diff --git a/cli/templatecreate_test.go b/cli/templatecreate_test.go
index bbafcbecb32b1..3f1904e5fd6c9 100644
--- a/cli/templatecreate_test.go
+++ b/cli/templatecreate_test.go
@@ -1,6 +1,7 @@
 package cli_test
 
 import (
+	"io"
 	"os"
 	"testing"
 
@@ -197,6 +198,53 @@ func TestTemplateCreate(t *testing.T) {
 		require.EqualError(t, <-execDone, "Parameter value absent in parameter file for \"region\"!")
 		removeTmpDirUntilSuccess(t, tempDir)
 	})
+
+	t.Run("Recreate template with same name (create, delete, create)", func(t *testing.T) {
+		t.Parallel()
+		client := coderdtest.New(t, &coderdtest.Options{IncludeProvisionerD: true})
+		coderdtest.CreateFirstUser(t, client)
+
+		create := func() error {
+			source := clitest.CreateTemplateVersionSource(t, &echo.Responses{
+				Parse:     echo.ParseComplete,
+				Provision: provisionCompleteWithAgent,
+			})
+			args := []string{
+				"templates",
+				"create",
+				"my-template",
+				"--yes",
+				"--directory", source,
+				"--test.provisioner", string(database.ProvisionerTypeEcho),
+			}
+			cmd, root := clitest.New(t, args...)
+			clitest.SetupConfig(t, client, root)
+			cmd.SetOut(io.Discard)
+			cmd.SetErr(io.Discard)
+
+			return cmd.Execute()
+		}
+		del := func() error {
+			args := []string{
+				"templates",
+				"delete",
+				"my-template",
+			}
+			cmd, root := clitest.New(t, args...)
+			clitest.SetupConfig(t, client, root)
+			cmd.SetOut(io.Discard)
+			cmd.SetErr(io.Discard)
+
+			return cmd.Execute()
+		}
+
+		err := create()
+		require.NoError(t, err, "Template must be created without error")
+		err = del()
+		require.NoError(t, err, "Template must be deleted without error")
+		err = create()
+		require.NoError(t, err, "Template must be recreated without error")
+	})
 }
 
 func createTestParseResponse() []*proto.Parse_Response {
diff --git a/cli/templatedelete.go b/cli/templatedelete.go
index 26ba6ca2a01f1..e698335c672a6 100644
--- a/cli/templatedelete.go
+++ b/cli/templatedelete.go
@@ -76,7 +76,7 @@ func templateDelete() *cobra.Command {
 					return xerrors.Errorf("delete template %q: %w", template.Name, err)
 				}
 
-				_, _ = fmt.Fprintln(cmd.ErrOrStderr(), "Deleted template "+cliui.Styles.Code.Render(template.Name)+"!")
+				_, _ = fmt.Fprintln(cmd.OutOrStdout(), "Deleted template "+cliui.Styles.Code.Render(template.Name)+"!")
 			}
 
 			return nil
diff --git a/coderd/database/dump.sql b/coderd/database/dump.sql
index dee75904e13e7..61dae91780ed3 100644
--- a/coderd/database/dump.sql
+++ b/coderd/database/dump.sql
@@ -399,9 +399,6 @@ ALTER TABLE ONLY template_versions
 ALTER TABLE ONLY template_versions
     ADD CONSTRAINT template_versions_template_id_name_key UNIQUE (template_id, name);
 
-ALTER TABLE ONLY templates
-    ADD CONSTRAINT templates_organization_id_name_key UNIQUE (organization_id, name);
-
 ALTER TABLE ONLY templates
     ADD CONSTRAINT templates_pkey PRIMARY KEY (id);
 
@@ -453,13 +450,11 @@ CREATE UNIQUE INDEX idx_organization_name ON organizations USING btree (name);
 
 CREATE UNIQUE INDEX idx_organization_name_lower ON organizations USING btree (lower(name));
 
-CREATE UNIQUE INDEX idx_templates_name_lower ON templates USING btree (lower((name)::text));
-
 CREATE UNIQUE INDEX idx_users_email ON users USING btree (email);
 
 CREATE UNIQUE INDEX idx_users_username ON users USING btree (username);
 
-CREATE UNIQUE INDEX templates_organization_id_name_idx ON templates USING btree (organization_id, name) WHERE (deleted = false);
+CREATE UNIQUE INDEX templates_organization_id_name_idx ON templates USING btree (organization_id, lower((name)::text)) WHERE (deleted = false);
 
 CREATE UNIQUE INDEX users_username_lower_idx ON users USING btree (lower(username));
 
diff --git a/coderd/database/migrations/000026_allow_template_name_re_use.down.sql b/coderd/database/migrations/000026_allow_template_name_re_use.down.sql
new file mode 100644
index 0000000000000..8b58f9fdcac21
--- /dev/null
+++ b/coderd/database/migrations/000026_allow_template_name_re_use.down.sql
@@ -0,0 +1,5 @@
+DROP INDEX templates_organization_id_name_idx;
+CREATE UNIQUE INDEX templates_organization_id_name_idx ON templates USING btree (organization_id, name) WHERE deleted = false;
+CREATE UNIQUE INDEX idx_templates_name_lower ON templates USING btree (lower(name));
+
+ALTER TABLE ONLY templates ADD CONSTRAINT templates_organization_id_name_key UNIQUE (organization_id, name);
diff --git a/coderd/database/migrations/000026_allow_template_name_re_use.up.sql b/coderd/database/migrations/000026_allow_template_name_re_use.up.sql
new file mode 100644
index 0000000000000..7aebd5ca751f3
--- /dev/null
+++ b/coderd/database/migrations/000026_allow_template_name_re_use.up.sql
@@ -0,0 +1,5 @@
+DROP INDEX idx_templates_name_lower;
+DROP INDEX templates_organization_id_name_idx;
+CREATE UNIQUE INDEX templates_organization_id_name_idx ON templates (organization_id, lower(name)) WHERE deleted = false;
+
+ALTER TABLE ONLY templates DROP CONSTRAINT templates_organization_id_name_key;