diff --git a/docs/features/software-templates/writing-templates.md b/docs/features/software-templates/writing-templates.md
index ff9962d8d4..5597916bee 100644
--- a/docs/features/software-templates/writing-templates.md
+++ b/docs/features/software-templates/writing-templates.md
@@ -485,6 +485,66 @@ 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.
 These template strings preserve the type of the parameter.
 
+The `${{ parameters.firstName }}` pattern will work only in the template file.
+If you want to start using values provided from the UI in your code, you will have to use
+the `${{ values.firstName }}` pattern. Additionally, you have to pass
+the parameters from the UI to the input of the `fetch:template` step.
+
+```yaml
+apiVersion: scaffolder.backstage.io/v1beta3
+kind: Template
+metadata:
+  name: v1beta3-demo
+  title: Test Action
+  description: scaffolder v1beta3 template demo
+spec:
+  owner: backstage/techdocs-core
+  type: service
+  parameters:
+    - title: Fill in some steps
+      required:
+        - name
+      properties:
+        name:
+          title: Name
+          type: string
+          description: Unique name of your project
+        urlParameter:
+          title: URL endpoint
+          type: string
+          description: URL endpoint at which the component can be reached
+          default: "https://www.example.com"
+        enabledDB:
+          title: Enable Database
+          type: boolean
+          default: false
+
+...
+
+  steps:
+    - id: fetch-base
+      name: Fetch Base
+      action: fetch:template
+      input:
+        url: ./template
+        values:
+          name: ${{ parameters.name }}
+          url: ${{ parameters.urlParameter }}
+          enabledDB: ${{ parameters.enabledDB }}
+```
+
+Afterwards, if you are using the builtin templating action, you can start using
+the variables in your code. You can use also any other templating fuctions from
+[Nunjucks](https://mozilla.github.io/nunjucks/templating.html#tags) as well.
+
+```bash
+#!/bin/bash
+echo "Hi my name is ${{ values.name }}, and you can fine me at ${{ values.url }}!"
+{% if values.enabledDB %}
+echo "You have enabled your database!"
+{% endif %}
+```
+
 As you can see above in the `Outputs` section, `actions` and `steps` can also
 output things. You can grab that output using `steps.$stepId.output.$property`.