diff --git a/.changeset/large-comics-knock.md b/.changeset/large-comics-knock.md
new file mode 100644
index 0000000000..860172579e
--- /dev/null
+++ b/.changeset/large-comics-knock.md
@@ -0,0 +1,5 @@
+---
+'@backstage/plugin-scaffolder': patch
+---
+
+fixed issue related template editor fails with multiple templates per file.
diff --git a/plugins/scaffolder/src/components/TemplateEditorPage/TemplateEditorForm.tsx b/plugins/scaffolder/src/components/TemplateEditorPage/TemplateEditorForm.tsx
index 315028219b..15a44cf918 100644
--- a/plugins/scaffolder/src/components/TemplateEditorPage/TemplateEditorForm.tsx
+++ b/plugins/scaffolder/src/components/TemplateEditorPage/TemplateEditorForm.tsx
@@ -123,7 +123,10 @@ export function TemplateEditorForm(props: TemplateEditorFormProps) {
           setSteps(undefined);
           return;
         }
-        const parsed: JsonValue = yaml.parse(content);
+        const parsed: JsonValue = yaml
+          .parseAllDocuments(content)
+          .map(c => c.toJSON())
+          .filter(c => c)[0];
 
         if (!isJsonObject(parsed)) {
           setSteps(undefined);