diff --git a/apps/files/lib/Controller/TemplateController.php b/apps/files/lib/Controller/TemplateController.php
index 08a324a46ec726cd40e75b2d3599eb6d1d67b102..5a1633432236550dcfaebb61e6b0be93930d97cc 100644
--- a/apps/files/lib/Controller/TemplateController.php
+++ b/apps/files/lib/Controller/TemplateController.php
@@ -64,12 +64,12 @@ class TemplateController extends OCSController {
 	 */
 	public function path(string $templatePath = '', bool $copySystemTemplates = false) {
 		try {
-			$this->templateManager->setTemplatePath($templatePath);
-			if ($copySystemTemplates) {
-				$this->templateManager->initializeTemplateDirectory($templatePath);
-			}
-			return new DataResponse();
-		} catch (GenericFileException $e) {
+			$templatePath = $this->templateManager->initializeTemplateDirectory($templatePath, null, $copySystemTemplates);
+			return new DataResponse([
+				'template_path' => $templatePath,
+				'templates' => $this->templateManager->listCreators()
+			]);
+		} catch (\Exception $e) {
 			throw new OCSForbiddenException($e->getMessage());
 		}
 	}
diff --git a/apps/files/lib/Controller/ViewController.php b/apps/files/lib/Controller/ViewController.php
index 846ec14c4aa68403ca114ba00aa1825a78cd273a..aade5a5b44a20ed758ea96d80ec298ab0f4b0df4 100644
--- a/apps/files/lib/Controller/ViewController.php
+++ b/apps/files/lib/Controller/ViewController.php
@@ -294,7 +294,7 @@ class ViewController extends Controller {
 		if (class_exists(LoadViewer::class)) {
 			$this->eventDispatcher->dispatchTyped(new LoadViewer());
 		}
-		$this->initialState->provideInitialState('template_path', $this->templateManager->hasTemplateDirectory() ? $this->templateManager->getTemplatePath() : null);
+		$this->initialState->provideInitialState('templates_path', $this->templateManager->hasTemplateDirectory() ? $this->templateManager->getTemplatePath() : null);
 		$this->initialState->provideInitialState('templates', $this->templateManager->listCreators());
 
 		$params = [];
diff --git a/apps/files/src/components/TemplatePreview.vue b/apps/files/src/components/TemplatePreview.vue
index 538e1bcff7ba96d4efd5a64fd38793680867a76e..89162ba4efdaffc521aaf5b0ced4ba64aaa1e4c4 100644
--- a/apps/files/src/components/TemplatePreview.vue
+++ b/apps/files/src/components/TemplatePreview.vue
@@ -30,9 +30,9 @@
 			@change="onCheck">
 
 		<label :for="id" class="template-picker__label">
-			<div class="template-picker__preview">
+			<div class="template-picker__preview"
+				:class="failedPreview ? 'template-picker__preview--failed' : ''">
 				<img class="template-picker__image"
-					:class="failedPreview ? 'template-picker__image--failed' : ''"
 					:src="realPreviewUrl"
 					alt=""
 					draggable="false"
@@ -40,7 +40,7 @@
 			</div>
 
 			<span class="template-picker__title">
-				{{ basename }}
+				{{ nameWithoutExt }}
 			</span>
 		</label>
 	</li>
@@ -100,6 +100,14 @@ export default {
 	},
 
 	computed: {
+		/**
+		 * Strip away extension from name
+		 * @returns {string}
+		 */
+		nameWithoutExt() {
+			return this.basename.indexOf('.') > -1 ? this.basename.split('.').slice(0, -1).join('.') : this.basename
+		},
+
 		id() {
 			return `template-picker-${this.fileid}`
 		},
@@ -107,7 +115,7 @@ export default {
 		realPreviewUrl() {
 			// If original preview failed, fallback to mime icon
 			if (this.failedPreview && this.mimeIcon) {
-				return generateUrl(this.mimeIcon)
+				return this.mimeIcon
 			}
 
 			if (this.previewUrl) {
@@ -149,7 +157,6 @@ export default {
 		align-items: center;
 		flex: 1 1;
 		flex-direction: column;
-		margin: var(--margin);
 
 		&, * {
 			cursor: pointer;
@@ -162,32 +169,42 @@ export default {
 	}
 
 	&__preview {
-		display: flex;
+		display: block;
 		overflow: hidden;
 		// Stretch so all entries are the same width
 		flex: 1 1;
 		width: var(--width);
-		min-height: var(--width);
+		min-height: var(--height);
 		max-height: var(--height);
-		padding: var(--margin);
+		padding: 0;
 		border: var(--border) solid var(--color-border);
 		border-radius: var(--border-radius-large);
 
 		input:checked + label > & {
 			border-color: var(--color-primary);
 		}
+
+		&--failed {
+			// Make sure to properly center fallback icon
+			display: flex;
+		}
 	}
 
 	&__image {
 		max-width: 100%;
 		background-color: var(--color-main-background);
 
-		&--failed {
-			width: calc(var(--margin) * 8);
-			// Center mime icon
-			margin: auto;
-			background-color: transparent !important;
-		}
+		object-fit: cover;
+	}
+
+	// Failed preview, fallback to mime icon
+	&__preview--failed &__image {
+		width: calc(var(--margin) * 8);
+		// Center mime icon
+		margin: auto;
+		background-color: transparent !important;
+
+		object-fit: initial;
 	}
 
 	&__title {
diff --git a/apps/files/src/services/Templates.js b/apps/files/src/services/Templates.js
new file mode 100644
index 0000000000000000000000000000000000000000..c1a8992d6618586c2d25b1475c3481514507fb2d
--- /dev/null
+++ b/apps/files/src/services/Templates.js
@@ -0,0 +1,29 @@
+/**
+ * @copyright Copyright (c) 2021 John Molakvoæ <skjnldsv@protonmail.com>
+ *
+ * @author John Molakvoæ <skjnldsv@protonmail.com>
+ *
+ * @license GNU AGPL version 3 or any later version
+ *
+ * This program is free software: you can redistribute it and/or modify
+ * it under the terms of the GNU Affero General Public License as
+ * published by the Free Software Foundation, either version 3 of the
+ * License, or (at your option) any later version.
+ *
+ * This program is distributed in the hope that it will be useful,
+ * but WITHOUT ANY WARRANTY; without even the implied warranty of
+ * MERCHANTABILITY or FITNESS FOR A PARTICULAR PURPOSE. See the
+ * GNU Affero General Public License for more details.
+ *
+ * You should have received a copy of the GNU Affero General Public License
+ * along with this program. If not, see <http://www.gnu.org/licenses/>.
+ *
+ */
+
+import { generateOcsUrl } from '@nextcloud/router'
+import axios from '@nextcloud/axios'
+
+export const getTemplates = async function() {
+	const response = await axios.get(generateOcsUrl('apps/files/api/v1', 2) + 'templates')
+	return response.data.ocs.data
+}
diff --git a/apps/files/src/templates.js b/apps/files/src/templates.js
index 3cffc30085c7def3f5e1bf82586a18454a27145b..c493e254cafb972cbf86edb501869a3faf2fa9d2 100644
--- a/apps/files/src/templates.js
+++ b/apps/files/src/templates.js
@@ -23,9 +23,14 @@
 import { getLoggerBuilder } from '@nextcloud/logger'
 import { loadState } from '@nextcloud/initial-state'
 import { translate as t, translatePlural as n } from '@nextcloud/l10n'
+import { generateOcsUrl } from '@nextcloud/router'
+import { getCurrentDirectory } from './utils/davUtils'
+import axios from '@nextcloud/axios'
 import Vue from 'vue'
 
 import TemplatePickerView from './views/TemplatePicker'
+import { getCurrentUser } from '@nextcloud/auth'
+import { showError } from '@nextcloud/dialogs'
 
 // Set up logger
 const logger = getLoggerBuilder()
@@ -47,8 +52,10 @@ TemplatePickerRoot.id = 'template-picker'
 document.body.appendChild(TemplatePickerRoot)
 
 // Retrieve and init templates
-const templates = loadState('files', 'templates', [])
+let templates = loadState('files', 'templates', [])
+let templatesPath = loadState('files', 'templates_path', false)
 logger.debug('Templates providers', templates)
+logger.debug('Templates folder', { templatesPath })
 
 // Init vue app
 const View = Vue.extend(TemplatePickerView)
@@ -60,33 +67,77 @@ const TemplatePicker = new View({
 })
 TemplatePicker.$mount('#template-picker')
 
-// Init template engine after load
+// Init template engine after load to make sure it's the last injected entry
 window.addEventListener('DOMContentLoaded', function() {
-	// Init template files menu
-	templates.forEach((provider, index) => {
-
-		const newTemplatePlugin = {
+	if (!templatesPath) {
+		logger.debug('Templates folder not initialized')
+		const initTemplatesPlugin = {
 			attach(menu) {
-				const fileList = menu.fileList
-
-				// only attach to main file list, public view is not supported yet
-				if (fileList.id !== 'files' && fileList.id !== 'files.public') {
-					return
-				}
-
 				// register the new menu entry
 				menu.addMenuEntry({
-					id: `template-new-${provider.app}-${index}`,
-					displayName: provider.label,
-					templateName: provider.label + provider.extension,
-					iconClass: provider.iconClass || 'icon-file',
+					id: 'template-init',
+					displayName: t('files', 'Set up templates folder'),
+					templateName: t('files', 'Templates'),
+					iconClass: 'icon-template-add',
 					fileType: 'file',
 					actionHandler(name) {
-						TemplatePicker.open(name, provider)
+						initTemplatesFolder(name)
 					},
 				})
 			},
 		}
-		OC.Plugins.register('OCA.Files.NewFileMenu', newTemplatePlugin)
-	})
+		OC.Plugins.register('OCA.Files.NewFileMenu', initTemplatesPlugin)
+	}
+})
+
+// Init template files menu
+templates.forEach((provider, index) => {
+	const newTemplatePlugin = {
+		attach(menu) {
+			const fileList = menu.fileList
+
+			// only attach to main file list, public view is not supported yet
+			if (fileList.id !== 'files' && fileList.id !== 'files.public') {
+				return
+			}
+
+			// register the new menu entry
+			menu.addMenuEntry({
+				id: `template-new-${provider.app}-${index}`,
+				displayName: provider.label,
+				templateName: provider.label + provider.extension,
+				iconClass: provider.iconClass || 'icon-file',
+				fileType: 'file',
+				actionHandler(name) {
+					TemplatePicker.open(name, provider)
+				},
+			})
+		},
+	}
+	OC.Plugins.register('OCA.Files.NewFileMenu', newTemplatePlugin)
 })
+
+/**
+ * Init the template directory
+ *
+ * @param {string} name the templates folder name
+ */
+const initTemplatesFolder = async function(name) {
+	const templatePath = (getCurrentDirectory() + `/${name}`).replace('//', '/')
+	try {
+		logger.debug('Initializing the templates directory', { templatePath })
+		const response = await axios.post(generateOcsUrl('apps/files/api/v1/templates', 2) + 'path', {
+			templatePath,
+			copySystemTemplates: true,
+		})
+
+		// Go to template directory
+		OCA.Files.App.currentFileList.changeDirectory(templatePath, true, true)
+
+		templates = response.data.ocs.data.templates
+		templatesPath = response.data.ocs.data.template_path
+	} catch (error) {
+		logger.error('Unable to initialize the templates directory')
+		showError(t('files', 'Unable to initialize the templates directory'))
+	}
+}
diff --git a/apps/files/src/utils/davUtils.js b/apps/files/src/utils/davUtils.js
index f64801f08dd6c2453e5c77438f04c8ee8b1d451a..cd5732a4772be6b26dea905cd78a77745c043a8d 100644
--- a/apps/files/src/utils/davUtils.js
+++ b/apps/files/src/utils/davUtils.js
@@ -23,7 +23,7 @@
 import { generateRemoteUrl } from '@nextcloud/router'
 import { getCurrentUser } from '@nextcloud/auth'
 
-const getRootPath = function() {
+export const getRootPath = function() {
 	if (getCurrentUser()) {
 		return generateRemoteUrl(`dav/files/${getCurrentUser().uid}`)
 	} else {
@@ -31,12 +31,22 @@ const getRootPath = function() {
 	}
 }
 
-const isPublic = function() {
+export const isPublic = function() {
 	return !getCurrentUser()
 }
 
-const getToken = function() {
+export const getToken = function() {
 	return document.getElementById('sharingToken') && document.getElementById('sharingToken').value
 }
 
-export { getRootPath, getToken, isPublic }
+/**
+ * Return the current directory, fallback to root
+ * @returns {string}
+ */
+export const getCurrentDirectory = function() {
+	const currentDirInfo = OCA?.Files?.App?.currentFileList?.dirInfo
+		|| { path: '/', name: '' }
+
+	// Make sure we don't have double slashes
+	return `${currentDirInfo.path}/${currentDirInfo.name}`.replace(/\/\//gi, '/')
+}
diff --git a/apps/files/src/views/TemplatePicker.vue b/apps/files/src/views/TemplatePicker.vue
index 84c7c38aba47bfcf90d200ea914139b184c79877..95ba3d3a4dcaa2e48f5cde9fc68bc9a0e9c7b48e 100644
--- a/apps/files/src/views/TemplatePicker.vue
+++ b/apps/files/src/views/TemplatePicker.vue
@@ -29,7 +29,7 @@
 		<form class="templates-picker__form"
 			:style="style"
 			@submit.prevent.stop="onSubmit">
-			<h3>{{ t('files', 'Pick a template') }}</h3>
+			<h2>{{ t('files', 'Pick a template for {name}', { name: nameWithoutExt }) }}</h2>
 
 			<!-- Templates list -->
 			<ul class="templates-picker__list">
@@ -55,11 +55,11 @@
 				<input type="submit"
 					class="primary"
 					:value="t('files', 'Create')"
-					:aria-label="t('files', 'Create a new file with the ')">
+					:aria-label="t('files', 'Create a new file with the selected template')">
 			</div>
 		</form>
 
-		<EmptyContent class="templates-picker__loading" v-if="loading" icon="icon-loading">
+		<EmptyContent v-if="loading" class="templates-picker__loading" icon="icon-loading">
 			{{ t('files', 'Creating file') }}
 		</EmptyContent>
 	</Modal>
@@ -68,11 +68,12 @@
 <script>
 import { generateOcsUrl } from '@nextcloud/router'
 import { showError } from '@nextcloud/dialogs'
-
 import axios from '@nextcloud/axios'
 import EmptyContent from '@nextcloud/vue/dist/Components/EmptyContent'
 import Modal from '@nextcloud/vue/dist/Components/Modal'
 
+import { getCurrentDirectory } from '../utils/davUtils'
+import { getTemplates } from '../services/Templates'
 import TemplatePreview from '../components/TemplatePreview'
 
 const border = 2
@@ -107,6 +108,14 @@ export default {
 	},
 
 	computed: {
+		/**
+		 * Strip away extension from name
+		 * @returns {string}
+		 */
+		nameWithoutExt() {
+			return this.name.indexOf('.') > -1 ? this.name.split('.').slice(0, -1).join('.') : this.name
+		},
+
 		emptyTemplate() {
 			return {
 				basename: t('files', 'Blank'),
@@ -131,7 +140,7 @@ export default {
 				'--width': width + 'px',
 				'--border': border + 'px',
 				'--fullwidth': width + 2 * margin + 2 * border + 'px',
-				'--height': this.ratio ? width * this.ratio + 'px' : null,
+				'--height': this.provider.ratio ? Math.round(width / this.provider.ratio) + 'px' : null,
 			}
 		},
 	},
@@ -142,11 +151,27 @@ export default {
 		 * @param {string} name the file name to create
 		 * @param {object} provider the template provider picked
 		 */
-		open(name, provider) {
+		async open(name, provider) {
+
 			this.checked = this.emptyTemplate.fileid
 			this.name = name
-			this.opened = true
 			this.provider = provider
+
+			const templates = await getTemplates()
+			const fetchedProvider = templates.find((fetchedProvider) => fetchedProvider.app === provider.app && fetchedProvider.label === provider.label)
+			if (fetchedProvider === null) {
+				throw new Error('Failed to match provider in results')
+			}
+			this.provider = fetchedProvider
+
+			// If there is no templates available, just create an empty file
+			if (fetchedProvider.templates.length === 0) {
+				this.onSubmit()
+				return
+			}
+
+			// Else, open the picker
+			this.opened = true
 		},
 
 		/**
@@ -170,7 +195,7 @@ export default {
 
 		async onSubmit() {
 			this.loading = true
-			const currentDirectory = this.getCurrentDirectory()
+			const currentDirectory = getCurrentDirectory()
 			const fileList = OCA?.Files?.App?.currentFileList
 
 			try {
@@ -197,24 +222,13 @@ export default {
 
 				this.close()
 			} catch (error) {
-				this.logger.error('Error while creating the new file from template', error)
+				this.logger.error('Error while creating the new file from template')
+				console.error(error)
 				showError(this.t('files', 'Unable to create new file from template'))
 			} finally {
 				this.loading = false
 			}
 		},
-
-		/**
-		 * Return the current directory, fallback to root
-		 * @returns {string}
-		 */
-		getCurrentDirectory() {
-			const currentDirInfo = OCA?.Files?.App?.currentFileList?.dirInfo
-				|| { path: '/', name: '' }
-
-			// Make sure we don't have double slashes
-			return `${currentDirInfo.path}/${currentDirInfo.name}`.replace(/\/\//gi, '/')
-		},
 	},
 }
 </script>
@@ -225,6 +239,12 @@ export default {
 		padding: calc(var(--margin) * 2);
 		// Will be handled by the buttons
 		padding-bottom: 0;
+
+		h2 {
+			text-align: center;
+			font-weight: bold;
+			margin: var(--margin) 0 calc(var(--margin) * 2);
+		}
 	}
 
 	&__list {
@@ -233,18 +253,20 @@ export default {
 		grid-auto-columns: 1fr;
 		// We want maximum 5 columns. Putting 6 as we don't count the grid gap. So it will always be lower than 6
 		max-width: calc(var(--fullwidth) * 6);
-		grid-template-columns: repeat(auto-fit, minmax(var(--fullwidth), 1fr));
+		grid-template-columns: repeat(auto-fit, var(--fullwidth));
 		// Make sure all rows are the same height
 		grid-auto-rows: 1fr;
+		// Center the columns set
+		justify-content: center;
 	}
+
 	&__buttons {
 		display: flex;
 		justify-content: space-between;
 		padding: calc(var(--margin) * 2) var(--margin);
 		position: sticky;
-		// Make sure the templates list doesn't weirdly peak under when scrolled. Happens on some rare occasions
-		bottom: -1px;
-		background-color: var(--color-main-background);
+		bottom: 0;
+		background-image: linear-gradient(0, var(--gradient-main-background));
 	}
 
 	// Make sure we're relative for the loading emptycontent on top
diff --git a/core/css/css-variables.scss b/core/css/css-variables.scss
index 2e0fbad5aa1237479b538a8add69e34bcda72173..86f80611a6c40efea7c53bfe41fe26f677e68160 100644
--- a/core/css/css-variables.scss
+++ b/core/css/css-variables.scss
@@ -7,6 +7,9 @@
 	--color-main-background: #{$color-main-background};
 	--color-main-background-translucent: #{$color-main-background-translucent};
 
+	// To use like this: background-image: linear-gradient(0, var(--gradient-main-background));
+	--gradient-main-background: var(--color-main-background) 0%, var(--color-main-background-translucent) 85%, transparent 100%;
+
 	--color-background-hover: #{$color-background-hover};
 	--color-background-dark: #{$color-background-dark};
 	--color-background-darker: #{$color-background-darker};
diff --git a/core/css/icons.scss b/core/css/icons.scss
index b3ef33e9fa59837ecf98e6c274dfb24fc3e1efb7..c38bdb89daaf523e44d49228291ba9e74c4a1fb4 100644
--- a/core/css/icons.scss
+++ b/core/css/icons.scss
@@ -229,6 +229,7 @@ audio, canvas, embed, iframe, img, input, object, video {
 @include icon-black-white('quota', 'actions', 1, true);
 @include icon-black-white('rename', 'actions', 1, true);
 @include icon-black-white('screen', 'actions', 1, true);
+@include icon-black-white('template-add', 'actions', 1, true);
 
 .icon-screen-white {
 	filter: drop-shadow(1px 1px 4px var(--color-box-shadow));
diff --git a/core/img/actions/template-add.svg b/core/img/actions/template-add.svg
new file mode 100644
index 0000000000000000000000000000000000000000..828dd074f80b2a553f1e20d4021678ff1defac0f
--- /dev/null
+++ b/core/img/actions/template-add.svg
@@ -0,0 +1 @@
+<svg xmlns="http://www.w3.org/2000/svg" viewBox="0 0 21.33 21.33" width="16" height="16"><path fill="none" d="M0 0h24v24H0z"/><path d="M15.33 18h-12V6H10V4H3.33a2 2 0 00-2 2v12c0 1.1.9 2 2 2h12a2 2 0 002-2v-6.67h-2zM17.33 1.33h-2V4h-2.66v2h2.66v2.67h2V6H20V4h-2.67z"/><path d="M5.33 14.33h8v2h-8zm8-1.33v-2h-8v2zm-8-5.33h8v2h-8z"/></svg>
\ No newline at end of file
diff --git a/lib/private/Files/Template/TemplateManager.php b/lib/private/Files/Template/TemplateManager.php
index 614440327e87b929a98d4784b3f158c90ee50f7a..808c0fbb99970923814ddf1f74c5f602ce8af582 100644
--- a/lib/private/Files/Template/TemplateManager.php
+++ b/lib/private/Files/Template/TemplateManager.php
@@ -34,6 +34,7 @@ use OCP\Files\GenericFileException;
 use OCP\Files\IRootFolder;
 use OCP\Files\Node;
 use OCP\Files\NotFoundException;
+use OCP\Files\NotPermittedException;
 use OCP\Files\Template\CreatedFromTemplateEvent;
 use OCP\Files\Template\ICustomTemplateProvider;
 use OCP\Files\Template\ITemplateManager;
@@ -103,7 +104,15 @@ class TemplateManager implements ITemplateManager {
 		return $this->providers;
 	}
 
-	public function listCreators(): array {
+	public function listCreators():? array {
+		if ($this->types === null) {
+			return null;
+		}
+
+		usort($this->types, function (TemplateFileCreator $a, TemplateFileCreator $b) {
+			return $a->getOrder() - $b->getOrder();
+		});
+
 		return array_map(function (TemplateFileCreator $entry) {
 			return array_merge($entry->jsonSerialize(), [
 				'templates' => $this->getTemplateFiles($entry)
@@ -154,7 +163,10 @@ class TemplateManager implements ITemplateManager {
 	 * @throws \OC\User\NoUserException
 	 */
 	private function getTemplateFolder(): Node {
-		return $this->rootFolder->getUserFolder($this->userId)->get($this->getTemplatePath());
+		if ($this->getTemplatePath() !== '') {
+			return $this->rootFolder->getUserFolder($this->userId)->get($this->getTemplatePath());
+		}
+		throw new NotFoundException();
 	}
 
 	private function getTemplateFiles(TemplateFileCreator $type): array {
@@ -220,10 +232,10 @@ class TemplateManager implements ITemplateManager {
 	}
 
 	public function getTemplatePath(): string {
-		return $this->config->getUserValue($this->userId, 'core', 'templateDirectory', $this->l10n->t('Templates') . '/');
+		return $this->config->getUserValue($this->userId, 'core', 'templateDirectory', '');
 	}
 
-	public function initializeTemplateDirectory(string $path = null, string $userId = null): void {
+	public function initializeTemplateDirectory(string $path = null, string $userId = null, $copyTemplates = true): string {
 		if ($userId !== null) {
 			$this->userId = $userId;
 		}
@@ -232,6 +244,8 @@ class TemplateManager implements ITemplateManager {
 		$defaultTemplateDirectory = \OC::$SERVERROOT . '/core/skeleton/Templates';
 		$skeletonPath = $this->config->getSystemValue('skeletondirectory', $defaultSkeletonDirectory);
 		$skeletonTemplatePath = $this->config->getSystemValue('templatedirectory', $defaultTemplateDirectory);
+		$isDefaultSkeleton = $skeletonPath === $defaultSkeletonDirectory;
+		$isDefaultTemplates = $skeletonTemplatePath === $defaultTemplateDirectory;
 		$userLang = $this->l10nFactory->getUserLanguage();
 
 		try {
@@ -239,39 +253,64 @@ class TemplateManager implements ITemplateManager {
 			$userFolder = $this->rootFolder->getUserFolder($this->userId);
 			$userTemplatePath = $path ?? $l10n->t('Templates') . '/';
 
-			// All locations are default so we just need to rename the directory to the users language
-			if ($skeletonPath === $defaultSkeletonDirectory && $skeletonTemplatePath === $defaultTemplateDirectory && $userFolder->nodeExists('Templates')) {
-				$newPath = $userFolder->getPath() . '/' . $userTemplatePath;
-				if ($newPath !== $userFolder->get('Templates')->getPath()) {
-					$userFolder->get('Templates')->move($newPath);
+			// Initial user setup without a provided path
+			if ($path === null) {
+				// All locations are default so we just need to rename the directory to the users language
+				if ($isDefaultSkeleton && $isDefaultTemplates && $userFolder->nodeExists('Templates')) {
+					$newPath = $userFolder->getPath() . '/' . $userTemplatePath;
+					if ($newPath !== $userFolder->get('Templates')->getPath()) {
+						$userFolder->get('Templates')->move($newPath);
+					}
+					$this->setTemplatePath($userTemplatePath);
+					return $userTemplatePath;
 				}
-				$this->setTemplatePath($userTemplatePath);
-				return;
-			}
 
-			// A custom template directory is specified
-			if (!empty($skeletonTemplatePath) && $skeletonTemplatePath !== $defaultTemplateDirectory) {
-				// In case the shipped template files are in place we remove them
-				if ($skeletonPath === $defaultSkeletonDirectory && $userFolder->nodeExists('Templates')) {
+				if ($isDefaultSkeleton && !empty($skeletonTemplatePath) && !$isDefaultTemplates && $userFolder->nodeExists('Templates')) {
 					$shippedSkeletonTemplates = $userFolder->get('Templates');
 					$shippedSkeletonTemplates->delete();
 				}
-				try {
-					$userFolder->get($userTemplatePath);
-				} catch (NotFoundException $e) {
-					$folder = $userFolder->newFolder($userTemplatePath);
-
-					$localizedSkeletonTemplatePath = $this->getLocalizedTemplatePath($skeletonTemplatePath, $userLang);
-					if (!empty($localizedSkeletonTemplatePath) && file_exists($localizedSkeletonTemplatePath)) {
-						\OC_Util::copyr($localizedSkeletonTemplatePath, $folder);
-						$userFolder->getStorage()->getScanner()->scan($userTemplatePath, Scanner::SCAN_RECURSIVE);
-					}
-				}
+			}
+
+			try {
+				$folder = $userFolder->newFolder($userTemplatePath);
+			} catch (NotPermittedException $e) {
+				$folder = $userFolder->get($userTemplatePath);
+			}
+
+			$folderIsEmpty = count($folder->getDirectoryListing()) === 0;
+
+			if (!$copyTemplates) {
 				$this->setTemplatePath($userTemplatePath);
+				return $userTemplatePath;
+			}
+
+			if (!$isDefaultTemplates && $folderIsEmpty) {
+				$localizedSkeletonTemplatePath = $this->getLocalizedTemplatePath($skeletonTemplatePath, $userLang);
+				if (!empty($localizedSkeletonTemplatePath) && file_exists($localizedSkeletonTemplatePath)) {
+					\OC_Util::copyr($localizedSkeletonTemplatePath, $folder);
+					$userFolder->getStorage()->getScanner()->scan($userTemplatePath, Scanner::SCAN_RECURSIVE);
+					$this->setTemplatePath($userTemplatePath);
+					return $userTemplatePath;
+				}
 			}
+
+			if ($path !== null && $isDefaultSkeleton && $isDefaultTemplates && $folderIsEmpty) {
+				$localizedSkeletonPath = $this->getLocalizedTemplatePath($skeletonPath . '/Templates', $userLang);
+				if (!empty($localizedSkeletonPath) && file_exists($localizedSkeletonPath)) {
+					\OC_Util::copyr($localizedSkeletonPath, $folder);
+					$userFolder->getStorage()->getScanner()->scan($userTemplatePath, Scanner::SCAN_RECURSIVE);
+					$this->setTemplatePath($userTemplatePath);
+					return $userTemplatePath;
+				}
+			}
+
+			$this->setTemplatePath($path ?? '');
+			return $this->getTemplatePath();
 		} catch (\Throwable $e) {
-			$this->logger->error('Failed to rename templates directory to user language ' . $userLang . ' for ' . $userId, ['app' => 'files_templates']);
+			$this->logger->error('Failed to initialize templates directory to user language ' . $userLang . ' for ' . $userId, ['app' => 'files_templates', 'exception' => $e]);
 		}
+		$this->setTemplatePath('');
+		return $this->getTemplatePath();
 	}
 
 	private function getLocalizedTemplatePath(string $skeletonTemplatePath, string $userLang) {
diff --git a/lib/private/legacy/OC_Util.php b/lib/private/legacy/OC_Util.php
index 05d54cf84e6d7069cda71d6f62b7c3509a3c41f1..f1e88166e97d2c2364efc92aa370ffaa94f42ec5 100644
--- a/lib/private/legacy/OC_Util.php
+++ b/lib/private/legacy/OC_Util.php
@@ -449,9 +449,9 @@ class OC_Util {
 			// update the file cache
 			$userDirectory->getStorage()->getScanner()->scan('', \OC\Files\Cache\Scanner::SCAN_RECURSIVE);
 
-			/** @var ITemplateManager $templateManaer */
-			$templateManaer = \OC::$server->get(ITemplateManager::class);
-			$templateManaer->initializeTemplateDirectory(null, $userId);
+			/** @var ITemplateManager $templateManager */
+			$templateManager = \OC::$server->get(ITemplateManager::class);
+			$templateManager->initializeTemplateDirectory(null, $userId);
 		}
 	}
 
diff --git a/lib/public/Files/Template/ITemplateManager.php b/lib/public/Files/Template/ITemplateManager.php
index 28d57a8b94c10b48430fee9821e95c103d6a5eb4..58b5b6c48461be05436dd2141a148ab7b470ce66 100644
--- a/lib/public/Files/Template/ITemplateManager.php
+++ b/lib/public/Files/Template/ITemplateManager.php
@@ -56,7 +56,7 @@ interface ITemplateManager {
 	 * @return array
 	 * @since 21.0.0
 	 */
-	public function listCreators(): array;
+	public function listCreators():? array;
 
 	/**
 	 * @return bool
@@ -82,7 +82,7 @@ interface ITemplateManager {
 	 * @param string|null $userId
 	 * @since 21.0.0
 	 */
-	public function initializeTemplateDirectory(string $path = null, string $userId = null): void;
+	public function initializeTemplateDirectory(string $path = null, string $userId = null, $copyTemplates = true): string;
 
 	/**
 	 * @param string $filePath
diff --git a/lib/public/Files/Template/TemplateFileCreator.php b/lib/public/Files/Template/TemplateFileCreator.php
index c41a6514ee569acecc9032514aaf817a92149703..e40fa8e91b3960f4bb906b3b5d8073ae25fc63da 100644
--- a/lib/public/Files/Template/TemplateFileCreator.php
+++ b/lib/public/Files/Template/TemplateFileCreator.php
@@ -35,6 +35,7 @@ final class TemplateFileCreator implements \JsonSerializable {
 	protected $fileExtension;
 	protected $iconClass;
 	protected $ratio = null;
+	protected $order = 100;
 
 	/**
 	 * @since 21.0.0
@@ -80,11 +81,27 @@ final class TemplateFileCreator implements \JsonSerializable {
 	/**
 	 * @since 21.0.0
 	 */
-	public function setRatio(float $ratio) {
+	public function setRatio(float $ratio): TemplateFileCreator {
 		$this->ratio = $ratio;
 		return $this;
 	}
 
+	/**
+	 * @param int $order order in which the create action shall be listed
+	 * @since 21.0.0
+	 */
+	public function setOrder(int $order): TemplateFileCreator {
+		$this->order = $order;
+		return $this;
+	}
+
+	/**
+	 * @since 21.0.0
+	 */
+	public function getOrder(): int {
+		return $this->order;
+	}
+
 	/**
 	 * @since 21.0.0
 	 */