diff --git a/.changeset/breezy-gifts-wave.md b/.changeset/breezy-gifts-wave.md
new file mode 100644
index 0000000000..2bea8e8cd1
--- /dev/null
+++ b/.changeset/breezy-gifts-wave.md
@@ -0,0 +1,5 @@
+---
+'@backstage/plugin-scaffolder-backend': patch
+---
+
+Fix issue #7021 scaffolder action fetch:template preserves templates file permissions
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 752212606f..d676af56ca 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
@@ -146,6 +146,10 @@ describe('fetch:template', () => {
         mockFetchContents.mockImplementation(({ outputPath }) => {
           mockFs({
             [outputPath]: {
+              'an-executable.sh': mockFs.file({
+                content: '#!/usr/bin/env bash',
+                mode: parseInt('100755', 8),
+              }),
               'empty-dir-${{ values.count }}': {},
               'static.txt': 'static content',
               '${{ values.name }}.txt': 'static content',
@@ -211,6 +215,13 @@ describe('fetch:template', () => {
           fs.readFile(`${workspacePath}/target/a-binary-file.png`),
         ).resolves.toEqual(aBinaryFile);
       });
+      it('copies files and maintains the original file permissions', async () => {
+        await expect(
+          fs
+            .stat(`${workspacePath}/target/an-executable.sh`)
+            .then(fObj => fObj.mode),
+        ).resolves.toEqual(parseInt('100755', 8));
+      });
     });
 
     describe('copyWithoutRender', () => {
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 425623d154..bb568c25e6 100644
--- a/plugins/scaffolder-backend/src/scaffolder/actions/builtin/fetch/template.ts
+++ b/plugins/scaffolder-backend/src/scaffolder/actions/builtin/fetch/template.ts
@@ -262,8 +262,9 @@ export function createFetchTemplateAction(options: {
             );
             await fs.copy(inputFilePath, outputPath);
           } else {
+            const statsObj = await fs.stat(inputFilePath);
             ctx.logger.info(
-              `Writing file ${location} to template output path.`,
+              `Writing file ${location} to template output path with mode ${statsObj.mode}.`,
             );
             const inputFileContents = await fs.readFile(inputFilePath, 'utf-8');
             await fs.outputFile(
@@ -271,6 +272,7 @@ export function createFetchTemplateAction(options: {
               renderContents
                 ? templater.renderString(inputFileContents, context)
                 : inputFileContents,
+              { mode: statsObj.mode },
             );
           }
         }