diff --git a/packages/backend/src/plugins/scaffolder.ts b/packages/backend/src/plugins/scaffolder.ts
index 505a514344..fdddc26fd2 100644
--- a/packages/backend/src/plugins/scaffolder.ts
+++ b/packages/backend/src/plugins/scaffolder.ts
@@ -23,6 +23,13 @@ import { Router } from 'express';
 import type { PluginEnvironment } from '../types';
 import { ScmIntegrations } from '@backstage/integration';
 import { createConfluenceToMarkdownAction } from '@backstage/plugin-scaffolder-backend-module-confluence-to-markdown';
+import {
+  createGitlabProjectAccessTokenAction,
+  createGitlabProjectDeployTokenAction,
+  createGitlabProjectVariableAction,
+  createGitlabGroupEnsureExistsAction,
+  createGitlabIssueAction,
+} from '@backstage/plugin-scaffolder-backend-module-gitlab';
 
 export default async function createPlugin(
   env: PluginEnvironment,
@@ -47,6 +54,11 @@ export default async function createPlugin(
       config: env.config,
       reader: env.reader,
     }),
+    createGitlabProjectAccessTokenAction({ integrations: integrations }),
+    createGitlabProjectDeployTokenAction({ integrations: integrations }),
+    createGitlabProjectVariableAction({ integrations: integrations }),
+    createGitlabGroupEnsureExistsAction({ integrations: integrations }),
+    createGitlabIssueAction({ integrations: integrations }),
   ];
 
   return await createRouter({
diff --git a/plugins/scaffolder-backend-module-gitlab/README.md b/plugins/scaffolder-backend-module-gitlab/README.md
index 340b57bbf8..128b91092d 100644
--- a/plugins/scaffolder-backend-module-gitlab/README.md
+++ b/plugins/scaffolder-backend-module-gitlab/README.md
@@ -24,6 +24,7 @@ import {
   createGitlabProjectDeployTokenAction,
   createGitlabProjectVariableAction,
   createGitlabGroupEnsureExistsAction,
+  createGitlabIssueAction,
 } from '@backstage/plugin-scaffolder-backend-module-gitlab';
 
 // Create BuiltIn Actions
@@ -41,6 +42,7 @@ const actions = [
   createGitlabProjectDeployTokenAction({ integrations: integrations }),
   createGitlabProjectVariableAction({ integrations: integrations }),
   createGitlabGroupEnsureExistsAction({ integrations: integrations }),
+  createGitlabIssueAction({ integrations: integrations }),
 ];
 
 // Create Scaffolder Router
@@ -53,6 +55,8 @@ return await createRouter({
   database: env.database,
   reader: env.reader,
 });
+
+// TODO: incorporate Issues creation in example
 ```
 
 After that you can use the action in your template:
diff --git a/plugins/scaffolder-backend-module-gitlab/package.json b/plugins/scaffolder-backend-module-gitlab/package.json
index 94641be81c..09efaf5af0 100644
--- a/plugins/scaffolder-backend-module-gitlab/package.json
+++ b/plugins/scaffolder-backend-module-gitlab/package.json
@@ -36,6 +36,7 @@
     "@backstage/integration": "workspace:^",
     "@backstage/plugin-scaffolder-node": "workspace:^",
     "@gitbeaker/node": "^35.8.0",
+    "@gitbeaker/rest": "^39.25.0",
     "yaml": "^2.0.0",
     "zod": "^3.21.4"
   },
diff --git a/plugins/scaffolder-backend-module-gitlab/src/actions/createGitlabIssueAction.ts b/plugins/scaffolder-backend-module-gitlab/src/actions/createGitlabIssueAction.ts
new file mode 100644
index 0000000000..50f03e2575
--- /dev/null
+++ b/plugins/scaffolder-backend-module-gitlab/src/actions/createGitlabIssueAction.ts
@@ -0,0 +1,218 @@
+/*
+ * 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 { InputError } from '@backstage/errors';
+import { ScmIntegrationRegistry } from '@backstage/integration';
+import {
+  TemplateExample,
+  createTemplateAction,
+} from '@backstage/plugin-scaffolder-node';
+import * as yaml from 'yaml';
+import {
+  commonGitlabConfig,
+  commonGitlabConfigExample,
+} from '../commonGitlabConfig';
+import { z } from 'zod';
+import { checkEpicScope, convertDate, getClient, parseRepoUrl } from '../util';
+import { Gitlab, CreateIssueOptions, IssueSchema } from '@gitbeaker/rest';
+
+/**
+ * Creates a `gitlab:issues:create` Scaffolder action.
+ *
+ * @param {} - Templating configuration.
+ * @public
+ */
+
+export const createGitlabIssueAction = (options: {
+  integrations: ScmIntegrationRegistry;
+}) => {
+  const { integrations } = options;
+  return createTemplateAction({
+    id: 'gitlab:issues:create',
+    description: 'Creates a Gitlab issue.',
+    examples: getExamples(),
+    schema: {
+      input: commonGitlabConfig.merge(
+        z.object({
+          projectId: z.number({ description: 'Project Id' }),
+          title: z.string({ description: 'Title of the issue' }),
+          assignees: z
+            .array(z.number(), {
+              description: 'IDs of the users to assign the issue to.',
+            })
+            .optional(),
+          confidential: z
+            .boolean({ description: 'Issue Confidentiality' })
+            .optional(),
+          description: z
+            .string({ description: 'Issue description' })
+            .optional(),
+          createdAt: z.string({ description: 'Creation date/time' }).optional(),
+          dueDate: z.string({ description: 'Due date/time' }).optional(),
+          discussionToResolve: z
+            .string({
+              description: 'Id of a discussion to resolve',
+            })
+            .optional(),
+          epicId: z.number({ description: 'Id of the linked Epic' }).optional(),
+          labels: z.string({ description: 'Labels to apply' }).optional(),
+        }),
+      ),
+      output: z.object({
+        issueUrl: z.string({ description: 'Issue Url' }),
+        issueId: z.number({ description: 'Issue Id' }),
+      }),
+    },
+    async handler(ctx) {
+      try {
+        const {
+          repoUrl,
+          projectId,
+          title,
+          description = '',
+          confidential = false,
+          assignees = [],
+          createdAt = '',
+          dueDate,
+          discussionToResolve = '',
+          epicId,
+          labels = '',
+          token,
+        } = ctx.input;
+
+        const { host } = parseRepoUrl(repoUrl, integrations);
+
+        const api = getClient({ host, integrations, token });
+
+        let isEpicScoped = false;
+
+        if (epicId) {
+          isEpicScoped = await checkEpicScope(
+            api as any as InstanceType<typeof Gitlab>,
+            projectId,
+            epicId,
+          );
+
+          if (isEpicScoped) {
+            ctx.logger.info('Epic is within Project Scope');
+          } else {
+            ctx.logger.warn(
+              'Chosen epic is not within the Project Scope. The issue will be created without an associated epic.',
+            );
+          }
+        }
+        const mappedCreatedAt = convertDate(
+          String(createdAt),
+          new Date().toISOString(),
+        );
+        const mappedDueDate = dueDate
+          ? convertDate(String(dueDate), new Date().toISOString())
+          : undefined;
+
+        const issueOptions: CreateIssueOptions = {
+          description,
+          assigneeIds: assignees,
+          confidential,
+          epicId: isEpicScoped ? epicId : undefined,
+          labels,
+          createdAt: mappedCreatedAt,
+          dueDate: mappedDueDate,
+          discussionToResolve,
+        };
+
+        const response = (await api.Issues.create(
+          projectId,
+          title,
+          issueOptions,
+        )) as IssueSchema;
+
+        ctx.output('issueId', response.id);
+        ctx.output('issueUrl', response.web_url);
+      } catch (error: any) {
+        throw new InputError(`Failed to create GitLab issue: ${error.message}`);
+      }
+    },
+  });
+};
+
+function getExamples(): TemplateExample[] {
+  return [
+    {
+      description: 'Create a GitLab issue with minimal options',
+      example: yaml.stringify({
+        steps: [
+          {
+            id: 'gitlabIssue',
+            name: 'Issues',
+            action: 'gitlab:issues:create',
+            input: {
+              ...commonGitlabConfigExample,
+              projectId: '12',
+              title: 'Test Issue',
+              description: 'This is the description of the issue',
+            },
+          },
+        ],
+      }),
+    },
+    {
+      description: 'Create a GitLab issue with assignees and date options',
+      example: yaml.stringify({
+        steps: [
+          {
+            id: 'gitlabIssue',
+            name: 'Issues',
+            action: 'gitlab:issues:create',
+            input: {
+              ...commonGitlabConfigExample,
+              projectId: '12',
+              title: 'Test Issue',
+              assignees: '18',
+              description: 'This is the description of the issue',
+              createdAt: '2022-09-27 18:00:00.000',
+              dueDate: '2022-09-28 12:00:00.000',
+            },
+          },
+        ],
+      }),
+    },
+    {
+      description: 'Create a GitLab Issue with several options',
+      example: yaml.stringify({
+        steps: [
+          {
+            id: 'gitlabIssue',
+            name: 'Issues',
+            action: 'dxc:gitlab:issues:create',
+            input: {
+              ...commonGitlabConfigExample,
+              projectId: '12',
+              title: 'Test Issue',
+              assignees: '18',
+              description: 'This is the description of the issue',
+              confidential: false,
+              createdAt: '2022-09-27 18:00:00.000',
+              dueDate: '2022-09-28 12:00:00.000',
+              discussionToResolve: '1',
+              epicId: '1',
+              labels: 'test-label1,test-label2',
+            },
+          },
+        ],
+      }),
+    },
+  ];
+}
diff --git a/plugins/scaffolder-backend-module-gitlab/src/commonGitlabConfig.ts b/plugins/scaffolder-backend-module-gitlab/src/commonGitlabConfig.ts
index 02724a3674..3c83eacf19 100644
--- a/plugins/scaffolder-backend-module-gitlab/src/commonGitlabConfig.ts
+++ b/plugins/scaffolder-backend-module-gitlab/src/commonGitlabConfig.ts
@@ -24,3 +24,8 @@ const commonGitlabConfig = z.object({
 });
 
 export default commonGitlabConfig;
+
+export const commonGitlabConfigExample = {
+  repoUrl: 'gitlab.com?owner=namespace-or-owner&repo=project-name',
+  token: '${{ secrets.USER_OAUTH_TOKEN }}',
+};
diff --git a/plugins/scaffolder-backend-module-gitlab/src/index.ts b/plugins/scaffolder-backend-module-gitlab/src/index.ts
index 4fd4dee35b..eadb1ba78d 100644
--- a/plugins/scaffolder-backend-module-gitlab/src/index.ts
+++ b/plugins/scaffolder-backend-module-gitlab/src/index.ts
@@ -23,3 +23,4 @@ export * from './actions/createGitlabGroupEnsureExistsAction';
 export * from './actions/createGitlabProjectDeployTokenAction';
 export * from './actions/createGitlabProjectAccessTokenAction';
 export * from './actions/createGitlabProjectVariableAction';
+export * from './actions/createGitlabIssueAction';
diff --git a/plugins/scaffolder-backend-module-gitlab/src/util.ts b/plugins/scaffolder-backend-module-gitlab/src/util.ts
index 13c95e48e8..c967e1cee9 100644
--- a/plugins/scaffolder-backend-module-gitlab/src/util.ts
+++ b/plugins/scaffolder-backend-module-gitlab/src/util.ts
@@ -21,6 +21,7 @@ import {
 } from '@backstage/integration';
 import { z } from 'zod';
 import commonGitlabConfig from './commonGitlabConfig';
+import { Gitlab, GroupSchema } from '@gitbeaker/rest';
 
 export const parseRepoHost = (repoUrl: string): string => {
   let parsed;
@@ -56,3 +57,140 @@ export const getToken = (
 
   return { token: token, integrationConfig: integrationConfig };
 };
+
+export type RepoSpec = {
+  repo: string;
+  host: string;
+  owner?: string;
+};
+
+export const parseRepoUrl = (
+  repoUrl: string,
+  integrations: ScmIntegrationRegistry,
+): RepoSpec => {
+  let parsed;
+  try {
+    parsed = new URL(`https://${repoUrl}`);
+  } catch (error) {
+    throw new InputError(
+      `Invalid repo URL passed to publisher, got ${repoUrl}, ${error}`,
+    );
+  }
+  const host = parsed.host;
+  const owner = parsed.searchParams.get('owner') ?? undefined;
+  const repo: string = parsed.searchParams.get('repo')!;
+
+  const type = integrations.byHost(host)?.type;
+
+  if (!type) {
+    throw new InputError(
+      `No matching integration configuration for host ${host}, please check your integrations config`,
+    );
+  }
+
+  return { host, owner, repo };
+};
+
+export function getClient(props: {
+  host: string;
+  token?: string;
+  integrations: ScmIntegrationRegistry;
+}): InstanceType<typeof Gitlab> {
+  const { host, token, integrations } = props;
+  const integrationConfig = integrations.gitlab.byHost(host);
+
+  if (!integrationConfig) {
+    throw new InputError(
+      `No matching integration configuration for host ${host}, please check your integrations config`,
+    );
+  }
+
+  const { config } = integrationConfig;
+
+  if (!config.token && !token) {
+    throw new InputError(`No token available for host ${host}`);
+  }
+
+  const requestToken = token || config.token!;
+  const tokenType = token ? 'oauthToken' : 'token';
+
+  const gitlabOptions: any = {
+    host: config.baseUrl,
+  };
+
+  gitlabOptions[tokenType] = requestToken;
+
+  return new Gitlab(gitlabOptions);
+}
+
+export function convertDate(
+  inputDate: string | undefined,
+  defaultDate: string,
+) {
+  try {
+    return inputDate
+      ? new Date(inputDate).toISOString()
+      : new Date(defaultDate).toISOString();
+  } catch (error) {
+    throw new InputError(`Error converting input date - ${error}`);
+  }
+}
+
+export async function getTopLevelParentGroup(
+  client: InstanceType<typeof Gitlab>,
+  groupId: number,
+): Promise<GroupSchema> {
+  try {
+    const topParentGroup = await client.Groups.show(groupId);
+    if (topParentGroup.parent_id) {
+      return getTopLevelParentGroup(client, topParentGroup.parent_id as number);
+    }
+
+    return topParentGroup as GroupSchema;
+  } catch (error: any) {
+    throw new InputError(
+      `Error finding top-level parent group ID: ${error.message}`,
+    );
+  }
+}
+
+export async function checkEpicScope(
+  client: InstanceType<typeof Gitlab>,
+  projectId: number,
+  epicId: number,
+) {
+  try {
+    // If project exists, get the top level group id
+    const project = await client.Projects.show(projectId);
+    if (!project) {
+      throw new InputError(
+        `Project with id ${projectId} not found. Check your GitLab instance.`,
+      );
+    }
+    const topParentGroup = await getTopLevelParentGroup(
+      client,
+      project.namespace.id,
+    );
+    if (!topParentGroup) {
+      throw new InputError(`Couldn't find a suitable top-level parent group.`);
+    }
+
+    // Get the epic
+    const epic = (await client.Epics.all(topParentGroup.id)).find(
+      (x: any) => x.id === epicId,
+    );
+
+    if (!epic) {
+      throw new InputError(
+        `Epic with id ${epicId} not found in the top-level parent group ${topParentGroup.name}.`,
+      );
+    }
+
+    const epicGroup = await client.Groups.show(epic.group_id as number);
+    const projectNamespace: string = project.path_with_namespace as string;
+
+    return projectNamespace.startsWith(epicGroup.full_path as string);
+  } catch (error: any) {
+    throw new InputError(`Could not find epic scope: ${error.message}`);
+  }
+}
diff --git a/yarn.lock b/yarn.lock
index 2fd28cd48c..a17bae88f1 100644
--- a/yarn.lock
+++ b/yarn.lock
@@ -8655,7 +8655,7 @@ __metadata:
   languageName: unknown
   linkType: soft
 
-"@backstage/plugin-scaffolder-backend-module-gitlab@workspace:plugins/scaffolder-backend-module-gitlab":
+"@backstage/plugin-scaffolder-backend-module-gitlab@workspace:^, @backstage/plugin-scaffolder-backend-module-gitlab@workspace:plugins/scaffolder-backend-module-gitlab":
   version: 0.0.0-use.local
   resolution: "@backstage/plugin-scaffolder-backend-module-gitlab@workspace:plugins/scaffolder-backend-module-gitlab"
   dependencies:
@@ -8667,6 +8667,7 @@ __metadata:
     "@backstage/integration": "workspace:^"
     "@backstage/plugin-scaffolder-node": "workspace:^"
     "@gitbeaker/node": ^35.8.0
+    "@gitbeaker/rest": ^39.25.0
     yaml: ^2.0.0
     zod: ^3.21.4
   languageName: unknown
@@ -11569,6 +11570,17 @@ __metadata:
   languageName: node
   linkType: hard
 
+"@gitbeaker/core@npm:^39.25.0":
+  version: 39.25.0
+  resolution: "@gitbeaker/core@npm:39.25.0"
+  dependencies:
+    "@gitbeaker/requester-utils": ^39.25.0
+    qs: ^6.11.2
+    xcase: ^2.0.1
+  checksum: 56ebe3c6ba1078c47a6cae0abcd5ae4fd928dc73c9eb7dc462894d497d6fa5373c0d09a7a7a0583097cffa641eeb0b28b1764d33a085a7b95f0115399240bc7e
+  languageName: node
+  linkType: hard
+
 "@gitbeaker/node@npm:^35.1.0, @gitbeaker/node@npm:^35.8.0":
   version: 35.8.1
   resolution: "@gitbeaker/node@npm:35.8.1"
@@ -11593,6 +11605,28 @@ __metadata:
   languageName: node
   linkType: hard
 
+"@gitbeaker/requester-utils@npm:^39.25.0":
+  version: 39.25.0
+  resolution: "@gitbeaker/requester-utils@npm:39.25.0"
+  dependencies:
+    async-sema: ^3.1.1
+    micromatch: ^4.0.5
+    qs: ^6.11.2
+    xcase: ^2.0.1
+  checksum: 1ca90f5ac705d5ef9df682b3051106326bc660427b9b2a88762992690981ce0b6bed4b22bc08af0ba97043766f9898605ba58ed6c1a08b6711af34032f013ed2
+  languageName: node
+  linkType: hard
+
+"@gitbeaker/rest@npm:^39.25.0":
+  version: 39.25.0
+  resolution: "@gitbeaker/rest@npm:39.25.0"
+  dependencies:
+    "@gitbeaker/core": ^39.25.0
+    "@gitbeaker/requester-utils": ^39.25.0
+  checksum: 5732a34fe3f2fe0a048963baf90b237fde7a1be61fa327e2c7aa69266649394b5b48cd99a6c6abaf1cf8b32b84a293800af33eef49c011b252d6e061f7fe1af9
+  languageName: node
+  linkType: hard
+
 "@google-cloud/container@npm:^5.0.0":
   version: 5.4.0
   resolution: "@google-cloud/container@npm:5.4.0"
@@ -21062,6 +21096,13 @@ __metadata:
   languageName: node
   linkType: hard
 
+"async-sema@npm:^3.1.1":
+  version: 3.1.1
+  resolution: "async-sema@npm:3.1.1"
+  checksum: 07b8c51f6cab107417ecdd8126b7a9fe5a75151b7f69fdd420dcc8ee08f9e37c473a217247e894b56e999b088b32e902dbe41637e4e9b594d3f8dfcdddfadc5e
+  languageName: node
+  linkType: hard
+
 "async@npm:^2.6.2, async@npm:^2.6.4":
   version: 2.6.4
   resolution: "async@npm:2.6.4"
@@ -26880,6 +26921,7 @@ __metadata:
     "@backstage/plugin-rollbar-backend": "workspace:^"
     "@backstage/plugin-scaffolder-backend": "workspace:^"
     "@backstage/plugin-scaffolder-backend-module-confluence-to-markdown": "workspace:^"
+    "@backstage/plugin-scaffolder-backend-module-gitlab": "workspace:^"
     "@backstage/plugin-scaffolder-backend-module-rails": "workspace:^"
     "@backstage/plugin-search-backend": "workspace:^"
     "@backstage/plugin-search-backend-module-catalog": "workspace:^"
@@ -38184,7 +38226,7 @@ __metadata:
   languageName: node
   linkType: hard
 
-"qs@npm:^6.10.1, qs@npm:^6.10.2, qs@npm:^6.11.0, qs@npm:^6.9.1, qs@npm:^6.9.4, qs@npm:^6.9.6":
+"qs@npm:^6.10.1, qs@npm:^6.10.2, qs@npm:^6.11.0, qs@npm:^6.11.2, qs@npm:^6.9.1, qs@npm:^6.9.4, qs@npm:^6.9.6":
   version: 6.11.2
   resolution: "qs@npm:6.11.2"
   dependencies: