diff --git a/template/interpolate/funcs.go b/template/interpolate/funcs.go
index abe84873f..ba3048823 100644
--- a/template/interpolate/funcs.go
+++ b/template/interpolate/funcs.go
@@ -4,6 +4,7 @@ import (
 	"errors"
 	"fmt"
 	"os"
+	"path/filepath"
 	"strconv"
 	"strings"
 	"text/template"
@@ -99,7 +100,7 @@ func funcGenTemplatePath(ctx *Context) interface{} {
 			return "", errors.New("template path not available")
 		}
 
-		return ctx.TemplatePath, nil
+		return filepath.Dir(ctx.TemplatePath), nil
 	}
 }
 
diff --git a/template/interpolate/funcs_test.go b/template/interpolate/funcs_test.go
index d6ef3e758..9c7c639f3 100644
--- a/template/interpolate/funcs_test.go
+++ b/template/interpolate/funcs_test.go
@@ -128,7 +128,7 @@ func TestFuncTemplatePath(t *testing.T) {
 	}
 
 	ctx := &Context{
-		TemplatePath: "foo",
+		TemplatePath: "foo/bar",
 	}
 	for _, tc := range cases {
 		i := &I{Value: tc.Input}