diff --git a/src/runtime/internal/dom.ts b/src/runtime/internal/dom.ts
index eee5d574fa..a7418ab278 100644
--- a/src/runtime/internal/dom.ts
+++ b/src/runtime/internal/dom.ts
@@ -664,7 +664,8 @@ export class HtmlTag {
 
 	m(html: string, target: HTMLElement, anchor: HTMLElement = null) {
 		if (!this.e) {
-			this.e = element(target.nodeName as keyof HTMLElementTagNameMap);
+			/** #7364  target for <template> may be provided as #document-fragment(11) */
+			this.e = element((target.nodeType === 11 ? 'TEMPLATE' :  target.nodeName) as keyof HTMLElementTagNameMap);
 			this.t = target.tagName !== 'TEMPLATE' ? target : (target as HTMLTemplateElement).content;
 			this.c(html);
 		}
@@ -674,7 +675,7 @@ export class HtmlTag {
 
 	h(html: string) {
 		this.e.innerHTML = html;
-		this.n = Array.from(this.e.nodeName == 'TEMPLATE' ? (this.e as HTMLTemplateElement).content.childNodes : this.e.childNodes);
+		this.n = Array.from(this.e.nodeName === 'TEMPLATE' ? (this.e as HTMLTemplateElement).content.childNodes : this.e.childNodes);
 	}
 
 	i(anchor) {
diff --git a/test/runtime/samples/template/main.svelte b/test/runtime/samples/template/main.svelte
index 502452250e..1fb0d65f47 100644
--- a/test/runtime/samples/template/main.svelte
+++ b/test/runtime/samples/template/main.svelte
@@ -2,4 +2,4 @@
 	<div>foo</div>
 </template>
 <template id="t2">123</template>
-<template id="t3">1{@html '<b>B</b>'}1</template>
+<template id="t3">1{@html '<b>B</b>'}1</template>
\ No newline at end of file