diff --git a/packages/cli/src/lib/new/preparation/loadPortableTemplate.test.ts b/packages/cli/src/lib/new/preparation/loadPortableTemplate.test.ts
index 74892ebceb..89a8e0c6aa 100644
--- a/packages/cli/src/lib/new/preparation/loadPortableTemplate.test.ts
+++ b/packages/cli/src/lib/new/preparation/loadPortableTemplate.test.ts
@@ -18,26 +18,56 @@ import { createMockDirectory } from '@backstage/backend-test-utils';
 import { loadPortableTemplate } from './loadPortableTemplate';
 
 describe('loadTemplate', () => {
+  const mockDir = createMockDirectory();
+
+  afterEach(() => {
+    mockDir.clear();
+  });
+
   it('should load a valid template', async () => {
-    const mockDir = createMockDirectory({
-      content: {
-        'path/to/template1.yaml': `
-          template: template1
+    mockDir.setContent({
+      'path/to/template.yaml': `
+          name: template1
           role: frontend-plugin
           parameters:
             foo: bar
         `,
-        'path/to/template1/hello.txt': 'hello world',
-      },
+      'path/to/hello.txt': 'hello world',
     });
 
-    const result = await loadPortableTemplate({
-      id: 'template1',
-      target: mockDir.resolve('path/to/template1.yaml'),
+    await expect(
+      loadPortableTemplate({
+        name: 'template1',
+        target: mockDir.resolve('path/to/template.yaml'),
+      }),
+    ).resolves.toEqual({
+      name: 'template1',
+      role: 'frontend-plugin',
+      files: [{ path: 'hello.txt', content: 'hello world' }],
+      parameters: { foo: 'bar' },
+      templateValues: {},
+    });
+  });
+
+  it('should load a valid template with files in a separate dir', async () => {
+    mockDir.setContent({
+      'path/to/template.yaml': `
+          name: template1
+          role: frontend-plugin
+          files: content
+          parameters:
+            foo: bar
+        `,
+      'path/to/content/hello.txt': 'hello world',
     });
 
-    expect(result).toEqual({
-      id: 'template1',
+    await expect(
+      loadPortableTemplate({
+        name: 'template1',
+        target: mockDir.resolve('path/to/template.yaml'),
+      }),
+    ).resolves.toEqual({
+      name: 'template1',
       role: 'frontend-plugin',
       files: [{ path: 'hello.txt', content: 'hello world' }],
       parameters: { foo: 'bar' },
@@ -46,11 +76,11 @@ describe('loadTemplate', () => {
   });
 
   it('should throw an error if template file does not exist', async () => {
-    const mockDir = createMockDirectory();
+    mockDir.setContent({});
 
     await expect(
       loadPortableTemplate({
-        id: 'template1',
+        name: 'template1',
         target: mockDir.resolve('path/to/template1.yaml'),
       }),
     ).rejects.toThrow(
@@ -59,15 +89,13 @@ describe('loadTemplate', () => {
   });
 
   it('should throw an error if template definition is invalid', async () => {
-    const mockDir = createMockDirectory({
-      content: {
-        'path/to/template1.yaml': `invalid: definition`,
-      },
+    mockDir.setContent({
+      'path/to/template1.yaml': `invalid: definition`,
     });
 
     await expect(
       loadPortableTemplate({
-        id: 'template1',
+        name: 'template1',
         target: mockDir.resolve('path/to/template1.yaml'),
       }),
     ).rejects.toThrow(
@@ -78,34 +106,24 @@ describe('loadTemplate', () => {
   it('should throw an error if target is a remote URL', async () => {
     await expect(
       loadPortableTemplate({
-        id: 'template1',
-        target: 'http://example.com',
-      }),
-    ).rejects.toThrow('Remote templates are not supported yet');
-  });
-
-  it('should throw an error if target directory does not exist', async () => {
-    await expect(
-      loadPortableTemplate({
-        id: 'template1',
+        name: 'template1',
         target: 'http://example.com',
       }),
     ).rejects.toThrow('Remote templates are not supported yet');
   });
 
   it('should throw an error if the package role is invalid', async () => {
-    const mockDir = createMockDirectory({
-      content: {
-        'path/to/template1.yaml': `
-          template: template1
-          role: invalid-role
-        `,
-      },
+    mockDir.setContent({
+      'path/to/template1.yaml': `
+        name: x
+        role: invalid-role
+        files: template1
+      `,
     });
 
     await expect(
       loadPortableTemplate({
-        id: 'template1',
+        name: 'template1',
         target: mockDir.resolve('path/to/template1.yaml'),
       }),
     ).rejects.toThrow(
@@ -116,18 +134,17 @@ describe('loadTemplate', () => {
   });
 
   it('should throw an error if template directory does not exist', async () => {
-    const mockDir = createMockDirectory({
-      content: {
-        'path/to/template1.yaml': `
-          template: template1
-          role: frontend-plugin
-        `,
-      },
+    mockDir.setContent({
+      'path/to/template1.yaml': `
+        name: x
+        role: frontend-plugin
+        files: template1
+      `,
     });
 
     await expect(
       loadPortableTemplate({
-        id: 'template1',
+        name: 'template1',
         target: mockDir.resolve('path/to/template1.yaml'),
       }),
     ).rejects.toThrow(
diff --git a/packages/cli/src/lib/new/preparation/loadPortableTemplate.ts b/packages/cli/src/lib/new/preparation/loadPortableTemplate.ts
index 6d2c2ec624..60246351e6 100644
--- a/packages/cli/src/lib/new/preparation/loadPortableTemplate.ts
+++ b/packages/cli/src/lib/new/preparation/loadPortableTemplate.ts
@@ -32,8 +32,10 @@ import { fromZodError } from 'zod-validation-error';
 
 const templateDefinitionSchema = z
   .object({
+    name: z.string(),
     role: z.enum(TEMPLATE_ROLES),
-    template: z.string(),
+    description: z.string().optional(),
+    files: z.string().optional(),
     parameters: z.record(z.string()).optional(),
     templateValues: z.record(z.string()).optional(),
   })
@@ -63,9 +65,14 @@ export async function loadPortableTemplate(
     );
   }
 
-  const { role, template, parameters = {}, templateValues = {} } = parsed.data;
+  const {
+    role,
+    files = '.',
+    parameters = {},
+    templateValues = {},
+  } = parsed.data;
 
-  const templatePath = resolvePath(dirname(pointer.target), template);
+  const templatePath = resolvePath(dirname(pointer.target), files);
   const filePaths = await recursiveReaddir(templatePath).catch(error => {
     throw new ForwardedError(
       `Failed to load template contents from '${templatePath}'`,
@@ -73,10 +80,13 @@ export async function loadPortableTemplate(
     );
   });
 
-  const files = new Array<PortableTemplateFile>();
+  const loadedFiles = new Array<PortableTemplateFile>();
 
   for (const filePath of filePaths) {
     const path = relativePath(templatePath, filePath);
+    if (filePath === pointer.target) {
+      continue;
+    }
 
     const content = await fs.readFile(filePath, 'utf-8').catch(error => {
       throw new ForwardedError(
@@ -86,11 +96,21 @@ export async function loadPortableTemplate(
     });
 
     if (path.endsWith('.hbs')) {
-      files.push({ path: path.slice(0, -4), content, syntax: 'handlebars' });
+      loadedFiles.push({
+        path: path.slice(0, -4),
+        content,
+        syntax: 'handlebars',
+      });
     } else {
-      files.push({ path, content });
+      loadedFiles.push({ path, content });
     }
   }
 
-  return { id: pointer.id, role, files, parameters, templateValues };
+  return {
+    name: pointer.name,
+    role,
+    files: loadedFiles,
+    parameters,
+    templateValues,
+  };
 }
diff --git a/packages/cli/src/lib/new/preparation/selectTemplateInteractively.ts b/packages/cli/src/lib/new/preparation/selectTemplateInteractively.ts
index 1b93743116..808efffc0a 100644
--- a/packages/cli/src/lib/new/preparation/selectTemplateInteractively.ts
+++ b/packages/cli/src/lib/new/preparation/selectTemplateInteractively.ts
@@ -38,15 +38,15 @@ export async function selectTemplateInteractively(
         message: 'What do you want to create?',
         choices: config.templatePointers.map(t =>
           t.description
-            ? { name: `${t.id} - ${t.description}`, value: t.id }
-            : t.id,
+            ? { name: `${t.name} - ${t.description}`, value: t.name }
+            : t.name,
         ),
       },
     ]);
     selectedId = answers.id;
   }
 
-  const template = config.templatePointers.find(t => t.id === selectedId);
+  const template = config.templatePointers.find(t => t.name === selectedId);
   if (!template) {
     throw new Error(`Template '${selectedId}' not found`);
   }
diff --git a/packages/cli/src/lib/new/types.ts b/packages/cli/src/lib/new/types.ts
index 289cd58262..009ab2a81b 100644
--- a/packages/cli/src/lib/new/types.ts
+++ b/packages/cli/src/lib/new/types.ts
@@ -66,7 +66,7 @@ export type PortableTemplateFile = {
 };
 
 export type PortableTemplate = {
-  id: string;
+  name: string;
   role: PortableTemplateRole;
   files: PortableTemplateFile[];
   parameters: Record<string, string>;