diff --git a/.changeset/tame-hotels-itch.md b/.changeset/tame-hotels-itch.md
new file mode 100644
index 0000000000..2ae7b005a6
--- /dev/null
+++ b/.changeset/tame-hotels-itch.md
@@ -0,0 +1,6 @@
+---
+'@backstage/backend-common': patch
+'@backstage/integration': patch
+---
+
+Download archives as compressed tar files for Bitbucket to keep executable permissions.
diff --git a/packages/backend-common/src/reading/BitbucketUrlReader.test.ts b/packages/backend-common/src/reading/BitbucketUrlReader.test.ts
index e06122e04b..470f6e35b9 100644
--- a/packages/backend-common/src/reading/BitbucketUrlReader.test.ts
+++ b/packages/backend-common/src/reading/BitbucketUrlReader.test.ts
@@ -90,7 +90,7 @@ describe('BitbucketUrlReader', () => {
         'src',
         'reading',
         '__fixtures__',
-        'bitbucket-repo-with-commit-hash.zip',
+        'bitbucket-repo-with-commit-hash.tar.gz',
       ),
     );
 
@@ -99,7 +99,7 @@ describe('BitbucketUrlReader', () => {
         'src',
         'reading',
         '__fixtures__',
-        'bitbucket-server-repo.zip',
+        'bitbucket-server-repo.tar.gz',
       ),
     );
 
@@ -119,14 +119,14 @@ describe('BitbucketUrlReader', () => {
             ),
         ),
         rest.get(
-          'https://bitbucket.org/backstage/mock/get/master.zip',
+          'https://bitbucket.org/backstage/mock/get/master.tgz',
           (_, res, ctx) =>
             res(
               ctx.status(200),
               ctx.set('Content-Type', 'application/zip'),
               ctx.set(
                 'content-disposition',
-                'attachment; filename=backstage-mock-12ab34cd56ef.zip',
+                'attachment; filename=backstage-mock-12ab34cd56ef.tgz',
               ),
               ctx.body(repoBuffer),
             ),
@@ -142,14 +142,14 @@ describe('BitbucketUrlReader', () => {
             ),
         ),
         rest.get(
-          'https://api.bitbucket.mycompany.net/rest/api/1.0/projects/backstage/repos/mock/archive?format=zip&prefix=mock&path=docs',
+          'https://api.bitbucket.mycompany.net/rest/api/1.0/projects/backstage/repos/mock/archive?format=tgz&prefix=mock&path=docs',
           (_, res, ctx) =>
             res(
               ctx.status(200),
               ctx.set('Content-Type', 'application/zip'),
               ctx.set(
                 'content-disposition',
-                'attachment; filename=backstage-mock.zip',
+                'attachment; filename=backstage-mock.tgz',
               ),
               ctx.body(privateBitbucketRepoBuffer),
             ),
@@ -177,8 +177,8 @@ describe('BitbucketUrlReader', () => {
       const files = await response.files();
 
       expect(files.length).toBe(2);
-      const indexMarkdownFile = await files[0].content();
-      const mkDocsFile = await files[1].content();
+      const mkDocsFile = await files[0].content();
+      const indexMarkdownFile = await files[1].content();
 
       expect(indexMarkdownFile.toString()).toBe('# Test\n');
       expect(mkDocsFile.toString()).toBe('site_name: Test\n');
@@ -284,7 +284,7 @@ describe('BitbucketUrlReader', () => {
         'src',
         'reading',
         '__fixtures__',
-        'bitbucket-repo-with-commit-hash.zip',
+        'bitbucket-repo-with-commit-hash.tar.gz',
       ),
     );
 
@@ -304,14 +304,14 @@ describe('BitbucketUrlReader', () => {
             ),
         ),
         rest.get(
-          'https://bitbucket.org/backstage/mock/get/master.zip',
+          'https://bitbucket.org/backstage/mock/get/master.tgz',
           (_, res, ctx) =>
             res(
               ctx.status(200),
               ctx.set('Content-Type', 'application/zip'),
               ctx.set(
                 'content-disposition',
-                'attachment; filename=backstage-mock-12ab34cd56ef.zip',
+                'attachment; filename=backstage-mock-12ab34cd56ef.tgz',
               ),
               ctx.body(repoBuffer),
             ),
@@ -359,21 +359,21 @@ describe('BitbucketUrlReader', () => {
         'src',
         'reading',
         '__fixtures__',
-        'bitbucket-server-repo.zip',
+        'bitbucket-server-repo.tar.gz',
       ),
     );
 
     beforeEach(() => {
       worker.use(
         rest.get(
-          'https://api.bitbucket.mycompany.net/rest/api/1.0/projects/backstage/repos/mock/archive?format=zip&prefix=mock&path=docs',
+          'https://api.bitbucket.mycompany.net/rest/api/1.0/projects/backstage/repos/mock/archive?format=tgz&prefix=mock&path=docs',
           (_, res, ctx) =>
             res(
               ctx.status(200),
               ctx.set('Content-Type', 'application/zip'),
               ctx.set(
                 'content-disposition',
-                'attachment; filename=backstage-mock.zip',
+                'attachment; filename=backstage-mock.tgz',
               ),
               ctx.body(privateBitbucketRepoBuffer),
             ),
diff --git a/packages/backend-common/src/reading/BitbucketUrlReader.ts b/packages/backend-common/src/reading/BitbucketUrlReader.ts
index 251743cb25..009b81bc28 100644
--- a/packages/backend-common/src/reading/BitbucketUrlReader.ts
+++ b/packages/backend-common/src/reading/BitbucketUrlReader.ts
@@ -126,7 +126,7 @@ export class BitbucketUrlReader implements UrlReader {
       throw new Error(message);
     }
 
-    return await this.deps.treeResponseFactory.fromZipArchive({
+    return await this.deps.treeResponseFactory.fromTarArchive({
       stream: (archiveBitbucketResponse.body as unknown) as Readable,
       subpath: filepath,
       etag: lastCommitShortHash,
diff --git a/packages/backend-common/src/reading/__fixtures__/bitbucket-repo-with-commit-hash.tar.gz b/packages/backend-common/src/reading/__fixtures__/bitbucket-repo-with-commit-hash.tar.gz
new file mode 100644
index 0000000000..24175a5e16
Binary files /dev/null and b/packages/backend-common/src/reading/__fixtures__/bitbucket-repo-with-commit-hash.tar.gz differ
diff --git a/packages/backend-common/src/reading/__fixtures__/bitbucket-repo-with-commit-hash.zip b/packages/backend-common/src/reading/__fixtures__/bitbucket-repo-with-commit-hash.zip
deleted file mode 100644
index 135860afd3..0000000000
Binary files a/packages/backend-common/src/reading/__fixtures__/bitbucket-repo-with-commit-hash.zip and /dev/null differ
diff --git a/packages/backend-common/src/reading/__fixtures__/bitbucket-server-repo.tar.gz b/packages/backend-common/src/reading/__fixtures__/bitbucket-server-repo.tar.gz
new file mode 100644
index 0000000000..fba107dd51
Binary files /dev/null and b/packages/backend-common/src/reading/__fixtures__/bitbucket-server-repo.tar.gz differ
diff --git a/packages/backend-common/src/reading/__fixtures__/bitbucket-server-repo.zip b/packages/backend-common/src/reading/__fixtures__/bitbucket-server-repo.zip
deleted file mode 100644
index be6b20d127..0000000000
Binary files a/packages/backend-common/src/reading/__fixtures__/bitbucket-server-repo.zip and /dev/null differ
diff --git a/packages/integration/src/bitbucket/core.test.ts b/packages/integration/src/bitbucket/core.test.ts
index 22b17d51fa..87236277a2 100644
--- a/packages/integration/src/bitbucket/core.test.ts
+++ b/packages/integration/src/bitbucket/core.test.ts
@@ -135,7 +135,7 @@ describe('bitbucket core', () => {
         config,
       );
       expect(result).toEqual(
-        'https://api.bitbucket.mycompany.net/rest/api/1.0/projects/backstage/repos/mock/archive?format=zip&at=main&prefix=backstage-mock&path=docs',
+        'https://api.bitbucket.mycompany.net/rest/api/1.0/projects/backstage/repos/mock/archive?format=tgz&at=main&prefix=backstage-mock&path=docs',
       );
     });
 
@@ -164,7 +164,7 @@ describe('bitbucket core', () => {
       );
 
       expect(result).toEqual(
-        'https://api.bitbucket.mycompany.net/rest/api/1.0/projects/backstage/repos/mock/archive?format=zip&at=main&prefix=backstage-mock',
+        'https://api.bitbucket.mycompany.net/rest/api/1.0/projects/backstage/repos/mock/archive?format=tgz&at=main&prefix=backstage-mock',
       );
     });
 
@@ -178,7 +178,7 @@ describe('bitbucket core', () => {
         config,
       );
       expect(result).toEqual(
-        'https://api.bitbucket.mycompany.net/rest/api/1.0/projects/backstage/repos/mock/archive?format=zip&at=some-branch&prefix=backstage-mock&path=docs',
+        'https://api.bitbucket.mycompany.net/rest/api/1.0/projects/backstage/repos/mock/archive?format=tgz&at=some-branch&prefix=backstage-mock&path=docs',
       );
     });
 
@@ -192,7 +192,7 @@ describe('bitbucket core', () => {
         config,
       );
       expect(result).toEqual(
-        'https://bitbucket.org/backstage/mock/get/master.zip',
+        'https://bitbucket.org/backstage/mock/get/master.tgz',
       );
     });
   });
diff --git a/packages/integration/src/bitbucket/core.ts b/packages/integration/src/bitbucket/core.ts
index 8b1d7d6b18..825d656c7c 100644
--- a/packages/integration/src/bitbucket/core.ts
+++ b/packages/integration/src/bitbucket/core.ts
@@ -98,8 +98,8 @@ export async function getBitbucketDownloadUrl(
   // /docs/index.md will download the docs folder and everything below it
   const path = filepath ? `&path=${encodeURIComponent(filepath)}` : '';
   const archiveUrl = isHosted
-    ? `${protocol}://${resource}/${project}/${repoName}/get/${branch}.zip`
-    : `${config.apiBaseUrl}/projects/${project}/repos/${repoName}/archive?format=zip&at=${branch}&prefix=${project}-${repoName}${path}`;
+    ? `${protocol}://${resource}/${project}/${repoName}/get/${branch}.tgz`
+    : `${config.apiBaseUrl}/projects/${project}/repos/${repoName}/archive?format=tgz&at=${branch}&prefix=${project}-${repoName}${path}`;
 
   return archiveUrl;
 }