diff --git a/docs/features/software-catalog/descriptor-format.md b/docs/features/software-catalog/descriptor-format.md
index 988af89e47..fb17f4a434 100644
--- a/docs/features/software-catalog/descriptor-format.md
+++ b/docs/features/software-catalog/descriptor-format.md
@@ -654,7 +654,7 @@ spec:
   steps:
     - id: fetch-base
       name: Fetch Base
-      action: fetch:cookiecutter
+      action: fetch:template
       input:
         url: ./template
         values:
diff --git a/docs/features/software-templates/adding-templates.md b/docs/features/software-templates/adding-templates.md
index d185558949..2cdf6f1b35 100644
--- a/docs/features/software-templates/adding-templates.md
+++ b/docs/features/software-templates/adding-templates.md
@@ -51,7 +51,7 @@ spec:
   steps:
     - id: fetch-base
       name: Fetch Base
-      action: fetch:cookiecutter
+      action: fetch:template
       input:
         url: ./template
         values:
diff --git a/docs/features/software-templates/builtin-actions.md b/docs/features/software-templates/builtin-actions.md
index 14dc7ef861..a165a0a274 100644
--- a/docs/features/software-templates/builtin-actions.md
+++ b/docs/features/software-templates/builtin-actions.md
@@ -14,3 +14,39 @@ Azure, GitLab and Bitbucket.
 A list of all registered actions can be found under `/create/actions`. For local
 development you should be able to reach them at
 `http://localhost:3000/create/actions`.
+
+### Migrating from `fetch:cookiecutter` to `fetch:template`
+
+The `fetch:template` action is a new action with a similar API to
+`fetch:cookiecutter` but no dependency on `cookiecutter`. There are two options
+for migrating templates that use `fetch:cookiecutter` to use `fetch:template`:
+
+#### Using `cookiecutterCompat` mode
+
+The new `fetch:template` action has a `cookiecutterCompat` flag which should
+allow most templates built for `fetch:cookiecutter` to work without any changes.
+
+1. Update action name in `template.yaml`. The name should be changed from
+   `fetch:cookiecutter` to `fetch:template`.
+2. Set `cookieCutterCompat` to `true` in the `fetch:template` step input in
+   `template.yaml`.
+
+#### Manual migration
+
+If you prefer, you can manually migrate your templates to avoid the need for
+enabling cookiecutter compatibility mode, which will result in slightly less
+verbose template variables expressions.
+
+1. Update action name in `template.yaml`. The name should be changed from
+   `fetch:cookiecutter` to `fetch:template`.
+2. Update variable syntax in file names and content. `fetch:cookiecutter`
+   expects variables to be enclosed in `{{` `}}` and prefixed with
+   `cookiecutter.`, while `fetch:template` doesn't require prefixing and expects
+   variables to be enclosed in `${{` `}}`. For example, a reference to variable
+   `myInputVariable` would need to be migrated from
+   `{{ cookiecutter.myInputVariable }}` to `${{ myInputVariable }}`.
+3. Replace uses of `jsonify` with `dump`. The `jsonify` filter is built in to
+   `cookiecutter`, and is not available by default when using `fetch:template`.
+   The `dump` filter is equivalent, so an expression like
+   `{{ myAwesomeList | jsonify }}` should be migrated to
+   `${{ myAwesomeList | dump }}`.
diff --git a/docs/features/software-templates/writing-templates.md b/docs/features/software-templates/writing-templates.md
index 529376eb89..7b475f2fa1 100644
--- a/docs/features/software-templates/writing-templates.md
+++ b/docs/features/software-templates/writing-templates.md
@@ -62,7 +62,7 @@ spec:
   steps:
     - id: fetch-base
       name: Fetch Base
-      action: fetch:cookiecutter
+      action: fetch:template
       input:
         url: ./template
         values:
@@ -289,8 +289,8 @@ template. These follow the same standard format:
 - id: fetch-base # A unique id for the step
   name: Fetch Base # A title displayed in the frontend
   if: '{{ parameters.name }}' # Optional condition, skip the step if not truthy
-  action: fetch:cookiecutter # an action to call
-  input: # input that is passed as arguments to the action handler
+  action: fetch:template # An action to call
+  input: # Input that is passed as arguments to the action handler
     url: ./template
     values:
       name: '{{ parameters.name }}'
@@ -317,20 +317,20 @@ output:
 
 ### The templating syntax
 
-You might have noticed in the examples that there are `{{ }}`, and these are a
-`handlebars` templates for linking and glueing all these different parts of
-`yaml` together. All the form inputs from the `parameters` section, when passed
-to the steps will be available by using the template syntax
-`{{ parameters.something }}`. This is great for passing the values from the form
-into different steps and reusing these input variables. To pass arrays or
-objects use the syntax `{{ json paramaters.something }}` where
-`paramaters.something` is of type `object` or `array` in the `jsonSchema`, such
-as the `nicknames` parameter in the previous example.
+You might have noticed variables wrapped in `{{ }}` in the examples. These are
+`handlebars` template strings for linking and gluing the different parts of the
+template together. All the form inputs from the `parameters` section will be
+available by using this template syntax (for example,
+`{{ parameters.firstName }}` inserts the value of `firstName` from the
+parameters). This is great for passing the values from the form into different
+steps and reusing these input variables. To pass arrays or objects use the
+`json` custom [helper](https://handlebarsjs.com/guide/expressions.html#helpers).
+For example, `{{ json parameters.nicknames }}` will insert the result of calling
+`JSON.stringify` on the value of the `nicknames` parameter.
 
 As you can see above in the `Outputs` section, `actions` and `steps` can also
-output things. So you can grab that output by using
-`steps.$stepId.output.$property`.
+output things. You can grab that output using `steps.$stepId.output.$property`.
 
 You can read more about all the `inputs` and `outputs` defined in the actions in
-code part of the `JSONSchema` or you can read more about our built in ones
+code part of the `JSONSchema`, or you can read more about our built in ones
 [here](./builtin-actions.md).
diff --git a/plugins/scaffolder-backend/src/scaffolder/actions/builtin/debug/log.ts b/plugins/scaffolder-backend/src/scaffolder/actions/builtin/debug/log.ts
index 9b160b1dc3..557190dbbc 100644
--- a/plugins/scaffolder-backend/src/scaffolder/actions/builtin/debug/log.ts
+++ b/plugins/scaffolder-backend/src/scaffolder/actions/builtin/debug/log.ts
@@ -26,7 +26,7 @@ export function createDebugLogAction() {
   return createTemplateAction<{ message?: string; listWorkspace?: boolean }>({
     id: 'debug:log',
     description:
-      'Writes a message into the log or list all files in the workspace.',
+      'Writes a message into the log or lists all files in the workspace.',
     schema: {
       input: {
         type: 'object',
diff --git a/plugins/scaffolder-backend/src/scaffolder/actions/builtin/fetch/cookiecutter.ts b/plugins/scaffolder-backend/src/scaffolder/actions/builtin/fetch/cookiecutter.ts
index 62dfc20125..d179270303 100644
--- a/plugins/scaffolder-backend/src/scaffolder/actions/builtin/fetch/cookiecutter.ts
+++ b/plugins/scaffolder-backend/src/scaffolder/actions/builtin/fetch/cookiecutter.ts
@@ -41,7 +41,7 @@ export function createFetchCookiecutterAction(options: {
   }>({
     id: 'fetch:cookiecutter',
     description:
-      'Downloads a template from the given URL into the workspace, and runs cookiecutter on it.',
+      "Downloads a template from the given URL into the workspace, and runs cookiecutter on it. This action is deprecated in favor of 'fetch:template'. See https://backstage.io/docs/features/software-templates/builtin-actions#migrating-from-fetch-cookiecutter-to-fetch-template for more details.",
     schema: {
       input: {
         type: 'object',
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 cbe74dc472..05e7ebaaa6 100644
--- a/plugins/scaffolder-backend/src/scaffolder/actions/builtin/fetch/template.ts
+++ b/plugins/scaffolder-backend/src/scaffolder/actions/builtin/fetch/template.ts
@@ -55,7 +55,7 @@ export function createFetchTemplateAction(options: {
   return createTemplateAction<FetchTemplateInput>({
     id: 'fetch:template',
     description:
-      "Downloads a skeleton and will template variables into the skeleton and places the result in the workspace, or optionally in a subdirectory specified by the 'targetPath' input option.",
+      "Downloads a skeleton, templates variables into file and directory names and content, and places the result in the workspace, or optionally in a subdirectory specified by the 'targetPath' input option.",
     schema: {
       input: {
         type: 'object',