diff --git a/.gitignore b/.gitignore
index d3041f86..a51bbf61 100644
--- a/.gitignore
+++ b/.gitignore
@@ -6,3 +6,4 @@ tmp.*
 doc/tags
 _neovim
 _runtime
+deps/
diff --git a/.luacheckrc b/.luacheckrc
index 363b68da..4bda2d9c 100644
--- a/.luacheckrc
+++ b/.luacheckrc
@@ -7,6 +7,7 @@ self = false
 exclude_files = {
   "_neovim/*",
   "_runtime/*",
+  "deps/*",
 }
 
 -- Glorious list of warnings: https://luacheck.readthedocs.io/en/stable/warnings.html
@@ -24,4 +25,5 @@ read_globals = {
   "it",
   "describe",
   "before_each",
+  "after_each",
 }
diff --git a/CHANGELOG.md b/CHANGELOG.md
index f11d996d..49c0bd05 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -7,6 +7,16 @@ and this project adheres to [Semantic Versioning](https://semver.org/spec/v2.0.0
 
 ## Unreleased
 
+### Added
+
+- Allow custom directory and ID logic for templates
+
+### Changed
+
+### Fixed
+
+- Fixed improper tmp-file creation during template tests
+
 ## [v3.12.0](https://github.com/obsidian-nvim/obsidian.nvim/releases/tag/v3.12.0) - 2025-06-05
 
 ### Added
diff --git a/README.md b/README.md
index 3b04f718..b3424f7e 100644
--- a/README.md
+++ b/README.md
@@ -449,6 +449,9 @@ require("obsidian").setup {
     time_format = "%H:%M",
     -- A map for custom variables, the key should be the variable and the value a function
     substitutions = {},
+
+    -- A map for configuring unique directories and paths for specific templates
+    customizations = {},
   },
 
   -- Sets how you follow URLs
diff --git a/lua/obsidian/commands/new_from_template.lua b/lua/obsidian/commands/new_from_template.lua
index 05f0f361..4666aeda 100644
--- a/lua/obsidian/commands/new_from_template.lua
+++ b/lua/obsidian/commands/new_from_template.lua
@@ -1,5 +1,6 @@
 local util = require "obsidian.util"
 local log = require "obsidian.log"
+local templates = require "obsidian.templates"
 
 ---@param client obsidian.Client
 ---@param data CommandArgs
@@ -14,30 +15,40 @@ return function(client, data)
   local template = data.fargs[#data.fargs]
 
   if title ~= nil and template ~= nil then
+    templates.load_template_customizations(template, client)
     local note = client:create_note { title = title, template = template, no_write = false }
     client:open_note(note, { sync = true })
+    templates.restore_client_configurations(client)
     return
   end
 
-  if title == nil or title == "" then
-    title = util.input("Enter title or path (optional): ", { completion = "file" })
-    if not title then
-      log.warn "Aborted"
-      return
-    elseif title == "" then
-      title = nil
-    end
-  end
-
   picker:find_templates {
     callback = function(name)
+      templates.load_template_customizations(name, client)
+      if title == nil or title == "" then
+        -- Must use pcall in case of KeyboardInterrupt
+        -- We cannot place `title` where `safe_title` is because it would be redeclaring it
+        local success, safe_title = pcall(util.input, "Enter title or path (optional): ", { completion = "file" })
+        title = safe_title
+        if not success or not safe_title then
+          log.warn "Aborted"
+          templates.restore_client_configurations(client)
+          return
+        elseif safe_title == "" then
+          title = nil
+        end
+      end
+
       if name == nil or name == "" then
         log.warn "Aborted"
+        templates.restore_client_configurations(client)
         return
       end
+
       ---@type obsidian.Note
       local note = client:create_note { title = title, template = name, no_write = false }
       client:open_note(note, { sync = false })
+      templates.restore_client_configurations(client)
     end,
   }
 end
diff --git a/lua/obsidian/config.lua b/lua/obsidian/config.lua
index 882bb0ac..0d251ddc 100644
--- a/lua/obsidian/config.lua
+++ b/lua/obsidian/config.lua
@@ -452,6 +452,7 @@ end
 ---@field date_format string|?
 ---@field time_format string|?
 ---@field substitutions table<string, function|string>|?
+---@field customizations table<string, obsidian.config.CustomTemplateOpts>
 config.TemplateOpts = {}
 
 --- Get defaults.
@@ -463,9 +464,15 @@ config.TemplateOpts.default = function()
     date_format = nil,
     time_format = nil,
     substitutions = {},
+    customizations = {},
   }
 end
 
+---@class obsidian.config.CustomTemplateOpts
+---
+---@field dir string|?
+---@field note_id_func function|?
+
 ---@class obsidian.config.UIOpts
 ---
 ---@field enable boolean
diff --git a/lua/obsidian/templates.lua b/lua/obsidian/templates.lua
index d7e9f3e7..d4c4287a 100644
--- a/lua/obsidian/templates.lua
+++ b/lua/obsidian/templates.lua
@@ -1,8 +1,10 @@
 local Path = require "obsidian.path"
 local Note = require "obsidian.note"
 local util = require "obsidian.util"
+local config = require "obsidian.config"
 
 local M = {}
+local restore_client_key = "__restore_client_key"
 
 --- Resolve a template name to a path.
 ---
@@ -197,4 +199,58 @@ M.insert_template = function(opts)
   return Note.from_buffer(buf)
 end
 
+--- Loads the client with customizations for a template identified by `template_name` if present
+---
+--- @param template_name string The template name
+--- @param client obsidian.Client The client
+M.load_template_customizations = function(template_name, client)
+  local success, template_path = pcall(resolve_template, template_name, client)
+
+  if not success then
+    return
+  end
+
+  --- @type obsidian.config.CustomTemplateOpts|?
+  local customization = nil
+
+  -- Check if the configuration has a custom key for this template
+  for template_key, template_config in pairs(client.opts.templates.customizations) do
+    if template_key:lower() == template_path.stem:lower() then
+      customization = template_config
+      break
+    end
+  end
+
+  if not customization then
+    return
+  end
+
+  local restore_values = {
+    dir = client.opts.notes_subdir,
+    note_id_func = client.opts.note_id_func,
+    new_notes_location = client.opts.new_notes_location,
+  }
+
+  client[restore_client_key] = restore_values
+  client.opts.notes_subdir = customization.dir
+  client.opts.note_id_func = customization.note_id_func
+  client.opts.new_notes_location = config.NewNotesLocation.notes_subdir
+  return nil
+end
+
+--- Restores the client's configuration if saved previously (during `load_template_customizations`), does nothing otherwise
+--- @param client obsidian.Client The client
+M.restore_client_configurations = function(client)
+  --- @type unknown
+  local restore_values = rawget(client, restore_client_key)
+
+  if not restore_values then
+    return
+  end
+
+  client.opts.notes_subdir = restore_values.dir
+  client.opts.note_id_func = restore_values.note_id_func
+  client.opts.new_notes_location = restore_values.new_notes_location
+end
+
 return M
diff --git a/lua/test_utils.lua b/lua/test_utils.lua
new file mode 100644
index 00000000..d4ddf7ba
--- /dev/null
+++ b/lua/test_utils.lua
@@ -0,0 +1,29 @@
+local M = {}
+
+local obsidian = require "obsidian"
+
+---Get a client in a temporary directory.
+---@param testid string A unique ID for the tests which prevents directory collision
+---@param templates_dir string The template directory
+---@return obsidian.Client
+M.get_tmp_client = function(testid, templates_dir)
+  templates_dir = templates_dir or "templates"
+
+  local tmpdir = "tmp-vault-" .. testid
+
+  vim.loop.fs_mkdir(tmpdir, 448) -- <-- octal representation of 700 (RWX)
+  vim.loop.fs_mkdir(tmpdir .. "/" .. templates_dir, 448)
+
+  local client = obsidian.new_from_dir(tmpdir)
+  client.opts.templates.folder = "templates"
+  return client
+end
+
+--- Clean up a client, removing any resources created during `get_tmp_client`
+--- @param client obsidian.Client The Client
+M.cleanup_tmp_client = function(client)
+  local path = client.dir:resolve()
+  vim.fs.rm(tostring(path), { recursive = true, force = true })
+end
+
+return M
diff --git a/test/obsidian/commands/new_from_template_spec.lua b/test/obsidian/commands/new_from_template_spec.lua
new file mode 100644
index 00000000..2ae0453b
--- /dev/null
+++ b/test/obsidian/commands/new_from_template_spec.lua
@@ -0,0 +1,83 @@
+local get_tmp_client = require("test_utils").get_tmp_client
+local cleanup_tmp_client = require("test_utils").cleanup_tmp_client
+local new_from_template = require "obsidian.commands.new_from_template"
+local spy = require "luassert.spy"
+
+local templates_dir = "templates"
+
+--- @type obsidian.config.CustomTemplateOpts
+local zettelConfig = {
+  dir = "31 Atomic",
+  note_id_func = function(title)
+    return "31.01 - " .. title
+  end,
+}
+
+describe("new_from_template", function()
+  --- @type obsidian.Client
+  local client = nil
+
+  before_each(function()
+    client = get_tmp_client("new_from_template", templates_dir)
+    vim.loop.fs_mkdir(tostring(client.dir) .. "/" .. zettelConfig.dir, 448)
+    client.picker = function(_)
+      return {
+        find_templates = function(_, opts)
+          opts.callback()
+        end,
+      }
+    end
+    client.opts.templates.customizations = {
+      Zettel = zettelConfig,
+    }
+    client.opts.new_notes_location = "notes_subdir"
+  end)
+
+  after_each(function()
+    if client then
+      cleanup_tmp_client(client)
+    end
+  end)
+
+  it("should always try to load and restore template configurations", function()
+    -- Arrange
+    local templates = require "obsidian.templates"
+    client:create_note { dir = templates_dir, id = "zettel" }
+    spy.on(templates, "load_template_customizations")
+    spy.on(templates, "restore_client_configurations")
+
+    -- Act
+    ---@diagnostic disable-next-line: missing-fields
+    new_from_template(client, { fargs = { "Special Title", "zettel" } })
+
+    -- Assert
+    assert.spy(templates.load_template_customizations).was.called()
+    assert.spy(templates.restore_client_configurations).was.called()
+  end)
+
+  it("should place matched templates in the custom directory", function()
+    -- Arrange
+    client:create_note { dir = templates_dir, id = "zettel" }
+    local expectedDir = client.dir / zettelConfig.dir
+    local title = "The Big Bang"
+    local id = zettelConfig.note_id_func(title)
+    local expected = string.format("%s/%s.md", expectedDir, id)
+    client.picker = function(_)
+      return {
+        find_templates = function(_, opts)
+          opts.callback "zettel"
+        end,
+      }
+    end
+
+    -- Act
+
+    ---@diagnostic disable-next-line: missing-fields
+    new_from_template(client, { fargs = { title, "zettel" } })
+    local f = io.open(expected, "r")
+
+    -- Assert
+    assert.truthy(f)
+    io.close(f)
+  end)
+end)
diff --git a/tests/test_templates.lua b/tests/test_templates.lua
index 0d3079a4..e9bd9ad9 100644
--- a/tests/test_templates.lua
+++ b/tests/test_templates.lua
@@ -1,48 +1,128 @@
-local obsidian = require "obsidian"
-local Path = require "obsidian.path"
+local get_tmp_client = require("test_utils").get_tmp_client
+local cleanup_tmp_client = require("test_utils").cleanup_tmp_client
 local Note = require "obsidian.note"
 local templates = require "obsidian.templates"
+local NewNotesLocation = require("obsidian.config").NewNotesLocation
 
----Get a client in a temporary directory.
----
----@return obsidian.Client
-local tmp_client = function()
-  -- This gives us a tmp file name, but we really want a directory.
-  -- So we delete that file immediately.
-  local tmpname = os.tmpname()
-  os.remove(tmpname)
-
-  local dir = Path:new(tmpname .. "-obsidian/")
-  dir:mkdir { parents = true }
-
-  return obsidian.new_from_dir(tostring(dir))
-end
-
-describe("templates.substitute_template_variables()", function()
-  it("should substitute built-in variables", function()
-    local client = tmp_client()
-    local text = "today is {{date}} and the title of the note is {{title}}"
-    MiniTest.expect.equality(
-      string.format("today is %s and the title of the note is %s", os.date "%Y-%m-%d", "FOO"),
-      templates.substitute_template_variables(text, client, Note.new("FOO", { "FOO" }, {}))
-    )
+local templates_dir = "templates"
+
+--- @type obsidian.config.CustomTemplateOpts
+local zettelConfig = {
+  dir = "/custom/path/to/zettels",
+  note_id_func = function()
+    return "hummus"
+  end,
+}
+
+describe("template", function()
+  --- @type obsidian.Client|?
+  local client = nil
+
+  before_each(function()
+    client = get_tmp_client("templates", templates_dir)
   end)
 
-  it("should substitute custom variables", function()
-    local client = tmp_client()
-    client.opts.templates.substitutions = {
-      weekday = function()
-        return "Monday"
-      end,
-    }
-    local text = "today is {{weekday}}"
-    MiniTest.expect.equality(
-      "today is Monday",
-      templates.substitute_template_variables(text, client, Note.new("foo", {}, {}))
-    )
-
-    -- Make sure the client opts has not been modified.
-    MiniTest.expect.equality(1, vim.tbl_count(client.opts.templates.substitutions))
-    MiniTest.expect.equality("function", type(client.opts.templates.substitutions.weekday))
+  after_each(function()
+    if client then
+      cleanup_tmp_client(client)
+    end
+  end)
+
+  describe("templates.load_template_customizations()", function()
+    before_each(function()
+      client.opts.templates.customizations = {
+        Zettel = zettelConfig,
+      }
+    end)
+
+    after_each(function()
+      client.opts.templates.customizations = nil
+    end)
+
+    it("should not load customizations for non-existant templates", function()
+      local old_id_func = client.opts.note_id_func
+
+      templates.load_template_customizations("zettel", client)
+
+      MiniTest.expect.equality(client.opts.notes_subdir, nil)
+      MiniTest.expect.no_equality(zettelConfig.note_id_func, client.opts.note_id_func)
+      MiniTest.expect.equality(old_id_func, client.opts.note_id_func)
+    end)
+
+    it("should load customizations for existing template", function()
+      client:create_note { dir = templates_dir, id = "zettel" }
+
+      templates.load_template_customizations("zettel", client)
+
+      MiniTest.expect.equality(zettelConfig.dir, client.opts.notes_subdir)
+      MiniTest.expect.equality(zettelConfig.note_id_func, client.opts.note_id_func)
+    end)
+
+    it("should load customizations case-insensitively if template exists", function()
+      client:create_note { dir = templates_dir, id = "zettel" }
+
+      templates.load_template_customizations("zettel", client)
+
+      MiniTest.expect.equality(zettelConfig.dir, client.opts.notes_subdir)
+      MiniTest.expect.equality(zettelConfig.note_id_func, client.opts.note_id_func)
+    end)
+  end)
+
+  describe("templates.restore_client_configurations()", function()
+    it("should do nothing if no configuration is cached", function()
+      local old_id_func = client.opts.note_id_func
+      local notes_subdir = client.opts.notes_subdir
+
+      templates.restore_client_configurations(client)
+
+      MiniTest.expect.equality(old_id_func, client.opts.note_id_func)
+      MiniTest.expect.equality(notes_subdir, client.opts.notes_subdir)
+    end)
+
+    it("should reload client configuration after successfully loading previously", function()
+      client:create_note { dir = templates_dir, id = "zettel" }
+      local old_id_func = client.opts.note_id_func
+      local notes_subdir = client.opts.notes_subdir
+      client.opts.templates.customizations = {
+        Zettel = zettelConfig,
+      }
+
+      templates.load_template_customizations("zettel", client)
+      MiniTest.expect.equality(zettelConfig.dir, client.opts.notes_subdir)
+      MiniTest.expect.equality(NewNotesLocation.notes_subdir, client.opts.new_notes_location)
+      MiniTest.expect.equality(zettelConfig.note_id_func, client.opts.note_id_func)
+
+      templates.restore_client_configurations(client)
+
+      MiniTest.expect.equality(old_id_func, client.opts.note_id_func)
+      MiniTest.expect.equality(NewNotesLocation.current_dir, client.opts.new_notes_location)
+      MiniTest.expect.equality(notes_subdir, client.opts.notes_subdir)
+    end)
+  end)
+
+  describe("templates.substitute_template_variables()", function()
+    it("should substitute built-in variables", function()
+      local text = "today is {{date}} and the title of the note is {{title}}"
+      MiniTest.expect.equality(
+        string.format("today is %s and the title of the note is %s", os.date "%Y-%m-%d", "FOO"),
+        templates.substitute_template_variables(text, client, Note.new("FOO", { "FOO" }, {}))
+      )
+    end)
+
+    it("should substitute custom variables", function()
+      client.opts.templates.substitutions = {
+        weekday = function()
+          return "Monday"
+        end,
+      }
+      local text = "today is {{weekday}}"
+      MiniTest.expect.equality(
+        "today is Monday",
+        templates.substitute_template_variables(text, client, Note.new("foo", {}, {}))
+      )
+
+      MiniTest.expect.equality(1, vim.tbl_count(client.opts.templates.substitutions))
+      MiniTest.expect.equality("function", type(client.opts.templates.substitutions.weekday))
+    end)
   end)
 end)