diff --git a/lib/pdk/util/template_uri.rb b/lib/pdk/util/template_uri.rb
index 1f2c77ab1..8c21107f8 100644
--- a/lib/pdk/util/template_uri.rb
+++ b/lib/pdk/util/template_uri.rb
@@ -96,7 +96,7 @@ def shell_path
 
       # @returns String
       def git_ref
-        @uri.fragment || self.class.default_template_ref
+        @uri.fragment || self.class.default_template_ref(self)
       end
 
       def git_ref=(ref)
@@ -175,7 +175,7 @@ def self.templates(opts)
         # 2. Construct the hash
         if explicit_url
           explicit_uri = Addressable::URI.parse(uri_safe(explicit_url))
-          explicit_uri.fragment = explicit_ref || default_template_ref
+          explicit_uri.fragment = explicit_ref || default_template_ref(new(explicit_uri))
         else
           explicit_uri = nil
         end
@@ -196,7 +196,7 @@ def self.templates(opts)
                         nil
                       end
         default_uri = default_template_uri.uri
-        default_uri.fragment = default_template_ref
+        default_uri.fragment = default_template_ref(default_template_uri)
 
         ary = []
         ary << { type: _('--template-url'), uri: explicit_uri, allow_fallback: false } if explicit_url
@@ -207,12 +207,12 @@ def self.templates(opts)
       end
 
       # @returns String
-      def self.default_template_ref
-        if PDK::Util.development_mode?
-          'master'
-        else
-          PDK::TEMPLATE_REF
-        end
+      def self.default_template_ref(uri = nil)
+        return 'master' if PDK::Util.development_mode?
+        return PDK::TEMPLATE_REF if uri.nil?
+
+        uri = new(uri) unless uri.is_a?(self)
+        uri.default? ? PDK::TEMPLATE_REF : 'master'
       end
 
       # @returns Addressable::URI
diff --git a/spec/unit/pdk/module/update_spec.rb b/spec/unit/pdk/module/update_spec.rb
index 7b907c103..ef5870aad 100644
--- a/spec/unit/pdk/module/update_spec.rb
+++ b/spec/unit/pdk/module/update_spec.rb
@@ -276,6 +276,7 @@
     let(:template_url) { 'https://github.com/puppetlabs/pdk-templates#0.0.1' }
 
     before(:each) do
+      allow(PDK::Util::TemplateURI).to receive(:new).and_call_original
       allow(PDK::Util::TemplateURI).to receive(:new).with(template_url).and_return(module_template_uri)
     end
 
@@ -302,6 +303,7 @@
             before(:each) do
               allow(PDK::Util).to receive(:package_install?).and_return(true)
               allow(PDK::Util::Version).to receive(:git_ref).and_return('1234acb')
+              allow(PDK::Util).to receive(:package_cachedir).and_return(File.join('package', 'cachedir'))
             end
 
             it 'returns the default ref' do
diff --git a/spec/unit/pdk/util/template_uri_spec.rb b/spec/unit/pdk/util/template_uri_spec.rb
index 60f06e211..caebc2c36 100644
--- a/spec/unit/pdk/util/template_uri_spec.rb
+++ b/spec/unit/pdk/util/template_uri_spec.rb
@@ -152,16 +152,16 @@
           let(:opts_or_uri) { { :'template-url' => 'cli-templates' } }
 
           it 'returns the specified template' do
-            expect(template_uri.to_s).to eq("cli-templates##{described_class.default_template_ref}")
+            expect(template_uri.to_s).to eq('cli-templates#master')
           end
         end
 
         context 'and passed windows template-url' do
-          let(:opts_or_uri) { { :'template-url' => 'C:\cli-templates' } }
+          let(:opts_or_uri) { { :'template-url' => 'C:\\cli-templates' } }
 
           it 'returns the specified template' do
             allow(Gem).to receive(:win_platform?).and_return(true)
-            expect(template_uri.to_s).to eq("C:\\cli-templates##{described_class.default_template_ref}")
+            expect(template_uri.to_s).to eq('C:\\cli-templates#master')
           end
         end
 
@@ -229,7 +229,7 @@
       let(:opts_or_uri) { 'https://github.com/my/pdk-templates.git' }
 
       it 'returns the default ref' do
-        expect(template_uri.git_ref).to eq described_class.default_template_ref
+        expect(template_uri.git_ref).to eq(described_class.default_template_ref(opts_or_uri))
       end
     end
   end
@@ -302,27 +302,37 @@
   end
 
   describe '.default_template_ref' do
-    subject { described_class.default_template_ref }
+    subject { described_class.default_template_ref(uri) }
+
+    before(:each) do
+      allow(PDK::Util).to receive(:development_mode?).and_return(development_mode)
+    end
 
     context 'with a custom template repo' do
-      before(:each) do
-        allow(described_class).to receive(:default_template_url).and_return('custom_template_url')
+      let(:uri) { described_class.new('https://github.com/my/template') }
+
+      context 'in development mode' do
+        let(:development_mode) { true }
+
+        it 'returns master' do
+          is_expected.to eq('master')
+        end
       end
 
-      it 'returns master' do
-        is_expected.to eq('master')
+      context 'not in development mode' do
+        let(:development_mode) { false }
+
+        it 'returns master' do
+          is_expected.to eq('master')
+        end
       end
     end
 
     context 'with the default template repo' do
-      before(:each) do
-        allow(described_class).to receive(:default_template_url).and_return('puppetlabs_template_url')
-      end
+      let(:uri) { described_class.default_template_uri }
 
       context 'not in development mode' do
-        before(:each) do
-          allow(PDK::Util).to receive(:development_mode?).and_return(false)
-        end
+        let(:development_mode) { false }
 
         it 'returns the built-in TEMPLATE_REF' do
           is_expected.to eq(PDK::TEMPLATE_REF)
@@ -330,9 +340,27 @@
       end
 
       context 'in development mode' do
-        before(:each) do
-          allow(PDK::Util).to receive(:development_mode?).and_return(true)
+        let(:development_mode) { true }
+
+        it 'returns master' do
+          is_expected.to eq('master')
         end
+      end
+    end
+
+    context 'with an explicit nil template' do
+      let(:uri) { nil }
+
+      context 'not in development mode' do
+        let(:development_mode) { false }
+
+        it 'returns the built-in TEMPLATE_REF' do
+          is_expected.to eq(PDK::TEMPLATE_REF)
+        end
+      end
+
+      context 'in development mode' do
+        let(:development_mode) { true }
 
         it 'returns master' do
           is_expected.to eq('master')