diff --git a/nodes/core/core/80-template.js b/nodes/core/core/80-template.js
index 14f0350d0..d6b865463 100644
--- a/nodes/core/core/80-template.js
+++ b/nodes/core/core/80-template.js
@@ -87,20 +87,21 @@ module.exports = function(RED) {
                 * Allow template contents to be defined externally
                 * through inbound msg.template IFF node.template empty
                 */
+                var template = node.template;
                 if (msg.hasOwnProperty("template")) {
-                    if (node.template == "" || node.template === null) {
-                        node.template = msg.template;
+                    if (template == "" || template === null) {
+                        template = msg.template;
                     }
                 }
 
                 if (node.syntax === "mustache") {
                     if (node.outputFormat === "json") {
-                        value = mustache.render(node.template,new NodeContext(msg, node.context(), null, true));
+                        value = mustache.render(template,new NodeContext(msg, node.context(), null, true));
                     } else {
-                        value = mustache.render(node.template,new NodeContext(msg, node.context(), null, false));
+                        value = mustache.render(template,new NodeContext(msg, node.context(), null, false));
                     }
                 } else {
-                    value = node.template;
+                    value = template;
                 }
                 if (node.outputFormat === "json") {
                     value = JSON.parse(value);
diff --git a/test/nodes/core/core/80-template_spec.js b/test/nodes/core/core/80-template_spec.js
index 2d2c6b65b..4d2bee4c3 100644
--- a/test/nodes/core/core/80-template_spec.js
+++ b/test/nodes/core/core/80-template_spec.js
@@ -29,37 +29,42 @@ describe('template node', function() {
     });
 
 
-    it('should modify payload', function(done) {
+    it('should modify payload using node-configured template', function(done) {
         var flow = [{id:"n1", type:"template", field:"payload", template:"payload={{payload}}",wires:[["n2"]]},{id:"n2",type:"helper"}];
         helper.load(templateNode, flow, function() {
             var n1 = helper.getNode("n1");
             var n2 = helper.getNode("n2");
             n2.on("input", function(msg) {
-                msg.should.have.property('topic', 'bar');
-                msg.should.have.property('payload', 'payload=foo');
-                msg.should.have.property('template', '{{payload}}');
-                done();
+                try {
+                    msg.should.have.property('topic', 'bar');
+                    msg.should.have.property('payload', 'payload=foo');
+                    msg.should.have.property('template', 'this should be ignored as the node has its own template {{payload}}');
+                    done();
+                } catch(err) {
+                    done(err);
+                }
             });
-            n1.receive({payload:"foo",topic: "bar", template: "{{payload}}"});
+            n1.receive({payload:"foo",topic: "bar", template: "this should be ignored as the node has its own template {{payload}}"});
         });
     });
 
-    it('should modify template from msg.template', function(done) {
-        var flow = [{id:"n1", type:"template", field:"template", template:"",wires:[["n2"]]},{id:"n2",type:"helper"}];
+    it('should modify the configured property using msg.template', function(done) {
+        var flow = [{id:"n1", type:"template", field:"randomProperty", template:"",wires:[["n2"]]},{id:"n2",type:"helper"}];
         helper.load(templateNode, flow, function() {
             var n1 = helper.getNode("n1");
             var n2 = helper.getNode("n2");
             n2.on("input", function(msg) {
                 msg.should.have.property('topic', 'bar');
                 msg.should.have.property('payload', 'foo');
-                msg.should.have.property('template', 'payload=foo');
+                msg.should.have.property('template', 'payload={{payload}}');
+                msg.should.have.property('randomProperty', 'payload=foo');
                 done();
             });
             n1.receive({payload:"foo", topic: "bar", template: "payload={{payload}}"});
         });
     });
 
-    it('should modify payload from msg.template', function(done) {
+    it('should be able to overwrite msg.template using the template from msg.template', function(done) {
         var flow = [{id:"n1", type:"template", field:"payload", template:"",wires:[["n2"]]},{id:"n2",type:"helper"}];
         helper.load(templateNode, flow, function() {
             var n1 = helper.getNode("n1");
@@ -74,6 +79,40 @@ describe('template node', function() {
         });
     });
 
+    it('should modify payload from msg.template', function(done) {
+        var flow = [{id:"n1", type:"template", field:"payload", template:"",wires:[["n2"]]},{id:"n2",type:"helper"}];
+        helper.load(templateNode, flow, function() {
+            var n1 = helper.getNode("n1");
+            var n2 = helper.getNode("n2");
+            var received = [];
+            n2.on("input", function(msg) {
+                try {
+                    received.push(msg);
+                    if (received.length === 3) {
+                        received[0].should.have.property('topic', 'bar');
+                        received[0].should.have.property('payload', 'topic=bar');
+                        received[0].should.have.property('template', 'topic={{topic}}');
+
+                        received[1].should.have.property('topic', 'another bar');
+                        received[1].should.have.property('payload', 'topic=another bar');
+                        received[1].should.have.property('template', 'topic={{topic}}');
+
+                        received[2].should.have.property('topic', 'bar');
+                        received[2].should.have.property('payload', 'payload=foo');
+                        received[2].should.have.property('template', 'payload={{payload}}');
+                        done();
+                    }
+                } catch(err) {
+                    done(err);
+                }
+            });
+            n1.receive({payload:"foo", topic: "bar", template: "topic={{topic}}"});
+            n1.receive({payload:"foo", topic: "another bar", template: "topic={{topic}}"});
+            n1.receive({payload:"foo", topic: "bar", template: "payload={{payload}}"});
+        });
+    });
+
+
     it('should modify payload from flow context', function(done) {
         var flow = [{id:"n1",z:"t1", type:"template", field:"payload", template:"payload={{flow.value}}",wires:[["n2"]]},{id:"n2",z:"t1",type:"helper"}];
         helper.load(templateNode, flow, function() {