diff --git a/packages/angular/build/src/builders/application/options.ts b/packages/angular/build/src/builders/application/options.ts
index df34c1cbe510..dcac17d97d1e 100644
--- a/packages/angular/build/src/builders/application/options.ts
+++ b/packages/angular/build/src/builders/application/options.ts
@@ -98,6 +98,13 @@ interface InternalOptions {
    */
   externalRuntimeStyles?: boolean;
 
+  /**
+   * Enables the AOT compiler to generate template component update functions.
+   * This option is only intended to be used with a development server that can process and serve component
+   * template updates.
+   */
+  templateUpdates?: boolean;
+
   /**
    * Enables instrumentation to collect code coverage data for specific files.
    *
@@ -463,6 +470,7 @@ export async function normalizeOptions(
     externalRuntimeStyles,
     instrumentForCoverage,
     security,
+    templateUpdates: !!options.templateUpdates,
   };
 }
 
diff --git a/packages/angular/build/src/builders/dev-server/vite-server.ts b/packages/angular/build/src/builders/dev-server/vite-server.ts
index f909d7ea4c32..a7a5d5a27e1a 100644
--- a/packages/angular/build/src/builders/dev-server/vite-server.ts
+++ b/packages/angular/build/src/builders/dev-server/vite-server.ts
@@ -23,7 +23,7 @@ import {
   createRemoveIdPrefixPlugin,
 } from '../../tools/vite/plugins';
 import { loadProxyConfiguration, normalizeSourceMaps } from '../../utils';
-import { useComponentStyleHmr } from '../../utils/environment-options';
+import { useComponentStyleHmr, useComponentTemplateHmr } from '../../utils/environment-options';
 import { loadEsmModule } from '../../utils/load-esm';
 import { Result, ResultFile, ResultKind } from '../application/results';
 import {
@@ -145,6 +145,14 @@ export async function* serveWithVite(
     void loadEsmModule('@angular/compiler');
   }
 
+  // Enable to support component template hot replacement (`NG_HMR_TEMPLATE=1` can be used to enable)
+  browserOptions.templateUpdates = !!serverOptions.liveReload && useComponentTemplateHmr;
+  if (browserOptions.templateUpdates) {
+    context.logger.warn(
+      'Experimental support for component template hot replacement has been enabled via the "NG_HMR_TEMPLATE" environment variable.',
+    );
+  }
+
   // Setup the prebundling transformer that will be shared across Vite prebundling requests
   const prebundleTransformer = new JavaScriptTransformer(
     // Always enable JIT linking to support applications built with and without AOT.
diff --git a/packages/angular/build/src/tools/esbuild/angular/compiler-plugin.ts b/packages/angular/build/src/tools/esbuild/angular/compiler-plugin.ts
index 7f838e50307e..b4f5db4435c5 100644
--- a/packages/angular/build/src/tools/esbuild/angular/compiler-plugin.ts
+++ b/packages/angular/build/src/tools/esbuild/angular/compiler-plugin.ts
@@ -51,6 +51,7 @@ export interface CompilerPluginOptions {
   incremental: boolean;
   externalRuntimeStyles?: boolean;
   instrumentForCoverage?: (request: string) => boolean;
+  templateUpdates?: boolean;
 }
 
 // eslint-disable-next-line max-lines-per-function
@@ -656,6 +657,7 @@ function createCompilerOptionsTransformer(
       sourceRoot: undefined,
       preserveSymlinks,
       externalRuntimeStyles: pluginOptions.externalRuntimeStyles,
+      _enableHmr: pluginOptions.templateUpdates,
     };
   };
 }
diff --git a/packages/angular/build/src/tools/esbuild/compiler-plugin-options.ts b/packages/angular/build/src/tools/esbuild/compiler-plugin-options.ts
index 192a7a142acf..7f8e496a3383 100644
--- a/packages/angular/build/src/tools/esbuild/compiler-plugin-options.ts
+++ b/packages/angular/build/src/tools/esbuild/compiler-plugin-options.ts
@@ -25,6 +25,7 @@ export function createCompilerPluginOptions(
     jit,
     externalRuntimeStyles,
     instrumentForCoverage,
+    templateUpdates,
   } = options;
   const incremental = !!options.watch;
 
@@ -40,5 +41,6 @@ export function createCompilerPluginOptions(
     incremental,
     externalRuntimeStyles,
     instrumentForCoverage,
+    templateUpdates,
   };
 }
diff --git a/packages/angular/build/src/utils/environment-options.ts b/packages/angular/build/src/utils/environment-options.ts
index 73e403b7f171..40de16a535e3 100644
--- a/packages/angular/build/src/utils/environment-options.ts
+++ b/packages/angular/build/src/utils/environment-options.ts
@@ -105,6 +105,10 @@ const hmrComponentStylesVariable = process.env['NG_HMR_CSTYLES'];
 export const useComponentStyleHmr =
   !isPresent(hmrComponentStylesVariable) || !isDisabled(hmrComponentStylesVariable);
 
+const hmrComponentTemplateVariable = process.env['NG_HMR_TEMPLATES'];
+export const useComponentTemplateHmr =
+  isPresent(hmrComponentTemplateVariable) && isEnabled(hmrComponentTemplateVariable);
+
 const partialSsrBuildVariable = process.env['NG_BUILD_PARTIAL_SSR'];
 export const usePartialSsrBuild =
   isPresent(partialSsrBuildVariable) && isEnabled(partialSsrBuildVariable);