diff --git a/cmd/main.go b/cmd/main.go
index 4da306c2c..cd5cb07ff 100644
--- a/cmd/main.go
+++ b/cmd/main.go
@@ -73,6 +73,7 @@ func main() {
 		createManagement          bool
 		createTemplateManagement  bool
 		createRelease             bool
+		createTemplates           bool
 		hmcTemplatesChartName     string
 		enableTelemetry           bool
 		enableWebhook             bool
@@ -95,6 +96,7 @@ func main() {
 	flag.BoolVar(&createTemplateManagement, "create-template-management", true,
 		"Create a TemplateManagement object upon initial installation.")
 	flag.BoolVar(&createRelease, "create-release", true, "Create an HMC Release upon initial installation.")
+	flag.BoolVar(&createTemplates, "create-templates", true, "Create HMC Templates based on Release objects.")
 	flag.StringVar(&hmcTemplatesChartName, "hmc-templates-chart-name", "hmc-templates",
 		"The name of the helm chart with HMC Templates.")
 	flag.BoolVar(&enableTelemetry, "enable-telemetry", true, "Collect and send telemetry data.")
@@ -262,6 +264,7 @@ func main() {
 		Config:                mgr.GetConfig(),
 		CreateManagement:      createManagement,
 		CreateRelease:         createRelease,
+		CreateTemplates:       createTemplates,
 		HMCTemplatesChartName: hmcTemplatesChartName,
 		SystemNamespace:       currentNamespace,
 		DefaultRegistryConfig: helm.DefaultRegistryConfig{
diff --git a/config/dev/hmc_values.yaml b/config/dev/hmc_values.yaml
index deca83478..68bdf3b10 100644
--- a/config/dev/hmc_values.yaml
+++ b/config/dev/hmc_values.yaml
@@ -5,3 +5,4 @@ controller:
   defaultRegistryURL: oci://hmc-local-registry:5000/charts
   insecureRegistry: true
   createRelease: false
+  createTemplates: false
diff --git a/internal/controller/release_controller.go b/internal/controller/release_controller.go
index bb3af7bac..5dd0793b0 100644
--- a/internal/controller/release_controller.go
+++ b/internal/controller/release_controller.go
@@ -53,6 +53,7 @@ type ReleaseReconciler struct {
 
 	CreateManagement bool
 	CreateRelease    bool
+	CreateTemplates  bool
 
 	HMCTemplatesChartName string
 	SystemNamespace       string
@@ -152,6 +153,10 @@ func (r *ReleaseReconciler) ensureManagement(ctx context.Context) error {
 
 func (r *ReleaseReconciler) reconcileHMCTemplates(ctx context.Context, req ctrl.Request) error {
 	l := ctrl.LoggerFrom(ctx)
+	if !r.CreateTemplates {
+		l.Info("Templates creation is disabled")
+		return nil
+	}
 	if initialReconcile(req) && !r.CreateRelease {
 		l.Info("Initial creation of HMC Release is skipped")
 		return nil
diff --git a/templates/provider/hmc/templates/deployment.yaml b/templates/provider/hmc/templates/deployment.yaml
index 92aecbf98..2c3c3c542 100644
--- a/templates/provider/hmc/templates/deployment.yaml
+++ b/templates/provider/hmc/templates/deployment.yaml
@@ -29,6 +29,7 @@ spec:
         - --create-management={{ .Values.controller.createManagement }}
         - --create-template-management={{ .Values.controller.createTemplateManagement }}
         - --create-release={{ .Values.controller.createRelease }}
+        - --create-templates={{ .Values.controller.createTemplates }}
         - --enable-telemetry={{ .Values.controller.enableTelemetry }}
         - --enable-webhook={{ .Values.admissionWebhook.enabled }}
         - --webhook-port={{ .Values.admissionWebhook.port }}
diff --git a/templates/provider/hmc/values.yaml b/templates/provider/hmc/values.yaml
index 53c4e5dc7..45c575a1d 100644
--- a/templates/provider/hmc/values.yaml
+++ b/templates/provider/hmc/values.yaml
@@ -13,6 +13,7 @@ controller:
   createManagement: true
   createTemplateManagement: true
   createRelease: true
+  createTemplates: true
   enableTelemetry: true
 
 containerSecurityContext: