diff --git a/packages/@ember/-internals/glimmer/lib/component-managers/input.ts b/packages/@ember/-internals/glimmer/lib/component-managers/input.ts
index 1e7770362ad..22f3cf46811 100644
--- a/packages/@ember/-internals/glimmer/lib/component-managers/input.ts
+++ b/packages/@ember/-internals/glimmer/lib/component-managers/input.ts
@@ -18,7 +18,7 @@ const CAPABILITIES: ComponentCapabilities = {
   createCaller: true,
   dynamicScope: false,
   updateHook: true,
-  createInstance: false,
+  createInstance: true,
 };
 
 export interface InputComponentState {
diff --git a/packages/@ember/-internals/glimmer/lib/component-managers/root.ts b/packages/@ember/-internals/glimmer/lib/component-managers/root.ts
index a404b10a388..635a8bef97f 100644
--- a/packages/@ember/-internals/glimmer/lib/component-managers/root.ts
+++ b/packages/@ember/-internals/glimmer/lib/component-managers/root.ts
@@ -83,7 +83,7 @@ export const ROOT_CAPABILITIES: ComponentCapabilities = {
   createCaller: true,
   dynamicScope: true,
   updateHook: true,
-  createInstance: false,
+  createInstance: true,
 };
 
 export class RootComponentDefinition implements ComponentDefinition {
diff --git a/packages/@ember/-internals/glimmer/lib/component-managers/template-only.ts b/packages/@ember/-internals/glimmer/lib/component-managers/template-only.ts
index dd68327503b..2c6b3606f06 100644
--- a/packages/@ember/-internals/glimmer/lib/component-managers/template-only.ts
+++ b/packages/@ember/-internals/glimmer/lib/component-managers/template-only.ts
@@ -21,7 +21,7 @@ const CAPABILITIES: ComponentCapabilities = {
   createCaller: false,
   dynamicScope: false,
   updateHook: false,
-  createInstance: false,
+  createInstance: true,
 };
 
 export default class TemplateOnlyComponentManager extends AbstractManager<null, OwnedTemplate>
diff --git a/packages/@ember/-internals/glimmer/tests/integration/components/template-only-components-test.js b/packages/@ember/-internals/glimmer/tests/integration/components/template-only-components-test.js
index 9bcb62e1dd1..f35044b16d2 100644
--- a/packages/@ember/-internals/glimmer/tests/integration/components/template-only-components-test.js
+++ b/packages/@ember/-internals/glimmer/tests/integration/components/template-only-components-test.js
@@ -105,6 +105,30 @@ moduleFor(
 
       this.assertInnerHTML('hello');
     }
+
+    ['@test it has the correct bounds']() {
+      this.registerComponent('foo-bar', 'hello');
+
+      this.render('outside {{#if this.isShowing}}before {{foo-bar}} after{{/if}} outside', {
+        isShowing: true,
+      });
+
+      this.assertInnerHTML('outside before hello after outside');
+
+      this.assertStableRerender();
+
+      runTask(() => this.context.set('isShowing', false));
+
+      this.assertInnerHTML('outside <!----> outside');
+
+      runTask(() => this.context.set('isShowing', null));
+
+      this.assertInnerHTML('outside <!----> outside');
+
+      runTask(() => this.context.set('isShowing', true));
+
+      this.assertInnerHTML('outside before hello after outside');
+    }
   }
 );