diff --git a/src/LiveComponent/tests/Fixtures/Kernel.php b/src/LiveComponent/tests/Fixtures/Kernel.php
index ff8f408cfce..344eb3a8df5 100644
--- a/src/LiveComponent/tests/Fixtures/Kernel.php
+++ b/src/LiveComponent/tests/Fixtures/Kernel.php
@@ -29,6 +29,7 @@
 use Symfony\UX\LiveComponent\Tests\Fixtures\Serializer\MoneyNormalizer;
 use Symfony\UX\TwigComponent\TwigComponentBundle;
 use Twig\Environment;
+use Twig\Loader\FilesystemLoader;
 use Zenstruck\Foundry\ZenstruckFoundryBundle;
 
 use function Symfony\Component\DependencyInjection\Loader\Configurator\service;
@@ -52,6 +53,13 @@ public function renderTemplate(string $template, Environment $twig = null): Resp
         return new Response($twig->render("{$template}.html.twig"));
     }
 
+    public function renderNamespacedTemplate(string $template, Environment $twig = null): Response
+    {
+        $twig ??= $this->container->get('twig');
+
+        return new Response($twig->render('@'.FilesystemLoader::MAIN_NAMESPACE.'/'.$template.'.html.twig'));
+    }
+
     public function registerBundles(): iterable
     {
         yield new FrameworkBundle();
@@ -142,6 +150,7 @@ protected function configureRoutes(RoutingConfigurator $routes): void
             ->prefix('/_components');
 
         $routes->add('template', '/render-template/{template}')->controller('kernel::renderTemplate');
+        $routes->add('render_namespaced_template', '/render-namespaced-template/{template}')->controller('kernel::renderNamespacedTemplate');
         $routes->add('homepage', '/')->controller('kernel::index');
         $routes->add('alternate_live_route', '/alt/{_live_component}/{_live_action}')->defaults(['_live_action' => 'get']);
     }
diff --git a/src/LiveComponent/tests/Functional/EventListener/LiveComponentSubscriberTest.php b/src/LiveComponent/tests/Functional/EventListener/LiveComponentSubscriberTest.php
index 4e57d2682e1..d13d7cf9f53 100644
--- a/src/LiveComponent/tests/Functional/EventListener/LiveComponentSubscriberTest.php
+++ b/src/LiveComponent/tests/Functional/EventListener/LiveComponentSubscriberTest.php
@@ -259,6 +259,19 @@ public function testItAddsEmbeddedTemplateContextToEmbeddedComponents(): void
         ;
     }
 
+    public function testItWorksWithNamespacedTemplateNamesForEmbeddedComponents(): void
+    {
+        $templateName = 'render_embedded_with_blocks.html.twig';
+        $obscuredName = 'fb7992f74bbb43c08e47b7cf5c880edb';
+        $this->addTemplateMap($obscuredName, $templateName);
+
+        $this->browser()
+            ->visit('/render-namespaced-template/render_embedded_with_blocks')
+            ->assertSuccessful()
+            ->assertElementAttributeContains('.component2', 'data-live-props-value', '"data-host-template":"'.$obscuredName.'"')
+        ;
+    }
+
     public function testItUseBlocksFromEmbeddedContextUsingMultipleComponents(): void
     {
         $templateName = 'render_multiple_embedded_with_blocks.html.twig';
diff --git a/src/TwigComponent/src/Twig/ComponentNode.php b/src/TwigComponent/src/Twig/ComponentNode.php
index 0fed5216ccf..d5f87e373c0 100644
--- a/src/TwigComponent/src/Twig/ComponentNode.php
+++ b/src/TwigComponent/src/Twig/ComponentNode.php
@@ -68,7 +68,7 @@ public function compile(Compiler $compiler): void
             ->raw('), ')
             ->raw($this->getAttribute('only') ? '[]' : '$context')
             ->raw(', ')
-            ->string($this->getAttribute('name'))
+            ->string($this->parseTemplateName($this->getAttribute('name')))
             ->raw(', ')
             ->raw($this->getAttribute('index'))
             ->raw(");\n")
@@ -91,4 +91,20 @@ public function compile(Compiler $compiler): void
             ->raw("\n")
         ;
     }
+
+    /**
+     * Copied from Twig\Loader\FilesystemLoader, and adjusted to needs for this class.
+     */
+    private function parseTemplateName(string $name): mixed
+    {
+        if (isset($name[0]) && '@' == $name[0]) {
+            if (false === $pos = strpos($name, '/')) {
+                throw new \LogicException(sprintf('Malformed namespaced template name "%s" (expecting "@namespace/template_name").', $name));
+            }
+
+            return substr($name, $pos + 1);
+        }
+
+        return $name;
+    }
 }