diff --git a/src/compiler/compile/render_dom/wrappers/Element/index.ts b/src/compiler/compile/render_dom/wrappers/Element/index.ts
index eb57233ed0..02bc2bf62e 100644
--- a/src/compiler/compile/render_dom/wrappers/Element/index.ts
+++ b/src/compiler/compile/render_dom/wrappers/Element/index.ts
@@ -289,7 +289,10 @@ export default class ElementWrapper extends Wrapper {
 
 		// insert static children with textContent or innerHTML
 		const can_use_textcontent = this.can_use_textcontent();
-		if (!this.node.namespace && (this.can_use_innerhtml || can_use_textcontent) && this.fragment.nodes.length > 0) {
+		const isTemplate = this.node.name == 'template';
+		// skip textcontent logic for <template>. should append to the template .content 
+		const isTemplateWithTextContent = isTemplate && can_use_textcontent;
+		if (!isTemplateWithTextContent && !this.node.namespace && (this.can_use_innerhtml || can_use_textcontent) && this.fragment.nodes.length > 0) {
 			if (this.fragment.nodes.length === 1 && this.fragment.nodes[0].node.type === 'Text') {
 				block.chunks.create.push(
 					b`${node}.textContent = ${string_literal((this.fragment.nodes[0] as TextWrapper).data)};`