diff --git a/src/editor-api/entities.ts b/src/editor-api/entities.ts
index a27083129..2ce8a0e83 100644
--- a/src/editor-api/entities.ts
+++ b/src/editor-api/entities.ts
@@ -317,7 +317,7 @@ class Entities extends Events {
      * await editor.entities.delete([entity1, entity2]);
      * ```
      */
-    async delete(entities: Entity[] | Entity, options: { history?: boolean } = {}) {
+    async delete(entities: Entity[] | Entity, options: { history?: boolean; preserveEntityReferences?: boolean } = {}) {
         await deleteEntities(entities, options);
     }
 
diff --git a/src/editor-api/entities/delete.ts b/src/editor-api/entities/delete.ts
index 03aaebc01..2f79a3b16 100644
--- a/src/editor-api/entities/delete.ts
+++ b/src/editor-api/entities/delete.ts
@@ -78,8 +78,11 @@ function rememberPrevious(entities: any[]) {
  * @param entities - The entities
  * @param options.history - Whether to record a history action. Defaults to true.
  * @param options.waitSubmitted - Whether to wait till ops submitted.
+ * @param options.preserveEntityReferences - Whether to skip nullifying entity references
+ * when entities are removed. Useful when entities are immediately re-created with the same
+ * resource_id (e.g. during template revert). Defaults to false.
  */
-async function deleteEntities(entities: Entity[] | Entity, options: { history?: boolean; waitSubmitted?: boolean } = {}) {
+async function deleteEntities(entities: Entity[] | Entity, options: { history?: boolean; waitSubmitted?: boolean; preserveEntityReferences?: boolean } = {}) {
     if (options.history === undefined) {
         options.history = true;
     }
@@ -139,8 +142,9 @@ async function deleteEntities(entities: Entity[] | Entity, options: { history?:
         previous = rememberPrevious(entities);
     }
 
-    // find entity references
-    const entityReferences = findEntityReferencesInComponents(api.entities.root);
+    // find entity references (skip when preserveEntityReferences is true,
+    // e.g. during template revert where entities are immediately re-created with same IDs)
+    const entityReferences = options.preserveEntityReferences ? null : findEntityReferencesInComponents(api.entities.root);
 
     entities.forEach((entity) => {
         api.entities.remove(entity, entityReferences);
diff --git a/src/editor-api/entity.ts b/src/editor-api/entity.ts
index e3268704c..c6c3003e3 100644
--- a/src/editor-api/entity.ts
+++ b/src/editor-api/entity.ts
@@ -499,7 +499,7 @@ class Entity extends Events {
      * ```
      *
      */
-    delete(options: { history?: boolean } = {}) {
+    delete(options: { history?: boolean; preserveEntityReferences?: boolean } = {}) {
         return api.entities.delete([this], options);
     }
 
diff --git a/src/editor/templates/revert-overrides.ts b/src/editor/templates/revert-overrides.ts
index c1208418f..fc0913880 100644
--- a/src/editor/templates/revert-overrides.ts
+++ b/src/editor/templates/revert-overrides.ts
@@ -593,7 +593,7 @@ editor.once('load', () => {
             }
 
             if (entityObserver) {
-                await entityObserver.apiEntity.delete({ history: false });
+                await entityObserver.apiEntity.delete({ history: false, preserveEntityReferences: true });
 
                 const entity = editor.api.globals.entities.create(prev, { history: false, index: childIndex, select: true });
                 entityObserver = entity.observer;
@@ -614,7 +614,7 @@ editor.once('load', () => {
             // use waitSubmitted to wait for scene operational transforms to be submitted to ShareDB -
             // delete() prepares Operations Transforms on the frontend but instantiateTemplate()
             // bakes them on the backend and we should wait till everything submitted after delete
-            await entityObserver.apiEntity.delete({ history: false, waitSubmitted: true });
+            await entityObserver.apiEntity.delete({ history: false, waitSubmitted: true, preserveEntityReferences: true });
 
             const newEntity = await asset.apiAsset.instantiateTemplate(parent.apiEntity, {
                 history: false,