diff --git a/pkg/engine/engine.go b/pkg/engine/engine.go
index ba1fa9681..e9fda7f6e 100644
--- a/pkg/engine/engine.go
+++ b/pkg/engine/engine.go
@@ -122,29 +122,29 @@ func includeFun(t *template.Template, includedNames map[string]int) func(string,
 	}
 }
 
-// initFunMap creates the Engine's FuncMap and adds context-specific functions.
-func (e Engine) initFunMap(t *template.Template) {
-	funcMap := funcMap()
-	includedNames := make(map[string]int)
-
-	// Add the 'include' function here so we can close over t.
-	funcMap["include"] = includeFun(t, includedNames)
-
-	// Add the 'tpl' function here
-	funcMap["tpl"] = func(tpl string, vals chartutil.Values) (string, error) {
-		t, err := t.Clone()
+// As does 'tpl', so that nested calls to 'tpl' see the templates
+// defined by their enclosing contexts.
+func tplFun(parent *template.Template, includedNames map[string]int) func(string, interface{}) (string, error) {
+	return func(tpl string, vals interface{}) (string, error) {
+		t, err := parent.Clone()
 		if err != nil {
 			return "", errors.Wrapf(err, "cannot clone template")
 		}
 
 		// Re-inject 'include' so that it can close over our clone of t;
 		// this lets any 'define's inside tpl be 'include'd.
-		tplFuncMap := template.FuncMap{
+		t.Funcs(template.FuncMap{
 			"include": includeFun(t, includedNames),
-		}
-		t.Funcs(tplFuncMap)
-
-		t, err = t.Parse(tpl)
+			"tpl":     tplFun(t, includedNames),
+		})
+
+		// We need a .New template, as template text which is just blanks
+		// or comments after parsing out defines just addes new named
+		// template definitions without changing the main template.
+		// https://pkg.go.dev/text/template#Template.Parse
+		// Use the parent's name for lack of a better way to identify the tpl
+		// text string. (Maybe we could use a hash appended to the name?)
+		t, err = t.New(parent.Name()).Parse(tpl)
 		if err != nil {
 			return "", errors.Wrapf(err, "cannot parse template %q", tpl)
 		}
@@ -154,9 +154,19 @@ func (e Engine) initFunMap(t *template.Template) {
 			return "", errors.Wrapf(err, "error during tpl function execution for %q", tpl)
 		}
 
-		// See comment in render explaining the <no value> hack.
+		// See comment in renderWithReferences explaining the <no value> hack.
 		return strings.ReplaceAll(buf.String(), "<no value>", ""), nil
 	}
+}
+
+// initFunMap creates the Engine's FuncMap and adds context-specific functions.
+func (e Engine) initFunMap(t *template.Template) {
+	funcMap := funcMap()
+	includedNames := make(map[string]int)
+
+	// Add the template-rendering functions here so we can close over t.
+	funcMap["include"] = includeFun(t, includedNames)
+	funcMap["tpl"] = tplFun(t, includedNames)
 
 	// Add the `required` function here so we can use lintMode
 	funcMap["required"] = func(warn string, val interface{}) (interface{}, error) {