diff --git a/packages/builder/src/components/start/CreateAppModal.svelte b/packages/builder/src/components/start/CreateAppModal.svelte
index 7f1d73f744..5102179cde 100644
--- a/packages/builder/src/components/start/CreateAppModal.svelte
+++ b/packages/builder/src/components/start/CreateAppModal.svelte
@@ -123,13 +123,19 @@
   async function createNewApp() {
     submitting = true
     try {
-      // Create App
-      const appResp = await post("/api/applications", {
-        name: $createAppStore.values.applicationName,
-        template,
-      })
-      const appJson = await appResp.json()
+      // Create form data to create app
+      let data = new FormData()
+      data.append("name", $createAppStore.values.applicationName)
+      data.append("useTemplate", template != null)
+      if (template) {
+        data.append("templateName", template.name)
+        data.append("templateKey", template.key)
+        data.append("templateFile", template.file)
+      }
 
+      // Create App
+      const appResp = await post("/api/applications", data, {})
+      const appJson = await appResp.json()
       if (!appResp.ok) {
         throw new Error(appJson.message)
       }
diff --git a/packages/builder/src/components/start/Steps/Info.svelte b/packages/builder/src/components/start/Steps/Info.svelte
index e14e327bce..fa74e8b3a0 100644
--- a/packages/builder/src/components/start/Steps/Info.svelte
+++ b/packages/builder/src/components/start/Steps/Info.svelte
@@ -1,6 +1,5 @@
 <script>
   import { Label, Heading, Input } from "@budibase/bbui"
-  import Dropzone from "components/common/Dropzone.svelte"
 
   const BYTES_IN_MB = 1000000
   const FILE_SIZE_LIMIT = BYTES_IN_MB * 5
@@ -20,8 +19,8 @@
       )
       return
     }
-    file = fileArray[0]
-    template.fileImportPath = file.path
+    file = evt.target.files[0]
+    template.file = file
   }
 </script>
 
diff --git a/packages/server/src/api/controllers/application.js b/packages/server/src/api/controllers/application.js
index cba3e6455a..2023385a7f 100644
--- a/packages/server/src/api/controllers/application.js
+++ b/packages/server/src/api/controllers/application.js
@@ -91,7 +91,6 @@ async function getAppUrlIfNotInUse(ctx) {
 
 async function createInstance(template) {
   const appId = generateAppID()
-
   const db = new CouchDB(appId)
   await db.put({
     _id: "_design/database",
@@ -106,10 +105,10 @@ async function createInstance(template) {
   // replicate the template data to the instance DB
   // this is currently very hard to test, downloading and importing template files
   /* istanbul ignore next */
-  if (template) {
+  if (template && template.useTemplate === "true") {
     let dbDumpReadStream
-    if (template.fileImportPath) {
-      dbDumpReadStream = fs.createReadStream(template.fileImportPath)
+    if (template.file) {
+      dbDumpReadStream = fs.createReadStream(template.file.path)
     } else {
       const templatePath = await downloadTemplate(...template.key.split("/"))
       dbDumpReadStream = fs.createReadStream(
@@ -162,8 +161,14 @@ exports.fetchAppPackage = async function(ctx) {
 }
 
 exports.create = async function(ctx) {
+  const { useTemplate, templateKey } = ctx.request.body
+  const instance = await createInstance({
+    useTemplate,
+    key: templateKey,
+    file: ctx.request.files.templateFile,
+  })
+
   const url = await getAppUrlIfNotInUse(ctx)
-  const instance = await createInstance(ctx.request.body.template)
   const appId = instance._id
   const version = packageJson.version
   const newApplication = {