diff --git a/crates/bevy_ecs/macros/src/template.rs b/crates/bevy_ecs/macros/src/template.rs
index 6fbf6e4781001..484b5bae82929 100644
--- a/crates/bevy_ecs/macros/src/template.rs
+++ b/crates/bevy_ecs/macros/src/template.rs
@@ -2,12 +2,13 @@ use bevy_macro_utils::BevyManifest;
 use proc_macro::TokenStream;
 use quote::{format_ident, quote};
 use syn::{
-    parse_macro_input, parse_quote, punctuated::Punctuated, spanned::Spanned, Data, DeriveInput,
-    Fields, FieldsUnnamed, Index, Path, Result, Token, WhereClause,
+    parse::ParseStream, parse_macro_input, parse_quote, punctuated::Punctuated, spanned::Spanned,
+    Data, DeriveInput, Fields, FieldsUnnamed, Ident, Index, Path, Result, Token, WhereClause,
 };
 
 const TEMPLATE_DEFAULT_ATTRIBUTE: &str = "default";
 const TEMPLATE_ATTRIBUTE: &str = "template";
+const BUILT_IN_ATTRIBUTE: &str = "built_in";
 
 pub(crate) fn derive_from_template(input: TokenStream) -> TokenStream {
     let ast = parse_macro_input!(input as DeriveInput);
@@ -332,6 +333,12 @@ struct StructImpl {
     template_field_clones: Vec<proc_macro2::TokenStream>,
 }
 
+enum TemplateType {
+    FromTemplate,
+    BuiltIn,
+    Manual(Path),
+}
+
 fn struct_impl(fields: &Fields, bevy_ecs: &Path, is_enum: bool) -> Result<StructImpl> {
     let mut template_fields = Vec::with_capacity(fields.len());
     let mut template_field_builds = Vec::with_capacity(fields.len());
@@ -344,22 +351,39 @@ fn struct_impl(fields: &Fields, bevy_ecs: &Path, is_enum: bool) -> Result<Struct
         let ident = &field.ident;
         let ty = &field.ty;
         let index = Index::from(index);
-        let mut template_type = None;
+        let mut template_type = TemplateType::FromTemplate;
         for attr in &field.attrs {
             if attr.path().is_ident(TEMPLATE_ATTRIBUTE) {
-                let Ok(path) = attr.parse_args::<Path>() else {
-                    return Err(syn::Error::new(
-                        attr.span(),
-                        "Expected a Template type path",
-                    ));
-                };
-                template_type = Some(quote!(#path));
+                attr.parse_args_with(|stream: ParseStream| {
+                    let forked = stream.fork();
+                    let ident = forked.parse::<Ident>()?;
+                    if ident == BUILT_IN_ATTRIBUTE {
+                        stream.parse::<Ident>()?;
+                        template_type = TemplateType::BuiltIn;
+                    } else {
+                        if let Ok(path) = stream.parse::<Path>() {
+                            template_type = TemplateType::Manual(path);
+                        } else {
+                            return Err(syn::Error::new(
+                                attr.span(),
+                                "Expected a Template type path",
+                            ));
+                        }
+                    }
+                    Ok(())
+                })?;
             }
         }
 
-        if template_type.is_none() {
-            template_type = Some(quote!(<#ty as #bevy_ecs::template::FromTemplate>::Template));
-        }
+        let template_type = match template_type {
+            TemplateType::FromTemplate => {
+                quote!(<#ty as #bevy_ecs::template::FromTemplate>::Template)
+            }
+            TemplateType::BuiltIn => {
+                quote!(<#ty as #bevy_ecs::template::BuiltInTemplate>::Template)
+            }
+            TemplateType::Manual(path) => quote! {#path},
+        };
 
         if is_named {
             template_fields.push(quote! {
diff --git a/crates/bevy_ecs/src/template.rs b/crates/bevy_ecs/src/template.rs
index 31a6d77472d50..5fef59fc7d3fe 100644
--- a/crates/bevy_ecs/src/template.rs
+++ b/crates/bevy_ecs/src/template.rs
@@ -267,6 +267,72 @@ impl ScopedEntities {
 ///     }
 /// }
 /// ```
+///
+/// [`FromTemplate`] is automatically implemented for anything that is [`Default`] and [`Clone`]. "Built in" collection types like
+/// [`Option`] and [`Vec`] pick up this "blanket" implementation, which is generally a good thing because it means these collection
+/// types work with [`FromTemplate`] derives by default. However if the items in the collection have a custom [`FromTemplate`] impl
+/// (ex: a manual implementation like `Handle<T>` for assets or an explicit [`FromTemplate`] derive), then relying on a [`Default`] /
+/// [`Clone`] implementation doesn't work, as that won't run the template logic!
+///
+/// Therefore, cases like [`Option<Handle<T>>`] need something other than [`FromTemplate`] to determine the type. One option is to specify
+/// the template manually:
+///
+/// ```
+/// # use bevy_ecs::{prelude::*, template::{TemplateContext, OptionTemplate}};
+/// # use core::marker::PhantomData;
+/// # struct Handle<T>(PhantomData<T>);
+/// # struct HandleTemplate<T>(PhantomData<T>);
+/// # struct Image;
+/// # impl<T> FromTemplate for Handle<T> {
+/// #     type Template = HandleTemplate<T>;
+/// # }
+/// # impl<T> Template for HandleTemplate<T> {
+/// #    type Output = Handle<T>;
+/// #    fn build_template(&self, context: &mut TemplateContext) -> Result<Self::Output> {
+/// #        unimplemented!()
+/// #    }
+/// #    fn clone_template(&self) -> Self {
+/// #        unimplemented!()
+/// #    }
+/// # }
+/// #[derive(FromTemplate)]
+/// struct Widget {
+///     #[template(OptionTemplate<HandleTemplate<Image>>)]
+///     image: Option<Handle<Image>>
+/// }
+/// ```
+///
+/// However that is a bit of a mouthfull! This is where [`BuiltInTemplate`] comes in. It fills the same role
+/// as [`FromTemplate`], but has no blanket implementation for [`Default`] and [`Clone`], meaning we can have
+/// custom implementations for types like [`Option`] and [`Vec`].
+///
+/// If you deriving [`FromTemplate`] and you have a "built in" type like [`Option<Handle<T>>`] which has custom template logic,
+/// annotate it with the `template(built_in)` attribute to use [`BuiltInTemplate`] instead of [`FromTemplate`]:
+///
+/// ```
+/// # use bevy_ecs::{prelude::*, template::TemplateContext};
+/// # use core::marker::PhantomData;
+/// # struct Handle<T>(PhantomData<T>);
+/// # struct HandleTemplate<T>(PhantomData<T>);
+/// # struct Image;
+/// # impl<T> FromTemplate for Handle<T> {
+/// #     type Template = HandleTemplate<T>;
+/// # }
+/// # impl<T> Template for HandleTemplate<T> {
+/// #    type Output = Handle<T>;
+/// #    fn build_template(&self, context: &mut TemplateContext) -> Result<Self::Output> {
+/// #        unimplemented!()
+/// #    }
+/// #    fn clone_template(&self) -> Self {
+/// #        unimplemented!()
+/// #    }
+/// # }
+/// #[derive(FromTemplate)]
+/// struct Widget {
+///     #[template(built_in)]
+///     image: Option<Handle<Image>>
+/// }
+/// ```
 pub trait FromTemplate: Sized {
     /// The [`Template`] for this type.
     type Template: Template;
@@ -431,12 +497,49 @@ pub fn template<F: Fn(&mut TemplateContext) -> Result<O>, O>(func: F) -> FnTempl
     FnTemplate(func)
 }
 
-/// A [`Template`] for Option.
-pub struct OptionTemplate<T>(Option<T>);
+/// Roughly equivalent to [`FromTemplate`], but does not have a blanket implementation for [`Default`] + [`Clone`] types.
+/// This is generally used for common generic collection types like [`Option`] and [`Vec`], which have [`Default`] + [`Clone`] impls and
+/// therefore also pick up the [`FromTemplate`] behavior. This is fine when the `T` in [`Option<T>`] is not "templated"
+/// (ex: does not have an explicit [`FromTemplate`] derive). But if `T` is "templated", such as [`Option<Handle<T>>`], then it would require
+/// a manual `#[template(OptionTemplate<HandleTemplate<T>>)]` field annotation. This isn't fun to type out.
+///
+/// [`BuiltInTemplate`] enables equivalent "template type inference", by annotating a field with a type that implements [`BuiltInTemplate`] with
+/// `#[template(built_in)]`.
+pub trait BuiltInTemplate: Sized {
+    /// The template to consider the "built in" template for this type.
+    type Template: Template;
+}
 
-impl<T> Default for OptionTemplate<T> {
-    fn default() -> Self {
-        Self(None)
+impl<T: FromTemplate> BuiltInTemplate for Option<T> {
+    type Template = OptionTemplate<T::Template>;
+}
+
+impl<T: FromTemplate> BuiltInTemplate for Vec<T> {
+    type Template = VecTemplate<T::Template>;
+}
+
+/// A [`Template`] for [`Option`].
+#[derive(Default)]
+pub enum OptionTemplate<T> {
+    /// Template of [`Option::Some`].
+    Some(T),
+    /// Template of [`Option::None`].
+    #[default]
+    None,
+}
+
+impl<T> From<Option<T>> for OptionTemplate<T> {
+    fn from(value: Option<T>) -> Self {
+        match value {
+            Some(value) => OptionTemplate::Some(value),
+            None => OptionTemplate::None,
+        }
+    }
+}
+
+impl<T> From<T> for OptionTemplate<T> {
+    fn from(value: T) -> Self {
+        OptionTemplate::Some(value)
     }
 }
 
@@ -444,13 +547,66 @@ impl<T: Template> Template for OptionTemplate<T> {
     type Output = Option<T::Output>;
 
     fn build_template(&self, context: &mut TemplateContext) -> Result<Self::Output> {
-        Ok(match &self.0 {
-            Some(template) => Some(template.build_template(context)?),
-            None => None,
+        Ok(match &self {
+            OptionTemplate::Some(template) => Some(template.build_template(context)?),
+            OptionTemplate::None => None,
         })
     }
 
     fn clone_template(&self) -> Self {
-        OptionTemplate(self.0.as_ref().map(Template::clone_template))
+        match self {
+            OptionTemplate::Some(value) => OptionTemplate::Some(value.clone_template()),
+            OptionTemplate::None => OptionTemplate::None,
+        }
+    }
+}
+
+/// A [`Template`] for [`Vec`].
+pub struct VecTemplate<T>(pub Vec<T>);
+
+impl<T> Default for VecTemplate<T> {
+    fn default() -> Self {
+        Self(Vec::new())
+    }
+}
+
+impl<T: Template> Template for VecTemplate<T> {
+    type Output = Vec<T::Output>;
+
+    fn build_template(&self, context: &mut TemplateContext) -> Result<Self::Output> {
+        let mut output = Vec::with_capacity(self.0.len());
+        for value in &self.0 {
+            output.push(value.build_template(context)?);
+        }
+        Ok(output)
+    }
+
+    fn clone_template(&self) -> Self {
+        VecTemplate(self.0.iter().map(Template::clone_template).collect())
+    }
+}
+
+#[cfg(test)]
+mod tests {
+    use crate::prelude::*;
+    use alloc::string::{String, ToString};
+
+    #[test]
+    fn option_template() {
+        #[derive(FromTemplate)]
+        struct Handle(String);
+
+        #[derive(FromTemplate)]
+        struct Foo {
+            #[template(built_in)]
+            handle: Option<Handle>,
+        }
+
+        let mut world = World::new();
+        let foo_template = FooTemplate {
+            handle: Some(HandleTemplate("handle_path".to_string())).into(),
+        };
+        let foo = world.spawn_empty().build_template(&foo_template).unwrap();
+        assert_eq!(foo.handle.unwrap().0, "handle_path".to_string());
     }
 }
diff --git a/crates/bevy_ecs/src/world/entity_access/world_mut.rs b/crates/bevy_ecs/src/world/entity_access/world_mut.rs
index c82590159cdb2..9b3471f4ff541 100644
--- a/crates/bevy_ecs/src/world/entity_access/world_mut.rs
+++ b/crates/bevy_ecs/src/world/entity_access/world_mut.rs
@@ -16,6 +16,7 @@ use crate::{
     relationship::RelationshipHookMode,
     resource::Resource,
     storage::{SparseSets, Table},
+    template::{EntityScopes, ScopedEntities, Template, TemplateContext},
     world::{
         error::EntityComponentError, unsafe_world_cell::UnsafeEntityCell, ComponentEntry,
         DynamicComponentFetch, EntityMut, EntityRef, FilteredEntityMut, FilteredEntityRef, Mut,
@@ -1594,6 +1595,22 @@ impl<'w> EntityWorldMut<'w> {
         self.entity
     }
 
+    /// Creates a new [`TemplateContext`] for this entity and passes it into the given `func`.
+    pub fn template_context<T>(
+        &mut self,
+        func: impl FnOnce(&mut TemplateContext) -> crate::error::Result<T>,
+    ) -> crate::error::Result<T> {
+        let mut scoped_entities = ScopedEntities::new(0);
+        let entity_scopes = EntityScopes::default();
+        let mut context = TemplateContext::new(self, &mut scoped_entities, &entity_scopes);
+        func(&mut context)
+    }
+
+    /// Builds the given template using a [`TemplateContext`] generated for this entity.
+    pub fn build_template<T: Template>(&mut self, template: &T) -> crate::error::Result<T::Output> {
+        self.template_context(|context| template.build_template(context))
+    }
+
     /// This despawns this entity if it is currently spawned, storing the new [`EntityGeneration`](crate::entity::EntityGeneration) in [`Self::entity`] but not freeing it.
     pub(crate) fn despawn_no_free_with_caller(&mut self, caller: MaybeLocation) {
         // setup
diff --git a/crates/bevy_sprite/src/sprite.rs b/crates/bevy_sprite/src/sprite.rs
index efb20f2c508f0..534c99e2f0423 100644
--- a/crates/bevy_sprite/src/sprite.rs
+++ b/crates/bevy_sprite/src/sprite.rs
@@ -2,12 +2,8 @@ use bevy_asset::{AsAssetId, AssetId, Assets, Handle};
 use bevy_camera::visibility::{self, Visibility, VisibilityClass};
 use bevy_color::Color;
 use bevy_derive::{Deref, DerefMut};
-use bevy_ecs::{
-    component::Component,
-    reflect::ReflectComponent,
-    template::{FromTemplate, OptionTemplate},
-};
-use bevy_image::{Image, TextureAtlas, TextureAtlasLayout, TextureAtlasTemplate};
+use bevy_ecs::{component::Component, reflect::ReflectComponent, template::FromTemplate};
+use bevy_image::{Image, TextureAtlas, TextureAtlasLayout};
 use bevy_math::{Rect, UVec2, Vec2};
 use bevy_reflect::{std_traits::ReflectDefault, PartialReflect, Reflect};
 use bevy_transform::components::Transform;
@@ -24,7 +20,7 @@ pub struct Sprite {
     /// The image used to render the sprite
     pub image: Handle<Image>,
     /// The (optional) texture atlas used to render the sprite
-    #[template(OptionTemplate<TextureAtlasTemplate>)]
+    #[template(built_in)]
     pub texture_atlas: Option<TextureAtlas>,
     /// The sprite's color tint
     pub color: Color,
diff --git a/crates/bevy_sprite/src/sprite_mesh.rs b/crates/bevy_sprite/src/sprite_mesh.rs
index e9667fa29adcf..5462f3e7d5a12 100644
--- a/crates/bevy_sprite/src/sprite_mesh.rs
+++ b/crates/bevy_sprite/src/sprite_mesh.rs
@@ -1,12 +1,8 @@
 use bevy_asset::{Assets, Handle};
 use bevy_camera::visibility::{Visibility, VisibilityClass};
 use bevy_color::Color;
-use bevy_ecs::{
-    component::Component,
-    reflect::ReflectComponent,
-    template::{FromTemplate, OptionTemplate},
-};
-use bevy_image::{Image, TextureAtlas, TextureAtlasLayout, TextureAtlasTemplate};
+use bevy_ecs::{component::Component, reflect::ReflectComponent, template::FromTemplate};
+use bevy_image::{Image, TextureAtlas, TextureAtlasLayout};
 use bevy_math::{Rect, UVec2, Vec2};
 use bevy_reflect::{std_traits::ReflectDefault, PartialReflect, Reflect};
 use bevy_transform::components::Transform;
@@ -24,7 +20,7 @@ pub struct SpriteMesh {
     /// The image used to render the sprite
     pub image: Handle<Image>,
     /// The (optional) texture atlas used to render the sprite
-    #[template(OptionTemplate<TextureAtlasTemplate>)]
+    #[template(built_in)]
     pub texture_atlas: Option<TextureAtlas>,
     /// The sprite's color tint
     pub color: Color,
diff --git a/crates/bevy_ui/src/widget/image.rs b/crates/bevy_ui/src/widget/image.rs
index d4cf8523edd10..fa3fe0a12f3a4 100644
--- a/crates/bevy_ui/src/widget/image.rs
+++ b/crates/bevy_ui/src/widget/image.rs
@@ -1,8 +1,8 @@
 use crate::{ComputedUiRenderTargetInfo, ContentSize, Measure, MeasureArgs, Node, NodeMeasure};
 use bevy_asset::{AsAssetId, AssetId, Assets, Handle};
 use bevy_color::Color;
-use bevy_ecs::{prelude::*, template::OptionTemplate};
-use bevy_image::{prelude::*, TextureAtlasTemplate, TRANSPARENT_IMAGE_HANDLE};
+use bevy_ecs::prelude::*;
+use bevy_image::{prelude::*, TRANSPARENT_IMAGE_HANDLE};
 use bevy_math::{Rect, UVec2, Vec2};
 use bevy_reflect::{std_traits::ReflectDefault, Reflect};
 use bevy_sprite::TextureSlicer;
@@ -23,7 +23,7 @@ pub struct ImageNode {
     /// This defaults to a [`TRANSPARENT_IMAGE_HANDLE`], which points to a fully transparent 1x1 texture.
     pub image: Handle<Image>,
     /// The (optional) texture atlas used to render the image.
-    #[template(OptionTemplate<TextureAtlasTemplate>)]
+    #[template(built_in)]
     pub texture_atlas: Option<TextureAtlas>,
     /// Whether the image should be flipped along its x-axis.
     pub flip_x: bool,
diff --git a/crates/bevy_window/src/cursor/custom_cursor.rs b/crates/bevy_window/src/cursor/custom_cursor.rs
index 3654e33f663ee..ddd173e6cf080 100644
--- a/crates/bevy_window/src/cursor/custom_cursor.rs
+++ b/crates/bevy_window/src/cursor/custom_cursor.rs
@@ -1,8 +1,8 @@
 use crate::cursor::CursorIcon;
 use alloc::string::String;
 use bevy_asset::Handle;
-use bevy_ecs::template::{FromTemplate, OptionTemplate};
-use bevy_image::{Image, TextureAtlas, TextureAtlasTemplate};
+use bevy_ecs::template::FromTemplate;
+use bevy_image::{Image, TextureAtlas};
 use bevy_math::URect;
 
 #[cfg(feature = "bevy_reflect")]
@@ -20,7 +20,7 @@ pub struct CustomCursorImage {
     /// or 32 bit float rgba. PNG images work well for this.
     pub handle: Handle<Image>,
     /// An optional texture atlas used to render the image.
-    #[template(OptionTemplate<TextureAtlasTemplate>)]
+    #[template(built_in)]
     pub texture_atlas: Option<TextureAtlas>,
     /// Whether the image should be flipped along its x-axis.
     ///