diff --git a/modules/project-factory/README.md b/modules/project-factory/README.md
index 4600340e6..a5811dc60 100644
--- a/modules/project-factory/README.md
+++ b/modules/project-factory/README.md
@@ -768,7 +768,7 @@ compute.disableSerialPortAccess:
 | [projects-defaults.tf](./projects-defaults.tf) | None |  |  |
 | [projects-log-buckets.tf](./projects-log-buckets.tf) | None | <code>logging-bucket</code> |  |
 | [projects-service-accounts.tf](./projects-service-accounts.tf) | None | <code>iam-service-account</code> |  |
-| [projects.tf](./projects.tf) | None | <code>project</code> |  |
+| [projects.tf](./projects.tf) | None | <code>project</code> | <code>terraform_data</code> |
 | [variables-billing.tf](./variables-billing.tf) | None |  |  |
 | [variables-folders.tf](./variables-folders.tf) | None |  |  |
 | [variables-projects.tf](./variables-projects.tf) | None |  |  |
@@ -831,7 +831,7 @@ module "project-factory" {
     projects = "data/projects"
   }
 }
-# tftest modules=4 resources=23 files=test-0,test-1,test-2
+# tftest modules=4 resources=24 files=test-0,test-1,test-2
 ```
 
 ```yaml
diff --git a/modules/project-factory/projects.tf b/modules/project-factory/projects.tf
index 9788ca0d3..0b0cb8cad 100644
--- a/modules/project-factory/projects.tf
+++ b/modules/project-factory/projects.tf
@@ -28,7 +28,8 @@ locals {
   _projects_input = {
     for k, v in merge(local._folder_projects_raw, local._projects_raw) :
     basename(k) => merge(
-      try(local._templates_raw[v.project_template], {}), v
+      try(local._templates_raw[v.project_template], {}),
+      v
     )
   }
   _projects_path = try(
@@ -57,6 +58,19 @@ locals {
   projects_input = merge(var.projects, local._projects_output)
 }
 
+resource "terraform_data" "project-preconditions" {
+  lifecycle {
+    precondition {
+      condition = alltrue([
+        for k, v in local._projects_input :
+        try(v.project_template, null) == null ||
+        lookup(local._templates_raw, v.project_template, null) != null
+      ])
+      error_message = "Missing project templates referenced in projects."
+    }
+  }
+}
+
 module "projects" {
   source              = "../project"
   for_each            = local.projects_input
diff --git a/tests/fast/stages/s0_org_setup/simple.yaml b/tests/fast/stages/s0_org_setup/simple.yaml
index adc1a0190..4a8f6e5cb 100644
--- a/tests/fast/stages/s0_org_setup/simple.yaml
+++ b/tests/fast/stages/s0_org_setup/simple.yaml
@@ -2837,5 +2837,5 @@ counts:
   google_tags_tag_value_iam_binding: 4
   local_file: 9
   modules: 48
-  resources: 312
-  terraform_data: 2
+  resources: 313
+  terraform_data: 3
diff --git a/tests/fast/stages/s2_networking/ncc.yaml b/tests/fast/stages/s2_networking/ncc.yaml
index b634c983a..d751d43f7 100644
--- a/tests/fast/stages/s2_networking/ncc.yaml
+++ b/tests/fast/stages/s2_networking/ncc.yaml
@@ -2047,5 +2047,5 @@ counts:
   google_storage_bucket_object: 2
   modules: 23
   random_id: 3
-  resources: 183
-  terraform_data: 1
+  resources: 184
+  terraform_data: 2
diff --git a/tests/fast/stages/s2_networking/nva.yaml b/tests/fast/stages/s2_networking/nva.yaml
index 787c5da51..b7216827b 100644
--- a/tests/fast/stages/s2_networking/nva.yaml
+++ b/tests/fast/stages/s2_networking/nva.yaml
@@ -45,5 +45,5 @@ counts:
   google_storage_bucket_object: 2
   modules: 35
   random_id: 3
-  resources: 202
-  terraform_data: 1
+  resources: 203
+  terraform_data: 2
diff --git a/tests/fast/stages/s2_networking/simple.yaml b/tests/fast/stages/s2_networking/simple.yaml
index cad7ef689..99a28ba4f 100644
--- a/tests/fast/stages/s2_networking/simple.yaml
+++ b/tests/fast/stages/s2_networking/simple.yaml
@@ -2054,5 +2054,5 @@ counts:
   google_storage_bucket_object: 2
   modules: 25
   random_id: 3
-  resources: 185
-  terraform_data: 1
+  resources: 186
+  terraform_data: 2
diff --git a/tests/fast/stages/s2_networking/vpns.yaml b/tests/fast/stages/s2_networking/vpns.yaml
index 19ddf84bb..b4533768e 100644
--- a/tests/fast/stages/s2_networking/vpns.yaml
+++ b/tests/fast/stages/s2_networking/vpns.yaml
@@ -2471,5 +2471,5 @@ counts:
   google_storage_bucket_object: 2
   modules: 27
   random_id: 15
-  resources: 214
-  terraform_data: 1
+  resources: 215
+  terraform_data: 2
diff --git a/tests/fast/stages/s2_project_factory/simple.yaml b/tests/fast/stages/s2_project_factory/simple.yaml
index cc9f07be2..0eff74fac 100644
--- a/tests/fast/stages/s2_project_factory/simple.yaml
+++ b/tests/fast/stages/s2_project_factory/simple.yaml
@@ -23,5 +23,5 @@ counts:
   google_storage_bucket_object: 1
   google_tags_tag_binding: 2
   modules: 8
-  resources: 19
-  terraform_data: 1
+  resources: 20
+  terraform_data: 2
diff --git a/tests/fast/stages/s2_security/simple.yaml b/tests/fast/stages/s2_security/simple.yaml
index a9292d6e2..61e75f0c4 100644
--- a/tests/fast/stages/s2_security/simple.yaml
+++ b/tests/fast/stages/s2_security/simple.yaml
@@ -419,5 +419,5 @@ counts:
   google_storage_bucket_object: 2
   google_tags_tag_binding: 2
   modules: 15
-  resources: 50
-  terraform_data: 1
+  resources: 51
+  terraform_data: 2
diff --git a/tests/modules/project_factory/examples/example.yaml b/tests/modules/project_factory/examples/example.yaml
index 3005a4426..9654d9d0a 100644
--- a/tests/modules/project_factory/examples/example.yaml
+++ b/tests/modules/project_factory/examples/example.yaml
@@ -719,5 +719,5 @@ counts:
   google_tags_tag_value: 2
   google_tags_tag_value_iam_binding: 1
   modules: 27
-  resources: 94
-  terraform_data: 1
+  resources: 95
+  terraform_data: 2