diff --git a/core/src/config/base.ts b/core/src/config/base.ts
index 597869e96a..e8ce3e41c1 100644
--- a/core/src/config/base.ts
+++ b/core/src/config/base.ts
@@ -84,6 +84,7 @@ export interface GardenResourceInternalFields {
   inputs?: DeepPrimitiveMap
   parentName?: string
   templateName?: string
+  templatePath?: string
   // Used to map fields to specific doc and location
   yamlDoc?: YamlDocumentWithSource
 }
diff --git a/core/src/config/module.ts b/core/src/config/module.ts
index 1d3a69e1e0..bf93a73d5e 100644
--- a/core/src/config/module.ts
+++ b/core/src/config/module.ts
@@ -297,6 +297,7 @@ export interface ModuleConfig<M extends {} = any, S extends {} = any, T extends
   // set by ModuleTemplates for templated modules
   parentName?: string
   templateName?: string
+  templatePath?: string
   inputs?: DeepPrimitiveMap
 
   // Plugins can add custom fields that are kept here
diff --git a/core/src/config/render-template.ts b/core/src/config/render-template.ts
index a1ff67410e..167a2434f7 100644
--- a/core/src/config/render-template.ts
+++ b/core/src/config/render-template.ts
@@ -183,6 +183,7 @@ export async function renderConfigTemplate({
     enterpriseDomain,
     parentName: resolved.name,
     templateName: template.name,
+    templatePath: template.internal.basePath,
     inputs: partiallyResolvedInputs,
   })
 
diff --git a/core/src/config/template-contexts/actions.ts b/core/src/config/template-contexts/actions.ts
index 30a155162f..457beaa74c 100644
--- a/core/src/config/template-contexts/actions.ts
+++ b/core/src/config/template-contexts/actions.ts
@@ -20,6 +20,7 @@ import { exampleVersion, OutputConfigContext } from "./module.js"
 import { TemplatableConfigContext } from "./project.js"
 import { DOCS_BASE_URL } from "../../constants.js"
 import { styles } from "../../logger/styles.js"
+import { InternalError } from "../../exceptions.js"
 
 function mergeVariables({ garden, variables }: { garden: Garden; variables: DeepPrimitiveMap }): DeepPrimitiveMap {
   const mergedVariables: DeepPrimitiveMap = {}
@@ -296,6 +297,7 @@ export class ActionSpecContext extends OutputConfigContext {
     const sourcePath = action.sourcePath()
     const parentName = internal?.parentName
     const templateName = internal?.templateName
+    const templatePath = internal?.templatePath
 
     this.actions = new ActionReferencesContext(this, partialRuntimeResolution, [
       ...resolvedDependencies,
@@ -308,9 +310,14 @@ export class ActionSpecContext extends OutputConfigContext {
       new ErrorContext(`Action ${styles.highlight.bold(action.key())} cannot reference itself.`)
     )
 
-    if (parentName && templateName) {
+    if (parentName) {
+      if (!templateName || !templatePath) {
+        throw new InternalError({
+          message: `Missing template name and path when rendering ${parentName}. This is a bug, please report to the Garden team.`,
+        })
+      }
       this.parent = new ParentContext(this, parentName)
-      this.template = new TemplateContext(this, templateName)
+      this.template = new TemplateContext({ root: this, name: templateName, path: templatePath })
     }
     this.inputs = inputs
 
diff --git a/core/src/config/template-contexts/base.ts b/core/src/config/template-contexts/base.ts
index 4c4d9da4d9..d307b1df54 100644
--- a/core/src/config/template-contexts/base.ts
+++ b/core/src/config/template-contexts/base.ts
@@ -316,9 +316,13 @@ export class TemplateContext extends ConfigContext {
   @schema(joiIdentifier().description(`The name of the template.`))
   public name: string
 
-  constructor(root: ConfigContext, name: string) {
-    super(root)
-    this.name = name
+  @schema(joi.string().description(`The absolute path to the directory containing the ConfigTemplate being rendered.`))
+  public path: string
+
+  constructor(params: { root: ConfigContext; name: string; path: string }) {
+    super(params.root)
+    this.name = params.name
+    this.path = params.path
   }
 }
 
diff --git a/core/src/config/template-contexts/module.ts b/core/src/config/template-contexts/module.ts
index e4f8275e39..bfa68f7277 100644
--- a/core/src/config/template-contexts/module.ts
+++ b/core/src/config/template-contexts/module.ts
@@ -21,6 +21,7 @@ import type { DeployTask } from "../../tasks/deploy.js"
 import type { RunTask } from "../../tasks/run.js"
 import { DOCS_BASE_URL } from "../../constants.js"
 import { styles } from "../../logger/styles.js"
+import { InternalError } from "../../exceptions.js"
 
 export const exampleVersion = "v-17ad4cb3fd"
 
@@ -252,6 +253,7 @@ export interface ModuleConfigContextParams extends OutputConfigContextParams {
   // Template attributes
   parentName: string | undefined
   templateName: string | undefined
+  templatePath: string | undefined
   inputs: DeepPrimitiveMap | undefined
 }
 
@@ -286,14 +288,19 @@ export class ModuleConfigContext extends OutputConfigContext {
   constructor(params: ModuleConfigContextParams) {
     super(params)
 
-    const { name, path, inputs, parentName, templateName, buildPath } = params
+    const { name, path, inputs, parentName, templateName, templatePath, buildPath } = params
 
     // Throw specific error when attempting to resolve self
     this.modules.set(name, new ErrorContext(`Config ${styles.highlight.bold(name)} cannot reference itself.`))
 
-    if (parentName && templateName) {
+    if (parentName) {
+      if (!templateName || !templatePath) {
+        throw new InternalError({
+          message: `Missing template name and path when rendering ${parentName}. This is a bug, please report to the Garden team.`,
+        })
+      }
       this.parent = new ParentContext(this, parentName)
-      this.template = new TemplateContext(this, templateName)
+      this.template = new TemplateContext({ root: this, name: templateName, path: templatePath })
     }
     this.inputs = inputs || {}
 
diff --git a/core/src/config/template-contexts/project.ts b/core/src/config/template-contexts/project.ts
index 82500c4ffb..683dcb6e7a 100644
--- a/core/src/config/template-contexts/project.ts
+++ b/core/src/config/template-contexts/project.ts
@@ -440,8 +440,12 @@ export class TemplatableConfigContext extends RemoteSourceConfigContext {
 
   constructor(garden: Garden, config: ActionConfig | WorkflowConfig) {
     super(garden, garden.variables)
-    this.inputs = config.internal.inputs || {}
-    this.parent = config.internal.parentName ? new ParentContext(this, config.internal.parentName) : undefined
-    this.template = config.internal.templateName ? new TemplateContext(this, config.internal.templateName) : undefined
+    const { inputs, parentName, templateName, templatePath } = config.internal
+    this.inputs = inputs || {}
+    this.parent = parentName ? new ParentContext(this, parentName) : undefined
+    this.template =
+      templateName && templatePath
+        ? new TemplateContext({ root: this, name: templateName, path: templatePath })
+        : undefined
   }
 }
diff --git a/core/src/config/template-contexts/render.ts b/core/src/config/template-contexts/render.ts
index b44a2947a7..45d12ed4d8 100644
--- a/core/src/config/template-contexts/render.ts
+++ b/core/src/config/template-contexts/render.ts
@@ -27,11 +27,16 @@ export class RenderTemplateConfigContext extends ProjectConfigContext {
   public inputs: DeepPrimitiveMap
 
   constructor(
-    params: { parentName: string; templateName: string; inputs: DeepPrimitiveMap } & ProjectConfigContextParams
+    params: {
+      parentName: string
+      templatePath: string
+      templateName: string
+      inputs: DeepPrimitiveMap
+    } & ProjectConfigContextParams
   ) {
     super(params)
     this.parent = new ParentContext(this, params.parentName)
-    this.template = new TemplateContext(this, params.templateName)
+    this.template = new TemplateContext({ root: this, path: params.templatePath, name: params.templateName })
     this.inputs = params.inputs
   }
 }
diff --git a/core/src/resolve-module.ts b/core/src/resolve-module.ts
index 422af69cba..2f2f9b4be1 100644
--- a/core/src/resolve-module.ts
+++ b/core/src/resolve-module.ts
@@ -518,6 +518,7 @@ export class ModuleResolver {
       buildPath,
       parentName: rawConfig.parentName,
       templateName: rawConfig.templateName,
+      templatePath: rawConfig.path,
       inputs: {},
       modules: [],
       graphResults: this.graphResults,
@@ -606,6 +607,7 @@ export class ModuleResolver {
       buildPath,
       parentName: config.parentName,
       templateName: config.templateName,
+      templatePath: config.path,
       inputs,
       graphResults: this.graphResults,
       partialRuntimeResolution: true,
@@ -812,6 +814,7 @@ export class ModuleResolver {
       buildPath,
       parentName: resolvedConfig.parentName,
       templateName: resolvedConfig.templateName,
+      templatePath: resolvedConfig.path,
       inputs: resolvedConfig.inputs,
       modules: dependencies,
       graphResults: this.graphResults,
diff --git a/core/test/unit/src/config/render-template.ts b/core/test/unit/src/config/render-template.ts
index b52ad804ae..925498d044 100644
--- a/core/test/unit/src/config/render-template.ts
+++ b/core/test/unit/src/config/render-template.ts
@@ -183,6 +183,7 @@ describe("config templates", () => {
             {
               type: "test",
               name: "${parent.name}-${template.name}-${inputs.foo}",
+              variables: { templatePath: "${template.path}" },
               build: {
                 dependencies: [{ name: "${parent.name}-${template.name}-foo", copy: [] }],
                 timeout: DEFAULT_BUILD_TIMEOUT_SEC,
@@ -205,6 +206,7 @@ describe("config templates", () => {
       expect(module.name).to.equal("test-test-bar")
       expect(module.build.dependencies).to.eql([{ name: "test-test-foo", copy: [] }])
       expect(module.spec.image).to.equal("${modules.foo.outputs.bar || inputs.foo}")
+      expect(module.variables!["templatePath"]).to.equal(garden.projectRoot)
     })
 
     it("throws if config is invalid", async () => {
diff --git a/core/test/unit/src/config/template-contexts/module.ts b/core/test/unit/src/config/template-contexts/module.ts
index 631047293c..9ce5b2d495 100644
--- a/core/test/unit/src/config/template-contexts/module.ts
+++ b/core/test/unit/src/config/template-contexts/module.ts
@@ -49,6 +49,7 @@ describe("ModuleConfigContext", () => {
       parentName: module.parentName,
       inputs: module.inputs,
       templateName: module.templateName,
+      templatePath: module.templatePath,
     })
   })