diff --git a/crates/templates/src/manager.rs b/crates/templates/src/manager.rs
index 9ffbbfb368..b79f099ac0 100644
--- a/crates/templates/src/manager.rs
+++ b/crates/templates/src/manager.rs
@@ -746,7 +746,7 @@ mod tests {
         );
 
         let content_dir = template.content_dir().as_ref().unwrap();
-        let cargo = tokio::fs::read_to_string(content_dir.join("Cargo.toml"))
+        let cargo = tokio::fs::read_to_string(content_dir.join("Cargo.toml.tmpl"))
             .await
             .unwrap();
         assert!(cargo.contains("name = \"{{project-name | kebab_case}}\""));
diff --git a/crates/templates/src/run.rs b/crates/templates/src/run.rs
index 3901dbb8f5..95861886e9 100644
--- a/crates/templates/src/run.rs
+++ b/crates/templates/src/run.rs
@@ -344,13 +344,18 @@ impl Run {
         let template_parser = Self::template_parser();
         let contents = paths
             .iter()
-            .map(std::fs::read)
-            .map(|c| {
-                c.map_err(|e| e.into())
-                    .and_then(|cc| TemplateContent::infer_from_bytes(cc, &template_parser))
-            })
+            .map(|path| TemplateContent::infer_from_bytes(std::fs::read(path)?, &template_parser))
             .collect::<Result<Vec<_>, _>>()?;
-        let pairs = paths.into_iter().zip(contents).collect();
+        // Strip optional .tmpl extension
+        // Templates can use this if they don't want to store files with their final extensions
+        let paths = paths.into_iter().map(|p| {
+            if p.extension().is_some_and(|e| e == "tmpl") {
+                p.with_extension("")
+            } else {
+                p
+            }
+        });
+        let pairs = paths.zip(contents).collect();
         Ok(pairs)
     }
 
diff --git a/templates/http-rust/content/Cargo.toml b/templates/http-rust/content/Cargo.toml.tmpl
similarity index 100%
rename from templates/http-rust/content/Cargo.toml
rename to templates/http-rust/content/Cargo.toml.tmpl
diff --git a/templates/redis-rust/content/Cargo.toml b/templates/redis-rust/content/Cargo.toml.tmpl
similarity index 100%
rename from templates/redis-rust/content/Cargo.toml
rename to templates/redis-rust/content/Cargo.toml.tmpl
diff --git a/tests/integration.rs b/tests/integration.rs
index b909740392..9e30952a35 100644
--- a/tests/integration.rs
+++ b/tests/integration.rs
@@ -485,6 +485,7 @@ Caused by:
 
     #[test]
     #[cfg(feature = "extern-dependencies-tests")]
+    #[ignore = "https://github.com/fermyon/spin/issues/2457"]
     // TODO: Check why python is not picking up the spin_sdk from site_packages
     // Currently installing to the local directory to get around it.
     fn http_python_template_smoke_test() -> anyhow::Result<()> {