diff --git a/plugins/woocommerce-blocks/src/BlockTemplatesController.php b/plugins/woocommerce-blocks/src/BlockTemplatesController.php
index 2b5c408b6d4..453807dac6c 100644
--- a/plugins/woocommerce-blocks/src/BlockTemplatesController.php
+++ b/plugins/woocommerce-blocks/src/BlockTemplatesController.php
@@ -36,9 +36,9 @@ class BlockTemplatesController {
 	 * Initialization method.
 	 */
 	protected function init() {
-		add_filter( 'get_block_templates', array( $this, 'add_block_templates' ), 10, 3 );
 		add_action( 'template_redirect', array( $this, 'render_block_template' ) );
 		add_filter( 'pre_get_block_template', array( $this, 'maybe_return_blocks_template' ), 10, 3 );
+		add_filter( 'get_block_templates', array( $this, 'add_block_templates' ), 10, 3 );
 	}
 
 	/**
@@ -156,6 +156,16 @@ class BlockTemplatesController {
 				continue;
 			}
 
+			// If the current $post_type is set (e.g. on an Edit Post screen), and isn't included in the available post_types
+			// on the template file, then lets skip it so that it doesn't get added. This is typically used to hide templates
+			// in the template dropdown on the Edit Post page.
+			if ( $post_type &&
+				isset( $template_file->post_types ) &&
+				! in_array( $post_type, $template_file->post_types, true )
+			) {
+				continue;
+			}
+
 			// It would be custom if the template was modified in the editor, so if it's not custom we can load it from
 			// the filesystem.
 			if ( 'custom' !== $template_file->source ) {
@@ -166,13 +176,6 @@ class BlockTemplatesController {
 				continue;
 			}
 
-			if ( $post_type &&
-				isset( $template->post_types ) &&
-				! in_array( $post_type, $template->post_types, true )
-			) {
-				continue;
-			}
-
 			$is_not_custom   = false === array_search(
 				wp_get_theme()->get_stylesheet() . '//' . $template_file->slug,
 				array_column( $query_result, 'id' ),
@@ -317,6 +320,7 @@ class BlockTemplatesController {
 				'source'      => 'woocommerce',
 				'title'       => BlockTemplateUtils::convert_slug_to_title( $template_slug ),
 				'description' => '',
+				'post_types'  => array(), // Don't appear in any Edit Post template selector dropdown.
 			);
 			$templates[]       = (object) $new_template_item;
 		}
diff --git a/plugins/woocommerce-blocks/src/Utils/BlockTemplateUtils.php b/plugins/woocommerce-blocks/src/Utils/BlockTemplateUtils.php
index ff690d50fbb..23c090a3b3f 100644
--- a/plugins/woocommerce-blocks/src/Utils/BlockTemplateUtils.php
+++ b/plugins/woocommerce-blocks/src/Utils/BlockTemplateUtils.php
@@ -108,6 +108,7 @@ class BlockTemplateUtils {
 		$template->status         = $post->post_status;
 		$template->has_theme_file = $has_theme_file;
 		$template->is_custom      = true;
+		$template->post_types     = array(); // Don't appear in any Edit Post template selector dropdown.
 
 		return $template;
 	}
@@ -135,6 +136,7 @@ class BlockTemplateUtils {
 		$template->status         = 'publish';
 		$template->has_theme_file = true;
 		$template->is_custom      = false; // Templates loaded from the filesystem aren't custom, ones that have been edited and loaded from the DB are.
+		$template->post_types     = array(); // Don't appear in any Edit Post template selector dropdown.
 		return $template;
 	}