diff --git a/.changeset/heavy-numbers-love.md b/.changeset/heavy-numbers-love.md
new file mode 100644
index 0000000000..c18d144636
--- /dev/null
+++ b/.changeset/heavy-numbers-love.md
@@ -0,0 +1,5 @@
+---
+'@backstage/cli': patch
+---
+
+Updated default backend plugin to use `RootConfigService` instead of `Config`. This also removes the dependency on `@backstage/config` as it's no longer used.
diff --git a/packages/cli/templates/default-backend-plugin/package.json.hbs b/packages/cli/templates/default-backend-plugin/package.json.hbs
index 3b808fc5e5..8dd31cbc38 100644
--- a/packages/cli/templates/default-backend-plugin/package.json.hbs
+++ b/packages/cli/templates/default-backend-plugin/package.json.hbs
@@ -31,7 +31,6 @@
     "@backstage/backend-common": "{{versionQuery '@backstage/backend-common'}}",
     "@backstage/backend-defaults": "{{versionQuery '@backstage/backend-defaults'}}",
     "@backstage/backend-plugin-api": "{{versionQuery '@backstage/backend-plugin-api'}}",
-    "@backstage/config": "{{versionQuery '@backstage/config'}}",
     "express": "{{versionQuery 'express' '4.17.1'}}",
     "express-promise-router": "{{versionQuery 'express-promise-router' '4.1.0'}}",
     "node-fetch": "{{versionQuery 'node-fetch' '2.6.7'}}"
diff --git a/packages/cli/templates/default-backend-plugin/src/service/router.ts b/packages/cli/templates/default-backend-plugin/src/service/router.ts
index 312d7e252e..ced654aa82 100644
--- a/packages/cli/templates/default-backend-plugin/src/service/router.ts
+++ b/packages/cli/templates/default-backend-plugin/src/service/router.ts
@@ -1,12 +1,11 @@
 import { MiddlewareFactory } from '@backstage/backend-defaults/rootHttpRouter';
-import { LoggerService } from '@backstage/backend-plugin-api';
-import { Config } from '@backstage/config';
+import { LoggerService, RootConfigService } from '@backstage/backend-plugin-api';
 import express from 'express';
 import Router from 'express-promise-router';
 
 export interface RouterOptions {
   logger: LoggerService;
-  config: Config;
+  config: RootConfigService;
 }
 
 export async function createRouter(