diff --git a/plugins/scaffolder-backend/src/scaffolder/actions/builtin/fetch/template.test.ts b/plugins/scaffolder-backend/src/scaffolder/actions/builtin/fetch/template.test.ts
index c870d9a6b7..0b90db54e1 100644
--- a/plugins/scaffolder-backend/src/scaffolder/actions/builtin/fetch/template.test.ts
+++ b/plugins/scaffolder-backend/src/scaffolder/actions/builtin/fetch/template.test.ts
@@ -226,6 +226,12 @@ describe('fetch:template', () => {
         ).resolves.toEqual(false);
       });
 
+      it('skips empty filename inside directory', async () => {
+        await expect(
+          fs.pathExists(`${workspacePath}/target/subdir3/fileSkippedInsideDirectory.txt`),
+        ).resolves.toEqual(false);
+      });      
+
       it('skips content of empty subdirectory', async () => {
         await expect(
           fs.pathExists(
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 119c870002..25457f4775 100644
--- a/plugins/scaffolder-backend/src/scaffolder/actions/builtin/fetch/template.ts
+++ b/plugins/scaffolder-backend/src/scaffolder/actions/builtin/fetch/template.ts
@@ -217,6 +217,9 @@ export function createFetchTemplateAction(options: {
         }
 
         const outputPath = resolveSafeChildPath(outputDir, localOutputPath);
+        if (fs.existsSync(outputPath)) {
+          continue;
+        }
 
         if (!renderContents && !extension) {
           ctx.logger.info(