diff --git a/.changeset/sixty-ties-matter.md b/.changeset/sixty-ties-matter.md
new file mode 100644
index 0000000000..3be0bb08a8
--- /dev/null
+++ b/.changeset/sixty-ties-matter.md
@@ -0,0 +1,5 @@
+---
+'@backstage/plugin-scaffolder-backend-module-cookiecutter': patch
+---
+
+Fixing the typescript issue with using `z.unknown()`
diff --git a/plugins/scaffolder-backend-module-cookiecutter/report.api.md b/plugins/scaffolder-backend-module-cookiecutter/report.api.md
index 2dfba3f42f..a60a8c0396 100644
--- a/plugins/scaffolder-backend-module-cookiecutter/report.api.md
+++ b/plugins/scaffolder-backend-module-cookiecutter/report.api.md
@@ -4,10 +4,12 @@
 
 ```ts
 import { BackendFeature } from '@backstage/backend-plugin-api';
+import { objectOutputType } from 'zod';
 import { ScmIntegrations } from '@backstage/integration';
 import { TemplateAction } from '@backstage/plugin-scaffolder-node';
 import { UrlReaderService } from '@backstage/backend-plugin-api';
 import { Writable } from 'stream';
+import { ZodTypeAny } from 'zod';
 
 // @public
 export interface ContainerRunner {
@@ -47,7 +49,7 @@ export function createFetchCookiecutterAction(options: {
 }): TemplateAction<
   {
     url: string;
-    values: Record<string, unknown>;
+    values: objectOutputType<{}, ZodTypeAny, 'passthrough'>;
     targetPath?: string | undefined;
     copyWithoutRender?: string[] | undefined;
     extensions?: string[] | undefined;
diff --git a/plugins/scaffolder-backend-module-cookiecutter/src/actions/fetch/cookiecutter.ts b/plugins/scaffolder-backend-module-cookiecutter/src/actions/fetch/cookiecutter.ts
index 3a4ee8c3d7..9a9df95dea 100644
--- a/plugins/scaffolder-backend-module-cookiecutter/src/actions/fetch/cookiecutter.ts
+++ b/plugins/scaffolder-backend-module-cookiecutter/src/actions/fetch/cookiecutter.ts
@@ -169,9 +169,14 @@ export function createFetchCookiecutterAction(options: {
             })
             .optional(),
         values: z =>
-          z.record(z.unknown(), {
-            description: 'Values to pass on to cookiecutter for templating',
-          }),
+          z
+            .object(
+              {},
+              {
+                description: 'Values to pass on to cookiecutter for templating',
+              },
+            )
+            .passthrough(),
         copyWithoutRender: z =>
           z
             .array(z.string(), {