diff --git a/app/assets/javascripts/ide/components/file_templates/bar.vue b/app/assets/javascripts/ide/components/file_templates/bar.vue
new file mode 100644
index 00000000000..23be5f45f16
--- /dev/null
+++ b/app/assets/javascripts/ide/components/file_templates/bar.vue
@@ -0,0 +1,80 @@
+<script>
+import { mapActions, mapGetters, mapState } from 'vuex';
+import Dropdown from './dropdown.vue';
+
+export default {
+  components: {
+    Dropdown,
+  },
+  computed: {
+    ...mapGetters(['activeFile']),
+    ...mapGetters('fileTemplates', ['templateTypes']),
+    ...mapState('fileTemplates', ['selectedTemplateType', 'updateSuccess']),
+    showTemplatesDropdown() {
+      return Object.keys(this.selectedTemplateType).length > 0;
+    },
+  },
+  watch: {
+    activeFile: 'setInitialType',
+  },
+  mounted() {
+    this.setInitialType();
+  },
+  methods: {
+    ...mapActions('fileTemplates', [
+      'setSelectedTemplateType',
+      'fetchTemplate',
+      'undoFileTemplate',
+    ]),
+    setInitialType() {
+      const initialTemplateType = this.templateTypes.find(t => t.name === this.activeFile.name);
+
+      if (initialTemplateType) {
+        this.setSelectedTemplateType(initialTemplateType);
+      }
+    },
+    selectTemplateType(templateType) {
+      this.setSelectedTemplateType(templateType);
+    },
+    selectTemplate(template) {
+      this.fetchTemplate(template);
+    },
+    undo() {
+      this.undoFileTemplate();
+    },
+  },
+};
+</script>
+
+<template>
+  <div class="d-flex align-items-center ide-file-templates">
+    <strong class="append-right-default">
+      {{ __('File templates') }}
+    </strong>
+    <dropdown
+      :data="templateTypes"
+      :label="selectedTemplateType.name || __('Choose a type...')"
+      class="mr-2"
+      @click="selectTemplateType"
+    />
+    <dropdown
+      v-if="showTemplatesDropdown"
+      :label="__('Choose a template...')"
+      :is-async-data="true"
+      :searchable="true"
+      :title="__('File templates')"
+      class="mr-2"
+      @click="selectTemplate"
+    />
+    <transition name="fade">
+      <button
+        v-show="updateSuccess"
+        type="button"
+        class="btn btn-default"
+        @click="undo"
+      >
+        {{ __('Undo') }}
+      </button>
+    </transition>
+  </div>
+</template>
diff --git a/app/assets/javascripts/ide/components/file_templates/dropdown.vue b/app/assets/javascripts/ide/components/file_templates/dropdown.vue
new file mode 100644
index 00000000000..13059937f85
--- /dev/null
+++ b/app/assets/javascripts/ide/components/file_templates/dropdown.vue
@@ -0,0 +1,125 @@
+<script>
+import $ from 'jquery';
+import { mapActions, mapState } from 'vuex';
+import LoadingIcon from '~/vue_shared/components/loading_icon.vue';
+import DropdownButton from '~/vue_shared/components/dropdown/dropdown_button.vue';
+
+export default {
+  components: {
+    DropdownButton,
+    LoadingIcon,
+  },
+  props: {
+    data: {
+      type: Array,
+      required: false,
+      default: () => [],
+    },
+    label: {
+      type: String,
+      required: true,
+    },
+    title: {
+      type: String,
+      required: false,
+      default: null,
+    },
+    isAsyncData: {
+      type: Boolean,
+      required: false,
+      default: false,
+    },
+    searchable: {
+      type: Boolean,
+      required: false,
+      default: false,
+    },
+  },
+  data() {
+    return {
+      search: '',
+    };
+  },
+  computed: {
+    ...mapState('fileTemplates', ['templates', 'isLoading']),
+    outputData() {
+      return (this.isAsyncData ? this.templates : this.data).filter(t => {
+        if (!this.searchable) return true;
+
+        return t.name.toLowerCase().indexOf(this.search.toLowerCase()) >= 0;
+      });
+    },
+    showLoading() {
+      return this.isAsyncData ? this.isLoading : false;
+    },
+  },
+  mounted() {
+    $(this.$el).on('show.bs.dropdown', this.fetchTemplatesIfAsync);
+  },
+  beforeDestroy() {
+    $(this.$el).off('show.bs.dropdown', this.fetchTemplatesIfAsync);
+  },
+  methods: {
+    ...mapActions('fileTemplates', ['fetchTemplateTypes']),
+    fetchTemplatesIfAsync() {
+      if (this.isAsyncData) {
+        this.fetchTemplateTypes();
+      }
+    },
+    clickItem(item) {
+      this.$emit('click', item);
+    },
+  },
+};
+</script>
+
+<template>
+  <div class="dropdown">
+    <dropdown-button
+      :toggle-text="label"
+      data-display="static"
+    />
+    <div class="dropdown-menu pb-0">
+      <div
+        v-if="title"
+        class="dropdown-title ml-0 mr-0"
+      >
+        {{ title }}
+      </div>
+      <div
+        v-if="!showLoading && searchable"
+        class="dropdown-input"
+      >
+        <input
+          v-model="search"
+          :placeholder="__('Filter...')"
+          type="search"
+          class="dropdown-input-field"
+        />
+        <i
+          aria-hidden="true"
+          class="fa fa-search dropdown-input-search"
+        ></i>
+      </div>
+      <div class="dropdown-content">
+        <loading-icon
+          v-if="showLoading"
+          size="2"
+        />
+        <ul v-else>
+          <li
+            v-for="(item, index) in outputData"
+            :key="index"
+          >
+            <button
+              type="button"
+              @click="clickItem(item)"
+            >
+              {{ item.name }}
+            </button>
+          </li>
+        </ul>
+      </div>
+    </div>
+  </div>
+</template>
diff --git a/app/assets/javascripts/ide/components/new_dropdown/modal.vue b/app/assets/javascripts/ide/components/new_dropdown/modal.vue
index e500ef0e1b5..bcd53ac1ba2 100644
--- a/app/assets/javascripts/ide/components/new_dropdown/modal.vue
+++ b/app/assets/javascripts/ide/components/new_dropdown/modal.vue
@@ -1,6 +1,7 @@
 <script>
+import $ from 'jquery';
 import { __ } from '~/locale';
-import { mapActions, mapState } from 'vuex';
+import { mapActions, mapState, mapGetters } from 'vuex';
 import GlModal from '~/vue_shared/components/gl_modal.vue';
 import { modalTypes } from '../../constants';
 
@@ -15,6 +16,7 @@ export default {
   },
   computed: {
     ...mapState(['entryModal']),
+    ...mapGetters('fileTemplates', ['templateTypes']),
     entryName: {
       get() {
         if (this.entryModal.type === modalTypes.rename) {
@@ -31,7 +33,9 @@ export default {
       if (this.entryModal.type === modalTypes.tree) {
         return __('Create new directory');
       } else if (this.entryModal.type === modalTypes.rename) {
-        return this.entryModal.entry.type === modalTypes.tree ? __('Rename folder') : __('Rename file');
+        return this.entryModal.entry.type === modalTypes.tree
+          ? __('Rename folder')
+          : __('Rename file');
       }
 
       return __('Create new file');
@@ -40,11 +44,16 @@ export default {
       if (this.entryModal.type === modalTypes.tree) {
         return __('Create directory');
       } else if (this.entryModal.type === modalTypes.rename) {
-        return this.entryModal.entry.type === modalTypes.tree ? __('Rename folder') : __('Rename file');
+        return this.entryModal.entry.type === modalTypes.tree
+          ? __('Rename folder')
+          : __('Rename file');
       }
 
       return __('Create file');
     },
+    isCreatingNew() {
+      return this.entryModal.type !== modalTypes.rename;
+    },
   },
   methods: {
     ...mapActions(['createTempEntry', 'renameEntry']),
@@ -61,6 +70,14 @@ export default {
         });
       }
     },
+    createFromTemplate(template) {
+      this.createTempEntry({
+        name: template.name,
+        type: this.entryModal.type,
+      });
+
+      $('#ide-new-entry').modal('toggle');
+    },
     focusInput() {
       this.$refs.fieldName.focus();
     },
@@ -77,6 +94,7 @@ export default {
     :header-title-text="modalTitle"
     :footer-primary-button-text="buttonLabel"
     footer-primary-button-variant="success"
+    modal-size="lg"
     @submit="submitForm"
     @open="focusInput"
     @closed="closedModal"
@@ -84,16 +102,35 @@ export default {
     <div
       class="form-group row"
     >
-      <label class="label-bold col-form-label col-sm-3">
+      <label class="label-bold col-form-label col-sm-2">
         {{ __('Name') }}
       </label>
-      <div class="col-sm-9">
+      <div class="col-sm-10">
         <input
           ref="fieldName"
           v-model="entryName"
           type="text"
           class="form-control"
+          placeholder="/dir/file_name"
         />
+        <ul
+          v-if="isCreatingNew"
+          class="prepend-top-default list-inline"
+        >
+          <li
+            v-for="(template, index) in templateTypes"
+            :key="index"
+            class="list-inline-item"
+          >
+            <button
+              type="button"
+              class="btn btn-missing p-1 pr-2 pl-2"
+              @click="createFromTemplate(template)"
+            >
+              {{ template.name }}
+            </button>
+          </li>
+        </ul>
       </div>
     </div>
   </gl-modal>
diff --git a/app/assets/javascripts/ide/components/repo_editor.vue b/app/assets/javascripts/ide/components/repo_editor.vue
index f55aa843444..d3a73e84cc7 100644
--- a/app/assets/javascripts/ide/components/repo_editor.vue
+++ b/app/assets/javascripts/ide/components/repo_editor.vue
@@ -6,12 +6,14 @@ import DiffViewer from '~/vue_shared/components/diff_viewer/diff_viewer.vue';
 import { activityBarViews, viewerTypes } from '../constants';
 import Editor from '../lib/editor';
 import ExternalLink from './external_link.vue';
+import FileTemplatesBar from './file_templates/bar.vue';
 
 export default {
   components: {
     ContentViewer,
     DiffViewer,
     ExternalLink,
+    FileTemplatesBar,
   },
   props: {
     file: {
@@ -34,6 +36,7 @@ export default {
       'isCommitModeActive',
       'isReviewModeActive',
     ]),
+    ...mapGetters('fileTemplates', ['showFileTemplatesBar']),
     shouldHideEditor() {
       return this.file && this.file.binary && !this.file.content;
     },
@@ -216,7 +219,7 @@ export default {
     id="ide"
     class="blob-viewer-container blob-editor-container"
   >
-    <div class="ide-mode-tabs clearfix" >
+    <div class="ide-mode-tabs clearfix">
       <ul
         v-if="!shouldHideEditor && isEditModeActive"
         class="nav-links float-left"
@@ -249,6 +252,9 @@ export default {
         :file="file"
       />
     </div>
+    <file-templates-bar
+      v-if="showFileTemplatesBar(file.name)"
+    />
     <div
       v-show="!shouldHideEditor && file.viewMode ==='editor'"
       ref="editor"
diff --git a/app/assets/javascripts/ide/stores/actions.js b/app/assets/javascripts/ide/stores/actions.js
index aa02dfbddc4..aa6ca3f29cd 100644
--- a/app/assets/javascripts/ide/stores/actions.js
+++ b/app/assets/javascripts/ide/stores/actions.js
@@ -206,6 +206,7 @@ export const resetOpenFiles = ({ commit }) => commit(types.RESET_OPEN_FILES);
 
 export const renameEntry = ({ dispatch, commit, state }, { path, name, entryPath = null }) => {
   const entry = state.entries[entryPath || path];
+
   commit(types.RENAME_ENTRY, { path, name, entryPath });
 
   if (entry.type === 'tree') {
@@ -214,7 +215,7 @@ export const renameEntry = ({ dispatch, commit, state }, { path, name, entryPath
     );
   }
 
-  if (!entryPath) {
+  if (!entryPath && !entry.tempFile) {
     dispatch('deleteEntry', path);
   }
 };
diff --git a/app/assets/javascripts/ide/stores/index.js b/app/assets/javascripts/ide/stores/index.js
index a601dc8f5a0..877d88bb060 100644
--- a/app/assets/javascripts/ide/stores/index.js
+++ b/app/assets/javascripts/ide/stores/index.js
@@ -8,6 +8,7 @@ import commitModule from './modules/commit';
 import pipelines from './modules/pipelines';
 import mergeRequests from './modules/merge_requests';
 import branches from './modules/branches';
+import fileTemplates from './modules/file_templates';
 
 Vue.use(Vuex);
 
@@ -22,6 +23,7 @@ export const createStore = () =>
       pipelines,
       mergeRequests,
       branches,
+      fileTemplates: fileTemplates(),
     },
   });
 
diff --git a/app/assets/javascripts/ide/stores/modules/file_templates/actions.js b/app/assets/javascripts/ide/stores/modules/file_templates/actions.js
index 43237a29466..dd53213ed18 100644
--- a/app/assets/javascripts/ide/stores/modules/file_templates/actions.js
+++ b/app/assets/javascripts/ide/stores/modules/file_templates/actions.js
@@ -1,6 +1,7 @@
 import Api from '~/api';
 import { __ } from '~/locale';
 import * as types from './mutation_types';
+import eventHub from '../../../eventhub';
 
 export const requestTemplateTypes = ({ commit }) => commit(types.REQUEST_TEMPLATE_TYPES);
 export const receiveTemplateTypesError = ({ commit, dispatch }) => {
@@ -31,9 +32,23 @@ export const fetchTemplateTypes = ({ dispatch, state }) => {
     .catch(() => dispatch('receiveTemplateTypesError'));
 };
 
-export const setSelectedTemplateType = ({ commit }, type) =>
+export const setSelectedTemplateType = ({ commit, dispatch, rootGetters }, type) => {
   commit(types.SET_SELECTED_TEMPLATE_TYPE, type);
 
+  if (rootGetters.activeFile.prevPath === type.name) {
+    dispatch('discardFileChanges', rootGetters.activeFile.path, { root: true });
+  } else if (rootGetters.activeFile.name !== type.name) {
+    dispatch(
+      'renameEntry',
+      {
+        path: rootGetters.activeFile.path,
+        name: type.name,
+      },
+      { root: true },
+    );
+  }
+};
+
 export const receiveTemplateError = ({ dispatch }, template) => {
   dispatch(
     'setErrorMessage',
@@ -69,6 +84,7 @@ export const setFileTemplate = ({ dispatch, commit, rootGetters }, template) =>
     { root: true },
   );
   commit(types.SET_UPDATE_SUCCESS, true);
+  eventHub.$emit(`editor.update.model.new.content.${rootGetters.activeFile.key}`, template.content);
 };
 
 export const undoFileTemplate = ({ dispatch, commit, rootGetters }) => {
@@ -76,6 +92,12 @@ export const undoFileTemplate = ({ dispatch, commit, rootGetters }) => {
 
   dispatch('changeFileContent', { path: file.path, content: file.raw }, { root: true });
   commit(types.SET_UPDATE_SUCCESS, false);
+
+  eventHub.$emit(`editor.update.model.new.content.${file.key}`, file.raw);
+
+  if (file.prevPath) {
+    dispatch('discardFileChanges', file.path, { root: true });
+  }
 };
 
 // prevent babel-plugin-rewire from generating an invalid default during karma tests
diff --git a/app/assets/javascripts/ide/stores/modules/file_templates/getters.js b/app/assets/javascripts/ide/stores/modules/file_templates/getters.js
index 38318fd49bf..628babe6a01 100644
--- a/app/assets/javascripts/ide/stores/modules/file_templates/getters.js
+++ b/app/assets/javascripts/ide/stores/modules/file_templates/getters.js
@@ -1,3 +1,5 @@
+import { activityBarViews } from '../../../constants';
+
 export const templateTypes = () => [
   {
     name: '.gitlab-ci.yml',
@@ -17,7 +19,8 @@ export const templateTypes = () => [
   },
 ];
 
-export const showFileTemplatesBar = (_, getters) => name =>
-  getters.templateTypes.find(t => t.name === name);
+export const showFileTemplatesBar = (_, getters, rootState) => name =>
+  getters.templateTypes.find(t => t.name === name) &&
+  rootState.currentActivityView === activityBarViews.edit;
 
 export default () => {};
diff --git a/app/assets/javascripts/ide/stores/modules/file_templates/index.js b/app/assets/javascripts/ide/stores/modules/file_templates/index.js
index dfa5ef54413..383ff5db392 100644
--- a/app/assets/javascripts/ide/stores/modules/file_templates/index.js
+++ b/app/assets/javascripts/ide/stores/modules/file_templates/index.js
@@ -3,10 +3,10 @@ import * as actions from './actions';
 import * as getters from './getters';
 import mutations from './mutations';
 
-export default {
+export default () => ({
   namespaced: true,
   actions,
   state: createState(),
   getters,
   mutations,
-};
+});
diff --git a/app/assets/javascripts/ide/stores/mutations.js b/app/assets/javascripts/ide/stores/mutations.js
index f2bb87ac674..2c8535bda59 100644
--- a/app/assets/javascripts/ide/stores/mutations.js
+++ b/app/assets/javascripts/ide/stores/mutations.js
@@ -1,3 +1,4 @@
+import Vue from 'vue';
 import * as types from './mutation_types';
 import projectMutations from './mutations/project';
 import mergeRequestMutation from './mutations/merge_request';
@@ -226,7 +227,7 @@ export default {
       path: newPath,
       name: entryPath ? oldEntry.name : name,
       tempFile: true,
-      prevPath: oldEntry.path,
+      prevPath: oldEntry.tempFile ? null : oldEntry.path,
       url: oldEntry.url.replace(new RegExp(`${oldEntry.path}/?$`), newPath),
       tree: [],
       parentPath,
@@ -245,6 +246,20 @@ export default {
     if (newEntry.type === 'blob') {
       state.changedFiles = state.changedFiles.concat(newEntry);
     }
+
+    if (state.entries[newPath].opened) {
+      state.openFiles.push(state.entries[newPath]);
+    }
+
+    if (oldEntry.tempFile) {
+      const filterMethod = f => f.path !== oldEntry.path;
+
+      state.openFiles = state.openFiles.filter(filterMethod);
+      state.changedFiles = state.changedFiles.filter(filterMethod);
+      parent.tree = parent.tree.filter(filterMethod);
+
+      Vue.delete(state.entries, oldEntry.path);
+    }
   },
   ...projectMutations,
   ...mergeRequestMutation,
diff --git a/app/assets/javascripts/ide/stores/mutations/file.js b/app/assets/javascripts/ide/stores/mutations/file.js
index 66f29824898..6ca246c1d63 100644
--- a/app/assets/javascripts/ide/stores/mutations/file.js
+++ b/app/assets/javascripts/ide/stores/mutations/file.js
@@ -55,7 +55,7 @@ export default {
       f => f.path === file.path && f.pending && !(f.tempFile && !f.prevPath),
     );
 
-    if (file.tempFile) {
+    if (file.tempFile && file.content === '') {
       Object.assign(state.entries[file.path], {
         content: raw,
       });
diff --git a/app/assets/stylesheets/page_bundles/ide.scss b/app/assets/stylesheets/page_bundles/ide.scss
index 5ff4e487d04..ce19ba4de07 100644
--- a/app/assets/stylesheets/page_bundles/ide.scss
+++ b/app/assets/stylesheets/page_bundles/ide.scss
@@ -1442,3 +1442,17 @@ $ide-tree-text-start: $ide-activity-bar-width + $ide-tree-padding;
   top: 50%;
   transform: translateY(-50%);
 }
+
+.ide-file-templates {
+  padding: $grid-size $gl-padding;
+  background-color: $gray-light;
+  border-bottom: 1px solid $white-dark;
+
+  .dropdown {
+    min-width: 180px;
+  }
+
+  .dropdown-content {
+    max-height: 222px;
+  }
+}
diff --git a/changelogs/unreleased/ide-file-templates.yml b/changelogs/unreleased/ide-file-templates.yml
new file mode 100644
index 00000000000..68983670b25
--- /dev/null
+++ b/changelogs/unreleased/ide-file-templates.yml
@@ -0,0 +1,5 @@
+---
+title: Added file templates to the Web IDE
+merge_request:
+author:
+type: added
diff --git a/locale/gitlab.pot b/locale/gitlab.pot
index 88d1ac53f7d..e72f9a759dc 100644
--- a/locale/gitlab.pot
+++ b/locale/gitlab.pot
@@ -1170,6 +1170,12 @@ msgstr ""
 msgid "Choose a branch/tag (e.g. %{master}) or enter a commit (e.g. %{sha}) to see what's changed or to create a merge request."
 msgstr ""
 
+msgid "Choose a template..."
+msgstr ""
+
+msgid "Choose a type..."
+msgstr ""
+
 msgid "Choose any color."
 msgstr ""
 
@@ -2694,6 +2700,9 @@ msgstr ""
 msgid "Fields on this page are now uneditable, you can configure"
 msgstr ""
 
+msgid "File templates"
+msgstr ""
+
 msgid "Files"
 msgstr ""
 
@@ -2706,6 +2715,9 @@ msgstr ""
 msgid "Filter by commit message"
 msgstr ""
 
+msgid "Filter..."
+msgstr ""
+
 msgid "Find by path"
 msgstr ""
 
@@ -6199,6 +6211,9 @@ msgstr ""
 msgid "Unable to load the diff. %{button_try_again}"
 msgstr ""
 
+msgid "Undo"
+msgstr ""
+
 msgid "Unlock"
 msgstr ""
 
diff --git a/spec/javascripts/ide/components/file_templates/bar_spec.js b/spec/javascripts/ide/components/file_templates/bar_spec.js
new file mode 100644
index 00000000000..a688f7f69a6
--- /dev/null
+++ b/spec/javascripts/ide/components/file_templates/bar_spec.js
@@ -0,0 +1,117 @@
+import Vue from 'vue';
+import { createStore } from '~/ide/stores';
+import Bar from '~/ide/components/file_templates/bar.vue';
+import { mountComponentWithStore } from 'spec/helpers/vue_mount_component_helper';
+import { resetStore, file } from '../../helpers';
+
+describe('IDE file templates bar component', () => {
+  let Component;
+  let vm;
+
+  beforeAll(() => {
+    Component = Vue.extend(Bar);
+  });
+
+  beforeEach(() => {
+    const store = createStore();
+
+    store.state.openFiles.push({
+      ...file('file'),
+      opened: true,
+      active: true,
+    });
+
+    vm = mountComponentWithStore(Component, { store });
+  });
+
+  afterEach(() => {
+    vm.$destroy();
+    resetStore(vm.$store);
+  });
+
+  describe('template type dropdown', () => {
+    it('renders dropdown component', () => {
+      expect(vm.$el.querySelector('.dropdown').textContent).toContain('Choose a type');
+    });
+
+    it('calls setSelectedTemplateType when clicking item', () => {
+      spyOn(vm, 'setSelectedTemplateType').and.stub();
+
+      vm.$el.querySelector('.dropdown-content button').click();
+
+      expect(vm.setSelectedTemplateType).toHaveBeenCalledWith({
+        name: '.gitlab-ci.yml',
+        key: 'gitlab_ci_ymls',
+      });
+    });
+  });
+
+  describe('template dropdown', () => {
+    beforeEach(done => {
+      vm.$store.state.fileTemplates.templates = [
+        {
+          name: 'test',
+        },
+      ];
+      vm.$store.state.fileTemplates.selectedTemplateType = {
+        name: '.gitlab-ci.yml',
+        key: 'gitlab_ci_ymls',
+      };
+
+      vm.$nextTick(done);
+    });
+
+    it('renders dropdown component', () => {
+      expect(vm.$el.querySelectorAll('.dropdown')[1].textContent).toContain('Choose a template');
+    });
+
+    it('calls fetchTemplate on click', () => {
+      spyOn(vm, 'fetchTemplate').and.stub();
+
+      vm.$el
+        .querySelectorAll('.dropdown-content')[1]
+        .querySelector('button')
+        .click();
+
+      expect(vm.fetchTemplate).toHaveBeenCalledWith({
+        name: 'test',
+      });
+    });
+  });
+
+  it('shows undo button if updateSuccess is true', done => {
+    vm.$store.state.fileTemplates.updateSuccess = true;
+
+    vm.$nextTick(() => {
+      expect(vm.$el.querySelector('.btn-default').style.display).not.toBe('none');
+
+      done();
+    });
+  });
+
+  it('calls undoFileTemplate when clicking undo button', () => {
+    spyOn(vm, 'undoFileTemplate').and.stub();
+
+    vm.$el.querySelector('.btn-default').click();
+
+    expect(vm.undoFileTemplate).toHaveBeenCalled();
+  });
+
+  it('calls setSelectedTemplateType if activeFile name matches a template', done => {
+    const fileName = '.gitlab-ci.yml';
+
+    spyOn(vm, 'setSelectedTemplateType');
+    vm.$store.state.openFiles[0].name = fileName;
+
+    vm.setInitialType();
+
+    vm.$nextTick(() => {
+      expect(vm.setSelectedTemplateType).toHaveBeenCalledWith({
+        name: fileName,
+        key: 'gitlab_ci_ymls',
+      });
+
+      done();
+    });
+  });
+});
diff --git a/spec/javascripts/ide/components/file_templates/dropdown_spec.js b/spec/javascripts/ide/components/file_templates/dropdown_spec.js
new file mode 100644
index 00000000000..898796f4fa0
--- /dev/null
+++ b/spec/javascripts/ide/components/file_templates/dropdown_spec.js
@@ -0,0 +1,201 @@
+import $ from 'jquery';
+import Vue from 'vue';
+import { createStore } from '~/ide/stores';
+import Dropdown from '~/ide/components/file_templates/dropdown.vue';
+import { createComponentWithStore } from 'spec/helpers/vue_mount_component_helper';
+import { resetStore } from '../../helpers';
+
+describe('IDE file templates dropdown component', () => {
+  let Component;
+  let vm;
+
+  beforeAll(() => {
+    Component = Vue.extend(Dropdown);
+  });
+
+  beforeEach(() => {
+    const store = createStore();
+
+    vm = createComponentWithStore(Component, store, {
+      label: 'Test',
+    }).$mount();
+  });
+
+  afterEach(() => {
+    vm.$destroy();
+    resetStore(vm.$store);
+  });
+
+  describe('async', () => {
+    beforeEach(() => {
+      vm.isAsyncData = true;
+    });
+
+    it('calls async store method on Bootstrap dropdown event', () => {
+      spyOn(vm, 'fetchTemplateTypes').and.stub();
+
+      $(vm.$el).trigger('show.bs.dropdown');
+
+      expect(vm.fetchTemplateTypes).toHaveBeenCalled();
+    });
+
+    it('renders templates when async', done => {
+      vm.$store.state.fileTemplates.templates = [
+        {
+          name: 'test',
+        },
+      ];
+
+      vm.$nextTick(() => {
+        expect(vm.$el.querySelector('.dropdown-content').textContent).toContain('test');
+
+        done();
+      });
+    });
+
+    it('renders loading icon when isLoading is true', done => {
+      vm.$store.state.fileTemplates.isLoading = true;
+
+      vm.$nextTick(() => {
+        expect(vm.$el.querySelector('.loading-container')).not.toBe(null);
+
+        done();
+      });
+    });
+
+    it('searches template data', () => {
+      vm.$store.state.fileTemplates.templates = [
+        {
+          name: 'test',
+        },
+      ];
+      vm.searchable = true;
+      vm.search = 'hello';
+
+      expect(vm.outputData).toEqual([]);
+    });
+
+    it('does not filter data is searchable is false', () => {
+      vm.$store.state.fileTemplates.templates = [
+        {
+          name: 'test',
+        },
+      ];
+      vm.search = 'hello';
+
+      expect(vm.outputData).toEqual([
+        {
+          name: 'test',
+        },
+      ]);
+    });
+
+    it('calls clickItem on click', done => {
+      spyOn(vm, 'clickItem').and.stub();
+
+      vm.$store.state.fileTemplates.templates = [
+        {
+          name: 'test',
+        },
+      ];
+
+      vm.$nextTick(() => {
+        vm.$el.querySelector('.dropdown-content button').click();
+
+        expect(vm.clickItem).toHaveBeenCalledWith({
+          name: 'test',
+        });
+
+        done();
+      });
+    });
+
+    it('renders input when searchable is true', done => {
+      vm.searchable = true;
+
+      vm.$nextTick(() => {
+        expect(vm.$el.querySelector('.dropdown-input')).not.toBe(null);
+
+        done();
+      });
+    });
+
+    it('does not render input when searchable is true & showLoading is true', done => {
+      vm.searchable = true;
+      vm.$store.state.fileTemplates.isLoading = true;
+
+      vm.$nextTick(() => {
+        expect(vm.$el.querySelector('.dropdown-input')).toBe(null);
+
+        done();
+      });
+    });
+  });
+
+  describe('sync', () => {
+    beforeEach(done => {
+      vm.data = [
+        {
+          name: 'test sync',
+        },
+      ];
+
+      vm.$nextTick(done);
+    });
+
+    it('renders props data', () => {
+      expect(vm.$el.querySelector('.dropdown-content').textContent).toContain('test sync');
+    });
+
+    it('renders input when searchable is true', done => {
+      vm.searchable = true;
+
+      vm.$nextTick(() => {
+        expect(vm.$el.querySelector('.dropdown-input')).not.toBe(null);
+
+        done();
+      });
+    });
+
+    it('calls clickItem on click', done => {
+      spyOn(vm, 'clickItem').and.stub();
+
+      vm.$nextTick(() => {
+        vm.$el.querySelector('.dropdown-content button').click();
+
+        expect(vm.clickItem).toHaveBeenCalledWith({
+          name: 'test sync',
+        });
+
+        done();
+      });
+    });
+
+    it('searches template data', () => {
+      vm.searchable = true;
+      vm.search = 'hello';
+
+      expect(vm.outputData).toEqual([]);
+    });
+
+    it('does not filter data is searchable is false', () => {
+      vm.search = 'hello';
+
+      expect(vm.outputData).toEqual([
+        {
+          name: 'test sync',
+        },
+      ]);
+    });
+
+    it('renders dropdown title', done => {
+      vm.title = 'Test title';
+
+      vm.$nextTick(() => {
+        expect(vm.$el.querySelector('.dropdown-title').textContent).toContain('Test title');
+
+        done();
+      });
+    });
+  });
+});
diff --git a/spec/javascripts/ide/helpers.js b/spec/javascripts/ide/helpers.js
index c11c482fef8..3ce9c9fcda1 100644
--- a/spec/javascripts/ide/helpers.js
+++ b/spec/javascripts/ide/helpers.js
@@ -5,6 +5,7 @@ import commitState from '~/ide/stores/modules/commit/state';
 import mergeRequestsState from '~/ide/stores/modules/merge_requests/state';
 import pipelinesState from '~/ide/stores/modules/pipelines/state';
 import branchesState from '~/ide/stores/modules/branches/state';
+import fileTemplatesState from '~/ide/stores/modules/file_templates/state';
 
 export const resetStore = store => {
   const newState = {
@@ -13,6 +14,7 @@ export const resetStore = store => {
     mergeRequests: mergeRequestsState(),
     pipelines: pipelinesState(),
     branches: branchesState(),
+    fileTemplates: fileTemplatesState(),
   };
   store.replaceState(newState);
 };
diff --git a/spec/javascripts/ide/stores/modules/file_templates/actions_spec.js b/spec/javascripts/ide/stores/modules/file_templates/actions_spec.js
index f831a9f0a5d..c29dd9f0d06 100644
--- a/spec/javascripts/ide/stores/modules/file_templates/actions_spec.js
+++ b/spec/javascripts/ide/stores/modules/file_templates/actions_spec.js
@@ -148,14 +148,66 @@ describe('IDE file templates actions', () => {
   });
 
   describe('setSelectedTemplateType', () => {
-    it('commits SET_SELECTED_TEMPLATE_TYPE', done => {
-      testAction(
-        actions.setSelectedTemplateType,
-        'test',
-        state,
-        [{ type: types.SET_SELECTED_TEMPLATE_TYPE, payload: 'test' }],
-        [],
-        done,
+    it('commits SET_SELECTED_TEMPLATE_TYPE', () => {
+      const commit = jasmine.createSpy('commit');
+      const options = {
+        commit,
+        dispatch() {},
+        rootGetters: {
+          activeFile: {
+            name: 'test',
+            prevPath: '',
+          },
+        },
+      };
+
+      actions.setSelectedTemplateType(options, { name: 'test' });
+
+      expect(commit).toHaveBeenCalledWith(types.SET_SELECTED_TEMPLATE_TYPE, { name: 'test' });
+    });
+
+    it('dispatches discardFileChanges if prevPath matches templates name', () => {
+      const dispatch = jasmine.createSpy('dispatch');
+      const options = {
+        commit() {},
+        dispatch,
+        rootGetters: {
+          activeFile: {
+            name: 'test',
+            path: 'test',
+            prevPath: 'test',
+          },
+        },
+      };
+
+      actions.setSelectedTemplateType(options, { name: 'test' });
+
+      expect(dispatch).toHaveBeenCalledWith('discardFileChanges', 'test', { root: true });
+    });
+
+    it('dispatches renameEntry if file name doesnt match', () => {
+      const dispatch = jasmine.createSpy('dispatch');
+      const options = {
+        commit() {},
+        dispatch,
+        rootGetters: {
+          activeFile: {
+            name: 'oldtest',
+            path: 'oldtest',
+            prevPath: '',
+          },
+        },
+      };
+
+      actions.setSelectedTemplateType(options, { name: 'test' });
+
+      expect(dispatch).toHaveBeenCalledWith(
+        'renameEntry',
+        {
+          path: 'oldtest',
+          name: 'test',
+        },
+        { root: true },
       );
     });
   });
@@ -332,5 +384,20 @@ describe('IDE file templates actions', () => {
 
       expect(commit).toHaveBeenCalledWith('SET_UPDATE_SUCCESS', false);
     });
+
+    it('dispatches discardFileChanges if file has prevPath', () => {
+      const dispatch = jasmine.createSpy('dispatch');
+      const rootGetters = {
+        activeFile: { path: 'test', prevPath: 'newtest', raw: 'raw content' },
+      };
+
+      actions.undoFileTemplate({ dispatch, commit() {}, rootGetters });
+
+      expect(dispatch.calls.mostRecent().args).toEqual([
+        'discardFileChanges',
+        'test',
+        { root: true },
+      ]);
+    });
   });
 });
diff --git a/spec/javascripts/ide/stores/modules/file_templates/getters_spec.js b/spec/javascripts/ide/stores/modules/file_templates/getters_spec.js
index e337c3f331b..17cb457881f 100644
--- a/spec/javascripts/ide/stores/modules/file_templates/getters_spec.js
+++ b/spec/javascripts/ide/stores/modules/file_templates/getters_spec.js
@@ -1,3 +1,5 @@
+import createState from '~/ide/stores/state';
+import { activityBarViews } from '~/ide/constants';
 import * as getters from '~/ide/stores/modules/file_templates/getters';
 
 describe('IDE file templates getters', () => {
@@ -8,22 +10,49 @@ describe('IDE file templates getters', () => {
   });
 
   describe('showFileTemplatesBar', () => {
-    it('finds template type by name', () => {
+    let rootState;
+
+    beforeEach(() => {
+      rootState = createState();
+    });
+
+    it('returns true if template is found and currentActivityView is edit', () => {
+      rootState.currentActivityView = activityBarViews.edit;
+
       expect(
-        getters.showFileTemplatesBar(null, {
-          templateTypes: getters.templateTypes(),
-        })('LICENSE'),
-      ).toEqual({
-        name: 'LICENSE',
-        key: 'licenses',
-      });
+        getters.showFileTemplatesBar(
+          null,
+          {
+            templateTypes: getters.templateTypes(),
+          },
+          rootState,
+        )('LICENSE'),
+      ).toBe(true);
+    });
+
+    it('returns false if template is found and currentActivityView is not edit', () => {
+      rootState.currentActivityView = activityBarViews.commit;
+
+      expect(
+        getters.showFileTemplatesBar(
+          null,
+          {
+            templateTypes: getters.templateTypes(),
+          },
+          rootState,
+        )('LICENSE'),
+      ).toBe(false);
     });
 
     it('returns undefined if not found', () => {
       expect(
-        getters.showFileTemplatesBar(null, {
-          templateTypes: getters.templateTypes(),
-        })('test'),
+        getters.showFileTemplatesBar(
+          null,
+          {
+            templateTypes: getters.templateTypes(),
+          },
+          rootState,
+        )('test'),
       ).toBe(undefined);
     });
   });
diff --git a/spec/javascripts/ide/stores/mutations_spec.js b/spec/javascripts/ide/stores/mutations_spec.js
index 6ce76aaa03b..41dd3d3c67f 100644
--- a/spec/javascripts/ide/stores/mutations_spec.js
+++ b/spec/javascripts/ide/stores/mutations_spec.js
@@ -339,5 +339,13 @@ describe('Multi-file store mutations', () => {
 
       expect(localState.entries.parentPath.tree.length).toBe(1);
     });
+
+    it('adds to openFiles if previously opened', () => {
+      localState.entries.oldPath.opened = true;
+
+      mutations.RENAME_ENTRY(localState, { path: 'oldPath', name: 'newPath' });
+
+      expect(localState.openFiles).toEqual([localState.entries.newPath]);
+    });
   });
 });