diff --git a/eng/Version.Details.xml b/eng/Version.Details.xml
index 8f81843f6fe..fb521a9d824 100644
--- a/eng/Version.Details.xml
+++ b/eng/Version.Details.xml
@@ -9,6 +9,10 @@
       <Uri>https://dev.azure.com/dnceng/internal/_git/dotnet-symuploader</Uri>
       <Sha>62ceb439e80bf0814d0ffa17f022d4624ea4aa6c</Sha>
     </Dependency>
+    <Dependency Name="Microsoft.TemplateEngine.Tasks" Version="7.0.100-alpha.1.21601.1">
+      <Uri>https://github.com/dotnet/templating</Uri>
+      <Sha />
+    </Dependency>
   </ProductDependencies>
   <ToolsetDependencies>
     <Dependency Name="Microsoft.DotNet.Arcade.Sdk" Version="7.0.0-beta.21602.3">
diff --git a/eng/Versions.props b/eng/Versions.props
index a919da0e1a4..28b47a7dae2 100644
--- a/eng/Versions.props
+++ b/eng/Versions.props
@@ -89,5 +89,6 @@
     <MicrosoftDeploymentDotNetReleasesVersion>1.0.0-preview1.1.21116.1</MicrosoftDeploymentDotNetReleasesVersion>
     <!-- Used to flow Source Link version through Arcade SDK -->
     <MicrosoftSourceLinkVersion>$(MicrosoftSourceLinkGitHubVersion)</MicrosoftSourceLinkVersion>
+    <MicrosoftTemplateEngineTasksVersion>7.0.100-alpha.1.21601.1</MicrosoftTemplateEngineTasksVersion>
   </PropertyGroup>
 </Project>
diff --git a/src/Microsoft.DotNet.Arcade.Sdk/Microsoft.DotNet.Arcade.Sdk.csproj b/src/Microsoft.DotNet.Arcade.Sdk/Microsoft.DotNet.Arcade.Sdk.csproj
index 63544dd9c13..32d30e285c7 100644
--- a/src/Microsoft.DotNet.Arcade.Sdk/Microsoft.DotNet.Arcade.Sdk.csproj
+++ b/src/Microsoft.DotNet.Arcade.Sdk/Microsoft.DotNet.Arcade.Sdk.csproj
@@ -84,6 +84,7 @@
     <MicrosoftDotNetXliffTasksVersion>$(MicrosoftDotNetXliffTasksVersion)</MicrosoftDotNetXliffTasksVersion>
     <MicrosoftDotNetMaestroTasksVersion>$(MicrosoftDotNetMaestroTasksVersion)</MicrosoftDotNetMaestroTasksVersion>
     <MicrosoftSymbolUploaderBuildTaskVersion>$(MicrosoftSymbolUploaderBuildTaskVersion)</MicrosoftSymbolUploaderBuildTaskVersion>
+    <MicrosoftTemplateEngineTasksVersion>$(MicrosoftTemplateEngineTasksVersion)</MicrosoftTemplateEngineTasksVersion>
   </PropertyGroup>
 </Project>]]>
   </_SdkVersionPropsContent>
diff --git a/src/Microsoft.DotNet.Arcade.Sdk/tools/Imports.targets b/src/Microsoft.DotNet.Arcade.Sdk/tools/Imports.targets
index f0b6e53a912..7ab283ab033 100644
--- a/src/Microsoft.DotNet.Arcade.Sdk/tools/Imports.targets
+++ b/src/Microsoft.DotNet.Arcade.Sdk/tools/Imports.targets
@@ -18,7 +18,7 @@
   <Import Project="Tests.targets" Condition="'$(DisableArcadeTestFramework)' != 'true'" />
 
   <Import Project="Performance.targets" Condition="'$(DisableArcadeTestFramework)' != 'true'" />
-  <Import Project="Localization.targets" Condition="'$(UsingToolXliff)' == 'true'"/>
+  <Import Project="Localization.targets" />
   <Import Project="VisualStudio.targets" Condition="'$(UsingToolVSSDK)' == 'true' and ('$(IsVsixProject)' == 'true' or '$(IsSwixProject)' == 'true' or '$(GeneratePkgDefFile)' == 'true') and '$(MSBuildRuntimeType)' != 'Core'"/>
   <Import Project="OptimizationData.targets" Condition="'$(UsingToolIbcOptimization)' == 'true'"/>
   <Import Project="SymStore.targets" Condition="'$(ContinuousIntegrationBuild)' == 'true' and '$(OS)' == 'Windows_NT'"/>
diff --git a/src/Microsoft.DotNet.Arcade.Sdk/tools/Localization.targets b/src/Microsoft.DotNet.Arcade.Sdk/tools/Localization.targets
index 4eef799770d..d0c2235e188 100644
--- a/src/Microsoft.DotNet.Arcade.Sdk/tools/Localization.targets
+++ b/src/Microsoft.DotNet.Arcade.Sdk/tools/Localization.targets
@@ -3,11 +3,11 @@
 <Project>
 
   <!--
+    XliffTasks for localizing .resx files and generating satellite assemblies.
     When not building in CI, automatically sync .xlf files to .resx files on build.
     Otherwise, let the build fail to catch .xlf files that are not up-to-date.
   -->
-
-  <PropertyGroup>
+  <PropertyGroup Condition="'$(UsingToolXliff)' == 'true'">
     <!-- 
       It is only intended to automatically run update during dev cycle. However, it will fail the build on CI if the XLF file is not updated.
       XLF file should be checked in and loc team will update the XLF it with translated version.
@@ -25,4 +25,16 @@
   <ItemGroup>
     <PackageReference Include="Microsoft.DotNet.XliffTasks" Version="$(MicrosoftDotNetXliffTasksVersion)" PrivateAssets="all" IsImplicitlyDefined="true" Condition="'$(IsShippingAssembly)' == 'true'" />
   </ItemGroup>
+
+
+  <!-- TemplateLocalizer for localizing 'dotnet new' templates -->
+  <PropertyGroup Condition="'$(UsingToolTemplateLocalizer)' == 'true'">
+    <!-- Run localizer when building on dev machine. -->
+    <LocalizeTemplates Condition="'$(ContinuousIntegrationBuild)' != 'true'">true</LocalizeTemplates>
+  </PropertyGroup>
+
+  <ItemGroup>
+    <PackageReference Include="Microsoft.TemplateEngine.Tasks" Version="$(MicrosoftTemplateEngineTasksVersion)" PrivateAssets="all" IsImplicitlyDefined="true" Condition="'$(UsingToolTemplateLocalizer)' == 'true'" />
+  </ItemGroup>
+
 </Project>