diff --git a/packages/create-mud/scripts/copy-templates.ts b/packages/create-mud/scripts/copy-templates.ts
index 0cb0c88a07..a708259744 100644
--- a/packages/create-mud/scripts/copy-templates.ts
+++ b/packages/create-mud/scripts/copy-templates.ts
@@ -39,8 +39,8 @@ const __dirname = path.dirname(__filename);
 
     if (/package\.json$/.test(destPath)) {
       let source = await fs.readFile(sourcePath, "utf-8");
-      // Replace all MUD package links with mustache placeholder used by create-create-app
-      // that will be replaced with the latest MUD version number when the template is used.
+      // Replace all MUD package links with placeholder that we can use to later replace
+      // with the latest MUD version number when the template is used.
       source = source.replace(/"([^"]+)":\s*"(link|file):[^"]+"/g, (match, packageName) =>
         mudPackageNames.includes(packageName) ? `"${packageName}": "{{mud-version}}"` : match,
       );
@@ -51,8 +51,13 @@ const __dirname = path.dirname(__filename);
     }
     // Replace template workspace root `tsconfig.json` files (which have paths relative to monorepo)
     // with one that inherits our base tsconfig.
-    else if (/templates\/[^/]+\/tsconfig\.json/.test(destPath)) {
+    else if (/templates\/[^/]+\/tsconfig\.json$/.test(destPath)) {
       await fs.copyFile(path.join(__dirname, "tsconfig.base.json"), destPath);
+    }
+    // npm excludes .gitignore files during packaging/publishing, so we move this aside for now.
+    // When creating a project from the template, we'll move this back.
+    else if (/\.gitignore$/.test(destPath)) {
+      await fs.copyFile(sourcePath, destPath.replace(/\.gitignore$/, ".gitignore_"));
     } else {
       await fs.copyFile(sourcePath, destPath);
     }
diff --git a/packages/create-mud/src/bin/cli.ts b/packages/create-mud/src/bin/cli.ts
index fd5698f966..dfec646549 100644
--- a/packages/create-mud/src/bin/cli.ts
+++ b/packages/create-mud/src/bin/cli.ts
@@ -50,6 +50,8 @@ async function run() {
         if (/package\.json$/.test(sourceFile)) {
           const source = await fs.readFile(sourceFile, "utf-8");
           await fs.writeFile(destFile, source.replaceAll(/{{mud-version}}/g, args.mudVersion), "utf-8");
+        } else if (/\.gitignore_$/.test(sourceFile)) {
+          await fs.copyFile(sourceFile, destFile.replace(/_$/, ""));
         } else {
           await fs.copyFile(sourceFile, destFile);
         }