diff --git a/site/src/pages/TemplateBuilder/BuildingTemplateLoader.stories.tsx b/site/src/pages/TemplateBuilder/BuildingTemplateLoader.stories.tsx
new file mode 100644
index 0000000000..8387436840
--- /dev/null
+++ b/site/src/pages/TemplateBuilder/BuildingTemplateLoader.stories.tsx
@@ -0,0 +1,19 @@
+import type { Meta, StoryObj } from "@storybook/react-vite";
+import { BuildingTemplateLoader } from "./BuildingTemplateLoader";
+
+const meta: Meta<typeof BuildingTemplateLoader> = {
+	title: "pages/TemplateBuilder/BuildingTemplateLoader",
+	component: BuildingTemplateLoader,
+	decorators: [
+		(Story) => (
+			<div style={{ width: "100%", height: 600 }}>
+				<Story />
+			</div>
+		),
+	],
+};
+
+export default meta;
+type Story = StoryObj<typeof BuildingTemplateLoader>;
+
+export const Default: Story = {};
diff --git a/site/src/pages/TemplateBuilder/BuildingTemplateLoader.tsx b/site/src/pages/TemplateBuilder/BuildingTemplateLoader.tsx
new file mode 100644
index 0000000000..8b6c434aef
--- /dev/null
+++ b/site/src/pages/TemplateBuilder/BuildingTemplateLoader.tsx
@@ -0,0 +1,128 @@
+import {
+	CodeIcon,
+	DatabaseIcon,
+	KeyIcon,
+	LayoutTemplateIcon,
+	PackageIcon,
+	WrenchIcon,
+} from "lucide-react";
+import { motion } from "motion/react";
+import type { FC } from "react";
+
+type FloatingIcon = {
+	name: string;
+	icon: FC<{ className?: string }>;
+	// Position as percentage offsets from the container center.
+	x: number;
+	y: number;
+	delay: number;
+};
+
+const ICONS: FloatingIcon[] = [
+	{ name: "package", icon: PackageIcon, x: -18, y: 20, delay: 0 },
+	{ name: "key", icon: KeyIcon, x: -25, y: -10, delay: 0.4 },
+	{ name: "code", icon: CodeIcon, x: 15, y: 25, delay: 0.8 },
+	{ name: "database", icon: DatabaseIcon, x: 18, y: -30, delay: 1.2 },
+	{ name: "wrench", icon: WrenchIcon, x: 10, y: 0, delay: 1.6 },
+	{ name: "template", icon: LayoutTemplateIcon, x: 28, y: -8, delay: 2.0 },
+];
+
+/**
+ * Full-area animated loader displayed while the template builder compose
+ * API call is in flight. Shows floating icon boxes, a progress bar, and
+ * an animated "Building your template..." label.
+ */
+export const BuildingTemplateLoader: FC = () => {
+	return (
+		<div
+			className="relative flex flex-col items-center justify-end w-full min-h-[480px] overflow-hidden"
+			role="status"
+			aria-label="Building your template"
+		>
+			{/* Floating icon boxes; bottom-24 keeps them above the progress bar */}
+			<div className="absolute inset-0 bottom-24">
+				{ICONS.map(({ name, icon: Icon, x, y, delay }) => (
+					<motion.div
+						key={name}
+						className="absolute rounded-md border border-solid border-border bg-surface-secondary p-3"
+						style={{
+							left: `calc(50% + ${x}%)`,
+							top: `calc(50% + ${y}%)`,
+						}}
+						animate={{
+							y: ["-100vh", "0vh", "0vh", "0vh", "-100vh", "-100vh"],
+							opacity: [0, 1, 1, 0, 0, 0],
+						}}
+						transition={{
+							duration: 7,
+							delay,
+							ease: [0.25, 0.1, 0.25, 1],
+							repeat: Number.POSITIVE_INFINITY,
+							times: [0, 0.25, 0.55, 0.7, 0.8, 1],
+						}}
+					>
+						<Icon className="size-6 text-content-primary" />
+					</motion.div>
+				))}
+			</div>
+
+			{/* Progress bar and label */}
+			<div className="relative z-10 flex w-full max-w-[480px] flex-col items-center gap-3 pb-8">
+				{/* Progress track */}
+				<div className="flex h-2.5 w-full items-center justify-center">
+					<div className="h-2.5 w-full overflow-hidden rounded bg-surface-sky">
+						<motion.div
+							className="h-full rounded bg-highlight-sky"
+							initial={{ width: "0%" }}
+							animate={{ width: "100%" }}
+							transition={{
+								duration: 5,
+								ease: "easeInOut",
+								repeat: Number.POSITIVE_INFINITY,
+							}}
+						/>
+					</div>
+				</div>
+
+				{/* Label */}
+				<p className="flex items-center gap-0.5 text-xs leading-[18px] text-content-secondary">
+					<span>Building your template</span>
+					<span className="inline-flex gap-0.5">
+						<motion.span
+							animate={{ opacity: [0, 1, 1, 0] }}
+							transition={{
+								duration: 1.5,
+								repeat: Number.POSITIVE_INFINITY,
+								times: [0, 0.2, 0.8, 1],
+							}}
+						>
+							.
+						</motion.span>
+						<motion.span
+							animate={{ opacity: [0, 1, 1, 0] }}
+							transition={{
+								duration: 1.5,
+								delay: 0.2,
+								repeat: Number.POSITIVE_INFINITY,
+								times: [0, 0.2, 0.8, 1],
+							}}
+						>
+							.
+						</motion.span>
+						<motion.span
+							animate={{ opacity: [0, 1, 1, 0] }}
+							transition={{
+								duration: 1.5,
+								delay: 0.4,
+								repeat: Number.POSITIVE_INFINITY,
+								times: [0, 0.2, 0.8, 1],
+							}}
+						>
+							.
+						</motion.span>
+					</span>
+				</p>
+			</div>
+		</div>
+	);
+};
diff --git a/site/src/pages/TemplateBuilder/TemplateBuilderPageView.tsx b/site/src/pages/TemplateBuilder/TemplateBuilderPageView.tsx
index 061918ba30..728a12094d 100644
--- a/site/src/pages/TemplateBuilder/TemplateBuilderPageView.tsx
+++ b/site/src/pages/TemplateBuilder/TemplateBuilderPageView.tsx
@@ -20,6 +20,7 @@ import {
 	BaseTemplateParametersStep,
 	baseParametersComplete,
 } from "./BaseTemplateParametersStep";
+import { BuildingTemplateLoader } from "./BuildingTemplateLoader";
 import { ModuleSelectStep } from "./ModuleSelectStep";
 import {
 	ModuleSettingsStep,
@@ -103,6 +104,10 @@ export const TemplateBuilderPageView: FC<TemplateBuilderPageViewProps> = ({
 		});
 	};
 
+	if (isCreating) {
+		return <BuildingTemplateLoader />;
+	}
+
 	return (
 		<Margins className="pb-12">
 			<PageHeader>
@@ -143,12 +148,8 @@ export const TemplateBuilderPageView: FC<TemplateBuilderPageViewProps> = ({
 								Back
 							</Button>
 						)}
-						<Button onClick={handleNext} disabled={!canContinue || isCreating}>
-							{isCreating
-								? "Creating..."
-								: isLastStep
-									? "Create Template"
-									: "Continue"}
+						<Button onClick={handleNext} disabled={!canContinue}>
+							{isLastStep ? "Create Template" : "Continue"}
 						</Button>
 					</div>
 				</div>