diff --git a/lib/modules/manager/argocd/__fixtures__/validApplication.yml b/lib/modules/manager/argocd/__fixtures__/validApplication.yml
index 4533b0b64491d7..fb88a817345c5a 100644
--- a/lib/modules/manager/argocd/__fixtures__/validApplication.yml
+++ b/lib/modules/manager/argocd/__fixtures__/validApplication.yml
@@ -128,4 +128,13 @@ spec:
       helm:
         valueFiles:
           - $foo/values.yaml
-
+---
+{{- if .Values.enabled }}
+apiVersion: argoproj.io/v1alpha1
+kind: Application
+spec:
+  source:
+    chart: somechart
+    repoURL: https://git.example.com/foo/bar.git
+    targetRevision: 3.2.1
+{{- end }}
diff --git a/lib/modules/manager/argocd/extract.spec.ts b/lib/modules/manager/argocd/extract.spec.ts
index 0d4c70873a44af..b04165b347803a 100644
--- a/lib/modules/manager/argocd/extract.spec.ts
+++ b/lib/modules/manager/argocd/extract.spec.ts
@@ -165,6 +165,12 @@ spec:
             depName: 'somechart',
             registryUrls: ['https://foo.io/repo'],
           },
+          {
+            currentValue: '3.2.1',
+            datasource: 'helm',
+            depName: 'somechart',
+            registryUrls: ['https://git.example.com/foo/bar.git'],
+          },
         ],
       });
     });
diff --git a/lib/modules/manager/argocd/extract.ts b/lib/modules/manager/argocd/extract.ts
index 49d3daa6c9134f..9f81ab9c8be278 100644
--- a/lib/modules/manager/argocd/extract.ts
+++ b/lib/modules/manager/argocd/extract.ts
@@ -36,6 +36,7 @@ export function extractPackageFile(
     definitions = parseYaml(content, null, {
       customSchema: ApplicationDefinition,
       failureBehaviour: 'filter',
+      removeTemplates: true,
     });
   } catch (err) {
     logger.debug({ err, packageFile }, 'Failed to parse ArgoCD definition.');