diff --git a/packages/url-loader/src/lib/cloudinary.ts b/packages/url-loader/src/lib/cloudinary.ts
index 6a46b424..e8abdf0d 100644
--- a/packages/url-loader/src/lib/cloudinary.ts
+++ b/packages/url-loader/src/lib/cloudinary.ts
@@ -20,6 +20,7 @@ import { recolorPlugin } from "../plugins/recolor.js";
 import { removeBackgroundPlugin } from "../plugins/remove-background.js";
 import { removePlugin } from "../plugins/remove.js";
 import { replacePlugin } from "../plugins/replace.js";
+import { replaceBackgroundPlugin } from "../plugins/replace-background.js";
 import { restorePlugin } from "../plugins/restore.js";
 import { sanitizePlugin } from "../plugins/sanitize.js";
 import { seoPlugin } from "../plugins/seo.js";
@@ -48,6 +49,7 @@ export const transformationPlugins = [
   removeBackgroundPlugin,
   removePlugin,
   replacePlugin,
+  replaceBackgroundPlugin,
   restorePlugin,
 
   // Cropping needs to be before any other general transformations
diff --git a/packages/url-loader/src/plugins/replace-background.ts b/packages/url-loader/src/plugins/replace-background.ts
new file mode 100644
index 00000000..de664fd4
--- /dev/null
+++ b/packages/url-loader/src/plugins/replace-background.ts
@@ -0,0 +1,58 @@
+import { z } from "zod";
+import type { ImageOptions } from "../types/image.js";
+import type { TransformationPlugin } from "../types/plugins.js";
+
+export const replaceBackgroundProps = {
+  replaceBackground: z
+    .union([
+      z.boolean(),
+      z.string(),
+      z.object({
+        seed: z.number().optional(),
+        prompt: z.string().optional(),
+      }),
+    ])
+    .describe(
+      JSON.stringify({
+        text: "Replaces the background of an image with an AI-generated background.",
+        url: "https://cloudinary.com/documentation/transformation_reference#e_gen_background_replace",
+      })
+    )
+    .optional(),
+};
+
+export const replaceBackgroundPlugin = {
+  props: replaceBackgroundProps,
+  assetTypes: ["image", "images"],
+  plugin: (settings) => {
+    const { cldAsset, options } = settings;
+    const { replaceBackground } = options;
+
+    if (replaceBackground === false || typeof replaceBackground === "undefined") return {};
+
+    const properties = [];
+
+    if ( typeof replaceBackground === 'object' ) {
+
+      if ( typeof replaceBackground.prompt !== 'undefined' ) {
+        properties.push(`prompt_${replaceBackground.prompt}`);
+      }
+
+      if ( typeof replaceBackground.seed === 'number' ) {
+        properties.push(`seed_${replaceBackground.seed}`);
+      }      
+    } else if ( typeof replaceBackground === 'string' ) {
+      properties.push(`prompt_${replaceBackground}`);
+    }
+
+    let transformation = 'e_gen_background_replace';
+
+    if ( properties.length > 0 ) {
+      transformation = `${transformation}:${properties.join(';')}`;
+    }
+
+    cldAsset.addTransformation(transformation);
+
+    return {};
+  },
+} satisfies TransformationPlugin<ImageOptions>;
diff --git a/packages/url-loader/src/types/image.ts b/packages/url-loader/src/types/image.ts
index 18e2bcde..dbf89c14 100644
--- a/packages/url-loader/src/types/image.ts
+++ b/packages/url-loader/src/types/image.ts
@@ -5,6 +5,7 @@ import { fillBackgroundProps } from "../plugins/fill-background.js";
 import { recolorProps } from "../plugins/recolor.js";
 import { removeProps } from "../plugins/remove.js";
 import { replaceProps } from "../plugins/replace.js";
+import { replaceBackgroundProps } from "../plugins/replace-background.js";
 import { restoreProps } from "../plugins/restore.js";
 import { zoompanProps } from "../plugins/zoompan.js";
 import { assetOptionsSchema } from "./asset.js";
@@ -19,6 +20,7 @@ export const imageOptionsSchema = assetOptionsSchema.merge(
     ...recolorProps,
     ...removeProps,
     ...replaceProps,
+    ...replaceBackgroundProps,
     ...restoreProps,
     ...zoompanProps,
   })
diff --git a/packages/url-loader/tests/lib/cloudinary.spec.js b/packages/url-loader/tests/lib/cloudinary.spec.js
index f79a73d2..2a40ecb0 100644
--- a/packages/url-loader/tests/lib/cloudinary.spec.js
+++ b/packages/url-loader/tests/lib/cloudinary.spec.js
@@ -883,6 +883,10 @@ describe('Cloudinary', () => {
               removeShadow: true
             },
             removeBackground: true,
+            replaceBackground: {
+              prompt: 'space jellyfish',
+              seed: 2
+            },
             restore: true,
             zoompan: true,
           },
@@ -900,6 +904,7 @@ describe('Cloudinary', () => {
           'e_gen_recolor:prompt_duck;to-color_blue;multiple_true',
           `e_background_removal`,
           `e_gen_remove:prompt_apple;multiple_true;remove-shadow_true`,
+          `e_gen_background_replace:prompt_space%20jellyfish;seed_2`,
           `e_gen_restore`,
           `c_${crop},w_${width},h_${height},g_auto,z_${zoom}`,
           `d_${defaultImage}`,
diff --git a/packages/url-loader/tests/plugins/replace-background.spec.js b/packages/url-loader/tests/plugins/replace-background.spec.js
new file mode 100644
index 00000000..4a91cb8b
--- /dev/null
+++ b/packages/url-loader/tests/plugins/replace-background.spec.js
@@ -0,0 +1,66 @@
+import { Cloudinary } from "@cloudinary/url-gen";
+import { describe, expect, it } from 'vitest';
+
+import { replaceBackgroundPlugin } from "../../src/plugins/replace-background";
+
+const { plugin } = replaceBackgroundPlugin;
+
+const cld = new Cloudinary({
+  cloud: {
+    cloudName: "test-cloud-name",
+  },
+});
+
+const TEST_PUBLIC_ID = "test-public-id";
+
+describe("Plugins", () => {
+  describe("Generative Replace Background", () => {
+    it("should replace the background", () => {
+      const cldImage = cld.image(TEST_PUBLIC_ID);
+
+      const options = {
+        replaceBackground: true,
+      };
+
+      plugin({
+        cldAsset: cldImage,
+        options,
+      });
+
+      expect(cldImage.toURL()).toContain('/e_gen_background_replace/');
+    });
+
+    it("should replace the background with a prompt", () => {
+      const cldImage = cld.image(TEST_PUBLIC_ID);
+
+      const options = {
+        replaceBackground: 'space jellyfish in space',
+      };
+
+      plugin({
+        cldAsset: cldImage,
+        options,
+      });
+
+      expect(cldImage.toURL()).toContain(`/e_gen_background_replace:prompt_${encodeURIComponent(options.replaceBackground)}/`);
+    });
+
+    it("should replace the background with a prompt", () => {
+      const cldImage = cld.image(TEST_PUBLIC_ID);
+
+      const options = {
+        replaceBackground: {
+          prompt: 'space jellyfish in outer space',
+          seed: 2
+        }
+      };
+
+      plugin({
+        cldAsset: cldImage,
+        options,
+      });
+
+      expect(cldImage.toURL()).toContain(`/e_gen_background_replace:prompt_${encodeURIComponent(options.replaceBackground.prompt)};seed_${options.replaceBackground.seed}/`);
+    });
+  });
+});