diff --git a/internal/cmd/config.go b/internal/cmd/config.go
index d61bacec588..5cc7cbb0def 100644
--- a/internal/cmd/config.go
+++ b/internal/cmd/config.go
@@ -811,8 +811,15 @@ func (c *Config) createAndReloadConfigFile(cmd *cobra.Command) error {
 // createConfigFile creates a config file using a template and returns its
 // contents.
 func (c *Config) createConfigFile(filename chezmoi.RelPath, data []byte, cmd *cobra.Command) ([]byte, error) {
+	// Clone funcMap and restore it after creating the config.
+	// This ensures that the init template functions
+	// are removed before "normal" template parsing.
 	funcMap := make(template.FuncMap)
 	chezmoi.RecursiveMerge(funcMap, c.templateFuncs)
+	defer func() {
+		c.templateFuncs = funcMap
+	}()
+
 	initTemplateFuncs := map[string]any{
 		"exit":             c.exitInitTemplateFunc,
 		"promptBool":       c.promptBoolInteractiveTemplateFunc,
@@ -826,9 +833,9 @@ func (c *Config) createConfigFile(filename chezmoi.RelPath, data []byte, cmd *co
 		"stdinIsATTY":      c.stdinIsATTYInitTemplateFunc,
 		"writeToStdout":    c.writeToStdout,
 	}
-	chezmoi.RecursiveMerge(funcMap, initTemplateFuncs)
+	chezmoi.RecursiveMerge(c.templateFuncs, initTemplateFuncs)
 
-	tmpl, err := chezmoi.ParseTemplate(filename.String(), data, funcMap, chezmoi.TemplateOptions{
+	tmpl, err := chezmoi.ParseTemplate(filename.String(), data, c.templateFuncs, chezmoi.TemplateOptions{
 		Options: slices.Clone(c.Template.Options),
 	})
 	if err != nil {
diff --git a/internal/cmd/config_test.go b/internal/cmd/config_test.go
index e2b7350b0eb..cb1c2e60bad 100644
--- a/internal/cmd/config_test.go
+++ b/internal/cmd/config_test.go
@@ -266,6 +266,30 @@ func TestParseConfig(t *testing.T) {
 	}
 }
 
+func TestInitConfigWithIncludedTemplate(t *testing.T) {
+	mainFilename := ".chezmoi.yaml.tmpl"
+	secondaryFilename := "personal.config.yaml.tmpl"
+	mainContents := chezmoitest.JoinLines(
+		`color: true`,
+		fmt.Sprintf(`{{ includeTemplate %q . }}`, secondaryFilename),
+	)
+	secondaryContents := chezmoitest.JoinLines(
+		`verbose: true`,
+		`safe: {{ stdinIsATTY }}`,
+	)
+
+	chezmoitest.WithTestFS(t, map[string]any{
+		"/home/user/.local/share/chezmoi/" + mainFilename:      mainContents,
+		"/home/user/.local/share/chezmoi/" + secondaryFilename: secondaryContents,
+	}, func(fileSystem vfs.FS) {
+		c := newTestConfig(t, fileSystem)
+		assert.NoError(t, c.execute([]string{"init"}))
+		assert.Equal(t, true, c.Color.Value(c.colorAutoFunc))
+		assert.Equal(t, true, c.Verbose)
+		assert.Equal(t, false, c.Safe)
+	})
+}
+
 func TestUpperSnakeCaseToCamelCase(t *testing.T) {
 	for s, expected := range map[string]string{
 		"BUG_REPORT_URL":   "bugReportURL",