diff --git a/plugins/proxy-backend/package.json b/plugins/proxy-backend/package.json
index d92dba9069..1ca6cbe5f5 100644
--- a/plugins/proxy-backend/package.json
+++ b/plugins/proxy-backend/package.json
@@ -74,7 +74,7 @@
     "@types/supertest": "^2.0.8",
     "@types/uuid": "^9.0.0",
     "@types/yup": "^0.32.0",
-    "msw": "^1.0.0",
+    "msw": "^2.0.0",
     "node-fetch": "^2.6.7",
     "portfinder": "^1.0.32",
     "supertest": "^6.1.3"
diff --git a/plugins/proxy-backend/src/service/router.config.test.ts b/plugins/proxy-backend/src/service/router.config.test.ts
index 0de4787658..20aed5452a 100644
--- a/plugins/proxy-backend/src/service/router.config.test.ts
+++ b/plugins/proxy-backend/src/service/router.config.test.ts
@@ -24,7 +24,7 @@ import {
   StaticConfigSource,
 } from '@backstage/config-loader';
 import express from 'express';
-import { rest } from 'msw';
+import { http, HttpResponse } from 'msw';
 import { setupServer } from 'msw/node';
 import request from 'supertest';
 import { createRouter } from './router';
@@ -35,14 +35,11 @@ import { mockServices } from '@backstage/backend-test-utils';
 
 describe('createRouter reloadable configuration', () => {
   const server = setupServer(
-    rest.get('https://non-existing-example.com/', (req, res, ctx) =>
-      res(
-        ctx.status(200),
-        ctx.json({
-          url: req.url.toString(),
-          headers: req.headers.all(),
-        }),
-      ),
+    http.get('https://non-existing-example.com/', req =>
+      HttpResponse.json({
+        url: req.request.url.toString(),
+        headers: req.request.headers,
+      }),
     ),
   );
 
diff --git a/plugins/proxy-backend/src/service/router.credentials.test.ts b/plugins/proxy-backend/src/service/router.credentials.test.ts
index 1496b6ffb6..85fad9f038 100644
--- a/plugins/proxy-backend/src/service/router.credentials.test.ts
+++ b/plugins/proxy-backend/src/service/router.credentials.test.ts
@@ -21,7 +21,7 @@ import {
 } from '@backstage/backend-test-utils';
 import { ResponseError } from '@backstage/errors';
 import { JsonObject } from '@backstage/types';
-import { rest } from 'msw';
+import { http, HttpResponse, passthrough } from 'msw';
 import { setupServer } from 'msw/node';
 import fetch from 'node-fetch';
 import portFinder from 'portfinder';
@@ -82,13 +82,12 @@ describe('credentials', () => {
     };
 
     worker.use(
-      rest.all(`${baseUrl}/*`, req => req.passthrough()),
-      rest.get('http://target.com/*', (req, res, ctx) => {
-        const auth = req.headers.get('authorization');
-        return res(
-          ctx.status(200),
-          ctx.json({ payload: { forwardedAuthorization: auth ?? false } }),
-        );
+      http.all(`${baseUrl}/*`, () => passthrough()),
+      http.get('http://target.com/*', req => {
+        const auth = req.request.headers.get('authorization');
+        return HttpResponse.json({
+          payload: { forwardedAuthorization: auth ?? false },
+        });
       }),
     );
 
diff --git a/yarn.lock b/yarn.lock
index d006daa23c..a823457dce 100644
--- a/yarn.lock
+++ b/yarn.lock
@@ -6471,7 +6471,7 @@ __metadata:
     express-promise-router: ^4.1.0
     http-proxy-middleware: ^2.0.0
     morgan: ^1.10.0
-    msw: ^1.0.0
+    msw: ^2.0.0
     node-fetch: ^2.6.7
     portfinder: ^1.0.32
     supertest: ^6.1.3