diff --git a/.changeset/fair-peaches-learn.md b/.changeset/fair-peaches-learn.md
new file mode 100644
index 0000000000..772980ee57
--- /dev/null
+++ b/.changeset/fair-peaches-learn.md
@@ -0,0 +1,5 @@
+---
+'@backstage/plugin-scaffolder-backend': patch
+---
+
+Allow listing file contents with `debug:log` scaffolder action
diff --git a/plugins/scaffolder-backend/api-report.md b/plugins/scaffolder-backend/api-report.md
index 00f690c646..3d84c30bcf 100644
--- a/plugins/scaffolder-backend/api-report.md
+++ b/plugins/scaffolder-backend/api-report.md
@@ -130,7 +130,7 @@ export function createCatalogWriteAction(): TemplateAction_2<
 export function createDebugLogAction(): TemplateAction_2<
   {
     message?: string | undefined;
-    listWorkspace?: boolean | undefined;
+    listWorkspace?: boolean | 'with-contents' | 'with-filenames' | undefined;
   },
   JsonObject
 >;
diff --git a/plugins/scaffolder-backend/src/scaffolder/actions/builtin/debug/log.examples.ts b/plugins/scaffolder-backend/src/scaffolder/actions/builtin/debug/log.examples.ts
index 0e9173bfa6..c1ad6a2982 100644
--- a/plugins/scaffolder-backend/src/scaffolder/actions/builtin/debug/log.examples.ts
+++ b/plugins/scaffolder-backend/src/scaffolder/actions/builtin/debug/log.examples.ts
@@ -48,4 +48,19 @@ export const examples: TemplateExample[] = [
       ],
     }),
   },
+  {
+    description: 'List the workspace directory with file contents',
+    example: yaml.stringify({
+      steps: [
+        {
+          action: 'debug:log',
+          id: 'write-workspace-directory',
+          name: 'List the workspace directory with file contents',
+          input: {
+            listWorkspace: 'with-contents',
+          },
+        },
+      ],
+    }),
+  },
 ];
diff --git a/plugins/scaffolder-backend/src/scaffolder/actions/builtin/debug/log.test.ts b/plugins/scaffolder-backend/src/scaffolder/actions/builtin/debug/log.test.ts
index 9c626f1dfe..4606a01e0c 100644
--- a/plugins/scaffolder-backend/src/scaffolder/actions/builtin/debug/log.test.ts
+++ b/plugins/scaffolder-backend/src/scaffolder/actions/builtin/debug/log.test.ts
@@ -35,8 +35,9 @@ describe('debug:log', () => {
 
   beforeEach(() => {
     mockDir.setContent({
-      [`${mockContext.workspacePath}/README.md`]: '',
-      [`${mockContext.workspacePath}/a-directory/index.md`]: '',
+      [`${mockContext.workspacePath}/README.md`]: 'This is a README file',
+      [`${mockContext.workspacePath}/a-directory/index.md`]:
+        'This is a markdown file',
     });
     jest.resetAllMocks();
   });
@@ -94,6 +95,34 @@ describe('debug:log', () => {
     );
   });
 
+  it('should log the workspace content with file contents from an example, if active', async () => {
+    const example = action.examples?.find(
+      sample =>
+        sample.description ===
+        'List the workspace directory with file contents',
+    )?.example as string;
+    expect(typeof example).toEqual('string');
+    const context = {
+      ...mockContext,
+      ...yaml.parse(example).steps[0],
+    };
+
+    await action.handler(context);
+
+    expect(logger.info).toHaveBeenCalledWith(
+      expect.stringContaining('README.md'),
+    );
+    expect(logger.info).toHaveBeenCalledWith(
+      expect.stringContaining(join('a-directory', 'index.md')),
+    );
+    expect(logger.info).toHaveBeenCalledWith(
+      expect.stringContaining('This is a README file'),
+    );
+    expect(logger.info).toHaveBeenCalledWith(
+      expect.stringContaining('This is a markdown file'),
+    );
+  });
+
   it('should log message from an example', async () => {
     const example = action.examples?.find(
       sample => sample.description === 'Write a debug message',
diff --git a/plugins/scaffolder-backend/src/scaffolder/actions/builtin/debug/log.ts b/plugins/scaffolder-backend/src/scaffolder/actions/builtin/debug/log.ts
index 98ab02437e..2ff64e1025 100644
--- a/plugins/scaffolder-backend/src/scaffolder/actions/builtin/debug/log.ts
+++ b/plugins/scaffolder-backend/src/scaffolder/actions/builtin/debug/log.ts
@@ -15,9 +15,11 @@
  */
 
 import { readdir, stat } from 'fs-extra';
-import { relative, join } from 'path';
+import { join, relative } from 'path';
 import { createTemplateAction } from '@backstage/plugin-scaffolder-node';
 import { examples } from './log.examples';
+import fs from 'fs';
+import { z } from 'zod';
 
 const id = 'debug:log';
 
@@ -32,28 +34,24 @@ const id = 'debug:log';
  * @public
  */
 export function createDebugLogAction() {
-  return createTemplateAction<{ message?: string; listWorkspace?: boolean }>({
+  return createTemplateAction<{
+    message?: string;
+    listWorkspace?: boolean | 'with-filenames' | 'with-contents';
+  }>({
     id,
     description:
-      'Writes a message into the log or lists all files in the workspace.',
+      'Writes a message into the log and/or lists all files in the workspace.',
     examples,
     schema: {
-      input: {
-        type: 'object',
-        properties: {
-          message: {
-            title: 'Message to output.',
-            type: 'string',
-          },
-          listWorkspace: {
-            title: 'List all files in the workspace, if true.',
-            type: 'boolean',
-          },
-          extra: {
-            title: 'Extra info',
-          },
-        },
-      },
+      input: z.object({
+        message: z.string({ description: 'Message to output.' }).optional(),
+        listWorkspace: z
+          .union([z.boolean(), z.enum(['with-filenames', 'with-contents'])], {
+            description:
+              'List all files in the workspace. If used with "with-contents", also the file contents are listed.',
+          })
+          .optional(),
+      }),
     },
     supportsDryRun: true,
     async handler(ctx) {
@@ -67,7 +65,14 @@ export function createDebugLogAction() {
         const files = await recursiveReadDir(ctx.workspacePath);
         ctx.logger.info(
           `Workspace:\n${files
-            .map(f => `  - ${relative(ctx.workspacePath, f)}`)
+            .map(f => {
+              const relativePath = relative(ctx.workspacePath, f);
+              if (ctx.input?.listWorkspace === 'with-contents') {
+                const content = fs.readFileSync(f, 'utf-8');
+                return ` - ${relativePath}:\n\n  ${content}`;
+              }
+              return `  - ${relativePath}`;
+            })
             .join('\n')}`,
         );
       }