diff --git a/plugins/catalog-react/api-report.md b/plugins/catalog-react/api-report.md
index ea4c51adda..8670830584 100644
--- a/plugins/catalog-react/api-report.md
+++ b/plugins/catalog-react/api-report.md
@@ -137,11 +137,11 @@ export type DefaultEntityFilters = {
 export class DefaultStarredEntitiesApi implements StarredEntitiesApi {
   constructor(opts: { storageApi: StorageApi });
   // (undocumented)
-  isStarred(entity: Entity): boolean;
+  isStarred(entityRef: string): boolean;
   // (undocumented)
   starredEntitie$(): Observable<StarredEntitiesApiObservable>;
   // (undocumented)
-  toggleStarred(entity: Entity): Promise<void>;
+  toggleStarred(entityRef: string): Promise<void>;
 }
 
 // Warning: (ae-forgotten-export) The symbol "EntityLoadingStatus" needs to be exported by the entry point index.d.ts
@@ -758,7 +758,7 @@ export const rootRoute: RouteRef<undefined>;
 // @public
 export interface StarredEntitiesApi {
   starredEntitie$(): Observable<StarredEntitiesApiObservable>;
-  toggleStarred(entity: Entity): Promise<void>;
+  toggleStarred(entityRef: string): Promise<void>;
 }
 
 // Warning: (ae-missing-release-tag) "StarredEntitiesApiObservable" is exported by the package, but it is missing a release tag (@alpha, @beta, @public, or @internal)
@@ -766,7 +766,7 @@ export interface StarredEntitiesApi {
 // @public (undocumented)
 export type StarredEntitiesApiObservable = {
   starredEntities: Set<string>;
-  isStarred: (entity: Entity) => boolean;
+  isStarred: (entityRef: string) => boolean;
 };
 
 // Warning: (ae-missing-release-tag) "starredEntitiesApiRef" is exported by the package, but it is missing a release tag (@alpha, @beta, @public, or @internal)
diff --git a/plugins/catalog-react/src/apis/StarredEntitiesApi/DefaultStarredEntitiesApi.test.ts b/plugins/catalog-react/src/apis/StarredEntitiesApi/DefaultStarredEntitiesApi.test.ts
index 95375aa0f6..e4f7c4ffa1 100644
--- a/plugins/catalog-react/src/apis/StarredEntitiesApi/DefaultStarredEntitiesApi.test.ts
+++ b/plugins/catalog-react/src/apis/StarredEntitiesApi/DefaultStarredEntitiesApi.test.ts
@@ -14,7 +14,7 @@
  * limitations under the License.
  */
 
-import { Entity } from '@backstage/catalog-model';
+import { stringifyEntityRef } from '@backstage/catalog-model';
 import { StorageApi } from '@backstage/core-plugin-api';
 import { MockStorageApi } from '@backstage/test-utils';
 import { DefaultStarredEntitiesApi } from './DefaultStarredEntitiesApi';
@@ -23,13 +23,13 @@ describe('DefaultStarredEntitiesApi', () => {
   let mockStorage: StorageApi;
   let starredEntitiesApi: DefaultStarredEntitiesApi;
 
-  const mockEntity: Entity = {
+  const mockEntityRef = stringifyEntityRef({
     apiVersion: '1',
     kind: 'Component',
     metadata: {
       name: 'mock',
     },
-  };
+  });
 
   beforeEach(() => {
     mockStorage = MockStorageApi.create();
@@ -44,22 +44,22 @@ describe('DefaultStarredEntitiesApi', () => {
 
   describe('toggleStarred', () => {
     it('should star unstarred entity', async () => {
-      expect(starredEntitiesApi.isStarred(mockEntity)).toBe(false);
+      expect(starredEntitiesApi.isStarred(mockEntityRef)).toBe(false);
 
-      await starredEntitiesApi.toggleStarred(mockEntity);
+      await starredEntitiesApi.toggleStarred(mockEntityRef);
 
-      expect(starredEntitiesApi.isStarred(mockEntity)).toBe(true);
+      expect(starredEntitiesApi.isStarred(mockEntityRef)).toBe(true);
     });
 
     it('should unstar starred entity', async () => {
       const bucket = mockStorage.forBucket('starredEntities');
       await bucket.set('entityRefs', ['component:default/mock']);
 
-      expect(starredEntitiesApi.isStarred(mockEntity)).toBe(true);
+      expect(starredEntitiesApi.isStarred(mockEntityRef)).toBe(true);
 
-      await starredEntitiesApi.toggleStarred(mockEntity);
+      await starredEntitiesApi.toggleStarred(mockEntityRef);
 
-      expect(starredEntitiesApi.isStarred(mockEntity)).toBe(false);
+      expect(starredEntitiesApi.isStarred(mockEntityRef)).toBe(false);
     });
   });
 
@@ -96,8 +96,8 @@ describe('DefaultStarredEntitiesApi', () => {
     });
 
     it('should receive isStarred function that operates on the latest state', async () => {
-      expect(handler.mock.calls[0][0].isStarred(mockEntity)).toBe(true);
-      expect(handler.mock.calls[1][0].isStarred(mockEntity)).toBe(true);
+      expect(handler.mock.calls[0][0].isStarred(mockEntityRef)).toBe(true);
+      expect(handler.mock.calls[1][0].isStarred(mockEntityRef)).toBe(true);
     });
   });
 });
diff --git a/plugins/catalog-react/src/apis/StarredEntitiesApi/DefaultStarredEntitiesApi.ts b/plugins/catalog-react/src/apis/StarredEntitiesApi/DefaultStarredEntitiesApi.ts
index fa775679ca..8486d180b7 100644
--- a/plugins/catalog-react/src/apis/StarredEntitiesApi/DefaultStarredEntitiesApi.ts
+++ b/plugins/catalog-react/src/apis/StarredEntitiesApi/DefaultStarredEntitiesApi.ts
@@ -14,7 +14,6 @@
  * limitations under the License.
  */
 
-import { Entity, stringifyEntityRef } from '@backstage/catalog-model';
 import { Observable, StorageApi } from '@backstage/core-plugin-api';
 import ObservableImpl from 'zen-observable';
 import {
@@ -46,13 +45,11 @@ export class DefaultStarredEntitiesApi implements StarredEntitiesApi {
     });
   }
 
-  async toggleStarred(entity: Entity): Promise<void> {
-    const entityKey = stringifyEntityRef(entity);
-
-    if (this.starredEntities.has(entityKey)) {
-      this.starredEntities.delete(entityKey);
+  async toggleStarred(entityRef: string): Promise<void> {
+    if (this.starredEntities.has(entityRef)) {
+      this.starredEntities.delete(entityRef);
     } else {
-      this.starredEntities.add(entityKey);
+      this.starredEntities.add(entityRef);
     }
 
     await this.settingsStore.set(
@@ -65,9 +62,8 @@ export class DefaultStarredEntitiesApi implements StarredEntitiesApi {
     return this.observable;
   }
 
-  isStarred(entity: Entity): boolean {
-    const entityKey = stringifyEntityRef(entity);
-    return this.starredEntities.has(entityKey);
+  isStarred(entityRef: string): boolean {
+    return this.starredEntities.has(entityRef);
   }
 
   private readonly subscribers = new Set<
diff --git a/plugins/catalog-react/src/apis/StarredEntitiesApi/StarredEntitiesApi.ts b/plugins/catalog-react/src/apis/StarredEntitiesApi/StarredEntitiesApi.ts
index 0c8ec52445..68eae0b0a1 100644
--- a/plugins/catalog-react/src/apis/StarredEntitiesApi/StarredEntitiesApi.ts
+++ b/plugins/catalog-react/src/apis/StarredEntitiesApi/StarredEntitiesApi.ts
@@ -14,7 +14,6 @@
  * limitations under the License.
  */
 
-import { Entity } from '@backstage/catalog-model';
 import { ApiRef, createApiRef, Observable } from '@backstage/core-plugin-api';
 
 export const starredEntitiesApiRef: ApiRef<StarredEntitiesApi> = createApiRef({
@@ -30,10 +29,10 @@ export type StarredEntitiesApiObservable = {
   /**
    * A function to check if an entity is starred.
    *
-   * @param entity - the entity to check
+   * @param entityRef - an entity reference to check
    * @returns true, if the entity is starred.
    */
-  isStarred: (entity: Entity) => boolean;
+  isStarred: (entityRef: string) => boolean;
 };
 
 /**
@@ -45,9 +44,9 @@ export interface StarredEntitiesApi {
   /**
    * Toggle the star state of the entity
    *
-   * @param entity - the entity to be toggled
+   * @param entityRef - an entity reference to toggle
    */
-  toggleStarred(entity: Entity): Promise<void>;
+  toggleStarred(entityRef: string): Promise<void>;
 
   /**
    * Observe the state of starred entities and receive a handler
diff --git a/plugins/catalog-react/src/hooks/useStarredEntities.ts b/plugins/catalog-react/src/hooks/useStarredEntities.ts
index cb94d465bc..e79e605877 100644
--- a/plugins/catalog-react/src/hooks/useStarredEntities.ts
+++ b/plugins/catalog-react/src/hooks/useStarredEntities.ts
@@ -14,7 +14,7 @@
  * limitations under the License.
  */
 
-import { Entity } from '@backstage/catalog-model';
+import { Entity, stringifyEntityRef } from '@backstage/catalog-model';
 import { useApi } from '@backstage/core-plugin-api';
 import { useCallback } from 'react';
 import { useObservable } from 'react-use';
@@ -23,14 +23,19 @@ import { starredEntitiesApiRef } from '../apis';
 export const useStarredEntities = () => {
   const starredEntitiesApi = useApi(starredEntitiesApiRef);
 
-  const { starredEntities, isStarred: isStarredEntity } = useObservable(
+  const { starredEntities, isStarred } = useObservable(
     starredEntitiesApi.starredEntitie$(),
     { starredEntities: new Set<string>(), isStarred: _ => false },
   );
 
+  const isStarredEntity = useCallback(
+    (entity: Entity) => isStarred(stringifyEntityRef(entity)),
+    [isStarred],
+  );
+
   const toggleStarredEntity = useCallback(
     (entity: Entity) => {
-      starredEntitiesApi.toggleStarred(entity).then();
+      starredEntitiesApi.toggleStarred(stringifyEntityRef(entity)).then();
     },
     [starredEntitiesApi],
   );