diff --git a/change/@microsoft-fast-element-e0afb613-ce1a-4f4f-95a8-5518772af979.json b/change/@microsoft-fast-element-e0afb613-ce1a-4f4f-95a8-5518772af979.json
new file mode 100644
index 00000000000..b3577836763
--- /dev/null
+++ b/change/@microsoft-fast-element-e0afb613-ce1a-4f4f-95a8-5518772af979.json
@@ -0,0 +1,7 @@
+{
+  "type": "prerelease",
+  "comment": "fix: update compiler to ensure first and last child references are defined",
+  "packageName": "@microsoft/fast-element",
+  "email": "chhol@microsoft.com",
+  "dependentChangeType": "prerelease"
+}
diff --git a/packages/web-components/fast-element/src/templating/compiler.spec.ts b/packages/web-components/fast-element/src/templating/compiler.spec.ts
index 8cd7f261202..c563b1c106e 100644
--- a/packages/web-components/fast-element/src/templating/compiler.spec.ts
+++ b/packages/web-components/fast-element/src/templating/compiler.spec.ts
@@ -72,6 +72,13 @@ describe("The template compiler", () => {
                 fragment: ``,
                 childCount: 0,
             },
+            {
+                type: "an empty template",
+                html: `<template></template>`,
+                directives: () => [],
+                fragment: ``,
+                childCount: 0,
+            },
             {
                 type: "a single",
                 html: `${inline(0)}`,
@@ -181,6 +188,13 @@ describe("The template compiler", () => {
         ];
 
         scenarios.forEach(x => {
+            it(`ensures that first and last child references are not null for ${x.type}`, () => {
+                const { fragment } = compile(x.html, x.directives());
+
+                expect(fragment.firstChild).not.to.be.null;
+                expect(fragment.lastChild).not.to.be.null;
+            })
+
             policies.forEach(y => {
                 it(`handles ${x.type} binding expression(s) with ${y.name} policy`, () => {
                     const directives = x.directives();
diff --git a/packages/web-components/fast-element/src/templating/compiler.ts b/packages/web-components/fast-element/src/templating/compiler.ts
index 7fef0634c88..93512a1b9ea 100644
--- a/packages/web-components/fast-element/src/templating/compiler.ts
+++ b/packages/web-components/fast-element/src/templating/compiler.ts
@@ -358,8 +358,13 @@ export const Compiler = {
             template = html;
         }
 
+        if (!template.content.firstChild && !template.content.lastChild) {
+            template.content.appendChild(document.createComment(""));
+        }
+
         // https://bugs.chromium.org/p/chromium/issues/detail?id=1111864
         const fragment = document.adoptNode(template.content);
+
         const context = new CompilationContext<TSource, TParent>(
             fragment,
             factories,
diff --git a/packages/web-components/fast-element/src/templating/view.spec.ts b/packages/web-components/fast-element/src/templating/view.spec.ts
index 456b6b0d792..ac1eab4a9b2 100644
--- a/packages/web-components/fast-element/src/templating/view.spec.ts
+++ b/packages/web-components/fast-element/src/templating/view.spec.ts
@@ -25,6 +25,26 @@ function startCapturingWarnings() {
 
 describe(`The HTMLView`, () => {
     context("when binding hosts", () => {
+        it("gracefully handles empty template elements", () => {
+            const template = html`
+                <template></template>
+            `;
+
+            const view = template.create();
+            view.bind({});
+
+            expect(view.firstChild).not.to.be.null;
+            expect(view.lastChild).not.to.be.null;
+        });
+        it("gracefully handles empty template literals", () => {
+            const template = html``;
+
+            const view = template.create();
+            view.bind({});
+
+            expect(view.firstChild).not.to.be.null;
+            expect(view.lastChild).not.to.be.null;
+        });
         it("warns on class bindings when host not present", () => {
             const template = html`
                 <template class="foo"></template>