diff --git a/.changeset/perfect-cheetahs-serve.md b/.changeset/perfect-cheetahs-serve.md
new file mode 100644
index 0000000000..08f7c1da21
--- /dev/null
+++ b/.changeset/perfect-cheetahs-serve.md
@@ -0,0 +1,5 @@
+---
+'@backstage/plugin-scaffolder-backend': minor
+---
+
+Added the option to overwrite files in the `targetPath` of the `template:fetch` action
diff --git a/plugins/scaffolder-backend/api-report.md b/plugins/scaffolder-backend/api-report.md
index 1a3c1db03f..7f8ab0ad79 100644
--- a/plugins/scaffolder-backend/api-report.md
+++ b/plugins/scaffolder-backend/api-report.md
@@ -127,6 +127,7 @@ export function createFetchTemplateAction(options: {
   copyWithoutRender?: string[] | undefined;
   copyWithoutTemplating?: string[] | undefined;
   cookiecutterCompat?: boolean | undefined;
+  replace?: boolean | undefined;
 }>;
 
 // @public
diff --git a/plugins/scaffolder-backend/src/scaffolder/actions/builtin/fetch/template.test.ts b/plugins/scaffolder-backend/src/scaffolder/actions/builtin/fetch/template.test.ts
index 6b03290e1e..6658e1915d 100644
--- a/plugins/scaffolder-backend/src/scaffolder/actions/builtin/fetch/template.test.ts
+++ b/plugins/scaffolder-backend/src/scaffolder/actions/builtin/fetch/template.test.ts
@@ -669,4 +669,81 @@ describe('fetch:template', () => {
       ).resolves.toEqual('test-project: 1234');
     });
   });
+
+  describe('with replacement of existing files', () => {
+    let context: ActionContext<FetchTemplateInput>;
+
+    beforeEach(async () => {
+      context = mockContext({
+        values: {
+          name: 'test-project',
+          count: 1234,
+        },
+        replace: true,
+      });
+
+      mockFetchContents.mockImplementation(({ outputPath }) => {
+        mockFs({
+          ...realFiles,
+          [joinPath(workspacePath, 'target')]: {
+            'static-content.txt': 'static-content',
+          },
+          [outputPath]: {
+            'static-content.txt': '${{ values.name }}: ${{ values.count }}',
+          },
+        });
+
+        return Promise.resolve();
+      });
+
+      await action.handler(context);
+    });
+
+    afterEach(() => {
+      mockFs.restore();
+    });
+
+    it('overwrites existing file', async () => {
+      await expect(
+        fs.readFile(`${workspacePath}/target/static-content.txt`, 'utf-8'),
+      ).resolves.toEqual('test-project: 1234');
+    });
+  });
+
+  describe('without replacement of existing files', () => {
+    let context: ActionContext<FetchTemplateInput>;
+
+    beforeEach(async () => {
+      context = mockContext({
+        values: {
+          name: 'test-project',
+          count: 1234,
+        },
+        targetPath: './target',
+        replace: false,
+      });
+
+      mockFetchContents.mockImplementation(({ outputPath }) => {
+        mockFs({
+          ...realFiles,
+          [joinPath(workspacePath, 'target')]: {
+            'static-content.txt': 'static-content',
+          },
+          [outputPath]: {
+            'static-content.txt': '${{ values.name }}: ${{ values.count }}',
+          },
+        });
+
+        return Promise.resolve();
+      });
+
+      await action.handler(context);
+    });
+
+    it('keeps existing file', async () => {
+      await expect(
+        fs.readFile(`${workspacePath}/target/static-content.txt`, 'utf-8'),
+      ).resolves.toEqual('static-content');
+    });
+  });
 });
diff --git a/plugins/scaffolder-backend/src/scaffolder/actions/builtin/fetch/template.ts b/plugins/scaffolder-backend/src/scaffolder/actions/builtin/fetch/template.ts
index 10a9d0c055..81b3f4577c 100644
--- a/plugins/scaffolder-backend/src/scaffolder/actions/builtin/fetch/template.ts
+++ b/plugins/scaffolder-backend/src/scaffolder/actions/builtin/fetch/template.ts
@@ -62,6 +62,7 @@ export function createFetchTemplateAction(options: {
     copyWithoutRender?: string[];
     copyWithoutTemplating?: string[];
     cookiecutterCompat?: boolean;
+    replace?: boolean;
   }>({
     id: 'fetch:template',
     description:
@@ -118,6 +119,12 @@ export function createFetchTemplateAction(options: {
               'If set, only files with the given extension will be templated. If set to `true`, the default extension `.njk` is used.',
             type: ['string', 'boolean'],
           },
+          replace: {
+            title: 'Replace files',
+            description:
+              'If set, replace files in targetPath instead of skipping existing ones.',
+            type: 'boolean',
+          },
         },
       },
     },
@@ -261,7 +268,7 @@ export function createFetchTemplateAction(options: {
         }
 
         const outputPath = resolveSafeChildPath(outputDir, localOutputPath);
-        if (fs.existsSync(outputPath)) {
+        if (fs.existsSync(outputPath) && !ctx.input.replace) {
           continue;
         }