diff --git a/src/Templates/src/templates/maui-blazor/.template.config/template.json b/src/Templates/src/templates/maui-blazor/.template.config/template.json
index c5692f03d6d0..ad0e9f91211e 100644
--- a/src/Templates/src/templates/maui-blazor/.template.config/template.json
+++ b/src/Templates/src/templates/maui-blazor/.template.config/template.json
@@ -94,7 +94,7 @@
           "steps": [
             {
               "regex": "[^a-z0-9_\\.]",
-              "replacement": "_"
+              "replacement": ""
             }
           ]
         }
diff --git a/src/Templates/src/templates/maui-mobile/.template.config/template.json b/src/Templates/src/templates/maui-mobile/.template.config/template.json
index 8abb57f3c68a..058875bdd23f 100644
--- a/src/Templates/src/templates/maui-mobile/.template.config/template.json
+++ b/src/Templates/src/templates/maui-mobile/.template.config/template.json
@@ -98,7 +98,7 @@
           "steps": [
             {
               "regex": "[^a-z0-9_\\.]",
-              "replacement": "_"
+              "replacement": ""
             }
           ]
         }
diff --git a/src/TestUtils/src/Microsoft.Maui.IntegrationTests/TemplateTests.cs b/src/TestUtils/src/Microsoft.Maui.IntegrationTests/TemplateTests.cs
index 53b3087746ba..38f0175eac95 100644
--- a/src/TestUtils/src/Microsoft.Maui.IntegrationTests/TemplateTests.cs
+++ b/src/TestUtils/src/Microsoft.Maui.IntegrationTests/TemplateTests.cs
@@ -1,3 +1,4 @@
+using System.Xml.Linq;
 using Microsoft.Maui.IntegrationTests.Apple;
 
 namespace Microsoft.Maui.IntegrationTests
@@ -47,6 +48,41 @@ public void Build(string id, string framework, string config, bool shouldPack)
 				$"Project {Path.GetFileName(projectFile)} failed to build. Check test output/attachments for errors.");
 		}
 
+		[Test]
+		// with spaces
+		[TestCase("maui", "Project Space", "projectspace")]
+		[TestCase("maui-blazor", "Project Space", "projectspace")]
+		[TestCase("mauilib", "Project Space", "projectspace")]
+  		// with invalid characters
+		[TestCase("maui", "Project@Symbol", "projectsymbol")]
+		[TestCase("maui-blazor", "Project@Symbol", "projectsymbol")]
+		[TestCase("mauilib", "Project@Symbol", "projectsymbol")]
+		public void BuildsWithSpecialCharacters(string id, string projectName, string expectedId)
+		{
+			var projectDir = Path.Combine(TestDirectory, projectName);
+			var projectFile = Path.Combine(projectDir, $"{projectName}.csproj");
+
+			Assert.IsTrue(DotnetInternal.New(id, projectDir, DotNetCurrent),
+				$"Unable to create template {id}. Check test output for errors.");
+
+			EnableTizen(projectFile);
+
+			// libraries do not have application IDs
+			if (id != "mauilib")
+			{
+				var doc = XDocument.Load(projectFile);
+				var appId = doc.Root!
+					.Elements("PropertyGroup")
+					.Elements("ApplicationId")
+					.Single()
+					.Value;
+				Assert.AreEqual($"com.companyname.{expectedId}", appId);
+			}
+
+			Assert.IsTrue(DotnetInternal.Build(projectFile, "Debug", properties: BuildProps, msbuildWarningsAsErrors: true),
+				$"Project {Path.GetFileName(projectFile)} failed to build. Check test output/attachments for errors.");
+		}
+
 		[Test]
 		// Parameters: short name, target framework, build config, use pack target
 		[TestCase("maui", DotNetPrevious, "Debug", false)]