diff --git a/tests/conftest.py b/tests/conftest.py
index ce279162f..fdc896266 100644
--- a/tests/conftest.py
+++ b/tests/conftest.py
@@ -308,3 +308,11 @@ def test_component_code():
     # load the content as a string
     with open(path, "r") as f:
         return f.read()
+
+
+@pytest.fixture
+def test_component_with_templatefield_code():
+    path = Path(__file__).parent.absolute() / "data" / "component_with_templatefield.py"
+    # load the content as a string
+    with open(path, "r") as f:
+        return f.read()
diff --git a/tests/data/component_with_templatefield.py b/tests/data/component_with_templatefield.py
new file mode 100644
index 000000000..725bec9b2
--- /dev/null
+++ b/tests/data/component_with_templatefield.py
@@ -0,0 +1,17 @@
+import random
+
+from langflow import CustomComponent
+from langflow.template.field.base import TemplateField
+
+
+class TestComponent(CustomComponent):
+    def refresh_values(self):
+        # This is a function that will be called every time the component is updated
+        # and should return a list of random strings
+        return [f"Random {random.randint(1, 100)}" for _ in range(5)]
+
+    def build_config(self):
+        return {"param": TemplateField(display_name="Param", options=self.refresh_values)}
+
+    def build(self, param: int):
+        return param
diff --git a/tests/test_custom_component.py b/tests/test_custom_component.py
index 3be85ddd2..007374763 100644
--- a/tests/test_custom_component.py
+++ b/tests/test_custom_component.py
@@ -549,3 +549,17 @@ def test_build_langchain_template_custom_component_valid_code(test_component_cod
     frontend_node = build_custom_component_template(component, update_field="param")
     new_param_options = frontend_node["template"]["param"]["options"]
     assert param_options != new_param_options
+
+
+def test_build_langchain_template_custom_component_templatefield(test_component_with_templatefield_code):
+    component = create_and_validate_component(test_component_with_templatefield_code)
+    frontend_node = build_custom_component_template(component)
+    assert isinstance(frontend_node, dict)
+    template = frontend_node["template"]
+    assert isinstance(template, dict)
+    assert "param" in template
+    param_options = template["param"]["options"]
+    # Now run it again with an update field
+    frontend_node = build_custom_component_template(component, update_field="param")
+    new_param_options = frontend_node["template"]["param"]["options"]
+    assert param_options != new_param_options