diff --git a/app/helpers/issuables_helper.rb b/app/helpers/issuables_helper.rb
index 749b6245edc..ec57fec4f99 100644
--- a/app/helpers/issuables_helper.rb
+++ b/app/helpers/issuables_helper.rb
@@ -251,7 +251,7 @@ module IssuablesHelper
   end
 
   def selected_template(issuable)
-    params[:issuable_template] if issuable_templates(issuable).include?(params[:issuable_template])
+    params[:issuable_template] if issuable_templates(issuable).any?{ |template| template[:name] == params[:issuable_template] }
   end
 
   def issuable_todo_button_data(issuable, todo, is_collapsed)
diff --git a/changelogs/unreleased/26595-fix-issue-preselected-template.yml b/changelogs/unreleased/26595-fix-issue-preselected-template.yml
new file mode 100644
index 00000000000..a94765f8f2a
--- /dev/null
+++ b/changelogs/unreleased/26595-fix-issue-preselected-template.yml
@@ -0,0 +1,4 @@
+---
+title: Fix linking to new issue with selected template via url parameter
+merge_request:
+author:
diff --git a/spec/features/issues_spec.rb b/spec/features/issues_spec.rb
index a58aedc924e..7afceb88cf9 100644
--- a/spec/features/issues_spec.rb
+++ b/spec/features/issues_spec.rb
@@ -13,6 +13,13 @@ describe 'Issues', feature: true do
     user2 = create(:user)
 
     project.team << [[@user, user2], :developer]
+
+    project.repository.create_file(
+      @user,
+      '.gitlab/issue_templates/bug.md',
+      'this is a test "bug" template',
+      message: 'added issue template',
+      branch_name: 'master')
   end
 
   describe 'Edit issue' do
@@ -600,6 +607,16 @@ describe 'Issues', feature: true do
         expect(page.find_field("issue_description").value).to match /\n\n$/
       end
     end
+
+    context 'form filled by URL parameters' do
+      before do
+        visit new_namespace_project_issue_path(project.namespace, project, issuable_template: 'bug')
+      end
+
+      it 'fills in template' do
+        expect(find('.js-issuable-selector .dropdown-toggle-text')).to have_content('bug')
+      end
+    end
   end
 
   describe 'new issue by email' do