diff --git a/CHANGELOG.md b/CHANGELOG.md
index 78c1d22b..e4f279c1 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -186,6 +186,40 @@ Summary:
     )
     ```
 
+- `Component.template` no longer accepts a Template instance, only plain string.
+
+    Before:
+
+    ```py
+    class MyComponent(Component):
+        template = Template("{{ my_var }}")
+    ```
+
+    Instead, either:
+
+    1. Set `Component.template` to a plain string.
+
+        ```py
+        class MyComponent(Component):
+            template = "{{ my_var }}"
+        ```
+
+    2. Move the template to it's own HTML file and set `Component.template_file`.
+
+        ```py
+        class MyComponent(Component):
+            template_file = "my_template.html"
+        ```
+
+    3. Or, if you dynamically created the template, render the template inside `Component.on_render()`.
+
+        ```py
+        class MyComponent(Component):
+            def on_render(self, context, template):
+                dynamic_template = do_something_dynamic()
+                return dynamic_template.render(context)
+        ```
+
 - The `Component.Url` class was merged with `Component.View`.
 
     Instead of `Component.Url.public`, use `Component.View.public`.
@@ -404,6 +438,51 @@ Summary:
 
     Since `get_context_data()` is widely used, it will remain available until v2.
 
+- `Component.get_template_name()` and `Component.get_template()` are now deprecated. Use `Component.template`,
+`Component.template_file` or `Component.on_render()` instead.
+
+    `Component.get_template_name()` and `Component.get_template()` will be removed in v1.
+
+    In v1, each Component will have at most one static template.
+    This is needed to enable support for Markdown, Pug, or other pre-processing of templates by extensions.
+
+    If you are using the deprecated methods to point to different templates, there's 2 ways to migrate:
+
+    1. Split the single Component into multiple Components, each with its own template. Then switch between them in `Component.on_render()`:
+
+        ```py
+        class MyComponentA(Component):
+            template_file = "a.html"
+
+        class MyComponentB(Component):
+            template_file = "b.html"
+
+        class MyComponent(Component):
+            def on_render(self, context, template):
+                if context["a"]:
+                    return MyComponentA.render(context)
+                else:
+                    return MyComponentB.render(context)
+        ```
+
+    2. Alternatively, use `Component.on_render()` with Django's `get_template()` to dynamically render different templates:
+
+        ```py
+        from django.template.loader import get_template
+
+        class MyComponent(Component):
+            def on_render(self, context, template):
+                if context["a"]:
+                    template_name = "a.html"
+                else:
+                    template_name = "b.html"
+
+                actual_template = get_template(template_name)
+                return actual_template.render(context)
+        ```
+
+    Read more in [django-components#1204](https://github.com/django-components/django-components/discussions/1204).
+
 - The `type` kwarg in `Component.render()` and `Component.render_to_response()` is now deprecated. Use `deps_strategy` instead. The `type` kwarg will be removed in v1.
 
     Before:
@@ -651,6 +730,22 @@ Summary:
 
 **Miscellaneous**
 
+- Template caching with `cached_template()` helper and `template_cache_size` setting is deprecated.
+    These will be removed in v1.
+
+    This feature made sense if you were dynamically generating templates for components using
+    `Component.get_template_string()` and `Component.get_template()`.
+
+    However, in v1, each Component will have at most one static template. This static template
+    is cached internally per component class, and reused across renders.
+
+    This makes the template caching feature obsolete.
+
+    If you relied on `cached_template()`, you should either:
+
+    1. Wrap the templates as Components.
+    2. Manage the cache of Templates yourself.
+
 - The `debug_highlight_components` and `debug_highlight_slots` settings are deprecated.
     These will be removed in v1.
 
@@ -1004,6 +1099,35 @@ Summary:
   can now be accessed also outside of the render call. So now its possible to take the component
   instance out of `get_template_data()` (although this is not recommended).
 
+- Components can now be defined without a template.
+
+    Previously, the following would raise an error:
+
+    ```py
+    class MyComponent(Component):
+        pass
+    ```
+
+    "Template-less" components can be used together with `Component.on_render()` to dynamically
+    pick what to render:
+
+    ```py
+    class TableNew(Component):
+        template_file = "table_new.html"
+
+    class TableOld(Component):
+        template_file = "table_old.html"
+
+    class Table(Component):
+        def on_render(self, context, template):
+            if self.kwargs.get("feat_table_new_ui"):
+                return TableNew.render(args=self.args, kwargs=self.kwargs, slots=self.slots)
+            else:
+                return TableOld.render(args=self.args, kwargs=self.kwargs, slots=self.slots)
+    ```
+
+    "Template-less" components can be also used as a base class for other components, or as mixins.
+
 - Passing `Slot` instance to `Slot` constructor raises an error.
 
 #### Fix
diff --git a/docs/reference/commands.md b/docs/reference/commands.md
index 8ea93d65..aacbca67 100644
--- a/docs/reference/commands.md
+++ b/docs/reference/commands.md
@@ -461,8 +461,8 @@ ProjectDashboardAction    project.components.dashboard_action.ProjectDashboardAc
 ## `upgradecomponent`
 
 ```txt
-usage: upgradecomponent [-h] [--path PATH] [--version] [-v {0,1,2,3}] [--settings SETTINGS] [--pythonpath PYTHONPATH] [--traceback] [--no-color]
-                        [--force-color] [--skip-checks]
+usage: upgradecomponent [-h] [--path PATH] [--version] [-v {0,1,2,3}] [--settings SETTINGS] [--pythonpath PYTHONPATH] [--traceback] [--no-color] [--force-color]
+                        [--skip-checks]
 
 ```
 
diff --git a/docs/reference/template_tags.md b/docs/reference/template_tags.md
index 7093c2b6..af62e154 100644
--- a/docs/reference/template_tags.md
+++ b/docs/reference/template_tags.md
@@ -67,7 +67,7 @@ If you insert this tag multiple times, ALL JS scripts will be duplicately insert
 
 
 
-<a href="https://github.com/django-components/django-components/tree/master/src/django_components/templatetags/component_tags.py#L3172" target="_blank">See source code</a>
+<a href="https://github.com/django-components/django-components/tree/master/src/django_components/templatetags/component_tags.py#L3301" target="_blank">See source code</a>
 
 
 
diff --git a/sampleproject/sampleproject/settings.py b/sampleproject/sampleproject/settings.py
index 69043457..5fbdbac2 100644
--- a/sampleproject/sampleproject/settings.py
+++ b/sampleproject/sampleproject/settings.py
@@ -94,7 +94,6 @@ COMPONENTS = ComponentsSettings(
     dirs=[BASE_DIR / "components"],
     #    app_dirs=["components"],
     #    libraries=[],
-    #    template_cache_size=128,
     #    context_behavior="isolated",  # "django" | "isolated"
 )
 
diff --git a/src/django_components/app_settings.py b/src/django_components/app_settings.py
index bba80c1f..53bfacc8 100644
--- a/src/django_components/app_settings.py
+++ b/src/django_components/app_settings.py
@@ -620,8 +620,11 @@ class ComponentsSettings(NamedTuple):
         ```
     """
 
+    # TODO_V1 - remove
     template_cache_size: Optional[int] = None
     """
+    DEPRECATED. Template caching will be removed in v1.
+
     Configure the maximum amount of Django templates to be cached.
 
     Defaults to `128`.
diff --git a/src/django_components/cache.py b/src/django_components/cache.py
index b5c905d4..a14954ed 100644
--- a/src/django_components/cache.py
+++ b/src/django_components/cache.py
@@ -6,13 +6,10 @@ from django.core.cache.backends.locmem import LocMemCache
 from django_components.app_settings import app_settings
 from django_components.util.cache import LRUCache
 
+# TODO_V1 - Remove, won't be needed once we remove `get_template_string()`, `get_template_name()`, `get_template()`
+#
 # This stores the parsed Templates. This is strictly local for now, as it stores instances.
 # NOTE: Lazily initialized so it can be configured based on user-defined settings.
-#
-# TODO: Once we handle whole template parsing ourselves, this could store just
-#       the parsed template AST (+metadata) instead of Template instances. In that case
-#       we could open this up to be stored non-locally and shared across processes.
-#       This would also allow us to remove our custom `LRUCache` implementation.
 template_cache: Optional[LRUCache] = None
 
 # This stores the inlined component JS and CSS files (e.g. `Component.js` and `Component.css`).
@@ -20,6 +17,7 @@ template_cache: Optional[LRUCache] = None
 component_media_cache: Optional[BaseCache] = None
 
 
+# TODO_V1 - Remove, won't be needed once we remove `get_template_string()`, `get_template_name()`, `get_template()`
 def get_template_cache() -> LRUCache:
     global template_cache
     if template_cache is None:
diff --git a/src/django_components/commands/upgrade.py b/src/django_components/commands/upgrade.py
index 627eb316..a160c6f0 100644
--- a/src/django_components/commands/upgrade.py
+++ b/src/django_components/commands/upgrade.py
@@ -6,7 +6,7 @@ from typing import Any
 from django.conf import settings
 from django.template.engine import Engine
 
-from django_components.template_loader import Loader
+from django_components.template_loader import DjcLoader
 from django_components.util.command import CommandArg, ComponentCommand
 
 
@@ -24,7 +24,7 @@ class UpgradeCommand(ComponentCommand):
 
     def handle(self, *args: Any, **options: Any) -> None:
         current_engine = Engine.get_default()
-        loader = Loader(current_engine)
+        loader = DjcLoader(current_engine)
         dirs = loader.get_dirs(include_apps=False)
 
         if settings.BASE_DIR:
diff --git a/src/django_components/component.py b/src/django_components/component.py
index eb4f1283..914083ab 100644
--- a/src/django_components/component.py
+++ b/src/django_components/component.py
@@ -1,5 +1,4 @@
 import sys
-from contextlib import contextmanager
 from dataclasses import dataclass
 from types import MethodType
 from typing import (
@@ -7,7 +6,6 @@ from typing import (
     Callable,
     ClassVar,
     Dict,
-    Generator,
     List,
     Mapping,
     NamedTuple,
@@ -19,12 +17,10 @@ from typing import (
 )
 from weakref import ReferenceType, WeakValueDictionary, finalize
 
-from django.core.exceptions import ImproperlyConfigured
 from django.forms.widgets import Media as MediaCls
 from django.http import HttpRequest, HttpResponse
-from django.template.base import NodeList, Origin, Parser, Template, Token
+from django.template.base import NodeList, Parser, Template, Token
 from django.template.context import Context, RequestContext
-from django.template.loader import get_template
 from django.template.loader_tags import BLOCK_CONTEXT_KEY, BlockContext
 from django.test.signals import template_rendered
 from django.views import View
@@ -72,12 +68,11 @@ from django_components.slots import (
     normalize_slot_fills,
     resolve_fills,
 )
-from django_components.template import cached_template
+from django_components.template import cache_component_template_file, prepare_component_template
 from django_components.util.context import gen_context_processors_data, snapshot_context
-from django_components.util.django_monkeypatch import is_template_cls_patched
 from django_components.util.exception import component_error_message
 from django_components.util.logger import trace_component_msg
-from django_components.util.misc import default, gen_id, get_import_path, hash_comp_cls, to_dict
+from django_components.util.misc import default, gen_id, hash_comp_cls, to_dict
 from django_components.util.template_tag import TagAttr
 from django_components.util.weakref import cached_ref
 
@@ -412,14 +407,23 @@ class ComponentTemplateNameDescriptor:
 
 
 class ComponentMeta(ComponentMediaMeta):
-    def __new__(mcs, name: Any, bases: Tuple, attrs: Dict) -> Any:
+    def __new__(mcs, name: str, bases: Tuple[Type, ...], attrs: Dict) -> Type:
         # If user set `template_name` on the class, we instead set it to `template_file`,
         # because we want `template_name` to be the descriptor that proxies to `template_file`.
         if "template_name" in attrs:
             attrs["template_file"] = attrs.pop("template_name")
         attrs["template_name"] = ComponentTemplateNameDescriptor()
 
-        return super().__new__(mcs, name, bases, attrs)
+        cls = super().__new__(mcs, name, bases, attrs)
+
+        # If the component defined `template_file`, then associate this Component class
+        # with that template file path.
+        # This way, when we will be instantiating `Template` in order to load the Component's template,
+        # and its template_name matches this path, then we know that the template belongs to this Component class.
+        if "template_file" in attrs and attrs["template_file"]:
+            cache_component_template_file(cls)
+
+        return cls
 
     # This runs when a Component class is being deleted
     def __del__(cls) -> None:
@@ -646,25 +650,47 @@ class Component(metaclass=ComponentMeta):
 
     - Relative to the directory where the Component's Python file is defined.
     - Relative to one of the component directories, as set by
-      [`COMPONENTS.dirs`](../settings.md#django_components.app_settings.ComponentsSettings.dirs)
+      [`COMPONENTS.dirs`](../settings#django_components.app_settings.ComponentsSettings.dirs)
       or
-      [`COMPONENTS.app_dirs`](../settings.md#django_components.app_settings.ComponentsSettings.app_dirs)
+      [`COMPONENTS.app_dirs`](../settings#django_components.app_settings.ComponentsSettings.app_dirs)
       (e.g. `<root>/components/`).
     - Relative to the template directories, as set by Django's `TEMPLATES` setting (e.g. `<root>/templates/`).
 
-    Only one of [`template_file`](../api#django_components.Component.template_file),
-    [`get_template_name`](../api#django_components.Component.get_template_name),
-    [`template`](../api#django_components.Component.template)
-    or [`get_template`](../api#django_components.Component.get_template) must be defined.
+    !!! warning
+
+        Only one of [`template_file`](../api#django_components.Component.template_file),
+        [`get_template_name`](../api#django_components.Component.get_template_name),
+        [`template`](../api#django_components.Component.template)
+        or [`get_template`](../api#django_components.Component.get_template) must be defined.
 
     **Example:**
 
-    ```py
-    class MyComponent(Component):
-        template_file = "path/to/template.html"
+    Assuming this project layout:
 
-        def get_template_data(self, args, kwargs, slots, context):
-            return {"name": "World"}
+    ```txt
+    |- components/
+      |- table/
+        |- table.html
+        |- table.css
+        |- table.js
+    ```
+
+    Template name can be either relative to the python file (`components/table/table.py`):
+
+    ```python
+    class Table(Component):
+        template_file = "table.html"
+    ```
+
+    Or relative to one of the directories in
+    [`COMPONENTS.dirs`](../settings#django_components.app_settings.ComponentsSettings.dirs)
+    or
+    [`COMPONENTS.app_dirs`](../settings#django_components.app_settings.ComponentsSettings.app_dirs)
+    (`components/`):
+
+    ```python
+    class Table(Component):
+        template_file = "table/table.html"
     ```
     """
 
@@ -677,53 +703,142 @@ class Component(metaclass=ComponentMeta):
     For historical reasons, django-components used `template_name` to align with Django's
     [TemplateView](https://docs.djangoproject.com/en/5.2/ref/class-based-views/base/#django.views.generic.base.TemplateView).
 
-    `template_file` was introduced to align with `js/js_file` and `css/css_file`.
+    `template_file` was introduced to align with
+    [`js`](../api#django_components.Component.js)/[`js_file`](../api#django_components.Component.js_file)
+    and [`css`](../api#django_components.Component.css)/[`css_file`](../api#django_components.Component.css_file).
 
-    Setting and accessing this attribute is proxied to `template_file`.
+    Setting and accessing this attribute is proxied to
+    [`template_file`](../api#django_components.Component.template_file).
     """
 
+    # TODO_v1 - Remove
     def get_template_name(self, context: Context) -> Optional[str]:
         """
-        Filepath to the Django template associated with this component.
+        DEPRECATED: Use instead [`Component.template_file`](../api#django_components.Component.template_file),
+        [`Component.template`](../api#django_components.Component.template) or
+        [`Component.on_render()`](../api#django_components.Component.on_render).
+        Will be removed in v1.
 
-        The filepath must be relative to either the file where the component class was defined,
-        or one of the roots of `STATIFILES_DIRS`.
+        Same as [`Component.template_file`](../api#django_components.Component.template_file),
+        but allows to dynamically resolve the template name at render time.
 
-        Only one of [`template_file`](../api#django_components.Component.template_file),
-        [`get_template_name`](../api#django_components.Component.get_template_name),
-        [`template`](../api#django_components.Component.template)
-        or [`get_template`](../api#django_components.Component.get_template) must be defined.
+        See [`Component.template_file`](../api#django_components.Component.template_file)
+        for more info and examples.
+
+        !!! warning
+
+            The context is not fully populated at the point when this method is called.
+
+            If you need to access the context, either use
+            [`Component.on_render_before()`](../api#django_components.Component.on_render_before) or
+            [`Component.on_render()`](../api#django_components.Component.on_render).
+
+        !!! warning
+
+            Only one of
+            [`template_file`](../api#django_components.Component.template_file),
+            [`get_template_name()`](../api#django_components.Component.get_template_name),
+            [`template`](../api#django_components.Component.template)
+            or
+            [`get_template()`](../api#django_components.Component.get_template)
+            must be defined.
+
+        Args:
+            context (Context): The Django template\
+                [`Context`](https://docs.djangoproject.com/en/5.1/ref/templates/api/#django.template.Context)\
+                in which the component is rendered.
+
+        Returns:
+            Optional[str]: The filepath to the template.
         """
         return None
 
-    template: Optional[Union[str, Template]] = None
+    template: Optional[str] = None
     """
-    Inlined Django template associated with this component. Can be a plain string or a Template instance.
+    Inlined Django template (as a plain string) associated with this component.
 
-    Only one of [`template_file`](../api#django_components.Component.template_file),
-    [`get_template_name`](../api#django_components.Component.get_template_name),
-    [`template`](../api#django_components.Component.template)
-    or [`get_template`](../api#django_components.Component.get_template) must be defined.
+    !!! warning
+
+        Only one of
+        [`template_file`](../api#django_components.Component.template_file),
+        [`template`](../api#django_components.Component.template),
+        [`get_template_name()`](../api#django_components.Component.get_template_name),
+        or
+        [`get_template()`](../api#django_components.Component.get_template)
+        must be defined.
 
     **Example:**
 
-    ```py
-    class MyComponent(Component):
-        template = "Hello, {{ name }}!"
+    ```python
+    class Table(Component):
+        template = '''
+          <div>
+            {{ my_var }}
+          </div>
+        '''
+    ```
 
-        def get_template_data(self, args, kwargs, slots, context):
-            return {"name": "World"}
+    **Syntax highlighting**
+
+    When using the inlined template, you can enable syntax highlighting
+    with `django_components.types.django_html`.
+
+    Learn more about [syntax highlighting](../../concepts/fundamentals/single_file_components/#syntax-highlighting).
+
+    ```djc_py
+    from django_components import Component, types
+
+    class MyComponent(Component):
+        template: types.django_html = '''
+          <div>
+            {{ my_var }}
+          </div>
+        '''
     ```
     """
 
+    # TODO_v1 - Remove
     def get_template(self, context: Context) -> Optional[Union[str, Template]]:
         """
-        Inlined Django template associated with this component. Can be a plain string or a Template instance.
+        DEPRECATED: Use instead [`Component.template_file`](../api#django_components.Component.template_file),
+        [`Component.template`](../api#django_components.Component.template) or
+        [`Component.on_render()`](../api#django_components.Component.on_render).
+        Will be removed in v1.
 
-        Only one of [`template_file`](../api#django_components.Component.template_file),
-        [`get_template_name`](../api#django_components.Component.get_template_name),
-        [`template`](../api#django_components.Component.template)
-        or [`get_template`](../api#django_components.Component.get_template) must be defined.
+        Same as [`Component.template`](../api#django_components.Component.template),
+        but allows to dynamically resolve the template at render time.
+
+        The template can be either plain string or
+        a [`Template`](https://docs.djangoproject.com/en/5.1/topics/templates/#template) instance.
+
+        See [`Component.template`](../api#django_components.Component.template) for more info and examples.
+
+        !!! warning
+
+            Only one of
+            [`template`](../api#django_components.Component.template)
+            [`template_file`](../api#django_components.Component.template_file),
+            [`get_template_name()`](../api#django_components.Component.get_template_name),
+            or
+            [`get_template()`](../api#django_components.Component.get_template)
+            must be defined.
+
+        !!! warning
+
+            The context is not fully populated at the point when this method is called.
+
+            If you need to access the context, either use
+            [`Component.on_render_before()`](../api#django_components.Component.on_render_before) or
+            [`Component.on_render()`](../api#django_components.Component.on_render).
+
+        Args:
+            context (Context): The Django template\
+            [`Context`](https://docs.djangoproject.com/en/5.1/ref/templates/api/#django.template.Context)\
+            in which the component is rendered.
+
+        Returns:
+            Optional[Union[str, Template]]: The inlined Django template string or\
+            a [`Template`](https://docs.djangoproject.com/en/5.1/topics/templates/#template) instance.
         """
         return None
 
@@ -981,8 +1096,10 @@ class Component(metaclass=ComponentMeta):
     """
     Main JS associated with this component inlined as string.
 
-    Only one of [`js`](../api#django_components.Component.js) or
-    [`js_file`](../api#django_components.Component.js_file) must be defined.
+    !!! warning
+
+        Only one of [`js`](../api#django_components.Component.js) or
+        [`js_file`](../api#django_components.Component.js_file) must be defined.
 
     **Example:**
 
@@ -990,6 +1107,22 @@ class Component(metaclass=ComponentMeta):
     class MyComponent(Component):
         js = "console.log('Hello, World!');"
     ```
+
+    **Syntax highlighting**
+
+    When using the inlined template, you can enable syntax highlighting
+    with `django_components.types.js`.
+
+    Learn more about [syntax highlighting](../../concepts/fundamentals/single_file_components/#syntax-highlighting).
+
+    ```djc_py
+    from django_components import Component, types
+
+    class MyComponent(Component):
+        js: types.js = '''
+          console.log('Hello, World!');
+        '''
+    ```
     """
 
     js_file: ClassVar[Optional[str]] = None
@@ -1000,9 +1133,9 @@ class Component(metaclass=ComponentMeta):
 
     - Relative to the directory where the Component's Python file is defined.
     - Relative to one of the component directories, as set by
-      [`COMPONENTS.dirs`](../settings.md#django_components.app_settings.ComponentsSettings.dirs)
+      [`COMPONENTS.dirs`](../settings#django_components.app_settings.ComponentsSettings.dirs)
       or
-      [`COMPONENTS.app_dirs`](../settings.md#django_components.app_settings.ComponentsSettings.app_dirs)
+      [`COMPONENTS.app_dirs`](../settings#django_components.app_settings.ComponentsSettings.app_dirs)
       (e.g. `<root>/components/`).
     - Relative to the staticfiles directories, as set by Django's `STATICFILES_DIRS` setting (e.g. `<root>/static/`).
 
@@ -1012,8 +1145,10 @@ class Component(metaclass=ComponentMeta):
        the path is resolved.
     2. The file is read and its contents is set to [`Component.js`](../api#django_components.Component.js).
 
-    Only one of [`js`](../api#django_components.Component.js) or
-    [`js_file`](../api#django_components.Component.js_file) must be defined.
+    !!! warning
+
+        Only one of [`js`](../api#django_components.Component.js) or
+        [`js_file`](../api#django_components.Component.js_file) must be defined.
 
     **Example:**
 
@@ -1244,19 +1379,39 @@ class Component(metaclass=ComponentMeta):
     """
     Main CSS associated with this component inlined as string.
 
-    Only one of [`css`](../api#django_components.Component.css) or
-    [`css_file`](../api#django_components.Component.css_file) must be defined.
+    !!! warning
+
+        Only one of [`css`](../api#django_components.Component.css) or
+        [`css_file`](../api#django_components.Component.css_file) must be defined.
 
     **Example:**
 
     ```py
     class MyComponent(Component):
         css = \"\"\"
-        .my-class {
-            color: red;
-        }
+            .my-class {
+                color: red;
+            }
         \"\"\"
     ```
+
+    **Syntax highlighting**
+
+    When using the inlined template, you can enable syntax highlighting
+    with `django_components.types.css`.
+
+    Learn more about [syntax highlighting](../../concepts/fundamentals/single_file_components/#syntax-highlighting).
+
+    ```djc_py
+    from django_components import Component, types
+
+    class MyComponent(Component):
+        css: types.css = '''
+          .my-class {
+            color: red;
+          }
+        '''
+    ```
     """
 
     css_file: ClassVar[Optional[str]] = None
@@ -1267,9 +1422,9 @@ class Component(metaclass=ComponentMeta):
 
     - Relative to the directory where the Component's Python file is defined.
     - Relative to one of the component directories, as set by
-      [`COMPONENTS.dirs`](../settings.md#django_components.app_settings.ComponentsSettings.dirs)
+      [`COMPONENTS.dirs`](../settings#django_components.app_settings.ComponentsSettings.dirs)
       or
-      [`COMPONENTS.app_dirs`](../settings.md#django_components.app_settings.ComponentsSettings.app_dirs)
+      [`COMPONENTS.app_dirs`](../settings#django_components.app_settings.ComponentsSettings.app_dirs)
       (e.g. `<root>/components/`).
     - Relative to the staticfiles directories, as set by Django's `STATICFILES_DIRS` setting (e.g. `<root>/static/`).
 
@@ -1279,8 +1434,10 @@ class Component(metaclass=ComponentMeta):
        the path is resolved.
     2. The file is read and its contents is set to [`Component.css`](../api#django_components.Component.css).
 
-    Only one of [`css`](../api#django_components.Component.css) or
-    [`css_file`](../api#django_components.Component.css_file) must be defined.
+    !!! warning
+
+        Only one of [`css`](../api#django_components.Component.css) or
+        [`css_file`](../api#django_components.Component.css_file) must be defined.
 
     **Example:**
 
@@ -1632,7 +1789,7 @@ class Component(metaclass=ComponentMeta):
     # PUBLIC API - HOOKS (Configurable by users)
     # #####################################
 
-    def on_render_before(self, context: Context, template: Template) -> None:
+    def on_render_before(self, context: Context, template: Optional[Template]) -> None:
         """
         Hook that runs just before the component's template is rendered.
 
@@ -1640,7 +1797,7 @@ class Component(metaclass=ComponentMeta):
         """
         pass
 
-    def on_render_after(self, context: Context, template: Template, content: str) -> Optional[SlotResult]:
+    def on_render_after(self, context: Context, template: Optional[Template], content: str) -> Optional[SlotResult]:
         """
         Hook that runs just after the component's template was rendered.
         It receives the rendered output as the last argument.
@@ -1753,6 +1910,15 @@ class Component(metaclass=ComponentMeta):
         """Deprecated. Use `Component.class_id` instead."""
         return self.class_id
 
+    _template: Optional[Template] = None
+    """
+    Cached [`Template`](https://docs.djangoproject.com/en/5.2/ref/templates/api/#django.template.Template)
+    instance for the [`Component`](../api#django_components.Component),
+    created from
+    [`Component.template`](#django_components.Component.template) or
+    [`Component.template_file`](#django_components.Component.template_file).
+    """
+
     # TODO_v3 - Django-specific property to prevent calling the instance as a function.
     do_not_call_in_templates: ClassVar[bool] = True
     """
@@ -1850,6 +2016,9 @@ class Component(metaclass=ComponentMeta):
         cls.class_id = hash_comp_cls(cls)
         comp_cls_id_mapping[cls.class_id] = cls
 
+        # Make sure that subclassed component will store it's own template, not the parent's.
+        cls._template = None
+
         ALL_COMPONENTS.append(cached_ref(cls))  # type: ignore[arg-type]
         extensions._init_component_class(cls)
         extensions.on_component_class_created(OnComponentClassCreatedContext(cls))
@@ -2276,64 +2445,6 @@ class Component(metaclass=ComponentMeta):
     # MISC
     # #####################################
 
-    # NOTE: We cache the Template instance. When the template is taken from a file
-    #       via `get_template_name`, then we leverage Django's template caching with `get_template()`.
-    #       Otherwise, we use our own `cached_template()` to cache the template.
-    #
-    #       This is important to keep in mind, because the implication is that we should
-    #       treat Templates AND their nodelists as IMMUTABLE.
-    def _get_template(self, context: Context, component_id: str) -> Template:
-        template_name = self.get_template_name(context)
-        # TODO_REMOVE_IN_V1 - Remove `self.get_template_string` in v1
-        template_getter = getattr(self, "get_template_string", self.get_template)
-        template_body = template_getter(context)
-
-        # `get_template_name()`, `get_template()`, and `template` are mutually exclusive
-        #
-        # Note that `template` and `template_name` are also mutually exclusive, but this
-        # is checked when lazy-loading the template from `template_name`. So if user specified
-        # `template_name`, then `template` will be populated with the content of that file.
-        if self.template is not None and template_name is not None:
-            raise ImproperlyConfigured(
-                "Received non-null value from both 'template/template_name' and 'get_template_name' in"
-                f" Component {type(self).__name__}. Only one of the two must be set."
-            )
-        if self.template is not None and template_body is not None:
-            raise ImproperlyConfigured(
-                "Received non-null value from both 'template/template_name' and 'get_template' in"
-                f" Component {type(self).__name__}. Only one of the two must be set."
-            )
-        if template_name is not None and template_body is not None:
-            raise ImproperlyConfigured(
-                "Received non-null value from both 'get_template_name' and 'get_template' in"
-                f" Component {type(self).__name__}. Only one of the two must be set."
-            )
-
-        if template_name is not None:
-            return get_template(template_name).template
-
-        template_body = template_body if template_body is not None else self.template
-        if template_body is not None:
-            # We got template string, so we convert it to Template
-            if isinstance(template_body, str):
-                trace_component_msg("COMP_LOAD", component_name=self.name, component_id=component_id, slot_name=None)
-                template: Template = cached_template(
-                    template_string=template_body,
-                    name=self.template_file or self.name,
-                    origin=Origin(
-                        name=self.template_file or get_import_path(self.__class__),
-                        template_name=self.template_file or self.name,
-                    ),
-                )
-            else:
-                template = template_body
-
-            return template
-
-        raise ImproperlyConfigured(
-            f"Either 'template_file' or 'template' must be set for Component {type(self).__name__}."
-        )
-
     def inject(self, key: str, default: Optional[Any] = None) -> Any:
         """
         Use this method to retrieve the data that was passed to a [`{% provide %}`](../template_tags#provide) tag
@@ -2796,12 +2907,12 @@ class Component(metaclass=ComponentMeta):
         )
         # Use RequestContext if request is provided, so that child non-component template tags
         # can access the request object too.
-        context = context or (RequestContext(request) if request else Context())
+        context = context if context is not None else (RequestContext(request) if request else Context())
 
         # Allow to provide a dict instead of Context
         # NOTE: This if/else is important to avoid nested Contexts,
         # See https://github.com/django-components/django-components/issues/414
-        if not isinstance(context, Context):
+        if not isinstance(context, (Context, RequestContext)):
             context = RequestContext(request, context) if request else Context(context)
 
         render_id = _gen_component_id()
@@ -2850,7 +2961,9 @@ class Component(metaclass=ComponentMeta):
 
         # Required for compatibility with Django's {% extends %} tag
         # See https://github.com/django-components/django-components/pull/859
-        context.render_context.push({BLOCK_CONTEXT_KEY: context.render_context.get(BLOCK_CONTEXT_KEY, BlockContext())})
+        context.render_context.push(  # type: ignore[union-attr]
+            {BLOCK_CONTEXT_KEY: context.render_context.get(BLOCK_CONTEXT_KEY, BlockContext())}  # type: ignore
+        )
 
         # We pass down the components the info about the component's parent.
         # This is used for correctly resolving slot fills, correct rendering order,
@@ -2886,7 +2999,7 @@ class Component(metaclass=ComponentMeta):
             template_name=None,
             # This field will be modified from within `SlotNodes.render()`:
             # - The `default_slot` will be set to the first slot that has the `default` attribute set.
-            #   If multiple slots have the `default` attribute set, yet have different name, then
+            # - If multiple slots have the `default` attribute set, yet have different name, then
             #   we will raise an error.
             default_slot=None,
             # NOTE: This is only a SNAPSHOT of the outer context.
@@ -2937,10 +3050,32 @@ class Component(metaclass=ComponentMeta):
         #       but instead can render one component at a time.
         #############################################################################
 
-        with _prepare_template(component, template_data) as template:
-            component_ctx.template_name = template.name
+        # TODO_v1 - Currently we have to pass `template_data` to `prepare_component_template()`,
+        #     so that `get_template_string()`, `get_template_name()`, and `get_template()`
+        #     have access to the data from `get_template_data()`.
+        #
+        #     Because of that there is one layer of `Context.update()` called inside `prepare_component_template()`.
+        #
+        #     Once `get_template_string()`, `get_template_name()`, and `get_template()` are removed,
+        #     we can remove that layer of `Context.update()`, and NOT pass `template_data`
+        #     to `prepare_component_template()`.
+        #
+        #     Then we can simply apply `template_data` to the context in the same layer
+        #     where we apply `context_processor_data` and `component_vars`.
+        with prepare_component_template(component, template_data) as template:
+            # Set `Template._djc_is_component_nested` based on whether we're currently INSIDE
+            # the `{% extends %}` tag.
+            # Part of fix for https://github.com/django-components/django-components/issues/508
+            # See django_monkeypatch.py
+            if template is not None:
+                template._djc_is_component_nested = bool(
+                    context.render_context.get(BLOCK_CONTEXT_KEY)  # type: ignore[union-attr]
+                )
 
-            with context.update(
+            # Capture the template name so we can print better error messages (currently used in slots)
+            component_ctx.template_name = template.name if template else None
+
+            with context.update(  # type: ignore[union-attr]
                 {
                     # Make data from context processors available inside templates
                     **component.context_processors_data,
@@ -2973,7 +3108,7 @@ class Component(metaclass=ComponentMeta):
                 context_snapshot = snapshot_context(context)
 
         # Cleanup
-        context.render_context.pop()
+        context.render_context.pop()  # type: ignore[union-attr]
 
         ######################################
         # 5. Render component
@@ -3089,26 +3224,31 @@ class Component(metaclass=ComponentMeta):
 
             # Emit signal that the template is about to be rendered
             template_rendered.send(sender=template, template=template, context=context)
-            # Get the component's HTML
-            html_content = template.render(context)
 
-            # Add necessary HTML attributes to work with JS and CSS variables
-            updated_html, child_components = set_component_attrs_for_js_and_css(
-                html_content=html_content,
-                component_id=render_id,
-                css_input_hash=css_input_hash,
-                css_scope_id=css_scope_id,
-                root_attributes=root_attributes,
-            )
+            if template is not None:
+                # Get the component's HTML
+                html_content = template.render(context)
 
-            # Prepend an HTML comment to instructs how and what JS and CSS scripts are associated with it.
-            updated_html = insert_component_dependencies_comment(
-                updated_html,
-                component_cls=component_cls,
-                component_id=render_id,
-                js_input_hash=js_input_hash,
-                css_input_hash=css_input_hash,
-            )
+                # Add necessary HTML attributes to work with JS and CSS variables
+                updated_html, child_components = set_component_attrs_for_js_and_css(
+                    html_content=html_content,
+                    component_id=render_id,
+                    css_input_hash=css_input_hash,
+                    css_scope_id=css_scope_id,
+                    root_attributes=root_attributes,
+                )
+
+                # Prepend an HTML comment to instructs how and what JS and CSS scripts are associated with it.
+                updated_html = insert_component_dependencies_comment(
+                    updated_html,
+                    component_cls=component_cls,
+                    component_id=render_id,
+                    js_input_hash=js_input_hash,
+                    css_input_hash=css_input_hash,
+                )
+            else:
+                updated_html = ""
+                child_components = {}
 
             trace_component_msg(
                 "COMP_RENDER_END",
@@ -3278,7 +3418,13 @@ class ComponentNode(BaseNode):
         node_id: Optional[str] = None,
         contents: Optional[str] = None,
     ) -> None:
-        super().__init__(params=params, flags=flags, nodelist=nodelist, node_id=node_id, contents=contents)
+        super().__init__(
+            params=params,
+            flags=flags,
+            nodelist=nodelist,
+            node_id=node_id,
+            contents=contents,
+        )
 
         self.name = name
         self.registry = registry
@@ -3370,43 +3516,3 @@ def _get_parent_component_context(context: Context) -> Union[Tuple[None, None],
 
     parent_comp_ctx = component_context_cache[parent_id]
     return parent_id, parent_comp_ctx
-
-
-@contextmanager
-def _maybe_bind_template(context: Context, template: Template) -> Generator[None, Any, None]:
-    if context.template is None:
-        with context.bind_template(template):
-            yield
-    else:
-        yield
-
-
-@contextmanager
-def _prepare_template(
-    component: Component,
-    template_data: Any,
-) -> Generator[Template, Any, None]:
-    context = component.context
-    with context.update(template_data):
-        # Associate the newly-created Context with a Template, otherwise we get
-        # an error when we try to use `{% include %}` tag inside the template?
-        # See https://github.com/django-components/django-components/issues/580
-        # And https://github.com/django-components/django-components/issues/634
-        template = component._get_template(context, component_id=component.id)
-
-        if not is_template_cls_patched(template):
-            raise RuntimeError(
-                "Django-components received a Template instance which was not patched."
-                "If you are using Django's Template class, check if you added django-components"
-                "to INSTALLED_APPS. If you are using a custom template class, then you need to"
-                "manually patch the class."
-            )
-
-        # Set `Template._djc_is_component_nested` based on whether we're currently INSIDE
-        # the `{% extends %}` tag.
-        # Part of fix for https://github.com/django-components/django-components/issues/508
-        # See django_monkeypatch.py
-        template._djc_is_component_nested = bool(context.render_context.get(BLOCK_CONTEXT_KEY))
-
-        with _maybe_bind_template(context, template):
-            yield template
diff --git a/src/django_components/component_media.py b/src/django_components/component_media.py
index 9bc60e37..c8e1581d 100644
--- a/src/django_components/component_media.py
+++ b/src/django_components/component_media.py
@@ -26,10 +26,9 @@ from weakref import WeakKeyDictionary
 from django.contrib.staticfiles import finders
 from django.core.exceptions import ImproperlyConfigured
 from django.forms.widgets import Media as MediaCls
-from django.template import Template, TemplateDoesNotExist
-from django.template.loader import get_template
 from django.utils.safestring import SafeData
 
+from django_components.template import load_component_template
 from django_components.util.loader import get_component_dirs, resolve_file
 from django_components.util.logger import logger
 from django_components.util.misc import flatten, get_import_path, get_module_info, is_glob
@@ -240,6 +239,7 @@ class ComponentMediaInput(Protocol):
 class ComponentMedia:
     comp_cls: Type["Component"]
     resolved: bool = False
+    resolved_relative_files: bool = False
     Media: Optional[Type[ComponentMediaInput]] = None
     template: Optional[str] = None
     template_file: Optional[str] = None
@@ -543,9 +543,13 @@ def _resolve_media(comp_cls: Type["Component"], comp_media: ComponentMedia) -> N
             assert isinstance(self.media, MyMedia)
     ```
     """
+    if comp_media.resolved:
+        return
+
+    comp_media.resolved = True
+
     # Do not resolve if this is a base class
-    if get_import_path(comp_cls) == "django_components.component.Component" or comp_media.resolved:
-        comp_media.resolved = True
+    if get_import_path(comp_cls) == "django_components.component.Component":
         return
 
     comp_dirs = get_component_dirs()
@@ -574,8 +578,6 @@ def _resolve_media(comp_cls: Type["Component"], comp_media: ComponentMedia) -> N
         comp_cls, comp_media, inlined_attr="css", file_attr="css_file", comp_dirs=comp_dirs, type="static"
     )
 
-    comp_media.resolved = True
-
 
 def _normalize_media(media: Type[ComponentMediaInput]) -> None:
     """
@@ -736,6 +738,11 @@ def _resolve_component_relative_files(
     as the component class. If so, modify the attributes so the class Django's rendering
     will pick up these files correctly.
     """
+    if comp_media.resolved_relative_files:
+        return
+
+    comp_media.resolved_relative_files = True
+
     # First check if we even need to resolve anything. If the class doesn't define any
     # HTML/JS/CSS files, just skip.
     will_resolve_files = False
@@ -953,27 +960,47 @@ def _get_asset(
     asset_content = getattr(comp_media, inlined_attr, None)
     asset_file = getattr(comp_media, file_attr, None)
 
-    if asset_file is not None:
-        # Check if the file is in one of the components' directories
-        full_path = resolve_file(asset_file, comp_dirs)
+    # No inlined content, nor file name
+    if asset_content is None and asset_file is None:
+        return None
 
-        if full_path is None:
-            # If not, check if it's in the static files
-            if type == "static":
-                full_path = finders.find(asset_file)
-            # Or in the templates
-            elif type == "template":
-                try:
-                    template: Template = get_template(asset_file)
-                    full_path = template.origin.name
-                except TemplateDoesNotExist:
-                    pass
+    if asset_content is not None and asset_file is not None:
+        raise ValueError(
+            f"Received both '{inlined_attr}' and '{file_attr}' in Component {comp_cls.__qualname__}."
+            " Only one of the two must be set."
+        )
 
-        if full_path is None:
-            # NOTE: The short name, e.g. `js` or `css` is used in the error message for convenience
-            raise ValueError(f"Could not find {inlined_attr} file {asset_file}")
+    # If the content was inlined into the component (e.g. `Component.template = "..."`)
+    # then there's nothing to resolve. Return as is.
+    if asset_content is not None:
+        return asset_content
 
-        # NOTE: Use explicit encoding for compat with Windows, see #1074
-        asset_content = Path(full_path).read_text(encoding="utf8")
+    # The rest of the code assumes that we were given only a file name
+    asset_file = cast(str, asset_file)
+
+    if type == "template":
+        # NOTE: While we return on the "source" (plain string) of the template,
+        #       by calling `load_component_template()`, we also cache the Template instance.
+        #       So later in Component's `render_impl()`, we don't have to re-compile the Template.
+        template = load_component_template(comp_cls, asset_file)
+        return template.source
+
+    # For static files, we have a few options:
+    # 1. Check if the file is in one of the components' directories
+    full_path = resolve_file(asset_file, comp_dirs)
+
+    # 2. If not, check if it's in the static files
+    if full_path is None:
+        full_path = finders.find(asset_file)
+
+    if full_path is None:
+        # NOTE: The short name, e.g. `js` or `css` is used in the error message for convenience
+        raise ValueError(f"Could not find {inlined_attr} file {asset_file}")
+
+    # NOTE: Use explicit encoding for compat with Windows, see #1074
+    asset_content = Path(full_path).read_text(encoding="utf8")
+
+    # TODO: Apply `extensions.on_js_preprocess()` and `extensions.on_css_preprocess()`
+    # NOTE: `on_template_preprocess()` is already applied inside `load_component_template()`
 
     return asset_content
diff --git a/src/django_components/slots.py b/src/django_components/slots.py
index e55bed21..ab502ca4 100644
--- a/src/django_components/slots.py
+++ b/src/django_components/slots.py
@@ -1605,7 +1605,7 @@ def _nodelist_to_slot(
         if index_of_last_component_layer is None:
             index_of_last_component_layer = 0
 
-        # TODO: Currently there's one more layer before the `_COMPONENT_CONTEXT_KEY` layer, which is
+        # TODO_V1: Currently there's one more layer before the `_COMPONENT_CONTEXT_KEY` layer, which is
         #       pushed in `_prepare_template()` in `component.py`.
         #       That layer should be removed when `Component.get_template()` is removed, after which
         #       the following line can be removed.
diff --git a/src/django_components/template.py b/src/django_components/template.py
index 070e21fb..96951504 100644
--- a/src/django_components/template.py
+++ b/src/django_components/template.py
@@ -1,12 +1,24 @@
-from typing import Any, Optional, Type
+import sys
+from contextlib import contextmanager
+from typing import TYPE_CHECKING, Any, Dict, Generator, List, Optional, Type, Union, cast
+from weakref import ReferenceType, ref
 
-from django.template import Origin, Template
+from django.core.exceptions import ImproperlyConfigured
+from django.template import Context, Origin, Template
+from django.template.loader import get_template as django_get_template
 
 from django_components.cache import get_template_cache
-from django_components.util.misc import get_import_path
+from django_components.util.django_monkeypatch import is_template_cls_patched
+from django_components.util.loader import get_component_dirs
+from django_components.util.logger import trace_component_msg
+from django_components.util.misc import get_import_path, get_module_info
+
+if TYPE_CHECKING:
+    from django_components.component import Component
 
 
-# Central logic for creating Templates from string, so we can cache the results
+# TODO_V1 - Remove, won't be needed once we remove `get_template_string()`, `get_template_name()`, `get_template()`
+# Legacy logic for creating Templates from string
 def cached_template(
     template_string: str,
     template_cls: Optional[Type[Template]] = None,
@@ -15,6 +27,8 @@ def cached_template(
     engine: Optional[Any] = None,
 ) -> Template:
     """
+    DEPRECATED. Template caching will be removed in v1.
+
     Create a Template instance that will be cached as per the
     [`COMPONENTS.template_cache_size`](../settings#django_components.app_settings.ComponentsSettings.template_cache_size)
     setting.
@@ -62,3 +76,400 @@ def cached_template(
         template = maybe_cached_template
 
     return template
+
+
+########################################################
+# PREPARING COMPONENT TEMPLATES FOR RENDERING
+########################################################
+
+
+@contextmanager
+def prepare_component_template(
+    component: "Component",
+    template_data: Any,
+) -> Generator[Optional[Template], Any, None]:
+    context = component.context
+    with context.update(template_data):
+        template = _get_component_template(component)
+
+        if template is None:
+            # If template is None, then the component is "template-less",
+            # and we skip template processing.
+            yield template
+            return
+
+        if not is_template_cls_patched(template):
+            raise RuntimeError(
+                "Django-components received a Template instance which was not patched."
+                "If you are using Django's Template class, check if you added django-components"
+                "to INSTALLED_APPS. If you are using a custom template class, then you need to"
+                "manually patch the class."
+            )
+
+        with _maybe_bind_template(context, template):
+            yield template
+
+
+# `_maybe_bind_template()` handles two problems:
+#
+# 1. Initially, the binding the template was needed for the context processor data
+#    to work when using `RequestContext` (See `RequestContext.bind_template()` in e.g. Django v4.2 or v5.1).
+#    But as of djc v0.140 (possibly earlier) we generate and apply the context processor data
+#    ourselves in `Component._render_impl()`.
+#
+#    Now, we still want to "bind the template" by setting the `Context.template` attribute.
+#    This is for compatibility with Django, because we don't know if there isn't some code that relies
+#    on the `Context.template` attribute being set.
+#
+#    But we don't call `context.bind_template()` explicitly. If we did, then we would
+#    be generating and applying the context processor data twice if the context was `RequestContext`.
+#    Instead, we only run the same logic as `Context.bind_template()` but inlined.
+#
+#    The downstream effect of this is that if the user or some third-party library
+#    uses custom subclass of `Context` with custom logic for `Context.bind_template()`,
+#    then this custom logic will NOT be applied. In such case they should open an issue.
+#
+#    See https://github.com/django-components/django-components/issues/580
+#    and https://github.com/django-components/django-components/issues/634
+#
+# 2. Not sure if I (Juro) remember right, but I think that with the binding of templates
+#    there was also an issue that in *some* cases the template was already bound to the context
+#    by the time we got to rendering the component. This is why we need to check if `context.template`
+#    is already set.
+#
+#    The cause of this may have been compatibility with Django's `{% extends %}` tag, or
+#    maybe when using the "isolated" context behavior. But not sure.
+@contextmanager
+def _maybe_bind_template(context: Context, template: Template) -> Generator[None, Any, None]:
+    if context.template is not None:
+        yield
+        return
+
+    # This code is taken from `Context.bind_template()` from Django v5.1
+    context.template = template
+    try:
+        yield
+    finally:
+        context.template = None
+
+
+########################################################
+# LOADING TEMPLATES FROM FILEPATH
+########################################################
+
+
+# Remember which Component class is currently being loaded
+# This is important, because multiple Components may define the same `template_file`.
+# So we need this global state to help us decide which Component class of the list of components
+# that matched for the given `template_file` should be associated with the template.
+#
+# NOTE: Implemented as a list (stack) to handle the case when calling Django's `get_template()`
+#       could lead to more components being loaded at once.
+#       (For this to happen, user would have to define a Django template loader that renders other components
+#       while resolving the template file.)
+loading_components: List["ComponentRef"] = []
+
+
+def load_component_template(component_cls: Type["Component"], filepath: str) -> Template:
+    if component_cls._template is not None:
+        return component_cls._template
+
+    loading_components.append(ref(component_cls))
+
+    # Use Django's `get_template()` to load the template
+    template = _load_django_template(filepath)
+
+    # If template.origin.component_cls is already set, then this
+    # Template instance was cached by Django / template loaders.
+    # In that case we want to make a copy of the template which would
+    # be owned by the current Component class.
+    # Thus each Component has it's own Template instance with their own Origins
+    # pointing to the correct Component class.
+    if get_component_from_origin(template.origin) is not None:
+        origin_copy = Origin(template.origin.name, template.origin.template_name, template.origin.loader)
+        set_component_to_origin(origin_copy, component_cls)
+        template = Template(template.source, origin=origin_copy, name=template.name, engine=template.engine)
+
+    component_cls._template = template
+
+    loading_components.pop()
+
+    return template
+
+
+def _get_component_template(component: "Component") -> Optional[Template]:
+    trace_component_msg("COMP_LOAD", component_name=component.name, component_id=component.id, slot_name=None)
+
+    # TODO_V1 - Remove, not needed once we remove `get_template_string()`, `get_template_name()`, `get_template()`
+    template_sources: Dict[str, Optional[Union[str, Template]]] = {}
+
+    # TODO_V1 - Remove `get_template_name()` in v1
+    template_sources["get_template_name"] = component.get_template_name(component.context)
+
+    # TODO_V1 - Remove `get_template_string()` in v1
+    if hasattr(component, "get_template_string"):
+        template_string_getter = getattr(component, "get_template_string")
+        template_body_from_getter = template_string_getter(component.context)
+    else:
+        template_body_from_getter = None
+    template_sources["get_template_string"] = template_body_from_getter
+
+    # TODO_V1 - Remove `get_template()` in v1
+    template_sources["get_template"] = component.get_template(component.context)
+
+    # NOTE: `component.template` should be populated whether user has set `template` or `template_file`
+    #       so we discern between the two cases by checking `component.template_file`
+    if component.template_file is not None:
+        template_sources["template_file"] = component.template_file
+    else:
+        template_sources["template"] = component.template
+
+    # TODO_V1 - Remove this check in v1
+    # Raise if there are multiple sources for the component template
+    sources_with_values = [k for k, v in template_sources.items() if v is not None]
+    if len(sources_with_values) > 1:
+        raise ImproperlyConfigured(
+            f"Component template was set multiple times in Component {component.name}."
+            f"Sources: {sources_with_values}"
+        )
+
+    # Load the template based on the source
+    if template_sources["get_template_name"]:
+        template_name = template_sources["get_template_name"]
+        template: Optional[Template] = _load_django_template(template_name)
+        template_string: Optional[str] = None
+    elif template_sources["get_template_string"]:
+        template_string = template_sources["get_template_string"]
+        template = None
+    elif template_sources["get_template"]:
+        # `Component.get_template()` returns either string or Template instance
+        if hasattr(template_sources["get_template"], "render"):
+            template = template_sources["get_template"]
+            template_string = None
+        else:
+            template = None
+            template_string = template_sources["get_template"]
+    elif component.template or component.template_file:
+        # If the template was loaded from `Component.template_file`, then the Template
+        # instance was already created and cached in `Component._template`.
+        #
+        # NOTE: This is important to keep in mind, because the implication is that we should
+        # treat Templates AND their nodelists as IMMUTABLE.
+        if component.__class__._template is not None:
+            template = component.__class__._template
+            template_string = None
+        # Otherwise user have set `Component.template` as string and we still need to
+        # create the instance.
+        else:
+            template = _create_template_from_string(
+                component,
+                # NOTE: We can't reach this branch if `Component.template` is None
+                cast(str, component.template),
+                is_component_template=True,
+            )
+            template_string = None
+    # No template
+    else:
+        template = None
+        template_string = None
+
+    # We already have a template instance, so we can return it
+    if template is not None:
+        return template
+    # Create the template from the string
+    elif template_string is not None:
+        return _create_template_from_string(component, template_string)
+
+    # Otherwise, Component has no template - this is valid, as it may be instead rendered
+    # via `Component.on_render()`
+    return None
+
+
+def _create_template_from_string(
+    component: "Component",
+    template_string: str,
+    is_component_template: bool = False,
+) -> Template:
+    # Generate a valid Origin instance.
+    # When an Origin instance is created by Django when using Django's loaders, it looks like this:
+    # ```
+    # {
+    #   'name': '/path/to/project/django-components/sampleproject/calendarapp/templates/calendarapp/calendar.html',
+    #   'template_name': 'calendarapp/calendar.html',
+    #   'loader': <django.template.loaders.app_directories.Loader object at 0x10b441d90>
+    # }
+    # ```
+    #
+    # Since our template is inlined, we will format as `filepath::ComponentName`
+    #
+    # ```
+    # /path/to/project/django-components/src/calendarapp/calendar.html::Calendar
+    # ```
+    #
+    # See https://docs.djangoproject.com/en/5.2/howto/custom-template-backend/#template-origin-api
+    _, _, module_filepath = get_module_info(component.__class__)
+    origin = Origin(
+        name=f"{module_filepath}::{component.__class__.__name__}",
+        template_name=None,
+        loader=None,
+    )
+
+    set_component_to_origin(origin, component.__class__)
+
+    if is_component_template:
+        template = Template(template_string, name=origin.template_name, origin=origin)
+        component.__class__._template = template
+    else:
+        # TODO_V1 - `cached_template()` won't be needed as there will be only 1 template per component
+        #           so we will be able to instead use `template_cache` to store the template
+        template = cached_template(
+            template_string=template_string,
+            name=origin.template_name,
+            origin=origin,
+        )
+
+    return template
+
+
+# When loading a template, use Django's `get_template()` to ensure it triggers Django template loaders
+# See https://github.com/django-components/django-components/issues/901
+#
+# This may raise `TemplateDoesNotExist` if the template doesn't exist.
+# See https://docs.djangoproject.com/en/5.2/ref/templates/api/#template-loaders
+# And https://docs.djangoproject.com/en/5.2/ref/templates/api/#custom-template-loaders
+#
+# TODO_v3 - Instead of loading templates with Django's `get_template()`,
+#       we should simply read the files directly (same as we do for JS and CSS).
+#       This has the implications that:
+#       - We would no longer support Django's template loaders
+#       - Instead if users are using template loaders, they should re-create them as djc extensions
+#       - We would no longer need to set `TEMPLATES.OPTIONS.loaders` to include
+#         `django_components.template_loader.Loader`
+def _load_django_template(template_name: str) -> Template:
+    return django_get_template(template_name).template
+
+
+########################################################
+# ASSOCIATING COMPONENT CLASSES WITH TEMPLATES
+#
+# See https://github.com/django-components/django-components/pull/1222
+########################################################
+
+# NOTE: `ReferenceType` is NOT a generic pre-3.9
+if sys.version_info >= (3, 9):
+    ComponentRef = ReferenceType[Type["Component"]]
+else:
+    ComponentRef = ReferenceType
+
+
+# Remember which Component classes defined `template_file`. Since multiple Components may
+# define the same `template_file`, we store a list of weak references to the Component classes.
+component_template_file_cache: Dict[str, List[ComponentRef]] = {}
+component_template_file_cache_initialized = False
+
+
+# Remember the mapping of `Component.template_file` -> `Component` class, so that we can associate
+# the `Template` instances with the correct Component class in our monkepatched `Template.__init__()`.
+def cache_component_template_file(component_cls: Type["Component"]) -> None:
+    # When a Component class is created before Django is set up,
+    # then `component_template_file_cache_initialized` is False and we leave it for later.
+    # This is necessary because:
+    # 1. We might need to resolve the template_file as relative to the file where the Component class is defined.
+    # 2. To be able to resolve the template_file, Django needs to be set up, because we need to access Django settings.
+    # 3. Django settings may not be available at the time of Component class creation.
+    if not component_template_file_cache_initialized:
+        return
+
+    # NOTE: Avoids circular import
+    from django_components.component_media import ComponentMedia, _resolve_component_relative_files
+
+    # If we access the `Component.template_file` attribute, then this triggers media resolution if it was not done yet.
+    # The problem is that this also causes the loading of the Template, if Component has defined `template_file`.
+    # This triggers `Template.__init__()`, which then triggers another call to `cache_component_template_file()`.
+    #
+    # At the same time, at this point we don't need the media files to be loaded. But we DO need for the relative
+    # file path to be resolved.
+    #
+    # So for this reason, `ComponentMedia.resolved_relative_files` was added to track if the media files were resolved.
+    # Once relative files were resolved, we can safely access the template file from `ComponentMedia` instance
+    # directly, thus avoiding the triggering of the Template loading.
+    comp_media: ComponentMedia = component_cls._component_media  # type: ignore[attr-defined]
+    if comp_media.resolved and comp_media.resolved_relative_files:
+        template_file = component_cls.template_file
+    else:
+        # NOTE: This block of code is based on `_resolve_media()` in `component_media.py`
+        if not comp_media.resolved_relative_files:
+            comp_dirs = get_component_dirs()
+            _resolve_component_relative_files(component_cls, comp_media, comp_dirs=comp_dirs)
+
+        template_file = comp_media.template_file
+
+    if template_file is None:
+        return
+
+    if template_file not in component_template_file_cache:
+        component_template_file_cache[template_file] = []
+
+    component_template_file_cache[template_file].append(ref(component_cls))
+
+
+def get_component_by_template_file(template_file: str) -> Optional[Type["Component"]]:
+    # This function is called from within `Template.__init__()`. At that point, Django MUST be already set up,
+    # because Django's `Template.__init__()` accesses the templating engines.
+    #
+    # So at this point we want to call `cache_component_template_file()` for all Components for which
+    # we skipped it earlier.
+    global component_template_file_cache_initialized
+    if not component_template_file_cache_initialized:
+        component_template_file_cache_initialized = True
+
+        # NOTE: Avoids circular import
+        from django_components.component import all_components
+
+        components = all_components()
+        for component in components:
+            cache_component_template_file(component)
+
+    if template_file not in component_template_file_cache or not len(component_template_file_cache[template_file]):
+        return None
+
+    # There is at least one Component class that has this `template_file`.
+    matched_component_refs = component_template_file_cache[template_file]
+
+    # There may be multiple components that define the same `template_file`.
+    # So to find the correct one, we need to check if the currently loading component
+    # is one of the ones that define the `template_file`.
+    #
+    # If there are NO currently loading components, then `Template.__init__()` was NOT triggered by us,
+    # in which case we don't associate any Component class with this Template.
+    if not len(loading_components):
+        return None
+
+    loading_component = loading_components[-1]()
+    if loading_component is None:
+        return None
+
+    for component_ref in matched_component_refs:
+        comp_cls = component_ref()
+        if comp_cls is loading_component:
+            return comp_cls
+
+    return None
+
+
+# NOTE: Used by `@djc_test` to reset the component template file cache
+def _reset_component_template_file_cache() -> None:
+    global component_template_file_cache
+    component_template_file_cache = {}
+
+    global component_template_file_cache_initialized
+    component_template_file_cache_initialized = False
+
+
+# Helpers so we know where in the codebase we set / access the `Origin.component_cls` attribute
+def set_component_to_origin(origin: Origin, component_cls: Type["Component"]) -> None:
+    origin.component_cls = component_cls
+
+
+def get_component_from_origin(origin: Origin) -> Optional[Type["Component"]]:
+    return getattr(origin, "component_cls", None)
diff --git a/src/django_components/template_loader.py b/src/django_components/template_loader.py
index b6d48097..4545ffda 100644
--- a/src/django_components/template_loader.py
+++ b/src/django_components/template_loader.py
@@ -10,7 +10,7 @@ from django.template.loaders.filesystem import Loader as FilesystemLoader
 from django_components.util.loader import get_component_dirs
 
 
-class Loader(FilesystemLoader):
+class DjcLoader(FilesystemLoader):
     def get_dirs(self, include_apps: bool = True) -> List[Path]:
         """
         Prepare directories that may contain component files:
@@ -26,3 +26,10 @@ class Loader(FilesystemLoader):
         `BASE_DIR` setting is required.
         """
         return get_component_dirs(include_apps)
+
+
+# NOTE: Django's template loaders have the pattern of using the `Loader` class name.
+#       However, this then makes it harder to track and distinguish between different loaders.
+#       So internally we use the name `DjcLoader` instead.
+#       But for public API we use the name `Loader` to match Django.
+Loader = DjcLoader
diff --git a/src/django_components/util/django_monkeypatch.py b/src/django_components/util/django_monkeypatch.py
index 5191a62a..6ee295b0 100644
--- a/src/django_components/util/django_monkeypatch.py
+++ b/src/django_components/util/django_monkeypatch.py
@@ -1,7 +1,7 @@
-from typing import Any, Type
+from typing import Any, Optional, Type
 
 from django.template import Context, NodeList, Template
-from django.template.base import Parser
+from django.template.base import Origin, Parser
 
 from django_components.context import _COMPONENT_CONTEXT_KEY, _STRATEGY_CONTEXT_KEY
 from django_components.dependencies import COMPONENT_COMMENT_REGEX, render_dependencies
@@ -10,11 +10,61 @@ from django_components.util.template_parser import parse_template
 
 # In some cases we can't work around Django's design, and need to patch the template class.
 def monkeypatch_template_cls(template_cls: Type[Template]) -> None:
+    monkeypatch_template_init(template_cls)
     monkeypatch_template_compile_nodelist(template_cls)
     monkeypatch_template_render(template_cls)
     template_cls._djc_patched = True
 
 
+# Patch `Template.__init__` to apply `extensions.on_template_preprocess()` if the template
+# belongs to a Component.
+def monkeypatch_template_init(template_cls: Type[Template]) -> None:
+    original_init = template_cls.__init__
+
+    # NOTE: Function signature of Template.__init__ hasn't changed in 11 years, so we can safely patch it.
+    #       See https://github.com/django/django/blame/main/django/template/base.py#L139
+    def __init__(
+        self: Template,
+        template_string: Any,
+        origin: Optional[Origin] = None,
+        *args: Any,
+        **kwargs: Any,
+    ) -> None:
+        # NOTE: Avoids circular import
+        from django_components.template import (
+            get_component_by_template_file,
+            get_component_from_origin,
+            set_component_to_origin,
+        )
+
+        # If this Template instance was created by us when loading a template file for a component
+        # with `load_component_template()`, then we do 2 things:
+        #
+        # 1. Associate the Component class with the template by setting it on the `Origin` instance
+        #    (`template.origin.component_cls`). This way the `{% component%}` and `{% slot %}` tags
+        #    will know inside which Component class they were defined.
+        #
+        # 2. Apply `extensions.on_template_preprocess()` to the template, so extensions can modify
+        #    the template string before it's compiled into a nodelist.
+        if get_component_from_origin(origin) is not None:
+            component_cls = get_component_from_origin(origin)
+        elif origin is not None and origin.template_name is not None:
+            component_cls = get_component_by_template_file(origin.template_name)
+            if component_cls is not None:
+                set_component_to_origin(origin, component_cls)
+        else:
+            component_cls = None
+
+        if component_cls is not None:
+            # TODO - Apply extensions.on_template_preprocess() here.
+            #        Then also test both cases when template as `template` or `template_file`.
+            pass
+
+        original_init(self, template_string, origin, *args, **kwargs)  # type: ignore[misc]
+
+    template_cls.__init__ = __init__
+
+
 # Patch `Template.compile_nodelist` to use our custom parser. Our parser makes it possible
 # to use template tags as inputs to the component tag:
 #
@@ -94,6 +144,8 @@ def monkeypatch_template_render(template_cls: Type[Template]) -> None:
             # and `False` otherwise.
             isolated_context = not self._djc_is_component_nested
 
+        # This is original implementation, except we override `isolated_context`,
+        # and we post-process the result with `render_dependencies()`.
         with context.render_context.push_state(self, isolated_context=isolated_context):
             if context.template is None:
                 with context.bind_template(self):
diff --git a/src/django_components/util/testing.py b/src/django_components/util/testing.py
index 1bb6bae6..2d708896 100644
--- a/src/django_components/util/testing.py
+++ b/src/django_components/util/testing.py
@@ -10,12 +10,14 @@ import django
 from django.conf import settings as _django_settings
 from django.core.cache import BaseCache, caches
 from django.template import engines
+from django.template.loaders.base import Loader
 from django.test import override_settings
 
 from django_components.component import ALL_COMPONENTS, Component, component_node_subclasses_by_name
 from django_components.component_media import ComponentMedia
 from django_components.component_registry import ALL_REGISTRIES, ComponentRegistry
 from django_components.extension import extensions
+from django_components.template import _reset_component_template_file_cache, loading_components
 
 # NOTE: `ReferenceType` is NOT a generic pre-3.9
 if sys.version_info >= (3, 9):
@@ -457,7 +459,9 @@ def _clear_djc_global_state(
     # beause the IDs count will reset to 0, but we won't generate IDs for the Nodes of the cached
     # templates. Thus, the IDs will be out of sync between the tests.
     for engine in engines.all():
-        engine.engine.template_loaders[0].reset()
+        for loader in engine.engine.template_loaders:
+            if isinstance(loader, Loader):
+                loader.reset()
 
     # NOTE: There are 1-2 tests which check Templates, so we need to clear the cache
     from django_components.cache import component_media_cache, template_cache
@@ -533,6 +537,10 @@ def _clear_djc_global_state(
     # Clear extensions caches
     extensions._route_to_url.clear()
 
+    # Clear other djc state
+    _reset_component_template_file_cache()
+    loading_components.clear()
+
     # Clear Django caches
     all_caches: List[BaseCache] = list(caches.all())
     for cache in all_caches:
diff --git a/tests/test_benchmark_django.py b/tests/test_benchmark_django.py
index 591eeb59..8d1ea2e0 100644
--- a/tests/test_benchmark_django.py
+++ b/tests/test_benchmark_django.py
@@ -66,7 +66,6 @@ if not settings.configured:
             }
         ],
         COMPONENTS={
-            "template_cache_size": 128,
             "autodiscover": False,
             "context_behavior": CONTEXT_MODE,
         },
diff --git a/tests/test_benchmark_django_small.py b/tests/test_benchmark_django_small.py
index 9d9f9059..7ac92eda 100644
--- a/tests/test_benchmark_django_small.py
+++ b/tests/test_benchmark_django_small.py
@@ -37,7 +37,6 @@ if not settings.configured:
             }
         ],
         COMPONENTS={
-            "template_cache_size": 128,
             "autodiscover": False,
             "context_behavior": CONTEXT_MODE,
         },
diff --git a/tests/test_benchmark_djc.py b/tests/test_benchmark_djc.py
index 9eb89f5b..a99bfdd6 100644
--- a/tests/test_benchmark_djc.py
+++ b/tests/test_benchmark_djc.py
@@ -66,7 +66,6 @@ if not settings.configured:
             }
         ],
         COMPONENTS={
-            "template_cache_size": 128,
             "autodiscover": False,
             "context_behavior": CONTEXT_MODE,
         },
diff --git a/tests/test_benchmark_djc_small.py b/tests/test_benchmark_djc_small.py
index 983422c2..5c96b3bc 100644
--- a/tests/test_benchmark_djc_small.py
+++ b/tests/test_benchmark_djc_small.py
@@ -37,7 +37,6 @@ if not settings.configured:
             }
         ],
         COMPONENTS={
-            "template_cache_size": 128,
             "autodiscover": False,
             "context_behavior": CONTEXT_MODE,
         },
diff --git a/tests/test_component.py b/tests/test_component.py
index 907eef59..a6ee40fe 100644
--- a/tests/test_component.py
+++ b/tests/test_component.py
@@ -8,7 +8,6 @@ from typing import Any, NamedTuple
 
 import pytest
 from django.conf import settings
-from django.core.exceptions import ImproperlyConfigured
 from django.http import HttpRequest, HttpResponse
 from django.template import Context, RequestContext, Template
 from django.template.base import TextNode
@@ -26,6 +25,7 @@ from django_components import (
     register,
     types,
 )
+from django_components.template import _get_component_template
 from django_components.urls import urlpatterns as dc_urlpatterns
 
 from django_components.testing import djc_test
@@ -152,23 +152,43 @@ class TestComponentLegacyApi:
             """,
         )
 
-
-@djc_test
-class TestComponent:
+    # TODO_v1 - Remove
     @djc_test(parametrize=PARAMETRIZE_CONTEXT_BEHAVIOR)
-    def test_empty_component(self, components_settings):
-        class EmptyComponent(Component):
-            pass
+    def test_get_template_name(self, components_settings):
+        class SvgComponent(Component):
+            def get_template_data(self, args, kwargs, slots, context):
+                return {
+                    "name": kwargs.pop("name", None),
+                    "css_class": kwargs.pop("css_class", None),
+                    "title": kwargs.pop("title", None),
+                    **kwargs,
+                }
 
-        with pytest.raises(ImproperlyConfigured):
-            EmptyComponent.render(args=["123"])
+            def get_template_name(self, context):
+                return f"dynamic_{context['name']}.svg"
 
-    @djc_test(parametrize=PARAMETRIZE_CONTEXT_BEHAVIOR)
-    def test_template_string_static_inlined(self, components_settings):
-        class SimpleComponent(Component):
-            template: types.django_html = """
-                Variable: <strong>{{ variable }}</strong>
+        assertHTMLEqual(
+            SvgComponent.render(kwargs={"name": "svg1"}),
             """
+            <svg data-djc-id-ca1bc3e>Dynamic1</svg>
+            """,
+        )
+        assertHTMLEqual(
+            SvgComponent.render(kwargs={"name": "svg2"}),
+            """
+            <svg data-djc-id-ca1bc3f>Dynamic2</svg>
+            """,
+        )
+
+    # TODO_v1 - Remove
+    @djc_test(parametrize=PARAMETRIZE_CONTEXT_BEHAVIOR)
+    def test_get_template__string(self, components_settings):
+        class SimpleComponent(Component):
+            def get_template(self, context):
+                content: types.django_html = """
+                    Variable: <strong>{{ variable }}</strong>
+                """
+                return content
 
             def get_template_data(self, args, kwargs, slots, context):
                 return {
@@ -187,8 +207,29 @@ class TestComponent:
             """,
         )
 
+    # TODO_v1 - Remove
     @djc_test(parametrize=PARAMETRIZE_CONTEXT_BEHAVIOR)
-    def test_template_string_dynamic(self, components_settings):
+    def test_get_template__template(self, components_settings):
+        class TestComponent(Component):
+            def get_template_data(self, args, kwargs, slots, context):
+                return {
+                    "variable": kwargs.pop("variable", None),
+                }
+
+            def get_template(self, context):
+                template_str = "Variable: <strong>{{ variable }}</strong>"
+                return Template(template_str)
+
+        rendered = TestComponent.render(kwargs={"variable": "test"})
+        assertHTMLEqual(
+            rendered,
+            """
+            Variable: <strong data-djc-id-ca1bc3e>test</strong>
+            """,
+        )
+
+    # TODO_v1 - Remove
+    def test_get_template_is_cached(self):
         class SimpleComponent(Component):
             def get_template(self, context):
                 content: types.django_html = """
@@ -201,6 +242,35 @@ class TestComponent:
                     "variable": kwargs.get("variable", None),
                 }
 
+        comp = SimpleComponent()
+        template_1 = _get_component_template(comp)
+        template_1._test_id = "123"  # type: ignore[union-attr]
+
+        template_2 = _get_component_template(comp)
+        assert template_2._test_id == "123"  # type: ignore[union-attr]
+
+
+@djc_test
+class TestComponent:
+    @djc_test(parametrize=PARAMETRIZE_CONTEXT_BEHAVIOR)
+    def test_empty_component(self, components_settings):
+        class EmptyComponent(Component):
+            pass
+
+        EmptyComponent.render(args=["123"])
+
+    @djc_test(parametrize=PARAMETRIZE_CONTEXT_BEHAVIOR)
+    def test_template_string_static_inlined(self, components_settings):
+        class SimpleComponent(Component):
+            template: types.django_html = """
+                Variable: <strong>{{ variable }}</strong>
+            """
+
+            def get_template_data(self, args, kwargs, slots, context):
+                return {
+                    "variable": kwargs.get("variable", None),
+                }
+
             class Media:
                 css = "style.css"
                 js = "script.js"
@@ -235,6 +305,90 @@ class TestComponent:
             """,
         )
 
+    # Test that even with cached template loaders, each Component has its own `Template`
+    # even when multiple components point to the same template file.
+    @djc_test(
+        parametrize=PARAMETRIZE_CONTEXT_BEHAVIOR,
+        django_settings={
+            "TEMPLATES": [
+                {
+                    "BACKEND": "django.template.backends.django.DjangoTemplates",
+                    "DIRS": [
+                        "tests/templates/",
+                        "tests/components/",
+                    ],
+                    "OPTIONS": {
+                        "builtins": [
+                            "django_components.templatetags.component_tags",
+                        ],
+                        'loaders': [
+                            ('django.template.loaders.cached.Loader', [
+
+                                # Default Django loader
+                                'django.template.loaders.filesystem.Loader',
+                                # Including this is the same as APP_DIRS=True
+                                'django.template.loaders.app_directories.Loader',
+                                # Components loader
+                                'django_components.template_loader.Loader',
+                            ]),
+                        ],
+                    },
+                }
+            ],
+        },
+    )
+    def test_template_file_static__cached(self, components_settings):
+        class SimpleComponent1(Component):
+            template_file = "simple_template.html"
+
+            def get_template_data(self, args, kwargs, slots, context):
+                return {
+                    "variable": kwargs.get("variable", None),
+                }
+
+        class SimpleComponent2(Component):
+            template_file = "simple_template.html"
+
+            def get_template_data(self, args, kwargs, slots, context):
+                return {
+                    "variable": kwargs.get("variable", None),
+                }
+
+        SimpleComponent1.template  # Triggers template loading
+        SimpleComponent2.template  # Triggers template loading
+
+        # Both components have their own Template instance, but they point to the same template file.
+        assert isinstance(SimpleComponent1._template, Template)
+        assert isinstance(SimpleComponent2._template, Template)
+        assert SimpleComponent1._template is not SimpleComponent2._template
+        assert SimpleComponent1._template.source == SimpleComponent2._template.source
+
+        # The Template instances have different origins, but they point to the same template file.
+        assert SimpleComponent1._template.origin is not SimpleComponent2._template.origin
+        assert SimpleComponent1._template.origin.template_name == SimpleComponent2._template.origin.template_name
+        assert SimpleComponent1._template.origin.name == SimpleComponent2._template.origin.name
+        assert SimpleComponent1._template.origin.loader == SimpleComponent2._template.origin.loader
+
+        # The origins point to their respective Component classes.
+        assert SimpleComponent1._template.origin.component_cls == SimpleComponent1
+        assert SimpleComponent2._template.origin.component_cls == SimpleComponent2
+
+        rendered = SimpleComponent1.render(kwargs={"variable": "test"})
+        assertHTMLEqual(
+            rendered,
+            """
+            Variable: <strong data-djc-id-ca1bc3e>test</strong>
+            """,
+        )
+
+        rendered = SimpleComponent2.render(kwargs={"variable": "test"})
+        assertHTMLEqual(
+            rendered,
+            """
+            Variable: <strong data-djc-id-ca1bc3f>test</strong>
+            """,
+        )
+
     @djc_test(parametrize=PARAMETRIZE_CONTEXT_BEHAVIOR)
     def test_template_file_static__compat(self, components_settings):
         class SimpleComponent(Component):
@@ -288,53 +442,6 @@ class TestComponent:
             """,
         )
 
-    @djc_test(parametrize=PARAMETRIZE_CONTEXT_BEHAVIOR)
-    def test_template_file_dynamic(self, components_settings):
-        class SvgComponent(Component):
-            def get_template_data(self, args, kwargs, slots, context):
-                return {
-                    "name": kwargs.pop("name", None),
-                    "css_class": kwargs.pop("css_class", None),
-                    "title": kwargs.pop("title", None),
-                    **kwargs,
-                }
-
-            def get_template_name(self, context):
-                return f"dynamic_{context['name']}.svg"
-
-        assertHTMLEqual(
-            SvgComponent.render(kwargs={"name": "svg1"}),
-            """
-            <svg data-djc-id-ca1bc3e>Dynamic1</svg>
-            """,
-        )
-        assertHTMLEqual(
-            SvgComponent.render(kwargs={"name": "svg2"}),
-            """
-            <svg data-djc-id-ca1bc3f>Dynamic2</svg>
-            """,
-        )
-
-    @djc_test(parametrize=PARAMETRIZE_CONTEXT_BEHAVIOR)
-    def test_allows_to_return_template(self, components_settings):
-        class TestComponent(Component):
-            def get_template_data(self, args, kwargs, slots, context):
-                return {
-                    "variable": kwargs.pop("variable", None),
-                }
-
-            def get_template(self, context):
-                template_str = "Variable: <strong>{{ variable }}</strong>"
-                return Template(template_str)
-
-        rendered = TestComponent.render(kwargs={"variable": "test"})
-        assertHTMLEqual(
-            rendered,
-            """
-            Variable: <strong data-djc-id-ca1bc3e>test</strong>
-            """,
-        )
-
     def test_get_component_by_id(self):
         class SimpleComponent(Component):
             pass
@@ -369,6 +476,12 @@ class TestComponentRenderAPI:
 
     def test_input(self):
         class TestComponent(Component):
+            template: types.django_html = """
+                {% load component_tags %}
+                Variable: <strong>{{ variable }}</strong>
+                {% slot 'my_slot' / %}
+            """
+
             def get_template_data(self, args, kwargs, slots, context):
                 assert self.input.args == [123, "str"]
                 assert self.input.kwargs == {"variable": "test", "another": 1}
@@ -381,7 +494,7 @@ class TestComponentRenderAPI:
                     "variable": kwargs["variable"],
                 }
 
-            def get_template(self, context):
+            def on_render_before(self, context, template):
                 assert self.input.args == [123, "str"]
                 assert self.input.kwargs == {"variable": "test", "another": 1}
                 assert isinstance(self.input.context, Context)
@@ -389,13 +502,6 @@ class TestComponentRenderAPI:
                 my_slot = self.input.slots["my_slot"]
                 assert my_slot() == "MY_SLOT"
 
-                template_str: types.django_html = """
-                    {% load component_tags %}
-                    Variable: <strong>{{ variable }}</strong>
-                    {% slot 'my_slot' / %}
-                """
-                return Template(template_str)
-
         rendered = TestComponent.render(
             kwargs={"variable": "test", "another": 1},
             args=(123, "str"),
diff --git a/tests/test_component_media.py b/tests/test_component_media.py
index e693391a..b3e9f2cd 100644
--- a/tests/test_component_media.py
+++ b/tests/test_component_media.py
@@ -210,17 +210,6 @@ class TestMainMedia:
         assert AppLvlCompComponent._component_media.js == 'console.log("JS file");\n'  # type: ignore[attr-defined]
         assert AppLvlCompComponent._component_media.js_file == "app_lvl_comp/app_lvl_comp.js"  # type: ignore[attr-defined]
 
-    def test_html_variable(self):
-        class VariableHTMLComponent(Component):
-            def get_template(self, context):
-                return Template("<div class='variable-html'>{{ variable }}</div>")
-
-        rendered = VariableHTMLComponent.render(context=Context({"variable": "Dynamic Content"}))
-        assertHTMLEqual(
-            rendered,
-            '<div class="variable-html" data-djc-id-ca1bc3e>Dynamic Content</div>',
-        )
-
     def test_html_variable_filtered(self):
         class FilteredComponent(Component):
             template: types.django_html = """
@@ -851,40 +840,46 @@ class TestMediaStaticfiles:
 
 @djc_test
 class TestMediaRelativePath:
-    class ParentComponent(Component):
-        template: types.django_html = """
-            {% load component_tags %}
-            <div>
-                <h1>Parent content</h1>
-                {% component "variable_display" shadowing_variable='override' new_variable='unique_val' %}
-                {% endcomponent %}
-            </div>
-            <div>
-                {% slot 'content' %}
-                    <h2>Slot content</h2>
-                    {% component "variable_display" shadowing_variable='slot_default_override' new_variable='slot_default_unique' %}
+    def _gen_parent_component(self):
+        class ParentComponent(Component):
+            template: types.django_html = """
+                {% load component_tags %}
+                <div>
+                    <h1>Parent content</h1>
+                    {% component "variable_display" shadowing_variable='override' new_variable='unique_val' %}
                     {% endcomponent %}
-                {% endslot %}
-            </div>
-        """  # noqa
+                </div>
+                <div>
+                    {% slot 'content' %}
+                        <h2>Slot content</h2>
+                        {% component "variable_display" shadowing_variable='slot_default_override' new_variable='slot_default_unique' %}
+                        {% endcomponent %}
+                    {% endslot %}
+                </div>
+            """  # noqa
 
-        def get_template_data(self, args, kwargs, slots, context):
-            return {"shadowing_variable": "NOT SHADOWED"}
+            def get_template_data(self, args, kwargs, slots, context):
+                return {"shadowing_variable": "NOT SHADOWED"}
 
-    class VariableDisplay(Component):
-        template: types.django_html = """
-            {% load component_tags %}
-            <h1>Shadowing variable = {{ shadowing_variable }}</h1>
-            <h1>Uniquely named variable = {{ unique_variable }}</h1>
-        """
+        return ParentComponent
 
-        def get_template_data(self, args, kwargs, slots, context):
-            context = {}
-            if kwargs["shadowing_variable"] is not None:
-                context["shadowing_variable"] = kwargs["shadowing_variable"]
-            if kwargs["new_variable"] is not None:
-                context["unique_variable"] = kwargs["new_variable"]
-            return context
+    def _gen_variable_display_component(self):
+        class VariableDisplay(Component):
+            template: types.django_html = """
+                {% load component_tags %}
+                <h1>Shadowing variable = {{ shadowing_variable }}</h1>
+                <h1>Uniquely named variable = {{ unique_variable }}</h1>
+            """
+
+            def get_template_data(self, args, kwargs, slots, context):
+                context = {}
+                if kwargs["shadowing_variable"] is not None:
+                    context["shadowing_variable"] = kwargs["shadowing_variable"]
+                if kwargs["new_variable"] is not None:
+                    context["unique_variable"] = kwargs["new_variable"]
+                return context
+
+        return VariableDisplay
 
     # Settings required for autodiscover to work
     @djc_test(
@@ -896,8 +891,8 @@ class TestMediaRelativePath:
         }
     )
     def test_component_with_relative_media_paths(self):
-        registry.register(name="parent_component", component=self.ParentComponent)
-        registry.register(name="variable_display", component=self.VariableDisplay)
+        registry.register(name="parent_component", component=self._gen_parent_component())
+        registry.register(name="variable_display", component=self._gen_variable_display_component())
 
         # Ensure that the module is executed again after import in autodiscovery
         if "tests.components.relative_file.relative_file" in sys.modules:
@@ -948,8 +943,8 @@ class TestMediaRelativePath:
         }
     )
     def test_component_with_relative_media_paths_as_subcomponent(self):
-        registry.register(name="parent_component", component=self.ParentComponent)
-        registry.register(name="variable_display", component=self.VariableDisplay)
+        registry.register(name="parent_component", component=self._gen_parent_component())
+        registry.register(name="variable_display", component=self._gen_variable_display_component())
 
         # Ensure that the module is executed again after import in autodiscovery
         if "tests.components.relative_file.relative_file" in sys.modules:
@@ -995,8 +990,8 @@ class TestMediaRelativePath:
 
         https://github.com/django-components/django-components/issues/522#issuecomment-2173577094
         """
-        registry.register(name="parent_component", component=self.ParentComponent)
-        registry.register(name="variable_display", component=self.VariableDisplay)
+        registry.register(name="parent_component", component=self._gen_parent_component())
+        registry.register(name="variable_display", component=self._gen_variable_display_component())
 
         # Ensure that the module is executed again after import in autodiscovery
         if "tests.components.relative_file_pathobj.relative_file_pathobj" in sys.modules:
@@ -1066,7 +1061,7 @@ class TestSubclassingMedia:
                 js = "grandparent.js"
 
         class ParentComponent(GrandParentComponent):
-            Media = None
+            Media = None  # type: ignore[assignment]
 
         class ChildComponent(ParentComponent):
             class Media:
@@ -1149,7 +1144,7 @@ class TestSubclassingMedia:
                 js = "parent1.js"
 
         class Parent2Component(GrandParent3Component, GrandParent4Component):
-            Media = None
+            Media = None  # type: ignore[assignment]
 
         class ChildComponent(Parent1Component, Parent2Component):
             template: types.django_html = """
diff --git a/tests/test_context.py b/tests/test_context.py
index 166b1f04..a1a51491 100644
--- a/tests/test_context.py
+++ b/tests/test_context.py
@@ -24,58 +24,61 @@ def dummy_context_processor(request):
 #########################
 
 
-class SimpleComponent(Component):
-    template: types.django_html = """
-        Variable: <strong>{{ variable }}</strong>
-    """
+def gen_simple_component():
+    class SimpleComponent(Component):
+        template: types.django_html = """
+            Variable: <strong>{{ variable }}</strong>
+        """
 
-    def get_template_data(self, args, kwargs, slots, context):
-        return {"variable": kwargs.get("variable", None)} if "variable" in kwargs else {}
+        def get_template_data(self, args, kwargs, slots, context):
+            return {"variable": kwargs.get("variable", None)} if "variable" in kwargs else {}
+
+    return SimpleComponent
 
 
-class VariableDisplay(Component):
-    template: types.django_html = """
-        {% load component_tags %}
-        <h1>Shadowing variable = {{ shadowing_variable }}</h1>
-        <h1>Uniquely named variable = {{ unique_variable }}</h1>
-    """
+def gen_variable_display_component():
+    class VariableDisplay(Component):
+        template: types.django_html = """
+            {% load component_tags %}
+            <h1>Shadowing variable = {{ shadowing_variable }}</h1>
+            <h1>Uniquely named variable = {{ unique_variable }}</h1>
+        """
 
-    def get_template_data(self, args, kwargs, slots, context):
-        context = {}
-        if kwargs["shadowing_variable"] is not None:
-            context["shadowing_variable"] = kwargs["shadowing_variable"]
-        if kwargs["new_variable"] is not None:
-            context["unique_variable"] = kwargs["new_variable"]
-        return context
+        def get_template_data(self, args, kwargs, slots, context):
+            context = {}
+            if kwargs["shadowing_variable"] is not None:
+                context["shadowing_variable"] = kwargs["shadowing_variable"]
+            if kwargs["new_variable"] is not None:
+                context["unique_variable"] = kwargs["new_variable"]
+            return context
+
+    return VariableDisplay
 
 
-class IncrementerComponent(Component):
-    template: types.django_html = """
-        {% load component_tags %}
-        <p class="incrementer">value={{ value }};calls={{ calls }}</p>
-        {% slot 'content' %}{% endslot %}
-    """
+def gen_incrementer_component():
+    class IncrementerComponent(Component):
+        template: types.django_html = """
+            {% load component_tags %}
+            <p class="incrementer">value={{ value }};calls={{ calls }}</p>
+            {% slot 'content' %}{% endslot %}
+        """
 
-    def __init__(self, *args, **kwargs):
-        super().__init__(*args, **kwargs)
-        self.call_count = 0
+        def __init__(self, *args, **kwargs):
+            super().__init__(*args, **kwargs)
+            self.call_count = 0
 
-    def get_template_data(self, args, kwargs, slots, context):
-        value = int(kwargs.get("value", 0))
-        if hasattr(self, "call_count"):
-            self.call_count += 1
-        else:
-            self.call_count = 1
-        return {"value": value + 1, "calls": self.call_count}
+        def get_template_data(self, args, kwargs, slots, context):
+            value = int(kwargs.get("value", 0))
+            if hasattr(self, "call_count"):
+                self.call_count += 1
+            else:
+                self.call_count = 1
+            return {"value": value + 1, "calls": self.call_count}
+
+    return IncrementerComponent
 
 
-#########################
-# TESTS
-#########################
-
-
-@djc_test
-class TestContext:
+def gen_parent_component():
     class ParentComponent(Component):
         template: types.django_html = """
             {% load component_tags %}
@@ -96,129 +99,10 @@ class TestContext:
         def get_template_data(self, args, kwargs, slots, context):
             return {"shadowing_variable": "NOT SHADOWED"}
 
-    @djc_test(parametrize=PARAMETRIZE_CONTEXT_BEHAVIOR)
-    def test_nested_component_context_shadows_parent_with_unfilled_slots_and_component_tag(
-        self, components_settings,
-    ):
-        registry.register(name="variable_display", component=VariableDisplay)
-        registry.register(name="parent_component", component=self.ParentComponent)
-
-        template_str: types.django_html = """
-            {% load component_tags %}
-            {% component 'parent_component' %}{% endcomponent %}
-        """
-        template = Template(template_str)
-        rendered = template.render(Context())
-
-        assertInHTML("<h1 data-djc-id-ca1bc43>Shadowing variable = override</h1>", rendered)
-        assertInHTML("<h1 data-djc-id-ca1bc44>Shadowing variable = slot_default_override</h1>", rendered)
-        assert "Shadowing variable = NOT SHADOWED" not in rendered
-
-    @djc_test(parametrize=PARAMETRIZE_CONTEXT_BEHAVIOR)
-    def test_nested_component_instances_have_unique_context_with_unfilled_slots_and_component_tag(
-        self, components_settings,
-    ):
-        registry.register(name="variable_display", component=VariableDisplay)
-        registry.register(name="parent_component", component=self.ParentComponent)
-
-        template_str: types.django_html = """
-            {% load component_tags %}
-            {% component 'parent_component' %}{% endcomponent %}
-        """
-        template = Template(template_str)
-        rendered = template.render(Context())
-
-        assertInHTML("<h1 data-djc-id-ca1bc43>Uniquely named variable = unique_val</h1>", rendered)
-        assertInHTML(
-            "<h1 data-djc-id-ca1bc44>Uniquely named variable = slot_default_unique</h1>",
-            rendered,
-        )
-
-    @djc_test(parametrize=PARAMETRIZE_CONTEXT_BEHAVIOR)
-    def test_nested_component_context_shadows_parent_with_filled_slots(self, components_settings):
-        registry.register(name="variable_display", component=VariableDisplay)
-        registry.register(name="parent_component", component=self.ParentComponent)
-
-        template_str: types.django_html = """
-            {% load component_tags %}
-            {% component 'parent_component' %}
-                {% fill 'content' %}
-                    {% component 'variable_display' shadowing_variable='shadow_from_slot' new_variable='unique_from_slot' %}
-                    {% endcomponent %}
-                {% endfill %}
-            {% endcomponent %}
-        """  # NOQA
-        template = Template(template_str)
-        rendered = template.render(Context())
-
-        assertInHTML("<h1 data-djc-id-ca1bc45>Shadowing variable = override</h1>", rendered)
-        assertInHTML("<h1 data-djc-id-ca1bc46>Shadowing variable = shadow_from_slot</h1>", rendered)
-        assert "Shadowing variable = NOT SHADOWED" not in rendered
-
-    @djc_test(parametrize=PARAMETRIZE_CONTEXT_BEHAVIOR)
-    def test_nested_component_instances_have_unique_context_with_filled_slots(self, components_settings):
-        registry.register(name="variable_display", component=VariableDisplay)
-        registry.register(name="parent_component", component=self.ParentComponent)
-
-        template_str: types.django_html = """
-            {% load component_tags %}
-            {% component 'parent_component' %}
-                {% fill 'content' %}
-                    {% component 'variable_display' shadowing_variable='shadow_from_slot' new_variable='unique_from_slot' %}
-                    {% endcomponent %}
-                {% endfill %}
-            {% endcomponent %}
-        """  # NOQA
-        template = Template(template_str)
-        rendered = template.render(Context())
-
-        assertInHTML("<h1 data-djc-id-ca1bc45>Uniquely named variable = unique_val</h1>", rendered)
-        assertInHTML("<h1 data-djc-id-ca1bc46>Uniquely named variable = unique_from_slot</h1>", rendered)
-
-    @djc_test(parametrize=PARAMETRIZE_CONTEXT_BEHAVIOR)
-    def test_nested_component_context_shadows_outer_context_with_unfilled_slots_and_component_tag(
-        self, components_settings,
-    ):
-        registry.register(name="variable_display", component=VariableDisplay)
-        registry.register(name="parent_component", component=self.ParentComponent)
-
-        template_str: types.django_html = """
-            {% load component_tags %}
-            {% component 'parent_component' %}{% endcomponent %}
-        """
-        template = Template(template_str)
-        rendered = template.render(Context({"shadowing_variable": "NOT SHADOWED"}))
-
-        assertInHTML("<h1 data-djc-id-ca1bc43>Shadowing variable = override</h1>", rendered)
-        assertInHTML("<h1 data-djc-id-ca1bc44>Shadowing variable = slot_default_override</h1>", rendered)
-        assert "Shadowing variable = NOT SHADOWED" not in rendered
-
-    @djc_test(parametrize=PARAMETRIZE_CONTEXT_BEHAVIOR)
-    def test_nested_component_context_shadows_outer_context_with_filled_slots(
-        self, components_settings,
-    ):
-        registry.register(name="variable_display", component=VariableDisplay)
-        registry.register(name="parent_component", component=self.ParentComponent)
-
-        template_str: types.django_html = """
-            {% load component_tags %}
-            {% component 'parent_component' %}
-                {% fill 'content' %}
-                    {% component 'variable_display' shadowing_variable='shadow_from_slot' new_variable='unique_from_slot' %}
-                    {% endcomponent %}
-                {% endfill %}
-            {% endcomponent %}
-        """  # NOQA
-        template = Template(template_str)
-        rendered = template.render(Context({"shadowing_variable": "NOT SHADOWED"}))
-
-        assertInHTML("<h1 data-djc-id-ca1bc45>Shadowing variable = override</h1>", rendered)
-        assertInHTML("<h1 data-djc-id-ca1bc46>Shadowing variable = shadow_from_slot</h1>", rendered)
-        assert "Shadowing variable = NOT SHADOWED" not in rendered
+    return ParentComponent
 
 
-@djc_test
-class TestParentArgs:
+def gen_parent_component_with_args():
     class ParentComponentWithArgs(Component):
         template: types.django_html = """
             {% load component_tags %}
@@ -239,11 +123,144 @@ class TestParentArgs:
         def get_template_data(self, args, kwargs, slots, context):
             return {"inner_parent_value": kwargs["parent_value"]}
 
+    return ParentComponentWithArgs
+
+
+#########################
+# TESTS
+#########################
+
+
+@djc_test
+class TestContext:
+    @djc_test(parametrize=PARAMETRIZE_CONTEXT_BEHAVIOR)
+    def test_nested_component_context_shadows_parent_with_unfilled_slots_and_component_tag(
+        self, components_settings,
+    ):
+        registry.register(name="variable_display", component=gen_variable_display_component())
+        registry.register(name="parent_component", component=gen_parent_component())
+
+        template_str: types.django_html = """
+            {% load component_tags %}
+            {% component 'parent_component' %}{% endcomponent %}
+        """
+        template = Template(template_str)
+        rendered = template.render(Context())
+
+        assertInHTML("<h1 data-djc-id-ca1bc43>Shadowing variable = override</h1>", rendered)
+        assertInHTML("<h1 data-djc-id-ca1bc44>Shadowing variable = slot_default_override</h1>", rendered)
+        assert "Shadowing variable = NOT SHADOWED" not in rendered
+
+    @djc_test(parametrize=PARAMETRIZE_CONTEXT_BEHAVIOR)
+    def test_nested_component_instances_have_unique_context_with_unfilled_slots_and_component_tag(
+        self, components_settings,
+    ):
+        registry.register(name="variable_display", component=gen_variable_display_component())
+        registry.register(name="parent_component", component=gen_parent_component())
+
+        template_str: types.django_html = """
+            {% load component_tags %}
+            {% component 'parent_component' %}{% endcomponent %}
+        """
+        template = Template(template_str)
+        rendered = template.render(Context())
+
+        assertInHTML("<h1 data-djc-id-ca1bc43>Uniquely named variable = unique_val</h1>", rendered)
+        assertInHTML(
+            "<h1 data-djc-id-ca1bc44>Uniquely named variable = slot_default_unique</h1>",
+            rendered,
+        )
+
+    @djc_test(parametrize=PARAMETRIZE_CONTEXT_BEHAVIOR)
+    def test_nested_component_context_shadows_parent_with_filled_slots(self, components_settings):
+        registry.register(name="variable_display", component=gen_variable_display_component())
+        registry.register(name="parent_component", component=gen_parent_component())
+
+        template_str: types.django_html = """
+            {% load component_tags %}
+            {% component 'parent_component' %}
+                {% fill 'content' %}
+                    {% component 'variable_display' shadowing_variable='shadow_from_slot' new_variable='unique_from_slot' %}
+                    {% endcomponent %}
+                {% endfill %}
+            {% endcomponent %}
+        """  # NOQA
+        template = Template(template_str)
+        rendered = template.render(Context())
+
+        assertInHTML("<h1 data-djc-id-ca1bc45>Shadowing variable = override</h1>", rendered)
+        assertInHTML("<h1 data-djc-id-ca1bc46>Shadowing variable = shadow_from_slot</h1>", rendered)
+        assert "Shadowing variable = NOT SHADOWED" not in rendered
+
+    @djc_test(parametrize=PARAMETRIZE_CONTEXT_BEHAVIOR)
+    def test_nested_component_instances_have_unique_context_with_filled_slots(self, components_settings):
+        registry.register(name="variable_display", component=gen_variable_display_component())
+        registry.register(name="parent_component", component=gen_parent_component())
+
+        template_str: types.django_html = """
+            {% load component_tags %}
+            {% component 'parent_component' %}
+                {% fill 'content' %}
+                    {% component 'variable_display' shadowing_variable='shadow_from_slot' new_variable='unique_from_slot' %}
+                    {% endcomponent %}
+                {% endfill %}
+            {% endcomponent %}
+        """  # NOQA
+        template = Template(template_str)
+        rendered = template.render(Context())
+
+        assertInHTML("<h1 data-djc-id-ca1bc45>Uniquely named variable = unique_val</h1>", rendered)
+        assertInHTML("<h1 data-djc-id-ca1bc46>Uniquely named variable = unique_from_slot</h1>", rendered)
+
+    @djc_test(parametrize=PARAMETRIZE_CONTEXT_BEHAVIOR)
+    def test_nested_component_context_shadows_outer_context_with_unfilled_slots_and_component_tag(
+        self, components_settings,
+    ):
+        registry.register(name="variable_display", component=gen_variable_display_component())
+        registry.register(name="parent_component", component=gen_parent_component())
+
+        template_str: types.django_html = """
+            {% load component_tags %}
+            {% component 'parent_component' %}{% endcomponent %}
+        """
+        template = Template(template_str)
+        rendered = template.render(Context({"shadowing_variable": "NOT SHADOWED"}))
+
+        assertInHTML("<h1 data-djc-id-ca1bc43>Shadowing variable = override</h1>", rendered)
+        assertInHTML("<h1 data-djc-id-ca1bc44>Shadowing variable = slot_default_override</h1>", rendered)
+        assert "Shadowing variable = NOT SHADOWED" not in rendered
+
+    @djc_test(parametrize=PARAMETRIZE_CONTEXT_BEHAVIOR)
+    def test_nested_component_context_shadows_outer_context_with_filled_slots(
+        self, components_settings,
+    ):
+        registry.register(name="variable_display", component=gen_variable_display_component())
+        registry.register(name="parent_component", component=gen_parent_component())
+
+        template_str: types.django_html = """
+            {% load component_tags %}
+            {% component 'parent_component' %}
+                {% fill 'content' %}
+                    {% component 'variable_display' shadowing_variable='shadow_from_slot' new_variable='unique_from_slot' %}
+                    {% endcomponent %}
+                {% endfill %}
+            {% endcomponent %}
+        """  # NOQA
+        template = Template(template_str)
+        rendered = template.render(Context({"shadowing_variable": "NOT SHADOWED"}))
+
+        assertInHTML("<h1 data-djc-id-ca1bc45>Shadowing variable = override</h1>", rendered)
+        assertInHTML("<h1 data-djc-id-ca1bc46>Shadowing variable = shadow_from_slot</h1>", rendered)
+        assert "Shadowing variable = NOT SHADOWED" not in rendered
+
+
+@djc_test
+class TestParentArgs:
     @djc_test(parametrize=PARAMETRIZE_CONTEXT_BEHAVIOR)
     def test_parent_args_can_be_drawn_from_context(self, components_settings):
-        registry.register(name="incrementer", component=IncrementerComponent)
-        registry.register(name="parent_with_args", component=self.ParentComponentWithArgs)
-        registry.register(name="variable_display", component=VariableDisplay)
+        registry.register(name="incrementer", component=gen_incrementer_component())
+        registry.register(name="parent_with_args", component=gen_parent_component_with_args())
+        registry.register(name="variable_display", component=gen_variable_display_component())
 
         template_str: types.django_html = """
             {% load component_tags %}
@@ -271,9 +288,9 @@ class TestParentArgs:
 
     @djc_test(parametrize=PARAMETRIZE_CONTEXT_BEHAVIOR)
     def test_parent_args_available_outside_slots(self, components_settings):
-        registry.register(name="incrementer", component=IncrementerComponent)
-        registry.register(name="parent_with_args", component=self.ParentComponentWithArgs)
-        registry.register(name="variable_display", component=VariableDisplay)
+        registry.register(name="incrementer", component=gen_incrementer_component())
+        registry.register(name="parent_with_args", component=gen_parent_component_with_args())
+        registry.register(name="variable_display", component=gen_variable_display_component())
 
         template_str: types.django_html = """
             {% load component_tags %}
@@ -282,8 +299,21 @@ class TestParentArgs:
         template = Template(template_str)
         rendered = template.render(Context())
 
-        assertInHTML("<h1 data-djc-id-ca1bc43>Shadowing variable = passed_in</h1>", rendered)
-        assertInHTML("<h1 data-djc-id-ca1bc44>Uniquely named variable = passed_in</h1>", rendered)
+        assertHTMLEqual(
+            rendered,
+            """
+            <div data-djc-id-ca1bc3f>
+                <h1>Parent content</h1>
+                <h1 data-djc-id-ca1bc43>Shadowing variable = passed_in</h1>
+                <h1 data-djc-id-ca1bc43>Uniquely named variable = unique_val</h1>
+            </div>
+            <div data-djc-id-ca1bc3f>
+                <h2>Slot content</h2>
+                <h1 data-djc-id-ca1bc44>Shadowing variable = slot_default_override</h1>
+                <h1 data-djc-id-ca1bc44>Uniquely named variable = passed_in</h1>
+            </div>
+            """,
+        )
         assert "Shadowing variable = NOT SHADOWED" not in rendered
 
     @djc_test(
@@ -297,9 +327,9 @@ class TestParentArgs:
         )
     )
     def test_parent_args_available_in_slots(self, components_settings, first_val, second_val):
-        registry.register(name="incrementer", component=IncrementerComponent)
-        registry.register(name="parent_with_args", component=self.ParentComponentWithArgs)
-        registry.register(name="variable_display", component=VariableDisplay)
+        registry.register(name="incrementer", component=gen_incrementer_component())
+        registry.register(name="parent_with_args", component=gen_parent_component_with_args())
+        registry.register(name="variable_display", component=gen_variable_display_component())
 
         template_str: types.django_html = """
             {% load component_tags %}
@@ -333,7 +363,7 @@ class TestParentArgs:
 class TestContextCalledOnce:
     @djc_test(parametrize=PARAMETRIZE_CONTEXT_BEHAVIOR)
     def test_one_context_call_with_simple_component(self, components_settings):
-        registry.register(name="incrementer", component=IncrementerComponent)
+        registry.register(name="incrementer", component=gen_incrementer_component())
         template_str: types.django_html = """
             {% load component_tags %}
             {% component 'incrementer' %}{% endcomponent %}
@@ -347,7 +377,7 @@ class TestContextCalledOnce:
 
     @djc_test(parametrize=PARAMETRIZE_CONTEXT_BEHAVIOR)
     def test_one_context_call_with_simple_component_and_arg(self, components_settings):
-        registry.register(name="incrementer", component=IncrementerComponent)
+        registry.register(name="incrementer", component=gen_incrementer_component())
         template_str: types.django_html = """
             {% load component_tags %}
             {% component 'incrementer' value='2' %}{% endcomponent %}
@@ -364,7 +394,7 @@ class TestContextCalledOnce:
 
     @djc_test(parametrize=PARAMETRIZE_CONTEXT_BEHAVIOR)
     def test_one_context_call_with_component(self, components_settings):
-        registry.register(name="incrementer", component=IncrementerComponent)
+        registry.register(name="incrementer", component=gen_incrementer_component())
         template_str: types.django_html = """
             {% load component_tags %}
             {% component 'incrementer' %}{% endcomponent %}
@@ -376,7 +406,7 @@ class TestContextCalledOnce:
 
     @djc_test(parametrize=PARAMETRIZE_CONTEXT_BEHAVIOR)
     def test_one_context_call_with_component_and_arg(self, components_settings):
-        registry.register(name="incrementer", component=IncrementerComponent)
+        registry.register(name="incrementer", component=gen_incrementer_component())
         template_str: types.django_html = """
             {% load component_tags %}
             {% component 'incrementer' value='3' %}{% endcomponent %}
@@ -388,7 +418,7 @@ class TestContextCalledOnce:
 
     @djc_test(parametrize=PARAMETRIZE_CONTEXT_BEHAVIOR)
     def test_one_context_call_with_slot(self, components_settings):
-        registry.register(name="incrementer", component=IncrementerComponent)
+        registry.register(name="incrementer", component=gen_incrementer_component())
         template_str: types.django_html = """
             {% load component_tags %}
             {% component 'incrementer' %}
@@ -411,7 +441,7 @@ class TestContextCalledOnce:
 
     @djc_test(parametrize=PARAMETRIZE_CONTEXT_BEHAVIOR)
     def test_one_context_call_with_slot_and_arg(self, components_settings):
-        registry.register(name="incrementer", component=IncrementerComponent)
+        registry.register(name="incrementer", component=gen_incrementer_component())
         template_str: types.django_html = """
             {% load component_tags %}
             {% component 'incrementer' value='3' %}
@@ -446,7 +476,7 @@ class TestComponentsCanAccessOuterContext:
         )
     )
     def test_simple_component_can_use_outer_context(self, components_settings, expected_value):
-        registry.register(name="simple_component", component=SimpleComponent)
+        registry.register(name="simple_component", component=gen_simple_component())
         template_str: types.django_html = """
             {% load component_tags %}
             {% component 'simple_component' %}{% endcomponent %}
@@ -465,7 +495,7 @@ class TestComponentsCanAccessOuterContext:
 class TestIsolatedContext:
     @djc_test(parametrize=PARAMETRIZE_CONTEXT_BEHAVIOR)
     def test_simple_component_can_pass_outer_context_in_args(self, components_settings):
-        registry.register(name="simple_component", component=SimpleComponent)
+        registry.register(name="simple_component", component=gen_simple_component())
         template_str: types.django_html = """
             {% load component_tags %}
             {% component 'simple_component' variable=variable only %}{% endcomponent %}
@@ -476,7 +506,7 @@ class TestIsolatedContext:
 
     @djc_test(parametrize=PARAMETRIZE_CONTEXT_BEHAVIOR)
     def test_simple_component_cannot_use_outer_context(self, components_settings):
-        registry.register(name="simple_component", component=SimpleComponent)
+        registry.register(name="simple_component", component=gen_simple_component())
         template_str: types.django_html = """
             {% load component_tags %}
             {% component 'simple_component' only %}{% endcomponent %}
@@ -492,7 +522,7 @@ class TestIsolatedContextSetting:
     def test_component_tag_includes_variable_with_isolated_context_from_settings(
         self,
     ):
-        registry.register(name="simple_component", component=SimpleComponent)
+        registry.register(name="simple_component", component=gen_simple_component())
         template_str: types.django_html = """
             {% load component_tags %}
             {% component 'simple_component' variable=variable %}{% endcomponent %}
@@ -505,7 +535,7 @@ class TestIsolatedContextSetting:
     def test_component_tag_excludes_variable_with_isolated_context_from_settings(
         self,
     ):
-        registry.register(name="simple_component", component=SimpleComponent)
+        registry.register(name="simple_component", component=gen_simple_component())
         template_str: types.django_html = """
             {% load component_tags %}
             {% component 'simple_component' %}{% endcomponent %}
@@ -518,7 +548,7 @@ class TestIsolatedContextSetting:
     def test_component_includes_variable_with_isolated_context_from_settings(
         self,
     ):
-        registry.register(name="simple_component", component=SimpleComponent)
+        registry.register(name="simple_component", component=gen_simple_component())
         template_str: types.django_html = """
             {% load component_tags %}
             {% component 'simple_component' variable=variable %}
@@ -532,7 +562,7 @@ class TestIsolatedContextSetting:
     def test_component_excludes_variable_with_isolated_context_from_settings(
         self,
     ):
-        registry.register(name="simple_component", component=SimpleComponent)
+        registry.register(name="simple_component", component=gen_simple_component())
         template_str: types.django_html = """
             {% load component_tags %}
             {% component 'simple_component' %}
diff --git a/tests/test_node.py b/tests/test_node.py
index a5dab35a..d3118e3a 100644
--- a/tests/test_node.py
+++ b/tests/test_node.py
@@ -919,11 +919,11 @@ class TestSignatureBasedValidation:
         template3.render(Context({}))
 
         params3, nodelist3, node_id3, contents3 = captured  # type: ignore
-        assert len(params3) == 1
-        assert isinstance(params3[0], TagAttr)
-        assert len(nodelist3) == 0
-        assert contents3 is None
-        assert node_id3 == "a1bc40"
+        assert len(params3) == 1  # type: ignore
+        assert isinstance(params3[0], TagAttr)  # type: ignore
+        assert len(nodelist3) == 0  # type: ignore
+        assert contents3 is None  # type: ignore
+        assert node_id3 == "a1bc40"  # type: ignore
 
         # Cleanup
         TestNodeWithEndTag.unregister(component_tags.register)
diff --git a/tests/test_signals.py b/tests/test_signals.py
index af0890f9..ef629bad 100644
--- a/tests/test_signals.py
+++ b/tests/test_signals.py
@@ -10,10 +10,6 @@ from .testutils import PARAMETRIZE_CONTEXT_BEHAVIOR, setup_test_config
 setup_test_config({"autodiscover": False})
 
 
-class SlottedComponent(Component):
-    template_file = "slotted_template.html"
-
-
 def _get_templates_used_to_render(subject_template, render_context=None):
     """Emulate django.test.client.Client (see request method)."""
     from django.test.signals import template_rendered
@@ -48,24 +44,33 @@ def with_template_signal(func):
 
 @djc_test
 class TestTemplateSignal:
-    class InnerComponent(Component):
-        template_file = "simple_template.html"
+    def gen_slotted_component(self):
+        class SlottedComponent(Component):
+            template_file = "slotted_template.html"
 
-        def get_template_data(self, args, kwargs, slots, context):
-            return {
-                "variable": kwargs["variable"],
-                "variable2": kwargs.get("variable2", "default"),
-            }
+        return SlottedComponent
 
-        class Media:
-            css = "style.css"
-            js = "script.js"
+    def gen_inner_component(self):
+        class InnerComponent(Component):
+            template_file = "simple_template.html"
+
+            def get_template_data(self, args, kwargs, slots, context):
+                return {
+                    "variable": kwargs["variable"],
+                    "variable2": kwargs.get("variable2", "default"),
+                }
+
+            class Media:
+                css = "style.css"
+                js = "script.js"
+
+        return InnerComponent
 
     @djc_test(parametrize=PARAMETRIZE_CONTEXT_BEHAVIOR)
     @with_template_signal
     def test_template_rendered(self, components_settings):
-        registry.register("test_component", SlottedComponent)
-        registry.register("inner_component", self.InnerComponent)
+        registry.register("test_component", self.gen_slotted_component())
+        registry.register("inner_component", self.gen_inner_component())
         template_str: types.django_html = """
             {% load component_tags %}
             {% component 'test_component' %}{% endcomponent %}
@@ -77,8 +82,8 @@ class TestTemplateSignal:
     @djc_test(parametrize=PARAMETRIZE_CONTEXT_BEHAVIOR)
     @with_template_signal
     def test_template_rendered_nested_components(self, components_settings):
-        registry.register("test_component", SlottedComponent)
-        registry.register("inner_component", self.InnerComponent)
+        registry.register("test_component", self.gen_slotted_component())
+        registry.register("inner_component", self.gen_inner_component())
         template_str: types.django_html = """
             {% load component_tags %}
             {% component 'test_component' %}
diff --git a/tests/test_template.py b/tests/test_template.py
index 4e8e0e6c..a7a250a7 100644
--- a/tests/test_template.py
+++ b/tests/test_template.py
@@ -1,7 +1,8 @@
-from django.template import Context, Template
+from django.template import Template
 
 from django_components import Component, cached_template, types
 
+from django_components.template import _get_component_template
 from django_components.testing import djc_test
 from .testutils import setup_test_config
 
@@ -10,6 +11,7 @@ setup_test_config({"autodiscover": False})
 
 @djc_test
 class TestTemplateCache:
+    # TODO_v1 - Remove
     def test_cached_template(self):
         template_1 = cached_template("Variable: <strong>{{ variable }}</strong>")
         template_1._test_id = "123"
@@ -18,6 +20,7 @@ class TestTemplateCache:
 
         assert template_2._test_id == "123"
 
+    # TODO_v1 - Remove
     def test_cached_template_accepts_class(self):
         class MyTemplate(Template):
             pass
@@ -25,6 +28,8 @@ class TestTemplateCache:
         template = cached_template("Variable: <strong>{{ variable }}</strong>", MyTemplate)
         assert isinstance(template, MyTemplate)
 
+    # TODO_v1 - Move to `test_component.py`. While `cached_template()` will be removed,
+    #           we will internally still cache templates by class, and we will want to test for that.
     def test_component_template_is_cached(self):
         class SimpleComponent(Component):
             def get_template(self, context):
@@ -38,9 +43,11 @@ class TestTemplateCache:
                     "variable": kwargs.get("variable", None),
                 }
 
-        comp = SimpleComponent()
-        template_1 = comp._get_template(Context({}), component_id="123")
-        template_1._test_id = "123"
+        comp = SimpleComponent(kwargs={"variable": "test"})
 
-        template_2 = comp._get_template(Context({}), component_id="123")
-        assert template_2._test_id == "123"
+        # Check that we get the same template instance
+        template_1 = _get_component_template(comp)
+        template_1._test_id = "123"  # type: ignore[union-attr]
+
+        template_2 = _get_component_template(comp)
+        assert template_2._test_id == "123"  # type: ignore[union-attr]
diff --git a/tests/test_templatetags.py b/tests/test_templatetags.py
index 56ed15b0..3c494ea3 100644
--- a/tests/test_templatetags.py
+++ b/tests/test_templatetags.py
@@ -10,10 +10,6 @@ from .testutils import PARAMETRIZE_CONTEXT_BEHAVIOR, setup_test_config
 setup_test_config({"autodiscover": False})
 
 
-class SlottedComponent(Component):
-    template_file = "slotted_template.html"
-
-
 #######################
 # TESTS
 #######################
diff --git a/tests/test_templatetags_component.py b/tests/test_templatetags_component.py
index e5e143fd..bf5addcd 100644
--- a/tests/test_templatetags_component.py
+++ b/tests/test_templatetags_component.py
@@ -12,22 +12,28 @@ from .testutils import PARAMETRIZE_CONTEXT_BEHAVIOR, setup_test_config
 setup_test_config({"autodiscover": False})
 
 
-class SlottedComponent(Component):
-    template_file = "slotted_template.html"
+def gen_slotted_component():
+    class SlottedComponent(Component):
+        template_file = "slotted_template.html"
+
+    return SlottedComponent
 
 
-class SlottedComponentWithContext(Component):
-    template: types.django_html = """
-        {% load component_tags %}
-        <custom-template>
-            <header>{% slot "header" %}Default header{% endslot %}</header>
-            <main>{% slot "main" %}Default main{% endslot %}</main>
-            <footer>{% slot "footer" %}Default footer{% endslot %}</footer>
-        </custom-template>
-    """
+def gen_slotted_component_with_context():
+    class SlottedComponentWithContext(Component):
+        template: types.django_html = """
+            {% load component_tags %}
+            <custom-template>
+                <header>{% slot "header" %}Default header{% endslot %}</header>
+                <main>{% slot "main" %}Default main{% endslot %}</main>
+                <footer>{% slot "footer" %}Default footer{% endslot %}</footer>
+            </custom-template>
+        """
 
-    def get_template_data(self, args, kwargs, slots, context):
-        return {"variable": kwargs["variable"]}
+        def get_template_data(self, args, kwargs, slots, context):
+            return {"variable": kwargs["variable"]}
+
+    return SlottedComponentWithContext
 
 
 #######################
@@ -522,8 +528,8 @@ class TestDynamicComponentTemplateTag:
 class TestMultiComponent:
     @djc_test(parametrize=PARAMETRIZE_CONTEXT_BEHAVIOR)
     def test_both_components_render_correctly_with_no_slots(self, components_settings):
-        registry.register("first_component", SlottedComponent)
-        registry.register("second_component", SlottedComponentWithContext)
+        registry.register("first_component", gen_slotted_component())
+        registry.register("second_component", gen_slotted_component_with_context())
 
         template_str: types.django_html = """
             {% load component_tags %}
@@ -557,8 +563,8 @@ class TestMultiComponent:
 
     @djc_test(parametrize=PARAMETRIZE_CONTEXT_BEHAVIOR)
     def test_both_components_render_correctly_with_slots(self, components_settings):
-        registry.register("first_component", SlottedComponent)
-        registry.register("second_component", SlottedComponentWithContext)
+        registry.register("first_component", gen_slotted_component())
+        registry.register("second_component", gen_slotted_component_with_context())
 
         template_str: types.django_html = """
             {% load component_tags %}
@@ -594,8 +600,8 @@ class TestMultiComponent:
 
     @djc_test(parametrize=PARAMETRIZE_CONTEXT_BEHAVIOR)
     def test_both_components_render_correctly_when_only_first_has_slots(self, components_settings):
-        registry.register("first_component", SlottedComponent)
-        registry.register("second_component", SlottedComponentWithContext)
+        registry.register("first_component", gen_slotted_component())
+        registry.register("second_component", gen_slotted_component_with_context())
 
         template_str: types.django_html = """
             {% load component_tags %}
@@ -630,8 +636,8 @@ class TestMultiComponent:
 
     @djc_test(parametrize=PARAMETRIZE_CONTEXT_BEHAVIOR)
     def test_both_components_render_correctly_when_only_second_has_slots(self, components_settings):
-        registry.register("first_component", SlottedComponent)
-        registry.register("second_component", SlottedComponentWithContext)
+        registry.register("first_component", gen_slotted_component())
+        registry.register("second_component", gen_slotted_component_with_context())
 
         template_str: types.django_html = """
             {% load component_tags %}
@@ -667,19 +673,19 @@ class TestMultiComponent:
 
 @djc_test
 class TestComponentIsolation:
-    class SlottedComponent(Component):
-        template: types.django_html = """
-            {% load component_tags %}
-            <custom-template>
-                <header>{% slot "header" %}Default header{% endslot %}</header>
-                <main>{% slot "main" %}Default main{% endslot %}</main>
-                <footer>{% slot "footer" %}Default footer{% endslot %}</footer>
-            </custom-template>
-        """
-
     @djc_test(parametrize=PARAMETRIZE_CONTEXT_BEHAVIOR)
     def test_instances_of_component_do_not_share_slots(self, components_settings):
-        registry.register("test", self.SlottedComponent)
+        @register("test")
+        class SlottedComponent(Component):
+            template: types.django_html = """
+                {% load component_tags %}
+                <custom-template>
+                    <header>{% slot "header" %}Default header{% endslot %}</header>
+                    <main>{% slot "main" %}Default main{% endslot %}</main>
+                    <footer>{% slot "footer" %}Default footer{% endslot %}</footer>
+                </custom-template>
+            """
+
         template_str: types.django_html = """
             {% load component_tags %}
             {% component "test" %}
@@ -791,7 +797,7 @@ class TestRecursiveComponent:
 class TestComponentTemplateSyntaxError:
     @djc_test(parametrize=PARAMETRIZE_CONTEXT_BEHAVIOR)
     def test_variable_outside_fill_tag_compiles_w_out_error(self, components_settings):
-        registry.register("test", SlottedComponent)
+        registry.register("test", gen_slotted_component())
         # As of v0.28 this is valid, provided the component registered under "test"
         # contains a slot tag marked as 'default'. This is verified outside
         # template compilation time.
@@ -805,7 +811,7 @@ class TestComponentTemplateSyntaxError:
 
     @djc_test(parametrize=PARAMETRIZE_CONTEXT_BEHAVIOR)
     def test_text_outside_fill_tag_is_not_error_when_no_fill_tags(self, components_settings):
-        registry.register("test", SlottedComponent)
+        registry.register("test", gen_slotted_component())
         # As of v0.28 this is valid, provided the component registered under "test"
         # contains a slot tag marked as 'default'. This is verified outside
         # template compilation time.
@@ -819,7 +825,7 @@ class TestComponentTemplateSyntaxError:
 
     @djc_test(parametrize=PARAMETRIZE_CONTEXT_BEHAVIOR)
     def test_text_outside_fill_tag_is_error_when_fill_tags(self, components_settings):
-        registry.register("test", SlottedComponent)
+        registry.register("test", gen_slotted_component())
         template_str: types.django_html = """
             {% load component_tags %}
             {% component "test" %}
@@ -837,7 +843,7 @@ class TestComponentTemplateSyntaxError:
 
     @djc_test(parametrize=PARAMETRIZE_CONTEXT_BEHAVIOR)
     def test_unclosed_component_is_error(self, components_settings):
-        registry.register("test", SlottedComponent)
+        registry.register("test", gen_slotted_component())
         with pytest.raises(
             TemplateSyntaxError,
             match=re.escape("Unclosed tag on line 3: 'component'"),
diff --git a/tests/test_templatetags_extends.py b/tests/test_templatetags_extends.py
index cff9372c..74f2abe1 100644
--- a/tests/test_templatetags_extends.py
+++ b/tests/test_templatetags_extends.py
@@ -11,21 +11,18 @@ from .testutils import PARAMETRIZE_CONTEXT_BEHAVIOR, setup_test_config
 setup_test_config({"autodiscover": False})
 
 
-class SlottedComponent(Component):
-    template_file = "slotted_template.html"
+def gen_slotted_component():
+    class SlottedComponent(Component):
+        template_file = "slotted_template.html"
+
+    return SlottedComponent
 
 
-class BlockedAndSlottedComponent(Component):
-    template_file = "blocked_and_slotted_template.html"
+def gen_blocked_and_slotted_component():
+    class BlockedAndSlottedComponent(Component):
+        template_file = "blocked_and_slotted_template.html"
 
-
-class RelativeFileComponentUsingTemplateFile(Component):
-    template_file = "relative_extends.html"
-
-
-class RelativeFileComponentUsingGetTemplateName(Component):
-    def get_template_name(self, context):
-        return "relative_extends.html"
+    return BlockedAndSlottedComponent
 
 
 #######################
@@ -37,7 +34,7 @@ class RelativeFileComponentUsingGetTemplateName(Component):
 class TestExtendsCompat:
     @djc_test(parametrize=PARAMETRIZE_CONTEXT_BEHAVIOR)
     def test_double_extends_on_main_template_and_component_one_component(self, components_settings):
-        registry.register("blocked_and_slotted_component", BlockedAndSlottedComponent)
+        registry.register("blocked_and_slotted_component", gen_blocked_and_slotted_component())
 
         @register("extended_component")
         class _ExtendedComponent(Component):
@@ -82,7 +79,7 @@ class TestExtendsCompat:
 
     @djc_test(parametrize=PARAMETRIZE_CONTEXT_BEHAVIOR)
     def test_double_extends_on_main_template_and_component_two_identical_components(self, components_settings):
-        registry.register("blocked_and_slotted_component", BlockedAndSlottedComponent)
+        registry.register("blocked_and_slotted_component", gen_blocked_and_slotted_component())
 
         @register("extended_component")
         class _ExtendedComponent(Component):
@@ -134,12 +131,11 @@ class TestExtendsCompat:
                 </body>
             </html>
         """
-
         assertHTMLEqual(rendered, expected)
 
     @djc_test(parametrize=PARAMETRIZE_CONTEXT_BEHAVIOR)
     def test_double_extends_on_main_template_and_component_two_different_components_same_parent(self, components_settings):  # noqa: E501
-        registry.register("blocked_and_slotted_component", BlockedAndSlottedComponent)
+        registry.register("blocked_and_slotted_component", gen_blocked_and_slotted_component())
 
         @register("extended_component")
         class _ExtendedComponent(Component):
@@ -201,12 +197,11 @@ class TestExtendsCompat:
                 </body>
             </html>
         """
-
         assertHTMLEqual(rendered, expected)
 
     @djc_test(parametrize=PARAMETRIZE_CONTEXT_BEHAVIOR)
     def test_double_extends_on_main_template_and_component_two_different_components_different_parent(self, components_settings):  # noqa: E501
-        registry.register("blocked_and_slotted_component", BlockedAndSlottedComponent)
+        registry.register("blocked_and_slotted_component", gen_blocked_and_slotted_component())
 
         @register("extended_component")
         class _ExtendedComponent(Component):
@@ -271,7 +266,7 @@ class TestExtendsCompat:
 
     @djc_test(parametrize=PARAMETRIZE_CONTEXT_BEHAVIOR)
     def test_extends_on_component_one_component(self, components_settings):
-        registry.register("blocked_and_slotted_component", BlockedAndSlottedComponent)
+        registry.register("blocked_and_slotted_component", gen_blocked_and_slotted_component())
 
         @register("extended_component")
         class _ExtendedComponent(Component):
@@ -314,7 +309,7 @@ class TestExtendsCompat:
 
     @djc_test(parametrize=PARAMETRIZE_CONTEXT_BEHAVIOR)
     def test_extends_on_component_two_component(self, components_settings):
-        registry.register("blocked_and_slotted_component", BlockedAndSlottedComponent)
+        registry.register("blocked_and_slotted_component", gen_blocked_and_slotted_component())
 
         @register("extended_component")
         class _ExtendedComponent(Component):
@@ -368,8 +363,8 @@ class TestExtendsCompat:
 
     @djc_test(parametrize=PARAMETRIZE_CONTEXT_BEHAVIOR)
     def test_double_extends_on_main_template_and_nested_component(self, components_settings):
-        registry.register("slotted_component", SlottedComponent)
-        registry.register("blocked_and_slotted_component", BlockedAndSlottedComponent)
+        registry.register("slotted_component", gen_slotted_component())
+        registry.register("blocked_and_slotted_component", gen_blocked_and_slotted_component())
 
         @register("extended_component")
         class _ExtendedComponent(Component):
@@ -425,8 +420,8 @@ class TestExtendsCompat:
 
     @djc_test(parametrize=PARAMETRIZE_CONTEXT_BEHAVIOR)
     def test_double_extends_on_main_template_and_nested_component_and_include(self, components_settings):
-        registry.register("slotted_component", SlottedComponent)
-        registry.register("blocked_and_slotted_component", BlockedAndSlottedComponent)
+        registry.register("slotted_component", gen_slotted_component())
+        registry.register("blocked_and_slotted_component", gen_blocked_and_slotted_component())
 
         @register("extended_component")
         class _ExtendedComponent(Component):
@@ -459,12 +454,25 @@ class TestExtendsCompat:
 
         # second rendering after cache built
         rendered_2 = Template(template).render(Context({"DJC_DEPS_STRATEGY": "ignore"}))
-        expected_2 = expected.replace("data-djc-id-ca1bc3f", "data-djc-id-ca1bc41")
+
+        expected_2 = """
+            <!DOCTYPE html>
+            <html lang="en">
+                <body>
+                    <main role="main">
+                        <div class='container main-container'>
+                            Variable: <strong></strong>
+                            Variable: <strong data-djc-id-ca1bc41></strong>
+                        </div>
+                    </main>
+                </body>
+            </html>
+        """
         assertHTMLEqual(rendered_2, expected_2)
 
     @djc_test(parametrize=PARAMETRIZE_CONTEXT_BEHAVIOR)
     def test_slots_inside_extends(self, components_settings):
-        registry.register("slotted_component", SlottedComponent)
+        registry.register("slotted_component", gen_slotted_component())
 
         @register("slot_inside_extends")
         class SlotInsideExtendsComponent(Component):
@@ -497,7 +505,7 @@ class TestExtendsCompat:
 
     @djc_test(parametrize=PARAMETRIZE_CONTEXT_BEHAVIOR)
     def test_slots_inside_include(self, components_settings):
-        registry.register("slotted_component", SlottedComponent)
+        registry.register("slotted_component", gen_slotted_component())
 
         @register("slot_inside_include")
         class SlotInsideIncludeComponent(Component):
@@ -530,7 +538,7 @@ class TestExtendsCompat:
 
     @djc_test(parametrize=PARAMETRIZE_CONTEXT_BEHAVIOR)
     def test_component_inside_block(self, components_settings):
-        registry.register("slotted_component", SlottedComponent)
+        registry.register("slotted_component", gen_slotted_component())
         template: types.django_html = """
             {% extends "block.html" %}
             {% load component_tags %}
@@ -565,7 +573,7 @@ class TestExtendsCompat:
 
     @djc_test(parametrize=PARAMETRIZE_CONTEXT_BEHAVIOR)
     def test_block_inside_component(self, components_settings):
-        registry.register("slotted_component", SlottedComponent)
+        registry.register("slotted_component", gen_slotted_component())
 
         template: types.django_html = """
             {% extends "block_in_component.html" %}
@@ -594,7 +602,7 @@ class TestExtendsCompat:
 
     @djc_test(parametrize=PARAMETRIZE_CONTEXT_BEHAVIOR)
     def test_block_inside_component_parent(self, components_settings):
-        registry.register("slotted_component", SlottedComponent)
+        registry.register("slotted_component", gen_slotted_component())
 
         @register("block_in_component_parent")
         class BlockInCompParent(Component):
@@ -627,7 +635,7 @@ class TestExtendsCompat:
         Assert that when we call a component with `{% component %}`, that
         the `{% block %}` will NOT affect the inner component.
         """
-        registry.register("slotted_component", SlottedComponent)
+        registry.register("slotted_component", gen_slotted_component())
 
         @register("block_inside_slot_v1")
         class BlockInSlotInComponent(Component):
@@ -662,7 +670,7 @@ class TestExtendsCompat:
 
     @djc_test(parametrize=PARAMETRIZE_CONTEXT_BEHAVIOR)
     def test_slot_inside_block__slot_default_block_default(self, components_settings):
-        registry.register("slotted_component", SlottedComponent)
+        registry.register("slotted_component", gen_slotted_component())
 
         @register("slot_inside_block")
         class _SlotInsideBlockComponent(Component):
@@ -695,7 +703,7 @@ class TestExtendsCompat:
     @djc_test(parametrize=PARAMETRIZE_CONTEXT_BEHAVIOR)
     def test_slot_inside_block__slot_default_block_override(self, components_settings):
         registry.clear()
-        registry.register("slotted_component", SlottedComponent)
+        registry.register("slotted_component", gen_slotted_component())
 
         @register("slot_inside_block")
         class _SlotInsideBlockComponent(Component):
@@ -730,7 +738,7 @@ class TestExtendsCompat:
 
     @djc_test(parametrize=PARAMETRIZE_CONTEXT_BEHAVIOR)
     def test_slot_inside_block__slot_overriden_block_default(self, components_settings):
-        registry.register("slotted_component", SlottedComponent)
+        registry.register("slotted_component", gen_slotted_component())
 
         @register("slot_inside_block")
         class _SlotInsideBlockComponent(Component):
@@ -766,7 +774,7 @@ class TestExtendsCompat:
 
     @djc_test(parametrize=PARAMETRIZE_CONTEXT_BEHAVIOR)
     def test_slot_inside_block__slot_overriden_block_overriden(self, components_settings):
-        registry.register("slotted_component", SlottedComponent)
+        registry.register("slotted_component", gen_slotted_component())
 
         @register("slot_inside_block")
         class _SlotInsideBlockComponent(Component):
@@ -812,7 +820,7 @@ class TestExtendsCompat:
 
     @djc_test(parametrize=PARAMETRIZE_CONTEXT_BEHAVIOR)
     def test_inject_inside_block(self, components_settings):
-        registry.register("slotted_component", SlottedComponent)
+        registry.register("slotted_component", gen_slotted_component())
 
         @register("injectee")
         class InjectComponent(Component):
@@ -851,7 +859,9 @@ class TestExtendsCompat:
 
     @djc_test(parametrize=PARAMETRIZE_CONTEXT_BEHAVIOR)
     def test_component_using_template_file_extends_relative_file(self, components_settings):
-        registry.register("relative_file_component_using_template_file", RelativeFileComponentUsingTemplateFile)
+        @register("relative_file_component_using_template_file")
+        class RelativeFileComponentUsingTemplateFile(Component):
+            template_file = "relative_extends.html"
 
         template: types.django_html = """
             {% load component_tags %}
@@ -874,7 +884,10 @@ class TestExtendsCompat:
 
     @djc_test(parametrize=PARAMETRIZE_CONTEXT_BEHAVIOR)
     def test_component_using_get_template_name_extends_relative_file(self, components_settings):
-        registry.register("relative_file_component_using_get_template_name", RelativeFileComponentUsingGetTemplateName)
+        @register("relative_file_component_using_get_template_name")
+        class RelativeFileComponentUsingGetTemplateName(Component):
+            def get_template_name(self, context):
+                return "relative_extends.html"
 
         template: types.django_html = """
             {% load component_tags %}
diff --git a/tests/testutils.py b/tests/testutils.py
index a2594fc8..9f3a56d4 100644
--- a/tests/testutils.py
+++ b/tests/testutils.py
@@ -37,12 +37,19 @@ def setup_test_config(
                 "OPTIONS": {
                     "builtins": [
                         "django_components.templatetags.component_tags",
-                    ]
+                    ],
+                    'loaders': [
+                        # Default Django loader
+                        'django.template.loaders.filesystem.Loader',
+                        # Including this is the same as APP_DIRS=True
+                        'django.template.loaders.app_directories.Loader',
+                        # Components loader
+                        'django_components.template_loader.Loader',
+                    ],
                 },
             }
         ],
         "COMPONENTS": {
-            "template_cache_size": 128,
             **(components or {}),
         },
         "MIDDLEWARE": [],