diff --git a/homeassistant/components/template/__init__.py b/homeassistant/components/template/__init__.py
index 7b7b5eb9b29..15a73cf3de5 100644
--- a/homeassistant/components/template/__init__.py
+++ b/homeassistant/components/template/__init__.py
@@ -53,6 +53,7 @@ async def async_setup(hass: HomeAssistant, config: ConfigType) -> bool:
 
     async def _reload_config(call: Event | ServiceCall) -> None:
         """Reload top-level + platforms."""
+        await async_get_blueprints(hass).async_reset_cache()
         try:
             unprocessed_conf = await conf_util.async_hass_config_yaml(hass)
         except HomeAssistantError as err:
diff --git a/tests/components/template/test_blueprint.py b/tests/components/template/test_blueprint.py
index cb4e83d934c..dd008a27822 100644
--- a/tests/components/template/test_blueprint.py
+++ b/tests/components/template/test_blueprint.py
@@ -149,6 +149,69 @@ async def test_inverted_binary_sensor(
         )
 
 
+async def test_reload_template_when_blueprint_changes(hass: HomeAssistant) -> None:
+    """Test a template is updated at reload if the blueprint has changed."""
+    hass.states.async_set("binary_sensor.foo", "on", {"friendly_name": "Foo"})
+    config = {
+        DOMAIN: [
+            {
+                "use_blueprint": {
+                    "path": "inverted_binary_sensor.yaml",
+                    "input": {"reference_entity": "binary_sensor.foo"},
+                },
+                "name": "Inverted foo",
+            },
+        ]
+    }
+    with patch_blueprint(
+        "inverted_binary_sensor.yaml",
+        BUILTIN_BLUEPRINT_FOLDER / "inverted_binary_sensor.yaml",
+    ):
+        assert await async_setup_component(hass, DOMAIN, config)
+
+    hass.states.async_set("binary_sensor.foo", "off", {"friendly_name": "Foo"})
+    await hass.async_block_till_done()
+
+    assert hass.states.get("binary_sensor.foo").state == "off"
+
+    inverted = hass.states.get("binary_sensor.inverted_foo")
+    assert inverted
+    assert inverted.state == "on"
+
+    # Reload the automations without any change, but with updated blueprint
+    blueprint_config = yaml_util.load_yaml(
+        BUILTIN_BLUEPRINT_FOLDER / "inverted_binary_sensor.yaml"
+    )
+    blueprint_config["binary_sensor"]["state"] = "{{ states(reference_entity) }}"
+    with (
+        patch(
+            "homeassistant.config.load_yaml_config_file",
+            autospec=True,
+            return_value=config,
+        ),
+        patch(
+            "homeassistant.components.blueprint.models.yaml_util.load_yaml_dict",
+            autospec=True,
+            return_value=blueprint_config,
+        ),
+    ):
+        await hass.services.async_call(DOMAIN, SERVICE_RELOAD, blocking=True)
+
+    hass.states.async_set("binary_sensor.foo", "off", {"friendly_name": "Foo"})
+    await hass.async_block_till_done()
+
+    not_inverted = hass.states.get("binary_sensor.inverted_foo")
+    assert not_inverted
+    assert not_inverted.state == "off"
+
+    hass.states.async_set("binary_sensor.foo", "on", {"friendly_name": "Foo"})
+    await hass.async_block_till_done()
+
+    not_inverted = hass.states.get("binary_sensor.inverted_foo")
+    assert not_inverted
+    assert not_inverted.state == "on"
+
+
 async def test_domain_blueprint(hass: HomeAssistant) -> None:
     """Test DomainBlueprint services."""
     reload_handler_calls = async_mock_service(hass, DOMAIN, SERVICE_RELOAD)