diff --git a/coderd/database/databasefake/databasefake.go b/coderd/database/databasefake/databasefake.go
index 73c0cdbcd5195..95920d1ac2b72 100644
--- a/coderd/database/databasefake/databasefake.go
+++ b/coderd/database/databasefake/databasefake.go
@@ -527,7 +527,7 @@ func (q *fakeQuerier) GetWorkspaceOwnerCountsByTemplateIDs(_ context.Context, te
 
 	counts := map[uuid.UUID]map[uuid.UUID]struct{}{}
 	for _, templateID := range templateIDs {
-		found := false
+		counts[templateID] = map[uuid.UUID]struct{}{}
 		for _, workspace := range q.workspaces {
 			if workspace.TemplateID != templateID {
 				continue
@@ -541,11 +541,6 @@ func (q *fakeQuerier) GetWorkspaceOwnerCountsByTemplateIDs(_ context.Context, te
 			}
 			countByOwnerID[workspace.OwnerID] = struct{}{}
 			counts[templateID] = countByOwnerID
-			found = true
-			break
-		}
-		if !found {
-			counts[templateID] = map[uuid.UUID]struct{}{}
 		}
 	}
 	res := make([]database.GetWorkspaceOwnerCountsByTemplateIDsRow, 0)
diff --git a/coderd/database/queries.sql.go b/coderd/database/queries.sql.go
index 0471cd9c01735..a85b18bda4c30 100644
--- a/coderd/database/queries.sql.go
+++ b/coderd/database/queries.sql.go
@@ -4058,6 +4058,8 @@ FROM
 	workspaces
 WHERE
 	template_id = ANY($1 :: uuid [ ])
+	-- Ignore deleted workspaces
+	AND deleted != true
 GROUP BY
 	template_id
 `
diff --git a/coderd/database/queries/workspaces.sql b/coderd/database/queries/workspaces.sql
index c88f687dfed28..5cb6508a12111 100644
--- a/coderd/database/queries/workspaces.sql
+++ b/coderd/database/queries/workspaces.sql
@@ -83,6 +83,8 @@ FROM
 	workspaces
 WHERE
 	template_id = ANY(@ids :: uuid [ ])
+	-- Ignore deleted workspaces
+	AND deleted != true
 GROUP BY
 	template_id;
 
diff --git a/coderd/templates_test.go b/coderd/templates_test.go
index 0e50463c89dd4..9f54d59003e9d 100644
--- a/coderd/templates_test.go
+++ b/coderd/templates_test.go
@@ -11,6 +11,7 @@ import (
 	"github.com/stretchr/testify/require"
 
 	"github.com/coder/coder/coderd/coderdtest"
+	"github.com/coder/coder/coderd/rbac"
 	"github.com/coder/coder/coderd/util/ptr"
 	"github.com/coder/coder/codersdk"
 )
@@ -27,6 +28,37 @@ func TestTemplate(t *testing.T) {
 		_, err := client.Template(context.Background(), template.ID)
 		require.NoError(t, err)
 	})
+
+	t.Run("WorkspaceCount", func(t *testing.T) {
+		t.Parallel()
+		ctx := context.Background()
+		client := coderdtest.New(t, &coderdtest.Options{IncludeProvisionerD: true})
+		user := coderdtest.CreateFirstUser(t, client)
+		member := coderdtest.CreateAnotherUser(t, client, user.OrganizationID, rbac.RoleAdmin())
+		memberWithDeleted := coderdtest.CreateAnotherUser(t, client, user.OrganizationID, rbac.RoleAdmin())
+		version := coderdtest.CreateTemplateVersion(t, client, user.OrganizationID, nil)
+		template := coderdtest.CreateTemplate(t, client, user.OrganizationID, version.ID)
+		coderdtest.AwaitTemplateVersionJob(t, client, version.ID)
+
+		// Create 3 workspaces with 3 users. 2 workspaces exist, 1 is deleted
+		workspace := coderdtest.CreateWorkspace(t, client, user.OrganizationID, template.ID)
+		coderdtest.AwaitWorkspaceBuildJob(t, client, workspace.LatestBuild.ID)
+
+		memberWorkspace := coderdtest.CreateWorkspace(t, member, user.OrganizationID, template.ID)
+		coderdtest.AwaitWorkspaceBuildJob(t, member, memberWorkspace.LatestBuild.ID)
+
+		deletedWorkspace := coderdtest.CreateWorkspace(t, memberWithDeleted, user.OrganizationID, template.ID)
+		coderdtest.AwaitWorkspaceBuildJob(t, client, deletedWorkspace.LatestBuild.ID)
+		build, err := client.CreateWorkspaceBuild(ctx, deletedWorkspace.ID, codersdk.CreateWorkspaceBuildRequest{
+			Transition: codersdk.WorkspaceTransitionDelete,
+		})
+		require.NoError(t, err)
+		coderdtest.AwaitWorkspaceBuildJob(t, client, build.ID)
+
+		template, err = client.Template(context.Background(), template.ID)
+		require.NoError(t, err)
+		require.Equal(t, 2, int(template.WorkspaceOwnerCount), "workspace count")
+	})
 }
 
 func TestPostTemplateByOrganization(t *testing.T) {