diff --git a/archetypes/helidon/src/main/archetype/common/security.xml b/archetypes/helidon/src/main/archetype/common/security.xml
index 1d162950275..301d3692f67 100644
--- a/archetypes/helidon/src/main/archetype/common/security.xml
+++ b/archetypes/helidon/src/main/archetype/common/security.xml
@@ -342,5 +342,8 @@ security:
                 </output>
             </boolean>
         </inputs>
+        <variables>
+            <boolean path="application-yaml" if="${security}">true</boolean>
+        </variables>
     </step>
 </archetype-script>
diff --git a/archetypes/helidon/src/main/archetype/mp/custom/custom-mp.xml b/archetypes/helidon/src/main/archetype/mp/custom/custom-mp.xml
index 485e97114de..5186f37cf8c 100644
--- a/archetypes/helidon/src/main/archetype/mp/custom/custom-mp.xml
+++ b/archetypes/helidon/src/main/archetype/mp/custom/custom-mp.xml
@@ -20,7 +20,9 @@
 <archetype-script xmlns="https://helidon.io/archetype/2.0"
                   xmlns:xsi="http://www.w3.org/2001/XMLSchema-instance"
                   xsi:schemaLocation="https://helidon.io/archetype/2.0 https://helidon.io/xsd/archetype-2.0.xsd">
-
+    <variables>
+        <boolean path="application-yaml">false</boolean>
+    </variables>
     <exec src="/mp/common/common-mp.xml"/>
     <exec src="/common/media.xml"/>
     <source src="/common/media-sources.xml"/>
@@ -32,6 +34,12 @@
     <source src="observability.xml"/>
     <exec src="database-outputs.xml" if="${db}"/>
     <output>
+        <templates engine="mustache" transformations="mustache" if="${application-yaml}">
+            <directory>files</directory>
+            <includes>
+                <include>src/*/resources/**/application.yaml.mustache</include>
+            </includes>
+        </templates>
         <model>
             <value key="helidon-test">true</value>
             <value key="mainClass" if="${jpms}">${package}.Main</value>
diff --git a/archetypes/helidon/src/main/archetype/mp/common/files/src/main/resources/application.yaml.mustache b/archetypes/helidon/src/main/archetype/mp/custom/files/src/main/resources/application.yaml.mustache
similarity index 100%
rename from archetypes/helidon/src/main/archetype/mp/common/files/src/main/resources/application.yaml.mustache
rename to archetypes/helidon/src/main/archetype/mp/custom/files/src/main/resources/application.yaml.mustache
diff --git a/archetypes/helidon/src/main/archetype/mp/oci/oci-mp.xml b/archetypes/helidon/src/main/archetype/mp/oci/oci-mp.xml
index 5b6439ec6e7..31ce157a214 100644
--- a/archetypes/helidon/src/main/archetype/mp/oci/oci-mp.xml
+++ b/archetypes/helidon/src/main/archetype/mp/oci/oci-mp.xml
@@ -51,6 +51,12 @@ This will mount `~/.oci` as a volume in the running docker container.
     <exec src="/common/common.xml"/>
     <exec src="/common/packaging.xml"/>
     <output>
+        <templates engine="mustache" transformations="mustache,module-dir">
+            <directory>../custom/files</directory>
+            <includes>
+                <include>src/*/resources/**/application.yaml.mustache</include>
+            </includes>
+        </templates>
         <templates engine="mustache" transformations="mustache,packaged">
             <directory>files</directory>
             <includes>