diff --git a/homeassistant/components/template/trigger_entity.py b/homeassistant/components/template/trigger_entity.py
index 60e7c761b58..27362f8243d 100644
--- a/homeassistant/components/template/trigger_entity.py
+++ b/homeassistant/components/template/trigger_entity.py
@@ -48,8 +48,8 @@ class TriggerEntity(  # pylint: disable=hass-enforce-class-module
             **(run_variables or {}),
         }
 
-        if self._render_availability_template(variables):
-            self._render_templates(variables)
+        self._render_availability_template(variables)
+        self._render_templates(variables)
 
         self.async_set_context(self.coordinator.data["context"])
 
diff --git a/homeassistant/helpers/trigger_template_entity.py b/homeassistant/helpers/trigger_template_entity.py
index 216070967aa..293ff2ebd8d 100644
--- a/homeassistant/helpers/trigger_template_entity.py
+++ b/homeassistant/helpers/trigger_template_entity.py
@@ -176,7 +176,7 @@ class TriggerBaseEntity(Entity):
                 extra_state_attributes[attr] = last_state.attributes[attr]
             self._rendered[CONF_ATTRIBUTES] = extra_state_attributes
 
-    def _render_availability_template(self, variables: dict[str, Any]) -> bool:
+    def _render_availability_template(self, variables: dict[str, Any]) -> None:
         """Render availability template."""
         rendered = dict(self._static_rendered)
         key = CONF_AVAILABILITY
@@ -191,17 +191,18 @@ class TriggerBaseEntity(Entity):
                     self._config[key],
                     variables,
                 )
-                return False
         except TemplateError as err:
             logging.getLogger(f"{__package__}.{self.entity_id.split('.')[0]}").error(
                 "Error rendering %s template for %s: %s", key, self.entity_id, err
             )
         self._rendered = rendered
-        return True
 
     def _render_templates(self, variables: dict[str, Any]) -> None:
         """Render templates."""
         rendered = dict(self._rendered)
+        if CONF_AVAILABILITY in rendered and rendered[CONF_AVAILABILITY] == "off":
+            self._rendered = self._static_rendered
+            return
         try:
             for key in self._to_render_simple:
                 if key == CONF_AVAILABILITY:
@@ -257,7 +258,6 @@ class ManualTriggerEntity(TriggerBaseEntity):
         Implementing class should call this last in update method to render templates.
         Ex: self._process_manual_data(payload)
         """
-
         run_variables: dict[str, Any] = {"value": value}
         # Silently try if variable is a json and store result in `value_json` if it is.
         with contextlib.suppress(*JSON_DECODE_EXCEPTIONS):
@@ -267,8 +267,8 @@ class ManualTriggerEntity(TriggerBaseEntity):
             "this": TemplateStateFromEntityId(self.hass, self.entity_id),
             **(run_variables or {}),
         }
-        if self._render_availability_template(variables):
-            self._render_templates(variables)
+        self._render_availability_template(variables)
+        self._render_templates(variables)
 
 
 class ManualTriggerSensorEntity(ManualTriggerEntity, SensorEntity):
diff --git a/tests/helpers/test_trigger_template_entity.py b/tests/helpers/test_trigger_template_entity.py
index a18827ecb4c..0f7af9bdc46 100644
--- a/tests/helpers/test_trigger_template_entity.py
+++ b/tests/helpers/test_trigger_template_entity.py
@@ -38,3 +38,51 @@ async def test_template_entity_requires_hass_set(hass: HomeAssistant) -> None:
     assert entity.name == "test_entity"
     assert entity.icon == "mdi:off"
     assert entity.entity_picture == "/local/picture_off"
+
+
+async def test_trigger_template_availability(hass: HomeAssistant) -> None:
+    """Test manual trigger template entity."""
+    config = {
+        "name": template.Template("test_entity", hass),
+        "icon": template.Template(
+            '{% if value=="on" %} mdi:on {% else %} mdi:off {% endif %}', hass
+        ),
+        "picture": template.Template(
+            '{% if value=="on" %} /local/picture_on {% else %} /local/picture_off {% endif %}',
+            hass,
+        ),
+        "availability": template.Template('{{ has_value("test.entity") }}', hass),
+    }
+
+    entity = ManualTriggerEntity(hass, config)
+    entity.entity_id = "test.entity"
+    hass.states.async_set("test.entity", "on")
+    await entity.async_added_to_hass()
+
+    entity._process_manual_data("on")
+    await hass.async_block_till_done()
+
+    assert entity.name == "test_entity"
+    assert entity.icon == "mdi:on"
+    assert entity.entity_picture == "/local/picture_on"
+    assert entity.available is True
+
+    hass.states.async_set("test.entity", "off")
+    await entity.async_added_to_hass()
+    entity._process_manual_data("off")
+    await hass.async_block_till_done()
+
+    assert entity.name == "test_entity"
+    assert entity.icon == "mdi:off"
+    assert entity.entity_picture == "/local/picture_off"
+    assert entity.available is True
+
+    hass.states.async_set("test.entity", "unknown")
+    await entity.async_added_to_hass()
+    entity._process_manual_data("unknown")
+    await hass.async_block_till_done()
+
+    assert entity.name == "test_entity"
+    assert entity.icon == "mdi:off"
+    assert entity.entity_picture == "/local/picture_off"
+    assert entity.available is False