diff --git a/coderd/templates.go b/coderd/templates.go
index 2bcaf2099f..191615b635 100644
--- a/coderd/templates.go
+++ b/coderd/templates.go
@@ -90,11 +90,17 @@ func (api *API) deleteTemplate(rw http.ResponseWriter, r *http.Request) {
 		})
 		return
 	}
-	if len(workspaces) > 0 {
-		httpapi.Write(ctx, rw, http.StatusBadRequest, codersdk.Response{
-			Message: "All workspaces must be deleted before a template can be removed.",
-		})
-		return
+	// Allow deletion when only prebuild workspaces remain. Prebuilds
+	// are owned by the system user and will be cleaned up
+	// asynchronously by the prebuilds reconciler once the template's
+	// deleted flag is set.
+	for _, ws := range workspaces {
+		if ws.OwnerID != database.PrebuildsSystemUserID {
+			httpapi.Write(ctx, rw, http.StatusBadRequest, codersdk.Response{
+				Message: "All workspaces must be deleted before a template can be removed.",
+			})
+			return
+		}
 	}
 	err = api.Database.UpdateTemplateDeletedByID(ctx, database.UpdateTemplateDeletedByIDParams{
 		ID:        template.ID,
diff --git a/coderd/templates_test.go b/coderd/templates_test.go
index d53ecf80d2..08e198f79e 100644
--- a/coderd/templates_test.go
+++ b/coderd/templates_test.go
@@ -1802,6 +1802,67 @@ func TestDeleteTemplate(t *testing.T) {
 		require.Equal(t, http.StatusForbidden, apiErr.StatusCode())
 	})
 
+	t.Run("OnlyPrebuilds", func(t *testing.T) {
+		t.Parallel()
+		client, db := coderdtest.NewWithDatabase(t, nil)
+		owner := coderdtest.CreateFirstUser(t, client)
+		tpl := dbfake.TemplateVersion(t, db).
+			Seed(database.TemplateVersion{
+				CreatedBy:      owner.UserID,
+				OrganizationID: owner.OrganizationID,
+			}).Do()
+
+		// Create a workspace owned by the prebuilds system user.
+		dbfake.WorkspaceBuild(t, db, database.WorkspaceTable{
+			OwnerID:        database.PrebuildsSystemUserID,
+			OrganizationID: owner.OrganizationID,
+			TemplateID:     tpl.Template.ID,
+		}).Seed(database.WorkspaceBuild{
+			TemplateVersionID: tpl.TemplateVersion.ID,
+		}).Do()
+
+		ctx := testutil.Context(t, testutil.WaitLong)
+
+		err := client.DeleteTemplate(ctx, tpl.Template.ID)
+		require.NoError(t, err)
+	})
+
+	t.Run("PrebuildsAndHumanWorkspaces", func(t *testing.T) {
+		t.Parallel()
+		client, db := coderdtest.NewWithDatabase(t, nil)
+		owner := coderdtest.CreateFirstUser(t, client)
+		tpl := dbfake.TemplateVersion(t, db).
+			Seed(database.TemplateVersion{
+				CreatedBy:      owner.UserID,
+				OrganizationID: owner.OrganizationID,
+			}).Do()
+
+		// Create a prebuild workspace.
+		dbfake.WorkspaceBuild(t, db, database.WorkspaceTable{
+			OwnerID:        database.PrebuildsSystemUserID,
+			OrganizationID: owner.OrganizationID,
+			TemplateID:     tpl.Template.ID,
+		}).Seed(database.WorkspaceBuild{
+			TemplateVersionID: tpl.TemplateVersion.ID,
+		}).Do()
+
+		// Create a human-owned workspace.
+		dbfake.WorkspaceBuild(t, db, database.WorkspaceTable{
+			OwnerID:        owner.UserID,
+			OrganizationID: owner.OrganizationID,
+			TemplateID:     tpl.Template.ID,
+		}).Seed(database.WorkspaceBuild{
+			TemplateVersionID: tpl.TemplateVersion.ID,
+		}).Do()
+
+		ctx := testutil.Context(t, testutil.WaitLong)
+
+		err := client.DeleteTemplate(ctx, tpl.Template.ID)
+		var apiErr *codersdk.Error
+		require.ErrorAs(t, err, &apiErr)
+		require.Equal(t, http.StatusBadRequest, apiErr.StatusCode())
+	})
+
 	t.Run("DeletedIsSet", func(t *testing.T) {
 		t.Parallel()
 		client := coderdtest.New(t, &coderdtest.Options{IncludeProvisionerDaemon: true})