diff --git a/lib/services/project-templates-service.ts b/lib/services/project-templates-service.ts
index 0e20e8b653..11505972d6 100644
--- a/lib/services/project-templates-service.ts
+++ b/lib/services/project-templates-service.ts
@@ -1,4 +1,5 @@
 import * as path from "path";
+import * as semver from "semver";
 import * as constants from "../constants";
 import { performanceLog } from "../common/decorators";
 import {
@@ -9,6 +10,7 @@ import {
 import {
 	IPackageInstallationManager,
 	INodePackageManager,
+	IStaticConfig,
 } from "../declarations";
 import {
 	IFileSystem,
@@ -26,7 +28,8 @@ export class ProjectTemplatesService implements IProjectTemplatesService {
 		private $logger: ILogger,
 		private $packageInstallationManager: IPackageInstallationManager,
 		private $pacoteService: IPacoteService,
-		private $packageManager: INodePackageManager
+		private $packageManager: INodePackageManager,
+		private $staticConfig: IStaticConfig
 	) {}
 
 	@performanceLog()
@@ -45,11 +48,11 @@ export class ProjectTemplatesService implements IProjectTemplatesService {
 			constants.RESERVED_TEMPLATE_NAMES[templateNameParts.name] ||
 			templateNameParts.name;
 
-		const version =
-			templateNameParts.version ||
-			(await this.$packageInstallationManager.getLatestCompatibleVersionSafe(
-				templateValue
-			));
+		const version = await this.getDesiredVersion(
+			templateValue,
+			templateNameParts.version
+		);
+
 		const fullTemplateName = await this.$packageManager.getPackageFullName({
 			name: templateValue,
 			version: version,
@@ -116,5 +119,25 @@ export class ProjectTemplatesService implements IProjectTemplatesService {
 			);
 		}
 	}
+
+	private async getDesiredVersion(
+		templateName: string,
+		defaultVersion?: string
+	) {
+		if (defaultVersion) {
+			return defaultVersion;
+		}
+
+		try {
+			const cliMajorVersion = semver.parse(
+				semver.coerce(this.$staticConfig.version)
+			).major;
+			return `^${cliMajorVersion}.0.0`;
+		} catch (err) {
+			return this.$packageInstallationManager.getLatestCompatibleVersionSafe(
+				templateName
+			);
+		}
+	}
 }
 injector.register("projectTemplatesService", ProjectTemplatesService);
diff --git a/test/project-templates-service.ts b/test/project-templates-service.ts
index cde26f30d7..10abc12520 100644
--- a/test/project-templates-service.ts
+++ b/test/project-templates-service.ts
@@ -16,7 +16,6 @@ import { IAnalyticsService, IFileSystem } from "../lib/common/declarations";
 import { IEventActionData } from "../lib/common/definitions/google-analytics";
 
 const nativeScriptValidatedTemplatePath = "nsValidatedTemplatePath";
-const compatibleTemplateVersion = "1.2.3";
 
 function createTestInjector(
 	configuration: {
@@ -33,6 +32,7 @@ function createTestInjector(
 		exists: (pathToCheck: string) => false,
 		readJson: (pathToFile: string) => configuration.packageJsonContent || {},
 	});
+	injector.register("staticConfig", { version: "8.0.0" });
 
 	class NpmStub extends stubs.NodePackageManagerStub {
 		public async install(
@@ -70,9 +70,6 @@ function createTestInjector(
 
 			return Promise.resolve(nativeScriptValidatedTemplatePath);
 		}
-		async getLatestCompatibleVersionSafe(packageName: string): Promise<string> {
-			return compatibleTemplateVersion;
-		}
 	}
 
 	injector.register("packageInstallationManager", NpmInstallationManagerStub);
@@ -275,7 +272,7 @@ describe("project-templates-service", () => {
 				{
 					name: "is correct when scoped package name without version is passed",
 					templateName: "@nativescript/vue-template",
-					expectedVersion: compatibleTemplateVersion,
+					expectedVersion: "^8.0.0",
 					expectedTemplateName: "@nativescript/vue-template",
 				},
 				{