diff --git a/CHANGELOG.md b/CHANGELOG.md
index 29c4e8a..25ff44a 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -4,6 +4,12 @@ All notable changes to `@red-hat-developer-hub/cli` are documented in this file.
 
 The format is based on [Keep a Changelog](https://keepachangelog.com/en/1.1.0/), and this project adheres to [Semantic Versioning](https://semver.org/spec/v2.0.0.html).
 
+## 2.0.9 - 2026-09-15
+
+### Added
+
+- **`plugin new`:** Add isolated local development harnesses and `yarn start` scripts for generated frontend and backend plugins.
+
 ## 2.0.8 - 2026-09-15
 
 ### Fixed
diff --git a/README.md b/README.md
index 937bde2..2339407 100644
--- a/README.md
+++ b/README.md
@@ -65,7 +65,7 @@ Use `plugin new` to create a standalone, version-pinned dynamic plugin project:
 rhdh-cli plugin new my-plugin --type frontend --rhdh-version 2.1.0
 ```
 
-Supported types are `frontend` (a New Frontend System, or NFS, page), `backend` (a minimal new-backend-system plugin), and `catalog-processor-module` (a catalog processor module). Use `--name <plugin-name>` as an alternative to the positional name, and `--output <directory>` to select a destination. The generated project uses the target RHDH release's Backstage manifest for every `@backstage/*` dependency. For air-gapped environments, provide `--manifest-file` and set `RHDH_OFFLINE=true`. Export and package generated plugins with `npx @red-hat-developer-hub/cli`, or through RHDH Dynamic Plugin Factory, rather than adding the CLI as a project dependency.
+Supported types are `frontend` (a New Frontend System, or NFS, page), `backend` (a minimal new-backend-system plugin), and `catalog-processor-module` (a catalog processor module). Frontend and backend projects include a `dev/` harness and `yarn start` for isolated development; catalog processor modules do not because they require a host backend plugin. Use `--name <plugin-name>` as an alternative to the positional name, and `--output <directory>` to select a destination. The generated project uses the target RHDH release's Backstage manifest for every `@backstage/*` dependency. For air-gapped environments, provide `--manifest-file` and set `RHDH_OFFLINE=true`. Export and package generated plugins with `npx @red-hat-developer-hub/cli`, or through RHDH Dynamic Plugin Factory, rather than adding the CLI as a project dependency.
 
 ## Development
 
diff --git a/package.json b/package.json
index 45afae5..f2f7a0a 100644
--- a/package.json
+++ b/package.json
@@ -1,7 +1,7 @@
 {
   "name": "@red-hat-developer-hub/cli",
   "description": "CLI for developing Backstage plugins and apps",
-  "version": "2.0.8",
+  "version": "2.0.9",
   "publishConfig": {
     "access": "public"
   },
diff --git a/src/commands/new/__snapshots__/command.test.ts.snap b/src/commands/new/__snapshots__/command.test.ts.snap
index 3d016b4..10ba274 100644
--- a/src/commands/new/__snapshots__/command.test.ts.snap
+++ b/src/commands/new/__snapshots__/command.test.ts.snap
@@ -59,12 +59,14 @@ RHDH Dynamic Plugin Factory is the preferred workflow for repeatable build and p
   "types": "src/index.ts",
   "backstage": { "role": "backend-plugin", "pluginId": "example-plugin" },
   "scripts": {
+    "start": "backstage-cli package start",
     "build": "yarn tsc && backstage-cli package build",
     "tsc": "tsc --declaration",
     "test": "backstage-cli package test --passWithNoTests"
   },
   "dependencies": { "@backstage/backend-plugin-api": "1.10.0" },
   "devDependencies": {
+    "@backstage/backend-defaults": "0.12.5",
     "@backstage/cli": "0.36.5",
     "@types/jest": "^29.5.14",
     "jest": "^29.7.0",
@@ -114,12 +116,22 @@ export default plugin;
     "tsconfig.json",
     "{
   "extends": "@backstage/cli/config/tsconfig.json",
-  "include": ["src"],
+  "include": ["src", "dev"],
   "compilerOptions": {
     "outDir": "dist-types",
     "rootDir": "."
   }
 }
+",
+  ],
+  [
+    "dev/index.ts",
+    "import { createBackend } from '@backstage/backend-defaults';
+
+const backend = createBackend();
+
+backend.add(import('../src'));
+backend.start();
 ",
   ],
 ]
@@ -305,10 +317,26 @@ RHDH Dynamic Plugin Factory is the preferred workflow for repeatable build and p
   "packageManager": "yarn@4.17.1",
   "private": true,
   "license": "Apache-2.0",
+  "files": ["dist"],
   "main": "src/index.ts",
   "types": "src/index.ts",
+  "publishConfig": {
+    "access": "public",
+    "main": "dist/index.esm.js",
+    "types": "dist/index.d.ts"
+  },
+  "exports": {
+    ".": "./src/index.ts",
+    "./package.json": "./package.json"
+  },
+  "typesVersions": {
+    "*": {
+      "package.json": ["package.json"]
+    }
+  },
   "backstage": { "role": "frontend-plugin", "pluginId": "example-plugin" },
   "scripts": {
+    "start": "backstage-cli package start",
     "build": "yarn tsc && backstage-cli package build",
     "tsc": "tsc --declaration",
     "test": "backstage-cli package test --passWithNoTests"
@@ -319,6 +347,7 @@ RHDH Dynamic Plugin Factory is the preferred workflow for repeatable build and p
   },
   "devDependencies": {
     "@backstage/cli": "0.36.5",
+    "@backstage/frontend-dev-utils": "0.4.5",
     "@types/jest": "^29.5.14",
     "@types/react": "^18.0.0",
     "react": "^18.0.0",
@@ -338,9 +367,26 @@ RHDH Dynamic Plugin Factory is the preferred workflow for repeatable build and p
   ],
   [
     "src/index.ts",
+    "export { plugin as default } from './plugin';
+",
+  ],
+  [
+    "tsconfig.json",
+    "{
+  "extends": "@backstage/cli/config/tsconfig.json",
+  "include": ["src", "dev"],
+  "compilerOptions": {
+    "jsx": "react-jsx",
+    "outDir": "dist-types",
+    "rootDir": "."
+  }
+}
+",
+  ],
+  [
+    "src/plugin.tsx",
     "import { createRouteRef } from '@backstage/core-plugin-api';
 import { createFrontendPlugin, PageBlueprint } from '@backstage/frontend-plugin-api';
-import React from 'react';
 
 const rootRouteRef = createRouteRef({ id: 'example-plugin' });
 const page = PageBlueprint.make({
@@ -348,11 +394,11 @@ const page = PageBlueprint.make({
     title: 'example-plugin',
     path: '/example-plugin',
     routeRef: rootRouteRef,
-    loader: () => import('./PluginPage').then(m => React.createElement(m.PluginPage)),
+    loader: () => import('./PluginPage').then(m => <m.PluginPage />),
   },
 });
 
-export default createFrontendPlugin({
+export const plugin = createFrontendPlugin({
   pluginId: 'example-plugin',
   extensions: [page],
   routes: { root: rootRouteRef },
@@ -360,24 +406,19 @@ export default createFrontendPlugin({
 ",
   ],
   [
-    "tsconfig.json",
-    "{
-  "extends": "@backstage/cli/config/tsconfig.json",
-  "include": ["src"],
-  "compilerOptions": {
-    "outDir": "dist-types",
-    "rootDir": "."
-  }
+    "src/PluginPage.tsx",
+    "export function PluginPage() {
+  return <h1>example-plugin</h1>;
 }
 ",
   ],
   [
-    "src/PluginPage.tsx",
-    "import React from 'react';
+    "dev/index.tsx",
+    "import { createDevApp } from '@backstage/frontend-dev-utils';
 
-export function PluginPage() {
-  return React.createElement('h1', undefined, 'example-plugin');
-}
+import plugin from '../src';
+
+createDevApp({ features: [plugin] });
 ",
   ],
 ]
diff --git a/src/commands/new/command.test.ts b/src/commands/new/command.test.ts
index 284ead0..2280af1 100644
--- a/src/commands/new/command.test.ts
+++ b/src/commands/new/command.test.ts
@@ -39,10 +39,12 @@ describe('createPluginProject', () => {
       backstageVersion: '1.54.0',
       source: 'matrix',
       packages: new Map([
+        ['@backstage/backend-defaults', '0.12.5'],
         ['@backstage/backend-plugin-api', '1.10.0'],
         ['@backstage/catalog-model', '1.10.0'],
         ['@backstage/cli', '0.36.5'],
         ['@backstage/core-plugin-api', '1.12.7'],
+        ['@backstage/frontend-dev-utils', '0.4.5'],
         ['@backstage/frontend-plugin-api', '0.17.2'],
         ['@backstage/plugin-catalog-node', '2.2.4'],
       ]),
@@ -55,7 +57,7 @@ describe('createPluginProject', () => {
   });
 
   it.each([
-    ['frontend', 'src/index.ts', 'PageBlueprint'],
+    ['frontend', 'src/index.ts', 'export { plugin as default }'],
     ['backend', 'src/index.ts', 'createBackendPlugin'],
     [
       'catalog-processor-module',
@@ -95,6 +97,14 @@ describe('createPluginProject', () => {
         '@red-hat-developer-hub/cli',
       );
       expect(packageJson.packageManager).toBe('yarn@4.17.1');
+      expect(packageJson.files).toEqual(
+        type === 'frontend' ? ['dist'] : undefined,
+      );
+      expect(packageJson.scripts.start).toBe(
+        type === 'catalog-processor-module'
+          ? undefined
+          : 'backstage-cli package start',
+      );
       await expect(
         fs.readFile(path.join(output, '.yarnrc.yml'), 'utf8'),
       ).resolves.toBe('nodeLinker: node-modules\n');
@@ -113,9 +123,12 @@ describe('createPluginProject', () => {
             'README.md',
             'backstage.json',
             'package.json',
-            'src/index.ts',
+            entryPoint,
             'tsconfig.json',
-            ...(type === 'frontend' ? ['src/PluginPage.tsx'] : []),
+            ...(type === 'frontend'
+              ? ['src/plugin.tsx', 'src/PluginPage.tsx', 'dev/index.tsx']
+              : []),
+            ...(type === 'backend' ? ['dev/index.ts'] : []),
           ].map(async file => [
             file,
             await fs.readFile(path.join(output, file), 'utf8'),
diff --git a/templates/plugin-new/backend/dev/index.ts b/templates/plugin-new/backend/dev/index.ts
new file mode 100644
index 0000000..8670438
--- /dev/null
+++ b/templates/plugin-new/backend/dev/index.ts
@@ -0,0 +1,6 @@
+import { createBackend } from '@backstage/backend-defaults';
+
+const backend = createBackend();
+
+backend.add(import('../src'));
+backend.start();
diff --git a/templates/plugin-new/backend/package.json.hbs b/templates/plugin-new/backend/package.json.hbs
index 8ef1e7f..22efb5a 100644
--- a/templates/plugin-new/backend/package.json.hbs
+++ b/templates/plugin-new/backend/package.json.hbs
@@ -8,12 +8,14 @@
   "types": "src/index.ts",
   "backstage": { "role": "backend-plugin", "pluginId": "{{pluginId}}" },
   "scripts": {
+    "start": "backstage-cli package start",
     "build": "yarn tsc && backstage-cli package build",
     "tsc": "tsc --declaration",
     "test": "backstage-cli package test --passWithNoTests"
   },
   "dependencies": { "@backstage/backend-plugin-api": "{{versionQuery '@backstage/backend-plugin-api'}}" },
   "devDependencies": {
+    "@backstage/backend-defaults": "{{versionQuery '@backstage/backend-defaults'}}",
     "@backstage/cli": "{{versionQuery '@backstage/cli'}}",
     "@types/jest": "^29.5.14",
     "jest": "^29.7.0",
diff --git a/templates/plugin-new/backend/tsconfig.json b/templates/plugin-new/backend/tsconfig.json
index 7e1995b..2d98654 100644
--- a/templates/plugin-new/backend/tsconfig.json
+++ b/templates/plugin-new/backend/tsconfig.json
@@ -1,6 +1,6 @@
 {
   "extends": "@backstage/cli/config/tsconfig.json",
-  "include": ["src"],
+  "include": ["src", "dev"],
   "compilerOptions": {
     "outDir": "dist-types",
     "rootDir": "."
diff --git a/templates/plugin-new/frontend/dev/index.tsx b/templates/plugin-new/frontend/dev/index.tsx
new file mode 100644
index 0000000..21f8429
--- /dev/null
+++ b/templates/plugin-new/frontend/dev/index.tsx
@@ -0,0 +1,5 @@
+import { createDevApp } from '@backstage/frontend-dev-utils';
+
+import plugin from '../src';
+
+createDevApp({ features: [plugin] });
diff --git a/templates/plugin-new/frontend/package.json.hbs b/templates/plugin-new/frontend/package.json.hbs
index 48ec269..7143035 100644
--- a/templates/plugin-new/frontend/package.json.hbs
+++ b/templates/plugin-new/frontend/package.json.hbs
@@ -4,10 +4,26 @@
   "packageManager": "yarn@4.17.1",
   "private": true,
   "license": "Apache-2.0",
+  "files": ["dist"],
   "main": "src/index.ts",
   "types": "src/index.ts",
+  "publishConfig": {
+    "access": "public",
+    "main": "dist/index.esm.js",
+    "types": "dist/index.d.ts"
+  },
+  "exports": {
+    ".": "./src/index.ts",
+    "./package.json": "./package.json"
+  },
+  "typesVersions": {
+    "*": {
+      "package.json": ["package.json"]
+    }
+  },
   "backstage": { "role": "frontend-plugin", "pluginId": "{{pluginId}}" },
   "scripts": {
+    "start": "backstage-cli package start",
     "build": "yarn tsc && backstage-cli package build",
     "tsc": "tsc --declaration",
     "test": "backstage-cli package test --passWithNoTests"
@@ -18,6 +34,7 @@
   },
   "devDependencies": {
     "@backstage/cli": "{{versionQuery '@backstage/cli'}}",
+    "@backstage/frontend-dev-utils": "{{versionQuery '@backstage/frontend-dev-utils'}}",
     "@types/jest": "^29.5.14",
     "@types/react": "^18.0.0",
     "react": "^18.0.0",
diff --git a/templates/plugin-new/frontend/src/PluginPage.tsx.hbs b/templates/plugin-new/frontend/src/PluginPage.tsx.hbs
index ad388ee..0da35eb 100644
--- a/templates/plugin-new/frontend/src/PluginPage.tsx.hbs
+++ b/templates/plugin-new/frontend/src/PluginPage.tsx.hbs
@@ -1,5 +1,3 @@
-import React from 'react';
-
 export function PluginPage() {
-  return React.createElement('h1', undefined, '{{pluginId}}');
+  return <h1>{{pluginId}}</h1>;
 }
diff --git a/templates/plugin-new/frontend/src/index.ts.hbs b/templates/plugin-new/frontend/src/index.ts.hbs
index be474c2..2f53769 100644
--- a/templates/plugin-new/frontend/src/index.ts.hbs
+++ b/templates/plugin-new/frontend/src/index.ts.hbs
@@ -1,19 +1 @@
-import { createRouteRef } from '@backstage/core-plugin-api';
-import { createFrontendPlugin, PageBlueprint } from '@backstage/frontend-plugin-api';
-import React from 'react';
-
-const rootRouteRef = createRouteRef({ id: '{{pluginId}}' });
-const page = PageBlueprint.make({
-  params: {
-    title: '{{pluginId}}',
-    path: '/{{pluginId}}',
-    routeRef: rootRouteRef,
-    loader: () => import('./PluginPage').then(m => React.createElement(m.PluginPage)),
-  },
-});
-
-export default createFrontendPlugin({
-  pluginId: '{{pluginId}}',
-  extensions: [page],
-  routes: { root: rootRouteRef },
-});
+export { plugin as default } from './plugin';
diff --git a/templates/plugin-new/frontend/src/plugin.tsx.hbs b/templates/plugin-new/frontend/src/plugin.tsx.hbs
new file mode 100644
index 0000000..1da5a55
--- /dev/null
+++ b/templates/plugin-new/frontend/src/plugin.tsx.hbs
@@ -0,0 +1,18 @@
+import { createRouteRef } from '@backstage/core-plugin-api';
+import { createFrontendPlugin, PageBlueprint } from '@backstage/frontend-plugin-api';
+
+const rootRouteRef = createRouteRef({ id: '{{pluginId}}' });
+const page = PageBlueprint.make({
+  params: {
+    title: '{{pluginId}}',
+    path: '/{{pluginId}}',
+    routeRef: rootRouteRef,
+    loader: () => import('./PluginPage').then(m => <m.PluginPage />),
+  },
+});
+
+export const plugin = createFrontendPlugin({
+  pluginId: '{{pluginId}}',
+  extensions: [page],
+  routes: { root: rootRouteRef },
+});
diff --git a/templates/plugin-new/frontend/tsconfig.json b/templates/plugin-new/frontend/tsconfig.json
index 7e1995b..b7433db 100644
--- a/templates/plugin-new/frontend/tsconfig.json
+++ b/templates/plugin-new/frontend/tsconfig.json
@@ -1,7 +1,8 @@
 {
   "extends": "@backstage/cli/config/tsconfig.json",
-  "include": ["src"],
+  "include": ["src", "dev"],
   "compilerOptions": {
+    "jsx": "react-jsx",
     "outDir": "dist-types",
     "rootDir": "."
   }