diff --git a/docs/tooling/cli/04-templates.md b/docs/tooling/cli/04-templates.md
index a4b3a07db1..47a4f4d663 100644
--- a/docs/tooling/cli/04-templates.md
+++ b/docs/tooling/cli/04-templates.md
@@ -106,7 +106,6 @@ Your first step in creating your own CLI template is composing your yaml file:
 name: custom-plugin
 role: frontend-plugin
 description: Description of my CLI template # optional
-files: ./template # optional
 templateValues: # optional
   pluginVar: '{{ camelCase pluginId }}Plugin'
 ```
@@ -116,7 +115,6 @@ The following properties are supported:
 - `name` **(required)** - The name of your template, used by the user to select it.
 - `role` **(required)** - The role of the template, similar to package role. See [Template Roles](#template-roles) for more details.
 - `description` - A description of the type of package that this template produces.
-- `files` - A directory or list of relative file paths pointing to the contents of your template. Defaults to the current directory.
 - `parameters` - A map of pre-filled parameters that will be used instead of prompting the user for input.
 - `templateValues` - A map of additional values that will be present during templating. The values are themselves templated and can reference other values.
 
diff --git a/packages/cli/src/lib/new/preparation/loadPortableTemplate.test.ts b/packages/cli/src/lib/new/preparation/loadPortableTemplate.test.ts
index 89a8e0c6aa..ad81862379 100644
--- a/packages/cli/src/lib/new/preparation/loadPortableTemplate.test.ts
+++ b/packages/cli/src/lib/new/preparation/loadPortableTemplate.test.ts
@@ -49,32 +49,6 @@ describe('loadTemplate', () => {
     });
   });
 
-  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',
-    });
-
-    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 throw an error if template file does not exist', async () => {
     mockDir.setContent({});
 
@@ -117,7 +91,6 @@ describe('loadTemplate', () => {
       'path/to/template1.yaml': `
         name: x
         role: invalid-role
-        files: template1
       `,
     });
 
@@ -132,25 +105,4 @@ describe('loadTemplate', () => {
       )}'; caused by Validation error: Invalid enum value`,
     );
   });
-
-  it('should throw an error if template directory does not exist', async () => {
-    mockDir.setContent({
-      'path/to/template1.yaml': `
-        name: x
-        role: frontend-plugin
-        files: template1
-      `,
-    });
-
-    await expect(
-      loadPortableTemplate({
-        name: 'template1',
-        target: mockDir.resolve('path/to/template1.yaml'),
-      }),
-    ).rejects.toThrow(
-      `Failed to load template contents from '${mockDir.resolve(
-        'path/to/template1',
-      )}'`,
-    );
-  });
 });
diff --git a/packages/cli/src/lib/new/preparation/loadPortableTemplate.ts b/packages/cli/src/lib/new/preparation/loadPortableTemplate.ts
index 60246351e6..eaf6ecc90b 100644
--- a/packages/cli/src/lib/new/preparation/loadPortableTemplate.ts
+++ b/packages/cli/src/lib/new/preparation/loadPortableTemplate.ts
@@ -35,7 +35,6 @@ const templateDefinitionSchema = z
     name: z.string(),
     role: z.enum(TEMPLATE_ROLES),
     description: z.string().optional(),
-    files: z.string().optional(),
     parameters: z.record(z.string()).optional(),
     templateValues: z.record(z.string()).optional(),
   })
@@ -65,14 +64,9 @@ export async function loadPortableTemplate(
     );
   }
 
-  const {
-    role,
-    files = '.',
-    parameters = {},
-    templateValues = {},
-  } = parsed.data;
+  const { role, parameters = {}, templateValues = {} } = parsed.data;
 
-  const templatePath = resolvePath(dirname(pointer.target), files);
+  const templatePath = resolvePath(dirname(pointer.target));
   const filePaths = await recursiveReaddir(templatePath).catch(error => {
     throw new ForwardedError(
       `Failed to load template contents from '${templatePath}'`,