diff --git a/src/lang/english.txt b/src/lang/english.txt
index d48e5e892f..fb2e703822 100644
--- a/src/lang/english.txt
+++ b/src/lang/english.txt
@@ -6152,6 +6152,7 @@ STR_TMPL_WARNING_FREE_WAGON                                     :{RED}Free Chain
 STR_TMPL_WARNING_VEH_UNAVAILABLE                                :{RED}Train not buildable: vehicle unavailable!
 STR_TMPL_GROUP_USES_TEMPLATE                                    :{BLACK}Template in use: {NUM}
 STR_TMP_TEMPLATE_IN_USE                                         :Template is in use
+STR_TMP_TEMPLATE_FROM_PARENT_GROUP                              :Using template from parent group
 STR_TMPL_GROUP_NUM_TRAINS                                       :{BLACK}{NUM}
 STR_TMPL_CREATEGUI_TITLE                                        :{WHITE}Create/Edit Template Vehicle
 STR_TMPL_MAINGUI_DEFINEDGROUPS                                  :{BLACK}Defined Groups for Company
diff --git a/src/tbtr_template_gui_main.cpp b/src/tbtr_template_gui_main.cpp
index 741da77c3c..a80f038b76 100644
--- a/src/tbtr_template_gui_main.cpp
+++ b/src/tbtr_template_gui_main.cpp
@@ -602,11 +602,14 @@ public:
 			StringID str = STR_GROUP_NAME;
 			DrawString(left + ScaleGUITrad(30 + this->indents[i] * 10), right, text_y, str, TC_BLACK);
 
-			const TemplateID tid = GetTemplateIDByGroupID(g_id);
+			const TemplateID tid = GetTemplateIDByGroupIDRecursive(g_id);
+			const TemplateID tid_self = GetTemplateIDByGroupID(g_id);
 
 			/* Draw the template in use for this group, if there is one */
 			short template_in_use = FindTemplateIndex(tid);
-			if (template_in_use >= 0) {
+			if (tid != INVALID_TEMPLATE && tid_self == INVALID_TEMPLATE) {
+				DrawString (left, right, text_y, STR_TMP_TEMPLATE_FROM_PARENT_GROUP, TC_SILVER, SA_HOR_CENTER);
+			} else if (template_in_use >= 0) {
 				SetDParam(0, template_in_use);
 				DrawString (left, right, text_y, STR_TMPL_GROUP_USES_TEMPLATE, TC_BLACK, SA_HOR_CENTER);
 			} else if (tid != INVALID_TEMPLATE) { /* If there isn't a template applied from the current group, check if there is one for another rail type */
diff --git a/src/tbtr_template_vehicle.cpp b/src/tbtr_template_vehicle.cpp
index 74867507ae..5357bc3fb5 100644
--- a/src/tbtr_template_vehicle.cpp
+++ b/src/tbtr_template_vehicle.cpp
@@ -159,6 +159,18 @@ TemplateID GetTemplateIDByGroupID(GroupID gid)
 	return iter->second;
 }
 
+TemplateID GetTemplateIDByGroupIDRecursive(GroupID gid)
+{
+	while (gid != INVALID_GROUP) {
+		auto iter = _template_replacement_index.find(gid);
+		if (iter != _template_replacement_index.end()) return iter->second;
+		const Group *g = Group::GetIfValid(gid);
+		if (g == nullptr) break;
+		gid = Group::Get(gid)->parent;
+	}
+	return INVALID_TEMPLATE;
+}
+
 bool IssueTemplateReplacement(GroupID gid, TemplateID tid)
 {
 	TemplateReplacement *tr = GetTemplateReplacementByGroupID(gid);
diff --git a/src/tbtr_template_vehicle.h b/src/tbtr_template_vehicle.h
index 6178137ce5..c245cd2533 100644
--- a/src/tbtr_template_vehicle.h
+++ b/src/tbtr_template_vehicle.h
@@ -201,6 +201,7 @@ struct TemplateReplacement : TemplateReplacementPool::PoolItem<&_template_replac
 
 TemplateReplacement* GetTemplateReplacementByGroupID(GroupID);
 TemplateID GetTemplateIDByGroupID(GroupID);
+TemplateID GetTemplateIDByGroupIDRecursive(GroupID);
 bool IssueTemplateReplacement(GroupID, TemplateID);
 
 short DeleteTemplateReplacementsByGroupID(GroupID);
diff --git a/src/tbtr_template_vehicle_func.cpp b/src/tbtr_template_vehicle_func.cpp
index 86d84bb155..c0c08a5f56 100644
--- a/src/tbtr_template_vehicle_func.cpp
+++ b/src/tbtr_template_vehicle_func.cpp
@@ -208,6 +208,12 @@ TemplateVehicle* GetTemplateVehicleByGroupID(GroupID gid) {
 	return tid != INVALID_TEMPLATE ? TemplateVehicle::GetIfValid(tid) : nullptr;
 }
 
+TemplateVehicle* GetTemplateVehicleByGroupIDRecursive(GroupID gid) {
+	if (gid >= NEW_GROUP) return nullptr;
+	const TemplateID tid = GetTemplateIDByGroupIDRecursive(gid);
+	return tid != INVALID_TEMPLATE ? TemplateVehicle::GetIfValid(tid) : nullptr;
+}
+
 /**
  * Check a template consist whether it contains any engine of the given railtype
  */
diff --git a/src/tbtr_template_vehicle_func.h b/src/tbtr_template_vehicle_func.h
index 72f9e385a8..744ca5d48c 100644
--- a/src/tbtr_template_vehicle_func.h
+++ b/src/tbtr_template_vehicle_func.h
@@ -38,6 +38,7 @@ void tbtr_debug_pvt(const Train*);
 #endif
 
 TemplateVehicle* GetTemplateVehicleByGroupID(GroupID);
+TemplateVehicle* GetTemplateVehicleByGroupIDRecursive(GroupID);
 bool ChainContainsVehicle(Train*, Train*);
 Train* ChainContainsEngine(EngineID, Train*);
 Train* DepotContainsEngine(TileIndex, EngineID, Train*);
diff --git a/src/train_cmd.cpp b/src/train_cmd.cpp
index 194fba4e37..7916fca456 100644
--- a/src/train_cmd.cpp
+++ b/src/train_cmd.cpp
@@ -5494,7 +5494,7 @@ CommandCost CmdTemplateReplaceVehicle(TileIndex tile, DoCommandFlag flags, uint3
 	Train *new_chain = nullptr;
 	Train *remainder_chain = nullptr;
 	Train *tmp_chain = nullptr;
-	TemplateVehicle *tv = GetTemplateVehicleByGroupID(incoming->group_id);
+	TemplateVehicle *tv = GetTemplateVehicleByGroupIDRecursive(incoming->group_id);
 	if (tv == nullptr) {
 		if (leaveDepot) incoming->vehstatus &= ~VS_STOPPED;
 		return CMD_ERROR;
diff --git a/src/vehicle.cpp b/src/vehicle.cpp
index cbe196f068..2ba1ff9ab4 100644
--- a/src/vehicle.cpp
+++ b/src/vehicle.cpp
@@ -248,7 +248,7 @@ bool Vehicle::NeedsServicing() const
 	}
 
 	if (this->type == VEH_TRAIN) {
-		TemplateVehicle *tv = GetTemplateVehicleByGroupID(this->group_id);
+		TemplateVehicle *tv = GetTemplateVehicleByGroupIDRecursive(this->group_id);
 		if (tv != nullptr) {
 			if (tv->IsReplaceOldOnly() && !this->NeedsAutorenewing(c, false)) return false;
 			Money needed_money = c->settings.engine_renew_money;
@@ -1092,7 +1092,7 @@ void Vehicle::PreCleanPool()
 void VehicleEnteredDepotThisTick(Vehicle *v)
 {
 	/* Template Replacement Setup stuff */
-	if (GetTemplateIDByGroupID(v->group_id) != INVALID_TEMPLATE) {
+	if (GetTemplateIDByGroupIDRecursive(v->group_id) != INVALID_TEMPLATE) {
 		/* Vehicle should stop in the depot if it was in 'stopping' state */
 		_vehicles_to_templatereplace.insert(v->index);
 	}