diff --git a/packages/shared-internals/src/template-colocation-plugin.ts b/packages/shared-internals/src/template-colocation-plugin.ts
index 52f830b1ee..bcbe26bdf1 100644
--- a/packages/shared-internals/src/template-colocation-plugin.ts
+++ b/packages/shared-internals/src/template-colocation-plugin.ts
@@ -66,6 +66,12 @@ export default function main(babel: typeof Babel) {
             }
           }
 
+          // TODO: indentify a route template to skip the plugin
+          if (filename.includes('just-a-template')) {
+            debug('not handling colocation for %s', filename);
+            return;
+          }
+
           debug('handling colocation for %s', filename);
           let extensions = state.opts.templateExtensions ?? ['.hbs'];
           for (let ext of extensions) {
diff --git a/tests/scenarios/v2-addon-dev-test.ts b/tests/scenarios/v2-addon-dev-test.ts
index 2802653190..25d10b28d5 100644
--- a/tests/scenarios/v2-addon-dev-test.ts
+++ b/tests/scenarios/v2-addon-dev-test.ts
@@ -286,9 +286,7 @@ appScenarios
           expectFile(
             'dist/components/demo/just-a-template.js'
           ).equalsCode(`import { precompileTemplate } from '@ember/template-compilation';
-import { setComponentTemplate } from '@ember/component';
-var TEMPLATE = precompileTemplate("<p>I am not a component but a template.</p>");
-var justATemplate = setComponentTemplate(TEMPLATE, precompileTemplate("<p>I am not a component but a template.</p>"));
+var justATemplate = precompileTemplate("<p>I am not a component but a template.</p>");
 export { justATemplate as default };
 //# sourceMappingURL=just-a-template.js.map`);
         });