diff --git a/plugins/backstage-plugin-coder-backend/README.md b/plugins/backstage-plugin-coder-backend/README.md
index 0c6efe34..bdcca169 100644
--- a/plugins/backstage-plugin-coder-backend/README.md
+++ b/plugins/backstage-plugin-coder-backend/README.md
@@ -6,12 +6,50 @@
 ## Features
 
 - Management of OAuth2 state for requests sent from the Backstage backend.
+- Provides OAuth callback endpoint at `/api/coder/oauth/callback`
 
 ## Installing the plugin to support oauth2
 
+### For the New Backend System
+
+If you're using Backstage's new backend system (v1.20+), follow these steps:
+
+1. Run the following command from your Backstage app to install the plugin:
+   ```bash
+   yarn --cwd packages/backend add @coder/backstage-plugin-coder-backend
+   ```
+2. Add the module to your backend in `packages/backend/src/index.ts`:
+   ```ts
+   backend.add(import('@coder/backstage-plugin-coder-backend'));
+   ```
+3. [If you haven't already, be sure to register Backstage as an oauth app through Coder](https://coder.com/docs/admin/integrations/oauth2-provider).
+   
+   When registering the OAuth application, use the following callback URL format:
+   ```
+   https://backstage.example.com/api/coder/oauth/callback
+   ```
+   Replace `backstage.example.com` with your actual Backstage domain.
+
+4. Add the following values to one of your `app-config.yaml` files:
+   ```yaml
+   coder:
+     deployment:
+       # Change the value to match your Coder deployment
+       accessUrl: https://dev.coder.com
+     oauth:
+       clientId: oauth2-client-id-goes-here
+       # The client secret isn't used by the frontend plugin, but the backend
+       # plugin needs it for oauth functionality to work
+       clientSecret: oauth2-secret-goes-here
+   ```
+
+Note that the `clientSecret` value is given `secret`-level visibility, and will never be logged anywhere by Backstage.
+
+### For the Legacy Backend System
+
 1. Run the following command from your Backstage app to install the plugin:
    ```bash
-   yarn --cwd packages/app add @coder/backstage-plugin-coder
+   yarn --cwd packages/backend add @coder/backstage-plugin-coder-backend
    ```
 2. Import the `createRouter` function from the `@coder/backstage-plugin-coder` package:
    ```ts
@@ -25,7 +63,7 @@
 4. Register the plugin's oauth route with Backstage from inside the same `main` function:
    ```ts
    apiRouter.use(
-     '/auth/coder',
+     '/coder',
      await createCoderRouter({
        logger: coderEnv.logger,
        config: coderEnv.config,
@@ -33,6 +71,13 @@
    );
    ```
 5. [If you haven't already, be sure to register Backstage as an oauth app through Coder](https://coder.com/docs/admin/integrations/oauth2-provider).
+   
+   When registering the OAuth application, use the following callback URL format:
+   ```
+   https://backstage.example.com/api/coder/oauth/callback
+   ```
+   Replace `backstage.example.com` with your actual Backstage domain.
+
 6. Add the following values to one of your `app-config.yaml` files:
    ```yaml
    coder:
diff --git a/plugins/backstage-plugin-coder-backend/package.json b/plugins/backstage-plugin-coder-backend/package.json
index 361d4468..70040cfc 100644
--- a/plugins/backstage-plugin-coder-backend/package.json
+++ b/plugins/backstage-plugin-coder-backend/package.json
@@ -24,6 +24,7 @@
   },
   "dependencies": {
     "@backstage/backend-common": "^0.20.1",
+    "@backstage/backend-plugin-api": "^0.6.0",
     "@backstage/config": "^1.1.1",
     "@backstage/errors": "^1.2.3",
     "@types/express": "*",
diff --git a/plugins/backstage-plugin-coder-backend/src/index.ts b/plugins/backstage-plugin-coder-backend/src/index.ts
index 9f158c79..d9c7e2eb 100644
--- a/plugins/backstage-plugin-coder-backend/src/index.ts
+++ b/plugins/backstage-plugin-coder-backend/src/index.ts
@@ -4,4 +4,8 @@
  * @packageDocumentation
  */
 
+// Legacy API for old backend system
 export { createRouter } from './service/router';
+
+// New backend system module
+export { default } from './module';
diff --git a/plugins/backstage-plugin-coder-backend/src/module.ts b/plugins/backstage-plugin-coder-backend/src/module.ts
new file mode 100644
index 00000000..eacb176f
--- /dev/null
+++ b/plugins/backstage-plugin-coder-backend/src/module.ts
@@ -0,0 +1,50 @@
+import { 
+  coreServices,
+  createBackendPlugin,
+} from '@backstage/backend-plugin-api';
+import { createRouter } from './service/router';
+
+/**
+ * Coder OAuth backend plugin for the new Backstage backend system.
+ * 
+ * This plugin provides OAuth authentication routes for Coder at /api/coder/oauth/callback.
+ * 
+ * @public
+ */
+export default createBackendPlugin({
+  pluginId: 'coder',
+  register(env) {
+    env.registerInit({
+      deps: {
+        logger: coreServices.logger,
+        config: coreServices.rootConfig,
+        httpRouter: coreServices.httpRouter,
+      },
+      async init({ logger, config, httpRouter }) {
+        logger.info('Initializing Coder OAuth plugin');
+        
+        const router = await createRouter({
+          logger: logger as any,
+          config,
+        });
+        
+        // Allow unauthenticated access to OAuth routes
+        httpRouter.addAuthPolicy({
+          path: '/oauth',
+          allow: 'unauthenticated',
+        });
+        
+        httpRouter.addAuthPolicy({
+          path: '/health',
+          allow: 'unauthenticated',
+        });
+        
+        // Register the router (will be mounted at /api/coder)
+        httpRouter.use(router);
+        
+        logger.info('Coder OAuth plugin initialized at /api/coder');
+      },
+    });
+  },
+});
+
diff --git a/plugins/backstage-plugin-coder-backend/src/service/router.ts b/plugins/backstage-plugin-coder-backend/src/service/router.ts
index afdbdde8..08869b24 100644
--- a/plugins/backstage-plugin-coder-backend/src/service/router.ts
+++ b/plugins/backstage-plugin-coder-backend/src/service/router.ts
@@ -34,7 +34,7 @@ export async function createRouter(
     const clientSecret = coderConfig?.getString('oauth.clientSecret') || '';
     const redirectUri = `${req.protocol}://${req.get(
       'host',
-    )}/api/auth/coder/oauth/callback`;
+    )}/api/coder/oauth/callback`;
 
     let tokenResponse: AxiosResponse<{ access_token?: string }, unknown>;
     try {
diff --git a/plugins/backstage-plugin-coder/src/components/CoderAuthForm/CoderAuthInputForm.tsx b/plugins/backstage-plugin-coder/src/components/CoderAuthForm/CoderAuthInputForm.tsx
index 32722eb3..f8198b7f 100644
--- a/plugins/backstage-plugin-coder/src/components/CoderAuthForm/CoderAuthInputForm.tsx
+++ b/plugins/backstage-plugin-coder/src/components/CoderAuthForm/CoderAuthInputForm.tsx
@@ -159,7 +159,7 @@ export const CoderAuthInputForm = () => {
       state: btoa(JSON.stringify({ returnTo: window.location.pathname })),
       response_type: 'code',
       client_id: clientId,
-      redirect_uri: `${backendUrl}/api/auth/coder/oauth/callback`,
+      redirect_uri: `${backendUrl}/api/coder/oauth/callback`,
     });
 
     const oauthUrl = `${