diff --git a/lib/colocated-babel-plugin.js b/lib/colocated-babel-plugin.js
index 221128ff..2867e0d1 100644
--- a/lib/colocated-babel-plugin.js
+++ b/lib/colocated-babel-plugin.js
@@ -23,7 +23,19 @@ module.exports = function (babel) {
 
       ExportDefaultDeclaration(path, state) {
         if (state.colocatedTemplateFound !== true || state.setComponentTemplateInjected === true) {
-          return;
+          let colocatedFlagIndex = path.parent.body.findIndex((node) => {
+            if (node.type === 'VariableDeclaration') {
+              if (
+                node.declarations.findIndex((declaration) => {
+                  if (declaration.id.name === '__COLOCATED_TEMPLATE__') return true;
+                  return false;
+                }) >= 0
+              )
+                return true;
+              return false;
+            }
+          });
+          if (colocatedFlagIndex < 0) return;
         }
 
         state.setComponentTemplateInjected = true;
diff --git a/lib/colocated-broccoli-plugin.js b/lib/colocated-broccoli-plugin.js
index 41a110ea..b934d2cc 100644
--- a/lib/colocated-broccoli-plugin.js
+++ b/lib/colocated-broccoli-plugin.js
@@ -154,14 +154,16 @@ module.exports = class ColocatedTemplateProcessor extends Plugin {
           let message = `\`${relativePath}\` does not contain a \`default export\`. Did you forget to export the component class?`;
           jsContents = `${jsContents}\nthrow new Error(${JSON.stringify(message)});`;
           prefix = '';
-        }
+        } else if (hasTemplate) jsContents = jsContents + `\n${prefix}`;
       } else {
         // create JS file, use null component pattern
 
-        jsContents = `import templateOnly from '@ember/component/template-only';\n\nexport default templateOnly();\n`;
+        jsContents =
+          prefix +
+          `import templateOnly from '@ember/component/template-only';\n\nexport default templateOnly();\n`;
       }
 
-      jsContents = prefix + jsContents;
+      //jsContents = prefix + jsContents;
 
       let jsOutputPath = path.join(this.outputPath, backingClassPath);
 
diff --git a/node-tests/colocated-broccoli-plugin-test.js b/node-tests/colocated-broccoli-plugin-test.js
index 4b888db0..84f06834 100644
--- a/node-tests/colocated-broccoli-plugin-test.js
+++ b/node-tests/colocated-broccoli-plugin-test.js
@@ -104,13 +104,14 @@ describe('ColocatedTemplateCompiler', function () {
       'app-name-here': {
         'router.js': '// stuff here',
         components: {
-          'foo.js': stripIndent`
-            import { hbs } from 'ember-cli-htmlbars';
-            const __COLOCATED_TEMPLATE__ = hbs("{{yield}}", {"contents":"{{yield}}","moduleName":"app-name-here/components/foo.hbs","parseOptions":{"srcName":"app-name-here/components/foo.hbs"}});
+          'foo.js':
+            stripIndent`
             import Component from '@glimmer/component';
 
             export default class FooComponent extends Component {}
-          `,
+            import { hbs } from 'ember-cli-htmlbars';
+            const __COLOCATED_TEMPLATE__ = hbs("{{yield}}", {"contents":"{{yield}}","moduleName":"app-name-here/components/foo.hbs","parseOptions":{"srcName":"app-name-here/components/foo.hbs"}});` +
+            '\n',
         },
         templates: {
           'application.hbs': '{{outlet}}',
@@ -211,13 +212,14 @@ describe('ColocatedTemplateCompiler', function () {
     assert.deepStrictEqual(output.read(), {
       'app-name-here': {
         components: {
-          'foo.ts': stripIndent`
-            import { hbs } from 'ember-cli-htmlbars';
-            const __COLOCATED_TEMPLATE__ = hbs("{{yield}}", {"contents":"{{yield}}","moduleName":"app-name-here/components/foo.hbs","parseOptions":{"srcName":"app-name-here/components/foo.hbs"}});
+          'foo.ts':
+            stripIndent`
             import Component from '@glimmer/component';
 
             export default class FooComponent extends Component {}
-          `,
+            import { hbs } from 'ember-cli-htmlbars';
+            const __COLOCATED_TEMPLATE__ = hbs("{{yield}}", {"contents":"{{yield}}","moduleName":"app-name-here/components/foo.hbs","parseOptions":{"srcName":"app-name-here/components/foo.hbs"}});` +
+            '\n',
         },
         templates: {
           'application.hbs': '{{outlet}}',
@@ -254,12 +256,13 @@ describe('ColocatedTemplateCompiler', function () {
     assert.deepStrictEqual(output.read(), {
       'app-name-here': {
         components: {
-          'foo.coffee': stripIndent`
-            import { hbs } from 'ember-cli-htmlbars'
-            __COLOCATED_TEMPLATE__ = hbs("{{yield}}", {"contents":"{{yield}}","moduleName":"app-name-here/components/foo.hbs","parseOptions":{"srcName":"app-name-here/components/foo.hbs"}})
+          'foo.coffee':
+            stripIndent`
             import Component from '@ember/component'
             export default class extends Component
-          `,
+            import { hbs } from 'ember-cli-htmlbars'
+            __COLOCATED_TEMPLATE__ = hbs("{{yield}}", {"contents":"{{yield}}","moduleName":"app-name-here/components/foo.hbs","parseOptions":{"srcName":"app-name-here/components/foo.hbs"}})` +
+            '\n',
         },
         templates: {
           'application.hbs': '{{outlet}}',
@@ -343,13 +346,14 @@ describe('ColocatedTemplateCompiler', function () {
       '@scope-name': {
         'addon-name-here': {
           components: {
-            'foo.js': stripIndent`
-            import { hbs } from 'ember-cli-htmlbars';
-            const __COLOCATED_TEMPLATE__ = hbs("{{yield}}", {"contents":"{{yield}}","moduleName":"@scope-name/addon-name-here/components/foo.hbs","parseOptions":{"srcName":"@scope-name/addon-name-here/components/foo.hbs"}});
+            'foo.js':
+              stripIndent`
             import Component from '@glimmer/component';
 
             export default class FooComponent extends Component {}
-          `,
+            import { hbs } from 'ember-cli-htmlbars';
+            const __COLOCATED_TEMPLATE__ = hbs("{{yield}}", {"contents":"{{yield}}","moduleName":"@scope-name/addon-name-here/components/foo.hbs","parseOptions":{"srcName":"@scope-name/addon-name-here/components/foo.hbs"}});` +
+              '\n',
           },
           templates: {
             'application.hbs': '{{outlet}}',
@@ -584,13 +588,14 @@ describe('ColocatedTemplateCompiler', function () {
           'app-name-here': {
             'router.js': '// stuff here',
             components: {
-              'foo.js': stripIndent`
-              import { hbs } from 'ember-cli-htmlbars';
-              const __COLOCATED_TEMPLATE__ = hbs("{{yield}}", {"contents":"{{yield}}","moduleName":"app-name-here/components/foo.hbs","parseOptions":{"srcName":"app-name-here/components/foo.hbs"}});
+              'foo.js':
+                stripIndent`
               import Component from '@glimmer/component';
 
               export default class FooComponent extends Component {}
-            `,
+              import { hbs } from 'ember-cli-htmlbars';
+              const __COLOCATED_TEMPLATE__ = hbs("{{yield}}", {"contents":"{{yield}}","moduleName":"app-name-here/components/foo.hbs","parseOptions":{"srcName":"app-name-here/components/foo.hbs"}});` +
+                '\n',
             },
             templates: {
               'application.hbs': '{{outlet}}',
@@ -669,13 +674,14 @@ describe('ColocatedTemplateCompiler', function () {
           'app-name-here': {
             'router.js': '// stuff here',
             components: {
-              'foo.js': stripIndent`
-              import { hbs } from 'ember-cli-htmlbars';
-              const __COLOCATED_TEMPLATE__ = hbs("{{yield}}", {"contents":"{{yield}}","moduleName":"app-name-here/components/foo.hbs","parseOptions":{"srcName":"app-name-here/components/foo.hbs"}});
+              'foo.js':
+                stripIndent`
               import Component from '@glimmer/component';
 
               export default class FooComponent extends Component {}
-            `,
+              import { hbs } from 'ember-cli-htmlbars';
+              const __COLOCATED_TEMPLATE__ = hbs("{{yield}}", {"contents":"{{yield}}","moduleName":"app-name-here/components/foo.hbs","parseOptions":{"srcName":"app-name-here/components/foo.hbs"}});` +
+                '\n',
             },
             templates: {
               'application.hbs': '{{outlet}}',
@@ -936,13 +942,14 @@ describe('ColocatedTemplateCompiler', function () {
           'app-name-here': {
             'router.js': '// stuff here',
             components: {
-              'foo.js': stripIndent`
-                import { hbs } from 'ember-cli-htmlbars';
-                const __COLOCATED_TEMPLATE__ = hbs("{{yield}}", {"contents":"{{yield}}","moduleName":"app-name-here/components/foo.hbs","parseOptions":{"srcName":"app-name-here/components/foo.hbs"}});
+              'foo.js':
+                stripIndent`
                 import Component from '@glimmer/component';
 
                 export default class FooComponent extends Component {}
-              `,
+                import { hbs } from 'ember-cli-htmlbars';
+                const __COLOCATED_TEMPLATE__ = hbs("{{yield}}", {"contents":"{{yield}}","moduleName":"app-name-here/components/foo.hbs","parseOptions":{"srcName":"app-name-here/components/foo.hbs"}});` +
+                '\n',
             },
             templates: {
               'application.hbs': '{{outlet}}',
@@ -978,13 +985,14 @@ describe('ColocatedTemplateCompiler', function () {
           'app-name-here': {
             'router.js': '// stuff here',
             components: {
-              'foo.js': stripIndent`
-              import { hbs } from 'ember-cli-htmlbars';
-              const __COLOCATED_TEMPLATE__ = hbs("whoops!", {"contents":"whoops!","moduleName":"app-name-here/components/foo.hbs","parseOptions":{"srcName":"app-name-here/components/foo.hbs"}});
+              'foo.js':
+                stripIndent`
               import Component from '@glimmer/component';
 
               export default class FooComponent extends Component {}
-            `,
+              import { hbs } from 'ember-cli-htmlbars';
+              const __COLOCATED_TEMPLATE__ = hbs("whoops!", {"contents":"whoops!","moduleName":"app-name-here/components/foo.hbs","parseOptions":{"srcName":"app-name-here/components/foo.hbs"}});` +
+                '\n',
             },
             templates: {
               'application.hbs': '{{outlet}}',
@@ -1024,13 +1032,14 @@ describe('ColocatedTemplateCompiler', function () {
           'app-name-here': {
             'router.js': '// stuff here',
             components: {
-              'foo.js': stripIndent`
-                import { hbs } from 'ember-cli-htmlbars';
-                const __COLOCATED_TEMPLATE__ = hbs("{{yield}}", {"contents":"{{yield}}","moduleName":"app-name-here/components/foo.hbs","parseOptions":{"srcName":"app-name-here/components/foo.hbs"}});
+              'foo.js':
+                stripIndent`
                 import Component from '@glimmer/component';
 
                 export default class FooComponent extends Component {}
-              `,
+                import { hbs } from 'ember-cli-htmlbars';
+                const __COLOCATED_TEMPLATE__ = hbs("{{yield}}", {"contents":"{{yield}}","moduleName":"app-name-here/components/foo.hbs","parseOptions":{"srcName":"app-name-here/components/foo.hbs"}});` +
+                '\n',
             },
             templates: {
               'application.hbs': '{{outlet}}',
@@ -1064,13 +1073,14 @@ describe('ColocatedTemplateCompiler', function () {
           'app-name-here': {
             'router.js': '// stuff here',
             components: {
-              'foo.js': stripIndent`
-              import { hbs } from 'ember-cli-htmlbars';
-              const __COLOCATED_TEMPLATE__ = hbs("{{yield}}", {"contents":"{{yield}}","moduleName":"app-name-here/components/foo.hbs","parseOptions":{"srcName":"app-name-here/components/foo.hbs"}});
+              'foo.js':
+                stripIndent`
               import Component from '@glimmer/component';
 
               export default class FooBarComponent extends Component {}
-            `,
+              import { hbs } from 'ember-cli-htmlbars';
+              const __COLOCATED_TEMPLATE__ = hbs("{{yield}}", {"contents":"{{yield}}","moduleName":"app-name-here/components/foo.hbs","parseOptions":{"srcName":"app-name-here/components/foo.hbs"}});` +
+                '\n',
             },
             templates: {
               'application.hbs': '{{outlet}}',
@@ -1116,13 +1126,14 @@ describe('ColocatedTemplateCompiler', function () {
           'app-name-here': {
             'router.js': '// stuff here',
             components: {
-              'foo.js': stripIndent`
-                import { hbs } from 'ember-cli-htmlbars';
-                const __COLOCATED_TEMPLATE__ = hbs("{{yield}}", {"contents":"{{yield}}","moduleName":"app-name-here/components/foo.hbs","parseOptions":{"srcName":"app-name-here/components/foo.hbs"}});
+              'foo.js':
+                stripIndent`
                 import Component from '@glimmer/component';
 
                 export default class FooComponent extends Component {}
-              `,
+                import { hbs } from 'ember-cli-htmlbars';
+                const __COLOCATED_TEMPLATE__ = hbs("{{yield}}", {"contents":"{{yield}}","moduleName":"app-name-here/components/foo.hbs","parseOptions":{"srcName":"app-name-here/components/foo.hbs"}});` +
+                '\n',
             },
             templates: {
               'application.hbs': '{{outlet}}',
diff --git a/node-tests/colocated-test.js b/node-tests/colocated-test.js
index 18949b3b..665d1ebe 100644
--- a/node-tests/colocated-test.js
+++ b/node-tests/colocated-test.js
@@ -131,6 +131,8 @@ describe('Colocation - Broccoli + Babel Integration', function () {
       'app-name-here': {
         components: {
           'foo.js': stripIndent`
+            import Component from '@glimmer/component';
+            export default class FooComponent extends Component {}
             import { hbs } from 'ember-cli-htmlbars';
 
             const __COLOCATED_TEMPLATE__ = hbs("{{yield}}", {
@@ -141,9 +143,6 @@ describe('Colocation - Broccoli + Babel Integration', function () {
               }
             });
 
-            import Component from '@glimmer/component';
-            export default class FooComponent extends Component {}
-
             Ember._setComponentTemplate(__COLOCATED_TEMPLATE__, FooComponent);
           `,
         },
@@ -179,6 +178,8 @@ describe('Colocation - Broccoli + Babel Integration', function () {
       'app-name-here': {
         components: {
           'foo.js': stripIndent`
+            import Component from '@glimmer/component';
+            export default class FooComponent extends Component {}
             import { hbs } from 'ember-cli-htmlbars';
 
             const __COLOCATED_TEMPLATE__ = hbs("{{yield}}", {
@@ -189,9 +190,6 @@ describe('Colocation - Broccoli + Babel Integration', function () {
               }
             });
 
-            import Component from '@glimmer/component';
-            export default class FooComponent extends Component {}
-
             Ember._setComponentTemplate(__COLOCATED_TEMPLATE__, FooComponent);
           `,
         },
@@ -274,6 +272,8 @@ describe('Colocation - Broccoli + Babel Integration', function () {
         'addon-name-here': {
           components: {
             'foo.js': stripIndent`
+            import Component from '@glimmer/component';
+            export default class FooComponent extends Component {}
             import { hbs } from 'ember-cli-htmlbars';
 
             const __COLOCATED_TEMPLATE__ = hbs("{{yield}}", {
@@ -284,9 +284,6 @@ describe('Colocation - Broccoli + Babel Integration', function () {
               }
             });
 
-            import Component from '@glimmer/component';
-            export default class FooComponent extends Component {}
-
             Ember._setComponentTemplate(__COLOCATED_TEMPLATE__, FooComponent);
           `,
           },