diff --git a/package.json b/package.json
index 6b55ffd4..6a37c709 100644
--- a/package.json
+++ b/package.json
@@ -7,7 +7,7 @@
   "dependencies": {
     "@salesforce/core": "^8.25.0",
     "@salesforce/sf-plugins-core": "^12",
-    "@salesforce/templates": "^65.4.3"
+    "@salesforce/templates": "^65.5.2"
   },
   "devDependencies": {
     "@oclif/plugin-command-snapshot": "^5.3.8",
diff --git a/src/commands/webapp/generate.ts b/src/commands/webapp/generate.ts
index fa358e91..5d28bffb 100644
--- a/src/commands/webapp/generate.ts
+++ b/src/commands/webapp/generate.ts
@@ -6,14 +6,31 @@
  */
 
 import path from 'node:path';
+import { createRequire } from 'node:module';
 import { Flags, SfCommand, Ux } from '@salesforce/sf-plugins-core';
 import { CreateOutput, WebApplicationOptions, TemplateType } from '@salesforce/templates';
 import { Messages, SfProject } from '@salesforce/core';
-import { getCustomTemplates, runGenerator } from '../../utils/templateCommand.js';
+import { runGenerator } from '../../utils/templateCommand.js';
 
 Messages.importMessagesDirectoryFromMetaUrl(import.meta.url);
 const messages = Messages.loadMessages('@salesforce/plugin-templates', 'webApplication');
 
+/**
+ * Resolves the path to the templates directory in the @salesforce/templates NPM package.
+ * The package name '@salesforce/templates' version 65.4.4 is used to fetch templates.
+ *
+ * @returns The absolute path to the templates directory
+ */
+function getNpmTemplatesPath(): string {
+  const require = createRequire(import.meta.url);
+  // Resolve the package.json to get the package root directory
+  const packagePath = require.resolve('@salesforce/templates/package.json');
+  const packageDir = path.dirname(packagePath);
+  // Templates are stored in the 'lib/templates' directory within the package
+  const templatesPath = path.join(packageDir, 'lib', 'templates');
+  return templatesPath;
+}
+
 export default class WebAppGenerate extends SfCommand<CreateOutput> {
   public static readonly summary = messages.getMessage('summary');
   public static readonly description = messages.getMessage('description');
@@ -74,11 +91,13 @@ export default class WebAppGenerate extends SfCommand<CreateOutput> {
       apiversion: flags['api-version'],
     };
 
+    const templatesPath = getNpmTemplatesPath();
+
     return runGenerator({
       templateType: TemplateType.WebApplication,
       opts: flagsAsOptions,
       ux: new Ux({ jsonEnabled: this.jsonEnabled() }),
-      templates: getCustomTemplates(this.configAggregator),
+      templates: templatesPath,
     });
   }
 }
diff --git a/test/commands/webapp/generate.nut.ts b/test/commands/webapp/generate.nut.ts
index cdb4eb3f..51c72b28 100644
--- a/test/commands/webapp/generate.nut.ts
+++ b/test/commands/webapp/generate.nut.ts
@@ -5,6 +5,8 @@
  * For full license text, see LICENSE.txt file in the repo root or https://opensource.org/licenses/BSD-3-Clause
  */
 import path from 'node:path';
+import fs from 'node:fs';
+import { createRequire } from 'node:module';
 import { expect } from 'chai';
 import { TestSession, execCmd } from '@salesforce/cli-plugins-testkit';
 import { nls } from '@salesforce/templates/lib/i18n/index.js';
@@ -22,6 +24,24 @@ describe('Web application creation tests:', () => {
     await session?.clean();
   });
 
+  describe('Verify templates are loaded from NPM package', () => {
+    it('should use templates from @salesforce/templates NPM package', () => {
+      // Verify that templates are loaded from NPM package, not file-based
+      const require = createRequire(import.meta.url);
+      const packagePath = require.resolve('@salesforce/templates/package.json');
+      const packageDir = path.dirname(packagePath);
+      const templatesPath = path.join(packageDir, 'lib', 'templates', 'webapplication');
+
+      // Verify the NPM package templates directory exists
+      expect(fs.existsSync(templatesPath), 'NPM package templates directory should exist').to.be.true;
+
+      // Verify webapplication templates exist in NPM package
+      const templateFiles = fs.readdirSync(templatesPath);
+      expect(templateFiles.length, 'WebApplication templates should exist in NPM package').to.be.greaterThan(0);
+      expect(templateFiles, 'Should contain webappbasic template').to.include('webappbasic');
+    });
+  });
+
   describe('Check webapp creation with default template', () => {
     it('should create webapp using default template in webApplications directory', () => {
       const outputDir = path.join(session.project.dir, 'force-app', 'main', 'default', 'webApplications');
diff --git a/tsconfig.json b/tsconfig.json
index f46de6d8..f4c97971 100644
--- a/tsconfig.json
+++ b/tsconfig.json
@@ -4,7 +4,8 @@
     "outDir": "lib",
     "rootDir": "src",
     "baseUrl": ".",
-    "skipLibCheck": true
+    "skipLibCheck": true,
+    "module": "node16"
   },
   "include": ["./src/**/*.ts"]
 }