diff --git a/cmd/bd/template.go b/cmd/bd/template.go
index 1aedfda0..545ced27 100644
--- a/cmd/bd/template.go
+++ b/cmd/bd/template.go
@@ -170,7 +170,13 @@ var templateShowCmd = &cobra.Command{
 		}
 
 		// Load and show Beads template
-		subgraph, err := loadTemplateSubgraph(ctx, store, templateID)
+		var subgraph *TemplateSubgraph
+		var err error
+		if daemonClient != nil {
+			subgraph, err = loadTemplateSubgraphViaDaemon(daemonClient, templateID)
+		} else {
+			subgraph, err = loadTemplateSubgraph(ctx, store, templateID)
+		}
 		if err != nil {
 			fmt.Fprintf(os.Stderr, "Error loading template: %v\n", err)
 			os.Exit(1)
@@ -267,7 +273,13 @@ Example:
 		}
 
 		// Load the template subgraph
-		subgraph, err := loadTemplateSubgraph(ctx, store, templateID)
+		var subgraph *TemplateSubgraph
+		var err error
+		if daemonClient != nil {
+			subgraph, err = loadTemplateSubgraphViaDaemon(daemonClient, templateID)
+		} else {
+			subgraph, err = loadTemplateSubgraph(ctx, store, templateID)
+		}
 		if err != nil {
 			fmt.Fprintf(os.Stderr, "Error loading template: %v\n", err)
 			os.Exit(1)
@@ -314,7 +326,12 @@ Example:
 			Actor:    actor,
 			Wisp:     false,
 		}
-		result, err := cloneSubgraph(ctx, store, subgraph, opts)
+		var result *InstantiateResult
+		if daemonClient != nil {
+			result, err = cloneSubgraphViaDaemon(daemonClient, subgraph, opts)
+		} else {
+			result, err = cloneSubgraph(ctx, store, subgraph, opts)
+		}
 		if err != nil {
 			fmt.Fprintf(os.Stderr, "Error instantiating template: %v\n", err)
 			os.Exit(1)
@@ -436,6 +453,184 @@ func loadDescendants(ctx context.Context, s storage.Storage, subgraph *TemplateS
 	return nil
 }
 
+// =============================================================================
+// Daemon-compatible Template Functions
+// =============================================================================
+
+// IssueDetailsFromShow represents the response structure from daemon Show RPC
+type IssueDetailsFromShow struct {
+	types.Issue
+	Labels       []string                              `json:"labels,omitempty"`
+	Dependencies []*types.IssueWithDependencyMetadata `json:"dependencies,omitempty"`
+	Dependents   []*types.IssueWithDependencyMetadata `json:"dependents,omitempty"`
+}
+
+// loadTemplateSubgraphViaDaemon loads a template subgraph using daemon RPC calls
+func loadTemplateSubgraphViaDaemon(client *rpc.Client, templateID string) (*TemplateSubgraph, error) {
+	// Get root issue with dependencies/dependents
+	resp, err := client.Show(&rpc.ShowArgs{ID: templateID})
+	if err != nil {
+		return nil, fmt.Errorf("failed to get template: %w", err)
+	}
+
+	var rootDetails IssueDetailsFromShow
+	if err := json.Unmarshal(resp.Data, &rootDetails); err != nil {
+		return nil, fmt.Errorf("failed to parse template: %w", err)
+	}
+
+	root := &rootDetails.Issue
+	subgraph := &TemplateSubgraph{
+		Root:     root,
+		Issues:   []*types.Issue{root},
+		IssueMap: map[string]*types.Issue{root.ID: root},
+	}
+
+	// Find children from dependents (those with parent-child relationship)
+	// and recursively load them
+	if err := loadDescendantsViaDaemon(client, subgraph, rootDetails.Dependents); err != nil {
+		return nil, err
+	}
+
+	// Now build dependencies list by examining each issue's dependencies
+	// We need to get the dependency records, which Show provides
+	for _, issue := range subgraph.Issues {
+		resp, err := client.Show(&rpc.ShowArgs{ID: issue.ID})
+		if err != nil {
+			continue
+		}
+
+		var details IssueDetailsFromShow
+		if err := json.Unmarshal(resp.Data, &details); err != nil {
+			continue
+		}
+
+		// Dependencies are issues that THIS issue depends on
+		for _, dep := range details.Dependencies {
+			// Only include if the dependency target is also in the subgraph
+			if _, ok := subgraph.IssueMap[dep.Issue.ID]; ok {
+				subgraph.Dependencies = append(subgraph.Dependencies, &types.Dependency{
+					IssueID:     issue.ID,
+					DependsOnID: dep.Issue.ID,
+					Type:        dep.DependencyType,
+				})
+			}
+		}
+	}
+
+	return subgraph, nil
+}
+
+// loadDescendantsViaDaemon recursively loads child issues via daemon RPC
+func loadDescendantsViaDaemon(client *rpc.Client, subgraph *TemplateSubgraph, dependents []*types.IssueWithDependencyMetadata) error {
+	for _, dep := range dependents {
+		// Check if this is a child (parent-child relationship)
+		if dep.DependencyType != types.DepParentChild {
+			continue
+		}
+
+		if _, exists := subgraph.IssueMap[dep.Issue.ID]; exists {
+			continue // Already in subgraph
+		}
+
+		// Add to subgraph
+		issue := &dep.Issue
+		subgraph.Issues = append(subgraph.Issues, issue)
+		subgraph.IssueMap[issue.ID] = issue
+
+		// Get this issue's dependents for recursion
+		resp, err := client.Show(&rpc.ShowArgs{ID: issue.ID})
+		if err != nil {
+			continue
+		}
+
+		var details IssueDetailsFromShow
+		if err := json.Unmarshal(resp.Data, &details); err != nil {
+			continue
+		}
+
+		// Recurse on children
+		if err := loadDescendantsViaDaemon(client, subgraph, details.Dependents); err != nil {
+			return err
+		}
+	}
+
+	return nil
+}
+
+// cloneSubgraphViaDaemon creates new issues from the template using daemon RPC calls
+func cloneSubgraphViaDaemon(client *rpc.Client, subgraph *TemplateSubgraph, opts CloneOptions) (*InstantiateResult, error) {
+	// Generate new IDs and create mapping
+	idMapping := make(map[string]string)
+
+	// First pass: create all issues with new IDs
+	for _, oldIssue := range subgraph.Issues {
+		// Determine assignee: use override for root epic, otherwise keep template's
+		issueAssignee := oldIssue.Assignee
+		if oldIssue.ID == subgraph.Root.ID && opts.Assignee != "" {
+			issueAssignee = opts.Assignee
+		}
+
+		// Build create args
+		createArgs := &rpc.CreateArgs{
+			Title:              substituteVariables(oldIssue.Title, opts.Vars),
+			Description:        substituteVariables(oldIssue.Description, opts.Vars),
+			IssueType:          string(oldIssue.IssueType),
+			Priority:           oldIssue.Priority,
+			Design:             substituteVariables(oldIssue.Design, opts.Vars),
+			AcceptanceCriteria: substituteVariables(oldIssue.AcceptanceCriteria, opts.Vars),
+			Assignee:           issueAssignee,
+			EstimatedMinutes:   oldIssue.EstimatedMinutes,
+			Wisp:               opts.Wisp,
+		}
+
+		// Generate custom ID for dynamic bonding if ParentID is set
+		if opts.ParentID != "" {
+			bondedID, err := generateBondedID(oldIssue.ID, subgraph.Root.ID, opts)
+			if err != nil {
+				return nil, fmt.Errorf("failed to generate bonded ID for %s: %w", oldIssue.ID, err)
+			}
+			createArgs.ID = bondedID
+		}
+
+		resp, err := client.Create(createArgs)
+		if err != nil {
+			return nil, fmt.Errorf("failed to create issue from %s: %w", oldIssue.ID, err)
+		}
+
+		// Parse response to get the new issue ID
+		var newIssue types.Issue
+		if err := json.Unmarshal(resp.Data, &newIssue); err != nil {
+			return nil, fmt.Errorf("failed to parse created issue: %w", err)
+		}
+
+		idMapping[oldIssue.ID] = newIssue.ID
+	}
+
+	// Second pass: recreate dependencies with new IDs
+	for _, dep := range subgraph.Dependencies {
+		newFromID, ok1 := idMapping[dep.IssueID]
+		newToID, ok2 := idMapping[dep.DependsOnID]
+		if !ok1 || !ok2 {
+			continue // Skip if either end is outside the subgraph
+		}
+
+		_, err := client.AddDependency(&rpc.DepAddArgs{
+			FromID:  newFromID,
+			ToID:    newToID,
+			DepType: string(dep.Type),
+		})
+		if err != nil {
+			return nil, fmt.Errorf("failed to create dependency: %w", err)
+		}
+	}
+
+	return &InstantiateResult{
+		NewEpicID: idMapping[subgraph.Root.ID],
+		IDMapping: idMapping,
+		Created:   len(subgraph.Issues),
+	}, nil
+}
+
 // extractVariables finds all {{variable}} patterns in text
 func extractVariables(text string) []string {
 	matches := variablePattern.FindAllStringSubmatch(text, -1)