {
+      it('parses entity ref', async () => {
+        const task = createMockTaskWithSpec({
+          apiVersion: 'scaffolder.backstage.io/v1beta3',
+          steps: [
+            {
+              id: 'test',
+              name: 'name',
+              action: 'output-action',
+              input: {},
+            },
+          ],
+          output: {
+            foo: '${{ parameters.entity | parseEntityRef }}',
           },
-        ],
-        output: {
-          foo: '${{ parameters.entity | parseEntityRef }}',
-        },
-        parameters: {
-          entity: 'component:default/ben',
-        },
+          parameters: {
+            entity: 'component:default/ben',
+          },
+        });
+
+        const { output } = await runner.execute(task);
+
+        expect(output.foo).toEqual({
+          kind: 'component',
+          namespace: 'default',
+          name: 'ben',
+        });
       });
 
-      const { output } = await runner.execute(task);
+      it('provides default kind for parsing entity ref', async () => {
+        const task = createMockTaskWithSpec({
+          apiVersion: 'scaffolder.backstage.io/v1beta3',
+          steps: [
+            {
+              id: 'test',
+              name: 'name',
+              action: 'output-action',
+              input: {},
+            },
+          ],
+          output: {
+            foo: `\${{ parameters.entity | parseEntityRef({ defaultKind:"user" }) }}`,
+          },
+          parameters: {
+            entity: 'ben',
+          },
+        });
 
-      expect(output.foo).toEqual({
-        kind: 'component',
-        namespace: 'default',
-        name: 'ben',
+        const { output } = await runner.execute(task);
+
+        expect(output.foo).toEqual({
+          kind: 'user',
+          namespace: 'default',
+          name: 'ben',
+        });
+      });
+
+      it('provides default namespace for parsing entity ref', async () => {
+        const task = createMockTaskWithSpec({
+          apiVersion: 'scaffolder.backstage.io/v1beta3',
+          steps: [
+            {
+              id: 'test',
+              name: 'name',
+              action: 'output-action',
+              input: {},
+            },
+          ],
+          output: {
+            foo: `\${{ parameters.entity | parseEntityRef({ defaultNamespace:"namespace-b" }) }}`,
+          },
+          parameters: {
+            entity: 'user:ben',
+          },
+        });
+
+        const { output } = await runner.execute(task);
+
+        expect(output.foo).toEqual({
+          kind: 'user',
+          namespace: 'namespace-b',
+          name: 'ben',
+        });
+      });
+
+      it('provides default kind and namespace for parsing entity ref', async () => {
+        const task = createMockTaskWithSpec({
+          apiVersion: 'scaffolder.backstage.io/v1beta3',
+          steps: [
+            {
+              id: 'test',
+              name: 'name',
+              action: 'output-action',
+              input: {},
+            },
+          ],
+          output: {
+            foo: `\${{ parameters.entity | parseEntityRef({ defaultKind:"user", defaultNamespace:"namespace-b" }) }}`,
+          },
+          parameters: {
+            entity: 'ben',
+          },
+        });
+
+        const { output } = await runner.execute(task);
+
+        expect(output.foo).toEqual({
+          kind: 'user',
+          namespace: 'namespace-b',
+          name: 'ben',
+        });
+      });
+
+      it.each(['undefined', 'null', 'None', 'group', 0, '{}', '[]'])(
+        'ignores invalid context "%s" for parsing entity refF',
+        async kind => {
+          const task = createMockTaskWithSpec({
+            apiVersion: 'scaffolder.backstage.io/v1beta3',
+            steps: [
+              {
+                id: 'test',
+                name: 'name',
+                action: 'output-action',
+                input: {},
+              },
+            ],
+            output: {
+              foo: `\${{ parameters.entity | parseEntityRef(${kind}) }}`,
+            },
+            parameters: {
+              entity: 'user:default/ben',
+            },
+          });
+
+          const { output } = await runner.execute(task);
+
+          expect(output.foo).toEqual({
+            kind: 'user',
+            namespace: 'default',
+            name: 'ben',
+          });
+        },
+      );
+
+      it('fails when unable to parse entity ref', async () => {
+        const task = createMockTaskWithSpec({
+          apiVersion: 'scaffolder.backstage.io/v1beta3',
+          steps: [
+            {
+              id: 'test',
+              name: 'name',
+              action: 'output-action',
+              input: {},
+            },
+          ],
+          output: {
+            foo: `\${{ parameters.entity | parseEntityRef({ defaultNamespace:"namespace-b" }) }}`,
+          },
+          parameters: {
+            entity: 'ben',
+          },
+        });
+
+        const { output } = await runner.execute(task);
+
+        expect(output.foo).toEqual(
+          `\${{ parameters.entity | parseEntityRef({ defaultNamespace:"namespace-b" }) }}`,
+        );
       });
     });