diff --git a/RELEASE.md b/RELEASE.md
index 6f18db1fe1..cc6032a7d1 100644
--- a/RELEASE.md
+++ b/RELEASE.md
@@ -10,12 +10,19 @@
 # Upcoming Release 0.18.14
 
 ## Major features and improvements
+* Allowed using of custom cookiecutter templates for creating pipelines with `--template` flag for `kedro pipeline create` or via `template/pipeline` folder.
+
 ## Bug fixes and other changes
 * Updated dataset factories to resolve nested catalog config properly.
 
 ## Documentation changes
 ## Breaking changes to the API
 ## Upcoming deprecations for Kedro 0.19.0
+## Community contributions
+Many thanks to the following Kedroids for contributing PRs to this release:
+
+* [Jason Hite](https://github.com/jasonmhite)
+
 
 # Release 0.18.13
 
diff --git a/docs/source/nodes_and_pipelines/modular_pipelines.md b/docs/source/nodes_and_pipelines/modular_pipelines.md
index 5064ae7b87..09c0d5b54e 100644
--- a/docs/source/nodes_and_pipelines/modular_pipelines.md
+++ b/docs/source/nodes_and_pipelines/modular_pipelines.md
@@ -59,7 +59,6 @@ Running the `kedro pipeline create` command adds boilerplate folders and files f
     │   └── pipelines
     │       ├── __init__.py
     │       └── {{pipeline_name}}      <-- This folder defines the modular pipeline
-    │           ├── README.md          <-- Pipeline-specific documentation
     │           ├── __init__.py        <-- So that Python treats this pipeline as a module
     │           ├── nodes.py           <-- To declare your nodes
     │           └── pipeline.py        <-- To structure the pipeline itself
@@ -77,6 +76,36 @@ Running the `kedro pipeline create` command adds boilerplate folders and files f
 
 If you want to do the reverse and remove a modular pipeline, you can use ``kedro pipeline delete <pipeline_name>`` to do so.
 
+### Custom templates
+
+If you want to generate a pipeline with a custom Cookiecutter template, you can save it in `<project_root>/templates/pipeline`.
+The `kedro pipeline create` command will pick up the custom template in your project as the default. You can also specify the path to your custom
+Cookiecutter pipeline template with the `--template` flag like this:
+```bash
+kedro pipeline create <pipeline_name> --template <path_to_template>
+```
+A template folder passed to `kedro pipeline create` using the `--template` argument will take precedence over any local templates.
+Kedro supports having a single pipeline template in your project. If you need to have multiple pipeline templates, consider saving them in a
+separate folder and pointing to them with the `--template` flag.
+
+#### Creating custom templates
+
+It is your responsibility to create functional Cookiecutter templates for custom modular pipelines. Please ensure you understand the
+basic structure of a modular pipeline. Your template should render to a valid, importable Python module containing a
+`create_pipeline` function at the top level that returns a `Pipeline` object. You will also need appropriate
+`config` and `tests` subdirectories that will be copied to the project `config` and `tests` directories when the pipeline is created.
+The `config` and `tests` directories need to follow the same layout as in the default template and cannot
+be customised, although the contents of the parameters and actual test file can be changed. File and folder names or structure
+do not matter beyond that and can be customised according to your needs. You can use [the
+default template that Kedro](https://github.com/kedro-org/kedro/tree/main/kedro/templates/pipeline) uses as a starting point.
+
+Pipeline templates are rendered using [Cookiecutter](https://cookiecutter.readthedocs.io/), and must also contain a `cookiecutter.json`
+See the [`cookiecutter.json` file in the Kedro default template](https://github.com/kedro-org/kedro/tree/main/kedro/templates/pipeline/cookiecutter.json) for an example.
+It is important to note that if you are embedding your custom pipeline template within a
+Kedro starter template, you must tell Cookiecutter not to render this template when creating a new project from the starter. To do this,
+you must add [`_copy_without_render: ["templates"]`](https://cookiecutter.readthedocs.io/en/latest/advanced/copy_without_render.html) to the `cookiecutter.json` file for the starter
+and not the `cookiecutter.json` for the pipeline template.
+
 ### Ensuring portability
 
 Modular pipelines are shareable between Kedro codebases via [micro-packaging](micro_packaging.md), but you must follow a couple of rules to ensure portability:
diff --git a/kedro/framework/cli/pipeline.py b/kedro/framework/cli/pipeline.py
index d3d9b2d2fd..b3ddb46b6d 100644
--- a/kedro/framework/cli/pipeline.py
+++ b/kedro/framework/cli/pipeline.py
@@ -90,10 +90,17 @@ def pipeline():
     is_flag=True,
     help="Skip creation of config files for the new pipeline(s).",
 )
+@click.option(
+    "template_path",
+    "-t",
+    "--template",
+    type=click.Path(file_okay=False, dir_okay=True, exists=True, path_type=Path),
+    help="Path to cookiecutter template to use for pipeline(s). Will override any local templates.",
+)
 @env_option(help="Environment to create pipeline configuration in. Defaults to `base`.")
 @click.pass_obj  # this will pass the metadata as first argument
 def create_pipeline(
-    metadata: ProjectMetadata, name, skip_config, env, **kwargs
+    metadata: ProjectMetadata, name, template_path, skip_config, env, **kwargs
 ):  # noqa: unused-argument
     """Create a new modular pipeline by providing a name."""
     package_dir = metadata.source_dir / metadata.package_name
@@ -107,7 +114,19 @@ def create_pipeline(
             f"Make sure it exists in the project configuration."
         )
 
-    result_path = _create_pipeline(name, package_dir / "pipelines")
+    # Precedence for template_path is: command line > project templates/pipeline dir > global default
+    # If passed on the CLI, click will verify that the path exists so no need to check again
+    if template_path is None:
+        # No path provided on the CLI, try `PROJECT_PATH/templates/pipeline`
+        template_path = Path(metadata.project_path / "templates" / "pipeline")
+
+        if not template_path.exists():
+            # and if that folder doesn't exist fall back to the global default
+            template_path = Path(kedro.__file__).parent / "templates" / "pipeline"
+
+    click.secho(f"Using pipeline template at: '{template_path}'")
+
+    result_path = _create_pipeline(name, template_path, package_dir / "pipelines")
     _copy_pipeline_tests(name, result_path, package_dir)
     _copy_pipeline_configs(result_path, project_conf_path, skip_config, env=env)
     click.secho(f"\nPipeline '{name}' was successfully created.\n", fg="green")
@@ -191,12 +210,11 @@ def _echo_deletion_warning(message: str, **paths: list[Path]):
         click.echo(indent(paths_str, " " * 2))
 
 
-def _create_pipeline(name: str, output_dir: Path) -> Path:
+def _create_pipeline(name: str, template_path: Path, output_dir: Path) -> Path:
     with _filter_deprecation_warnings():
         # noqa: import-outside-toplevel
         from cookiecutter.main import cookiecutter
 
-    template_path = Path(kedro.__file__).parent / "templates" / "pipeline"
     cookie_context = {"pipeline_name": name, "kedro_version": kedro.__version__}
 
     click.echo(f"Creating the pipeline '{name}': ", nl=False)
diff --git a/tests/framework/cli/pipeline/conftest.py b/tests/framework/cli/pipeline/conftest.py
index f934ab6939..672fee3eb6 100644
--- a/tests/framework/cli/pipeline/conftest.py
+++ b/tests/framework/cli/pipeline/conftest.py
@@ -1,10 +1,24 @@
+import json
 import shutil
+from pathlib import Path
 
 import pytest
 
 from kedro.framework.project import settings
 
 
+def _write_json(filepath: Path, content: dict):
+    filepath.parent.mkdir(parents=True, exist_ok=True)
+    json_str = json.dumps(content, indent=4)
+    filepath.write_text(json_str)
+
+
+def _write_dummy_file(filepath: Path, content: str = ""):
+    filepath.parent.mkdir(parents=True, exist_ok=True)
+    with filepath.open("w") as f:
+        f.write(content)
+
+
 @pytest.fixture(autouse=True)
 def cleanup_micropackages(fake_repo_path, fake_package_path):
     packages = {p.name for p in fake_package_path.iterdir() if p.is_dir()}
@@ -82,3 +96,39 @@ def cleanup_pyproject_toml(fake_repo_path):
     yield
 
     pyproject_toml.write_text(existing_toml)
+
+
+@pytest.fixture()
+def fake_local_template_dir(fake_repo_path):
+    """Set up a local template directory. This won't be functional we're just testing the actual layout works.
+
+    Note that this is not scoped to module because we don't want to have this folder present in most of the tests,
+    so we will tear it down every time.
+    """
+    template_path = fake_repo_path / Path("templates")
+    pipeline_template_path = template_path / Path("pipeline")
+    cookiecutter_template_path = (
+        pipeline_template_path / "{{ cookiecutter.pipeline_name }}"
+    )
+
+    cookiecutter_template_path.mkdir(parents=True)
+
+    # Create the absolute bare minimum files
+    cookiecutter_json = {
+        "pipeline_name": "default",
+    }
+    _write_json(pipeline_template_path / "cookiecutter.json", cookiecutter_json)
+    _write_dummy_file(
+        cookiecutter_template_path / "pipeline_{{ cookiecutter.pipeline_name }}.py",
+    )
+    _write_dummy_file(cookiecutter_template_path / "__init__.py", "")
+    _write_dummy_file(
+        cookiecutter_template_path
+        / r"config/parameters/{{ cookiecutter.pipeline_name }}.yml",
+    )
+    _write_dummy_file(
+        cookiecutter_template_path / r"tests/test_{{ cookiecutter.pipeline_name }}.py",
+    )
+    yield template_path.resolve()
+
+    shutil.rmtree(template_path)
diff --git a/tests/framework/cli/pipeline/test_pipeline.py b/tests/framework/cli/pipeline/test_pipeline.py
index 0414e79656..2426a352af 100644
--- a/tests/framework/cli/pipeline/test_pipeline.py
+++ b/tests/framework/cli/pipeline/test_pipeline.py
@@ -79,6 +79,78 @@ def test_create_pipeline(  # pylint: disable=too-many-locals
         actual_files = {f.name for f in test_dir.iterdir()}
         assert actual_files == expected_files
 
+    @pytest.mark.parametrize("env", [None, "local"])
+    def test_create_pipeline_template(  # pylint: disable=too-many-locals
+        self,
+        fake_repo_path,
+        fake_project_cli,
+        fake_metadata,
+        env,
+        fake_package_path,
+        fake_local_template_dir,
+    ):
+        pipelines_dir = fake_package_path / "pipelines"
+        assert pipelines_dir.is_dir()
+
+        assert not (pipelines_dir / PIPELINE_NAME).exists()
+
+        cmd = ["pipeline", "create", PIPELINE_NAME]
+        cmd += ["-e", env] if env else []
+        result = CliRunner().invoke(fake_project_cli, cmd, obj=fake_metadata)
+
+        assert (
+            f"Using pipeline template at: '{fake_repo_path / 'templates'}"
+            in result.output
+        )
+        assert f"Creating the pipeline '{PIPELINE_NAME}': OK" in result.output
+        assert f"Location: '{pipelines_dir / PIPELINE_NAME}'" in result.output
+        assert f"Pipeline '{PIPELINE_NAME}' was successfully created." in result.output
+
+        # Dummy pipeline rendered correctly
+        assert (pipelines_dir / PIPELINE_NAME / f"pipeline_{PIPELINE_NAME}.py").exists()
+
+        assert result.exit_code == 0
+
+    @pytest.mark.parametrize("env", [None, "local"])
+    def test_create_pipeline_template_command_line_override(  # pylint: disable=too-many-locals
+        self,
+        fake_repo_path,
+        fake_project_cli,
+        fake_metadata,
+        env,
+        fake_package_path,
+        fake_local_template_dir,
+    ):
+        pipelines_dir = fake_package_path / "pipelines"
+        assert pipelines_dir.is_dir()
+
+        assert not (pipelines_dir / PIPELINE_NAME).exists()
+
+        # Rename the local template dir to something else so we know the command line flag is taking precedence
+        try:
+            # Can skip if already there but copytree has a dirs_exist_ok flag in >python 3.8 only
+            shutil.copytree(fake_local_template_dir, fake_repo_path / "local_templates")
+        except FileExistsError:
+            pass
+
+        cmd = ["pipeline", "create", PIPELINE_NAME]
+        cmd += ["-t", str(fake_repo_path / "local_templates/pipeline")]
+        cmd += ["-e", env] if env else []
+        result = CliRunner().invoke(fake_project_cli, cmd, obj=fake_metadata)
+
+        assert (
+            f"Using pipeline template at: '{fake_repo_path / 'local_templates'}"
+            in result.output
+        )
+        assert f"Creating the pipeline '{PIPELINE_NAME}': OK" in result.output
+        assert f"Location: '{pipelines_dir / PIPELINE_NAME}'" in result.output
+        assert f"Pipeline '{PIPELINE_NAME}' was successfully created." in result.output
+
+        # Dummy pipeline rendered correctly
+        assert (pipelines_dir / PIPELINE_NAME / f"pipeline_{PIPELINE_NAME}.py").exists()
+
+        assert result.exit_code == 0
+
     @pytest.mark.parametrize("env", [None, "local"])
     def test_create_pipeline_skip_config(
         self, fake_repo_path, fake_project_cli, fake_metadata, env