diff --git a/pkg/testworkflows/testworkflowresolver/apply.go b/pkg/testworkflows/testworkflowresolver/apply.go
index 07ee151165..a5ab59b346 100644
--- a/pkg/testworkflows/testworkflowresolver/apply.go
+++ b/pkg/testworkflows/testworkflowresolver/apply.go
@@ -133,7 +133,8 @@ func InjectServiceTemplate(svc *testworkflowsv1.ServiceSpec, template testworkfl
 func applyTemplatesToStep(step testworkflowsv1.Step, templates map[string]testworkflowsv1.TestWorkflowTemplate,
 	externalize func(key, value string) (*corev1.EnvVarSource, error)) (testworkflowsv1.Step, error) {
 	// Apply regular templates
-	for i, ref := range step.Use {
+	for i := len(step.Use) - 1; i >= 0; i-- {
+		ref := step.Use[i]
 		tpl, err := getConfiguredTemplate(ref.Name, ref.Config, templates, externalize)
 		if err != nil {
 			return step, errors.Wrap(err, fmt.Sprintf(".use[%d]: resolving template", i))
@@ -170,7 +171,8 @@ func applyTemplatesToStep(step testworkflowsv1.Step, templates map[string]testwo
 
 	// Apply templates to the services
 	for name, svc := range step.Services {
-		for i, ref := range svc.Use {
+		for i := len(svc.Use) - 1; i >= 0; i-- {
+			ref := svc.Use[i]
 			tpl, err := getConfiguredTemplate(ref.Name, ref.Config, templates, externalize)
 			if err != nil {
 				return step, errors.Wrap(err, fmt.Sprintf("services[%s].use[%d]: resolving template", name, i))
@@ -268,7 +270,8 @@ func applyTemplatesToSpec(spec *testworkflowsv1.TestWorkflowSpec, templates map[
 	defer expressions.Simplify(spec, expressions.ReplacePrefixMachine(random+".", "config."))
 
 	// Apply top-level templates
-	for i, ref := range spec.Use {
+	for i := len(spec.Use) - 1; i >= 0; i-- {
+		ref := spec.Use[i]
 		tpl, err := getConfiguredTemplate(ref.Name, ref.Config, templates, externalize)
 		if err != nil {
 			return errors.Wrap(err, fmt.Sprintf("spec.use[%d]: resolving template", i))
@@ -282,7 +285,8 @@ func applyTemplatesToSpec(spec *testworkflowsv1.TestWorkflowSpec, templates map[
 
 	// Apply templates to the services
 	for name, svc := range spec.Services {
-		for i, ref := range svc.Use {
+		for i := len(svc.Use) - 1; i >= 0; i-- {
+			ref := svc.Use[i]
 			tpl, err := getConfiguredTemplate(ref.Name, ref.Config, templates, externalize)
 			if err != nil {
 				return errors.Wrap(err, fmt.Sprintf("services[%s].use[%d]: resolving template", name, i))
diff --git a/pkg/testworkflows/testworkflowresolver/apply_test.go b/pkg/testworkflows/testworkflowresolver/apply_test.go
index 8e5137fd3d..e0617373ae 100644
--- a/pkg/testworkflows/testworkflowresolver/apply_test.go
+++ b/pkg/testworkflows/testworkflowresolver/apply_test.go
@@ -296,23 +296,23 @@ func TestApplyTemplatesMergeMultipleTopLevelSteps(t *testing.T) {
 
 	want := workflowSteps.DeepCopy()
 	want.Spec.Setup = []testworkflowsv1.Step{
-		ConvertIndependentStepToStep(tplStepsConfig.Spec.Setup[0]),
 		ConvertIndependentStepToStep(tplSteps.Spec.Setup[0]),
+		ConvertIndependentStepToStep(tplStepsConfig.Spec.Setup[0]),
 		want.Spec.Setup[0],
 	}
-	want.Spec.Setup[0].Name = "setup-tpl-test-20"
+	want.Spec.Setup[1].Name = "setup-tpl-test-20"
 	want.Spec.Steps = []testworkflowsv1.Step{
-		ConvertIndependentStepToStep(tplStepsConfig.Spec.Steps[0]),
 		ConvertIndependentStepToStep(tplSteps.Spec.Steps[0]),
+		ConvertIndependentStepToStep(tplStepsConfig.Spec.Steps[0]),
 		want.Spec.Steps[0],
 	}
-	want.Spec.Steps[0].Name = "steps-tpl-test-20"
+	want.Spec.Steps[1].Name = "steps-tpl-test-20"
 	want.Spec.After = []testworkflowsv1.Step{
 		want.Spec.After[0],
-		ConvertIndependentStepToStep(tplSteps.Spec.After[0]),
 		ConvertIndependentStepToStep(tplStepsConfig.Spec.After[0]),
+		ConvertIndependentStepToStep(tplSteps.Spec.After[0]),
 	}
-	want.Spec.After[2].Name = "after-tpl-test-20"
+	want.Spec.After[1].Name = "after-tpl-test-20"
 
 	assert.NoError(t, err)
 	assert.Equal(t, want, wf)
@@ -329,22 +329,22 @@ func TestApplyTemplatesMergeMultipleConfigurable(t *testing.T) {
 		ConvertIndependentStepToStep(tplStepsConfig.Spec.Setup[0]),
 		want.Spec.Setup[0],
 	}
-	want.Spec.Setup[0].Name = "setup-tpl-test-20"
-	want.Spec.Setup[1].Name = "setup-tpl-test-10"
+	want.Spec.Setup[0].Name = "setup-tpl-test-10"
+	want.Spec.Setup[1].Name = "setup-tpl-test-20"
 	want.Spec.Steps = []testworkflowsv1.Step{
 		ConvertIndependentStepToStep(tplStepsConfig.Spec.Steps[0]),
 		ConvertIndependentStepToStep(tplStepsConfig.Spec.Steps[0]),
 		want.Spec.Steps[0],
 	}
-	want.Spec.Steps[0].Name = "steps-tpl-test-20"
-	want.Spec.Steps[1].Name = "steps-tpl-test-10"
+	want.Spec.Steps[0].Name = "steps-tpl-test-10"
+	want.Spec.Steps[1].Name = "steps-tpl-test-20"
 	want.Spec.After = []testworkflowsv1.Step{
 		want.Spec.After[0],
 		ConvertIndependentStepToStep(tplStepsConfig.Spec.After[0]),
 		ConvertIndependentStepToStep(tplStepsConfig.Spec.After[0]),
 	}
-	want.Spec.After[1].Name = "after-tpl-test-10"
-	want.Spec.After[2].Name = "after-tpl-test-20"
+	want.Spec.After[1].Name = "after-tpl-test-20"
+	want.Spec.After[2].Name = "after-tpl-test-10"
 
 	assert.NoError(t, err)
 	assert.Equal(t, want, wf)
@@ -449,19 +449,19 @@ func TestApplyTemplatesStepBasicMultipleSteps(t *testing.T) {
 
 	want := *basicStep.DeepCopy()
 	want.Setup = []testworkflowsv1.Step{
-		ConvertIndependentStepToStep(tplStepsConfig.Spec.Setup[0]),
 		ConvertIndependentStepToStep(tplSteps.Spec.Setup[0]),
+		ConvertIndependentStepToStep(tplStepsConfig.Spec.Setup[0]),
 	}
 	want.Steps = append([]testworkflowsv1.Step{
-		ConvertIndependentStepToStep(tplStepsConfig.Spec.Steps[0]),
 		ConvertIndependentStepToStep(tplSteps.Spec.Steps[0]),
+		ConvertIndependentStepToStep(tplStepsConfig.Spec.Steps[0]),
 	}, append(want.Steps, []testworkflowsv1.Step{
-		ConvertIndependentStepToStep(tplSteps.Spec.After[0]),
 		ConvertIndependentStepToStep(tplStepsConfig.Spec.After[0]),
+		ConvertIndependentStepToStep(tplSteps.Spec.After[0]),
 	}...)...)
-	want.Setup[0].Name = "setup-tpl-test-20"
-	want.Steps[0].Name = "steps-tpl-test-20"
-	want.Steps[3].Name = "after-tpl-test-20"
+	want.Setup[1].Name = "setup-tpl-test-20"
+	want.Steps[1].Name = "steps-tpl-test-20"
+	want.Steps[2].Name = "after-tpl-test-20"
 
 	assert.NoError(t, err)
 	assert.Equal(t, want, s)
@@ -569,19 +569,19 @@ func TestApplyTemplatesStepAdvancedMultipleSteps(t *testing.T) {
 
 	want := *advancedStep.DeepCopy()
 	want.Setup = []testworkflowsv1.Step{
-		ConvertIndependentStepToStep(tplStepsConfig.Spec.Setup[0]),
 		ConvertIndependentStepToStep(tplSteps.Spec.Setup[0]),
+		ConvertIndependentStepToStep(tplStepsConfig.Spec.Setup[0]),
 	}
 	want.Steps = append([]testworkflowsv1.Step{
-		ConvertIndependentStepToStep(tplStepsConfig.Spec.Steps[0]),
 		ConvertIndependentStepToStep(tplSteps.Spec.Steps[0]),
+		ConvertIndependentStepToStep(tplStepsConfig.Spec.Steps[0]),
 	}, append(want.Steps, []testworkflowsv1.Step{
-		ConvertIndependentStepToStep(tplSteps.Spec.After[0]),
 		ConvertIndependentStepToStep(tplStepsConfig.Spec.After[0]),
+		ConvertIndependentStepToStep(tplSteps.Spec.After[0]),
 	}...)...)
-	want.Setup[0].Name = "setup-tpl-test-20"
-	want.Steps[0].Name = "steps-tpl-test-20"
-	want.Steps[4].Name = "after-tpl-test-20"
+	want.Setup[1].Name = "setup-tpl-test-20"
+	want.Steps[1].Name = "steps-tpl-test-20"
+	want.Steps[3].Name = "after-tpl-test-20"
 
 	assert.NoError(t, err)
 	assert.Equal(t, want, s)
@@ -673,3 +673,72 @@ func TestApplyTemplates_ConditionAlways(t *testing.T) {
 	assert.NoError(t, err)
 	assert.Equal(t, want, wf)
 }
+
+func TestApplyTemplates_MergePodValues(t *testing.T) {
+	tpls := map[string]testworkflowsv1.TestWorkflowTemplate{
+		"top": {
+			Spec: testworkflowsv1.TestWorkflowTemplateSpec{
+				TestWorkflowSpecBase: testworkflowsv1.TestWorkflowSpecBase{
+					Pod: &testworkflowsv1.PodConfig{
+						Labels: map[string]string{
+							"label1": "topvalue",
+							"label2": "topvalue",
+							"label3": "topvalue",
+						},
+					},
+				},
+			},
+		},
+		"middle": {
+			Spec: testworkflowsv1.TestWorkflowTemplateSpec{
+				TestWorkflowSpecBase: testworkflowsv1.TestWorkflowSpecBase{
+					Pod: &testworkflowsv1.PodConfig{
+						Labels: map[string]string{
+							"label1": "middlevalue",
+							"label2": "middlevalue",
+						},
+					},
+				},
+			},
+		},
+	}
+	wf := &testworkflowsv1.TestWorkflow{
+		Spec: testworkflowsv1.TestWorkflowSpec{
+			TestWorkflowSpecBase: testworkflowsv1.TestWorkflowSpecBase{
+				Pod: &testworkflowsv1.PodConfig{
+					Labels: map[string]string{
+						"label1": "workflowvalue",
+					},
+				},
+			},
+			Use: []testworkflowsv1.TemplateRef{
+				{Name: "top"},
+				{Name: "middle"},
+			},
+			Steps: []testworkflowsv1.Step{
+				{StepOperations: testworkflowsv1.StepOperations{Shell: "exit 0"}},
+			},
+		},
+	}
+	err := ApplyTemplates(wf, tpls, nil)
+
+	want := &testworkflowsv1.TestWorkflow{
+		Spec: testworkflowsv1.TestWorkflowSpec{
+			TestWorkflowSpecBase: testworkflowsv1.TestWorkflowSpecBase{
+				Pod: &testworkflowsv1.PodConfig{
+					Labels: map[string]string{
+						"label1": "workflowvalue",
+						"label2": "middlevalue",
+						"label3": "topvalue",
+					},
+				},
+			},
+			Steps: []testworkflowsv1.Step{
+				{StepOperations: testworkflowsv1.StepOperations{Shell: "exit 0"}},
+			},
+		},
+	}
+
+	assert.NoError(t, err)
+	assert.Equal(t, want, wf)
+}