diff --git a/features/update.feature b/features/update.feature
index 1bc82254..08e5b63c 100644
--- a/features/update.feature
+++ b/features/update.feature
@@ -642,6 +642,111 @@ Feature: update
       echo 'https://github.com/maestrodev'
       """
 
+  Scenario: Using .erb extension template
+    Given a file named "managed_modules.yml" with:
+      """
+      ---
+        - puppet-test
+      """
+    And a file named "modulesync.yml" with:
+      """
+      ---
+        namespace: maestrodev
+        git_base: https://github.com/
+      """
+    And a file named "config_defaults.yml" with:
+      """
+      ---
+      README.md.erb:
+      """
+    And a directory named "moduleroot"
+    And a file named "moduleroot/README.md.erb" with:
+      """
+      echo '<%= @configs[:git_base] + @configs[:namespace] %>'
+      """
+    When I run `msync update --noop`
+    Then the exit status should be 0
+    And the output should match:
+      """
+      Files changed:
+      +diff --git a/README.md b/README.md
+      """
+    Given I run `cat modules/puppet-test/README.md`
+    Then the output should contain:
+      """
+      echo 'https://github.com/maestrodev'
+      """
+
+  Scenario: Using .erb extension template but settings ommit .erb
+    Given a file named "managed_modules.yml" with:
+      """
+      ---
+        - puppet-test
+      """
+    And a file named "modulesync.yml" with:
+      """
+      ---
+        namespace: maestrodev
+        git_base: https://github.com/
+      """
+    And a file named "config_defaults.yml" with:
+      """
+      ---
+      README.md:
+      """
+    And a directory named "moduleroot"
+    And a file named "moduleroot/README.md.erb" with:
+      """
+      echo '<%= @configs[:git_base] + @configs[:namespace] %>'
+      """
+    When I run `msync update --noop`
+    Then the exit status should be 0
+    And the output should match:
+      """
+      Files changed:
+      +diff --git a/README.md b/README.md
+      """
+    Given I run `cat modules/puppet-test/README.md`
+    Then the output should contain:
+      """
+      echo 'https://github.com/maestrodev'
+      """
+
+  Scenario: Using non-.erb extension template but settings use .erb
+    Given a file named "managed_modules.yml" with:
+      """
+      ---
+        - puppet-test
+      """
+    And a file named "modulesync.yml" with:
+      """
+      ---
+        namespace: maestrodev
+        git_base: https://github.com/
+      """
+    And a file named "config_defaults.yml" with:
+      """
+      ---
+      README.md.erb:
+      """
+    And a directory named "moduleroot"
+    And a file named "moduleroot/README.md" with:
+      """
+      echo '<%= @configs[:git_base] + @configs[:namespace] %>'
+      """
+    When I run `msync update --noop`
+    Then the exit status should be 0
+    And the output should match:
+      """
+      Files changed:
+      +diff --git a/README.md b/README.md
+      """
+    Given I run `cat modules/puppet-test/README.md`
+    Then the output should contain:
+      """
+      echo 'https://github.com/maestrodev'
+      """
+
   Scenario: Running the same update twice and pushing to a remote branch
     Given a mocked git configuration
     And a remote module repository
diff --git a/lib/modulesync/renderer.rb b/lib/modulesync/renderer.rb
index d1a15724..6250a6b6 100644
--- a/lib/modulesync/renderer.rb
+++ b/lib/modulesync/renderer.rb
@@ -10,8 +10,14 @@ def initialize(configs = {})
     end
 
     def self.build(from_erb_template)
-      erb_obj = ERB.new(File.read(from_erb_template), nil, '-')
-      erb_obj.filename = from_erb_template.chomp('.erb')
+      from_erb_template = from_erb_template.chomp('.erb')
+      template_file = if File.exist?("#{from_erb_template}.erb")
+                        "#{from_erb_template}.erb"
+                      else
+                        from_erb_template
+                      end
+      erb_obj = ERB.new(File.read(template_file), nil, '-')
+      erb_obj.filename = from_erb_template
       erb_obj.def_method(ForgeModuleFile, 'render()')
       erb_obj
     end
@@ -27,7 +33,7 @@ def self.render(_template, configs = {})
     def self.sync(template, to_file)
       path = to_file.rpartition('/').first
       FileUtils.mkdir_p(path) unless path.empty?
-      File.open(to_file, 'w') do |file|
+      File.open(to_file.chomp('.erb'), 'w') do |file|
         file.write(template)
       end
     end
diff --git a/lib/modulesync/settings.rb b/lib/modulesync/settings.rb
index a62adf6e..25e5182d 100644
--- a/lib/modulesync/settings.rb
+++ b/lib/modulesync/settings.rb
@@ -12,8 +12,16 @@ def initialize(global_defaults, defaults, module_defaults, module_configs, addit
       @additional_settings = additional_settings
     end
 
+    def lookup_config(hash, filename)
+      hash[filename] || {}
+    end
+
     def build_file_configs(filename)
-      global_defaults.merge(defaults[filename] || {}).merge(module_defaults).merge(module_configs[filename] || {}).merge(additional_settings)
+      file_def = lookup_config(defaults, filename)
+      file_md  = lookup_config(module_defaults, filename)
+      file_mc  = lookup_config(module_configs, filename)
+
+      global_defaults.merge(file_def).merge(file_md).merge(file_mc).merge(additional_settings)
     end
 
     def managed?(filename)