diff --git a/cmd/kyma/alpha/create/module/module.go b/cmd/kyma/alpha/create/module/module.go
index d874e4cdd..0993cc8ee 100644
--- a/cmd/kyma/alpha/create/module/module.go
+++ b/cmd/kyma/alpha/create/module/module.go
@@ -423,11 +423,13 @@ func (cmd *command) Run(cobraCmd *cobra.Command) error {
 	cmd.NewStep("Generating module template...")
 	var resourceName = ""
 	mandatoryModule := false
+	enableModuleConfig := false
 	var channel = cmd.opts.Channel
 	if modCnf != nil {
 		resourceName = modCnf.ResourceName
 		channel = modCnf.Channel
 		mandatoryModule = modCnf.Mandatory
+		enableModuleConfig = modCnf.EnableModuleConfig
 	}
 
 	var namespace = cmd.opts.Namespace
@@ -440,7 +442,7 @@ func (cmd *command) Run(cobraCmd *cobra.Command) error {
 	annotations := cmd.getModuleTemplateAnnotations(modCnf, crd)
 
 	template, err := module.Template(componentVersionAccess, resourceName, namespace,
-		channel, modDef.DefaultCR, labels, annotations, modDef.CustomStateChecks, mandatoryModule)
+		channel, modDef.DefaultCR, labels, annotations, modDef.CustomStateChecks, mandatoryModule, enableModuleConfig)
 	if err != nil {
 		cmd.CurrentStep.Failure()
 		return err
diff --git a/pkg/module/template.go b/pkg/module/template.go
index 1dd8426d7..7d4edff96 100644
--- a/pkg/module/template.go
+++ b/pkg/module/template.go
@@ -88,15 +88,16 @@ func Template(remote ocm.ComponentVersionAccess, moduleTemplateName, namespace,
 		resourceName = shortName + "-" + channel
 	}
 	td := moduleTemplateData{
-		ResourceName:      resourceName,
-		Namespace:         namespace,
-		Descriptor:        cva,
-		Channel:           channel,
-		Data:              string(data),
-		Labels:            labels,
-		Annotations:       annotations,
-		CustomStateChecks: customsStateChecks,
-		Mandatory:         mandatory,
+		ResourceName:       resourceName,
+		Namespace:          namespace,
+		Descriptor:         cva,
+		Channel:            channel,
+		Data:               string(data),
+		Labels:             labels,
+		Annotations:        annotations,
+		CustomStateChecks:  customsStateChecks,
+		Mandatory:          mandatory,
+		EnableModuleConfig: enableModuleConfig,
 	}
 
 	t, err := template.New("modTemplate").Funcs(template.FuncMap{