diff --git a/.changeset/six-camels-perform.md b/.changeset/six-camels-perform.md
index b77c46b800..30741f0613 100644
--- a/.changeset/six-camels-perform.md
+++ b/.changeset/six-camels-perform.md
@@ -1,5 +1,5 @@
 ---
-'@backstage/create-app': minor
+'@backstage/create-app': patch
 ---
 
 Enable specifying an external application template when using the `create-app` CLI command.
diff --git a/packages/create-app/src/createApp.ts b/packages/create-app/src/createApp.ts
index 50facb714d..efa299a3c9 100644
--- a/packages/create-app/src/createApp.ts
+++ b/packages/create-app/src/createApp.ts
@@ -66,7 +66,7 @@ export default async (opts: OptionValues): Promise<void> => {
   ]);
 
   const templateDir = opts.templatePath
-    ? resolvePath(paths.targetDir, opts.templatePath)
+    ? paths.resolveTarget(opts.templatePath)
     : paths.resolveOwn('templates/default-app');
   const tempDir = resolvePath(os.tmpdir(), answers.name);