diff --git a/packages/cli/templates/default-plugin/package.json.hbs b/packages/cli/templates/default-plugin/package.json.hbs
index 15b22bc8e1..fb86c7e792 100644
--- a/packages/cli/templates/default-plugin/package.json.hbs
+++ b/packages/cli/templates/default-plugin/package.json.hbs
@@ -38,7 +38,7 @@
     "react-use": "{{versionQuery 'react-use' '17.2.4'}}"
   },
   "peerDependencies": {
-    "react": "{{versionQuery 'react' '^16.13.1 || ^17.0.0'}}"
+    "react": "{{versionQuery 'react' '^16.13.1 || ^17.0.0 || ^18.0.0'}}"
   },
   "devDependencies": {
     "@backstage/cli": "{{versionQuery '@backstage/cli'}}",
diff --git a/packages/cli/templates/default-react-plugin-package/package.json.hbs b/packages/cli/templates/default-react-plugin-package/package.json.hbs
index f68bd14a1d..c5e92eb7d6 100644
--- a/packages/cli/templates/default-react-plugin-package/package.json.hbs
+++ b/packages/cli/templates/default-react-plugin-package/package.json.hbs
@@ -34,7 +34,7 @@
     "@material-ui/core": "{{versionQuery '@material-ui/core' '4.12.2'}}"
   },
   "peerDependencies": {
-    "react": "{{versionQuery 'react' '^16.13.1 || ^17.0.0'}}"
+    "react": "{{versionQuery 'react' '^16.13.1 || ^17.0.0 || ^18.0.0'}}"
   },
   "devDependencies": {
     "@backstage/cli": "{{versionQuery '@backstage/cli'}}",