diff --git a/.changeset/gentle-dancers-count.md b/.changeset/gentle-dancers-count.md
new file mode 100644
index 0000000000000..aa70f11cab91d
--- /dev/null
+++ b/.changeset/gentle-dancers-count.md
@@ -0,0 +1,5 @@
+---
+"@medusajs/medusa": patch
+---
+
+fix: do not update the .env.template file with the database name
diff --git a/packages/medusa/src/commands/db/create.ts b/packages/medusa/src/commands/db/create.ts
index d8aac928e806b..5dd2d6b48ad85 100644
--- a/packages/medusa/src/commands/db/create.ts
+++ b/packages/medusa/src/commands/db/create.ts
@@ -138,7 +138,7 @@ export async function dbCreate({
   if (await dbExists(client, dbName)) {
     logger.info(`Database "${dbName}" already exists`)
 
-    envEditor.set("DB_NAME", dbName)
+    envEditor.set("DB_NAME", dbName, { withEmptyTemplateValue: true })
     await envEditor.save()
     logger.info(`Updated .env file with "DB_NAME=${dbName}"`)