diff --git a/.changeset/silent-gifts-dream.md b/.changeset/silent-gifts-dream.md
new file mode 100644
index 0000000000..f939ce8ac2
--- /dev/null
+++ b/.changeset/silent-gifts-dream.md
@@ -0,0 +1,5 @@
+---
+'@backstage/plugin-scaffolder-react': patch
+---
+
+Improve performance of typing into scaffolder secret widget
diff --git a/plugins/scaffolder-react/src/next/components/SecretWidget/SecretWidget.tsx b/plugins/scaffolder-react/src/next/components/SecretWidget/SecretWidget.tsx
index 6b9094c199..25aec236fb 100644
--- a/plugins/scaffolder-react/src/next/components/SecretWidget/SecretWidget.tsx
+++ b/plugins/scaffolder-react/src/next/components/SecretWidget/SecretWidget.tsx
@@ -17,7 +17,8 @@
 import { WidgetProps } from '@rjsf/utils';
 import { useTemplateSecrets } from '@backstage/plugin-scaffolder-react';
 import TextField from '@material-ui/core/TextField';
-import React from 'react';
+import React, { useMemo, useState } from 'react';
+import debounce from 'lodash/debounce';
 
 /**
  * Secret Widget for overriding the default password input widget
@@ -38,16 +39,31 @@ export const SecretWidget = (
     disabled,
   } = props;
 
+  const [localValue, setLocalValue] = useState(secrets[name] ?? '');
+
+  // Memoize the debounced function so it persists across re-renders
+  const debouncedSetSecrets = useMemo(
+    () =>
+      debounce((value: string) => {
+        setSecrets({ [name]: value });
+      }, 300),
+    [setSecrets, name],
+  );
+
+  const handleChange = (e: React.ChangeEvent<HTMLInputElement>) => {
+    const newValue = e.target.value;
+    setLocalValue(newValue);
+    onChange(Array(newValue.length).fill('*').join(''));
+    debouncedSetSecrets(newValue);
+  };
+
   return (
     <TextField
       id={title}
       label={title}
       aria-describedby={title}
-      onChange={e => {
-        onChange(Array(e.target.value.length).fill('*').join(''));
-        setSecrets({ [name]: e.target.value });
-      }}
-      value={secrets[name] ?? ''}
+      onChange={handleChange}
+      value={localValue}
       type="password"
       autoComplete="off"
       required={required}
diff --git a/plugins/scaffolder/src/components/fields/SecretInput/SecretInput.test.tsx b/plugins/scaffolder/src/components/fields/SecretInput/SecretInput.test.tsx
index fa810b9d17..dd88b9986c 100644
--- a/plugins/scaffolder/src/components/fields/SecretInput/SecretInput.test.tsx
+++ b/plugins/scaffolder/src/components/fields/SecretInput/SecretInput.test.tsx
@@ -22,7 +22,7 @@ import { SecretInput } from './SecretInput';
 import { renderInTestApp } from '@backstage/test-utils';
 import { Form } from '@backstage/plugin-scaffolder-react/alpha';
 import validator from '@rjsf/validator-ajv8';
-import { fireEvent, act } from '@testing-library/react';
+import { fireEvent, act, waitFor } from '@testing-library/react';
 
 describe('<SecretInput />', () => {
   const SecretsComponent = () => {
@@ -63,8 +63,15 @@ describe('<SecretInput />', () => {
       fireEvent.change(secretInput, { target: { value: mockSecret } });
     });
 
-    const { secrets } = JSON.parse(getByTestId('current-secrets').textContent!);
-
-    expect(secrets.myKey).toBe(mockSecret);
+    // Wait for the debounced update to occur
+    await waitFor(
+      () => {
+        const { secrets } = JSON.parse(
+          getByTestId('current-secrets').textContent!,
+        );
+        expect(secrets.myKey).toBe(mockSecret);
+      },
+      { timeout: 500 },
+    );
   });
 });