diff --git a/src/app/shared/components/template/services/template-metadata.service.ts b/src/app/shared/components/template/services/template-metadata.service.ts
index a62b7ba523..49836c3bc0 100644
--- a/src/app/shared/components/template/services/template-metadata.service.ts
+++ b/src/app/shared/components/template/services/template-metadata.service.ts
@@ -6,6 +6,7 @@ import { Router } from "@angular/router";
 import { toSignal } from "@angular/core/rxjs-interop";
 import { ngRouterMergedSnapshot$ } from "src/app/shared/utils/angular.utils";
 import { isEqual } from "packages/shared/src/utils/object-utils";
+import { AppConfigService } from "src/app/shared/services/app-config/app-config.service";
 
 /**
  * Service responsible for handling metadata of the current top-level template,
@@ -26,6 +27,7 @@ export class TemplateMetadataService extends SyncServiceBase {
 
   constructor(
     private templateService: TemplateService,
+    private appConfigService: AppConfigService,
     private router: Router
   ) {
     super("TemplateMetadata");
@@ -42,5 +44,10 @@ export class TemplateMetadataService extends SyncServiceBase {
       },
       { allowSignalWrites: true }
     );
+    // apply any template-specific appConfig overrides on change
+    effect(() => {
+      const templateAppConfig = this.parameterList().app_config;
+      this.appConfigService.setAppConfig(templateAppConfig, "template");
+    });
   }
 }
diff --git a/src/app/shared/services/app-config/app-config.service.spec.ts b/src/app/shared/services/app-config/app-config.service.spec.ts
index 2b73be5c0f..d21985ac90 100644
--- a/src/app/shared/services/app-config/app-config.service.spec.ts
+++ b/src/app/shared/services/app-config/app-config.service.spec.ts
@@ -3,13 +3,9 @@ import { TestBed } from "@angular/core/testing";
 import { AppConfigService } from "./app-config.service";
 import { BehaviorSubject } from "rxjs/internal/BehaviorSubject";
 import { IAppConfig } from "../../model";
-import { signal } from "@angular/core";
+import { signal, WritableSignal } from "@angular/core";
 import { DeploymentService } from "../deployment/deployment.service";
-import {
-  getDefaultAppConfig,
-  IAppConfigOverride,
-  IDeploymentRuntimeConfig,
-} from "packages/data-models";
+import { IAppConfigOverride, IDeploymentRuntimeConfig } from "packages/data-models";
 import { deepMergeObjects } from "../../utils";
 import { firstValueFrom } from "rxjs/internal/firstValueFrom";
 import { MockDeploymentService } from "../deployment/deployment.service.spec";
@@ -46,6 +42,7 @@ const MOCK_DEPLOYMENT_CONFIG: Partial<IDeploymentRuntimeConfig> = {
  */
 describe("AppConfigService", () => {
   let service: AppConfigService;
+  let appConfigSetSpy: jasmine.Spy<WritableSignal<IAppConfig>>;
 
   beforeEach(() => {
     TestBed.configureTestingModule({
@@ -54,24 +51,20 @@ describe("AppConfigService", () => {
       ],
     });
     service = TestBed.inject(AppConfigService);
+    appConfigSetSpy = spyOn(service.appConfig, "set").and.callThrough();
   });
 
   it("applies default config overrides on init", () => {
-    expect(service.appConfig().APP_HEADER_DEFAULTS.title).toEqual(
-      getDefaultAppConfig().APP_HEADER_DEFAULTS.title
-    );
+    expect(service.appConfig().APP_HEADER_DEFAULTS.title).toEqual("App");
   });
 
   it("applies deployment-specific config overrides on init", () => {
     expect(service.appConfig().APP_FOOTER_DEFAULTS.templateName).toEqual("mock_footer");
   });
 
-  it("applies overrides to app config", () => {
-    service.setAppConfig({ APP_HEADER_DEFAULTS: { title: "updated" } });
-    expect(service.appConfig().APP_HEADER_DEFAULTS).toEqual({
-      ...getDefaultAppConfig().APP_HEADER_DEFAULTS,
-      title: "updated",
-    });
+  it("applies skin-level overrides to app config", () => {
+    service.setAppConfig({ APP_HEADER_DEFAULTS: { title: "updated" } }, "skin");
+    expect(service.appConfig().APP_HEADER_DEFAULTS.title).toEqual("updated");
     // also ensure doesn't unset default deployment
     expect(service.appConfig().APP_FOOTER_DEFAULTS.templateName).toEqual("mock_footer");
   });
@@ -80,7 +73,23 @@ describe("AppConfigService", () => {
     firstValueFrom(service.changes$).then((v) => {
       expect(v).toEqual({ APP_HEADER_DEFAULTS: { title: "partial changes" } });
     });
+    service.setAppConfig({ APP_HEADER_DEFAULTS: { title: "partial changes" } }, "skin");
+    expect(appConfigSetSpy).toHaveBeenCalledTimes(1);
+  });
 
-    service.setAppConfig({ APP_HEADER_DEFAULTS: { title: "partial changes" } });
+  it("ignores lower-order updates when higher order exists", async () => {
+    service.setAppConfig({ APP_FOOTER_DEFAULTS: { templateName: "template_footer" } }, "template");
+    expect(service.appConfig().APP_FOOTER_DEFAULTS.templateName).toEqual("template_footer");
+    service.setAppConfig({ APP_FOOTER_DEFAULTS: { templateName: "skin_footer" } }, "skin");
+    expect(service.appConfig().APP_FOOTER_DEFAULTS.templateName).toEqual("template_footer");
+    // the second service set should not trigger any changes to appConfig signal (or observable)
+    expect(appConfigSetSpy).toHaveBeenCalledTimes(1);
+  });
+
+  it("reverts to initial config values when template override removed", async () => {
+    service.setAppConfig({ APP_FOOTER_DEFAULTS: { templateName: "template_footer" } }, "template");
+    expect(service.appConfig().APP_FOOTER_DEFAULTS.templateName).toEqual("template_footer");
+    service.setAppConfig({}, "template");
+    expect(service.appConfig().APP_FOOTER_DEFAULTS.templateName).toEqual("mock_footer");
   });
 });
diff --git a/src/app/shared/services/app-config/app-config.service.ts b/src/app/shared/services/app-config/app-config.service.ts
index 1028ebca04..6942ca9186 100644
--- a/src/app/shared/services/app-config/app-config.service.ts
+++ b/src/app/shared/services/app-config/app-config.service.ts
@@ -8,32 +8,36 @@ import { Observable } from "rxjs";
 import { DeploymentService } from "../deployment/deployment.service";
 import { updateRoutingDefaults } from "./app-config.utils";
 import { Router } from "@angular/router";
+import { isEqual } from "packages/shared/src/utils/object-utils";
+
+/** Config overrides can come from a variety of sources with orders of hierarchy */
+const APP_CONFIG_OVERRIDE_ORDER = {
+  default: 0,
+  deployment: 1,
+  skin: 2,
+  template: 3,
+};
+type IAppConfigOverrideSource = keyof typeof APP_CONFIG_OVERRIDE_ORDER;
 
 @Injectable({
   providedIn: "root",
 })
 export class AppConfigService extends SyncServiceBase {
-  /**
-   * Initial config is generated by merging default app config with deployment-specific overrides
-   * It is accessed via a read-only getter to avoid update from methods
-   **/
-  private readonly initialConfig: IAppConfig = deepMergeObjects(
-    getDefaultAppConfig(),
-    this.deploymentService.config.app_config
-  );
-
   /** Signal representation of current appConfig value */
-  public appConfig = signal(this.initialConfig);
+  public appConfig = signal<IAppConfig>(undefined);
 
   /**
    * @deprecated - prefer use of config signal and computed/effect bindings
    * List of constants provided by data-models combined with deployment-specific overrides and skin-specific overrides
    **/
-  public appConfig$ = new BehaviorSubject(this.initialConfig);
+  public appConfig$ = new BehaviorSubject<IAppConfig>(undefined);
 
   /** Tracking observable of deep changes to app config, exposed in `changes` public method */
   private appConfigChanges$: Observable<RecursivePartial<IAppConfig>>;
 
+  /** Array of all applied config overrides. Array position represents override hierarchy order (0-3) */
+  private configOverrides: IAppConfigOverride[] = [];
+
   /**
    * @deprecated - prefer use of config signal and computed/effect bindings
    *
@@ -63,20 +67,29 @@ export class AppConfigService extends SyncServiceBase {
     this.initialise();
   }
 
-  /** When service initialises load initial config to trigger any side-effects  */
+  /** When service initialises load config defaults and deployment to trigger any side-effects  */
   private initialise() {
-    this.setAppConfig(this.initialConfig);
+    this.setAppConfig(getDefaultAppConfig(), "default");
+    this.setAppConfig(this.deploymentService.config.app_config, "deployment");
   }
 
   /**
    * Generate a complete app config by deep-merging app config overrides
    * with the initial config
    */
-  public setAppConfig(overrides: IAppConfigOverride = {}) {
-    const mergedConfig = deepMergeObjects({} as IAppConfig, this.initialConfig, overrides);
-    this.handleConfigSideEffects(overrides, mergedConfig);
-    this.appConfig.set(mergedConfig);
-    this.appConfig$.next(mergedConfig);
+  public setAppConfig(overrides: IAppConfigOverride = {}, source: IAppConfigOverrideSource) {
+    const overrideIndex = APP_CONFIG_OVERRIDE_ORDER[source];
+    // replace any overrides at the existing level (e.g. skin or template)
+    this.configOverrides[overrideIndex] = overrides;
+    // merge all levels of override, with higher order levels merged on top of lower
+    const mergedConfig = deepMergeObjects({} as IAppConfig, ...this.configOverrides);
+
+    // trigger change effects only if config changed
+    if (!isEqual(this.appConfig(), mergedConfig)) {
+      this.handleConfigSideEffects(overrides, mergedConfig);
+      this.appConfig.set(mergedConfig);
+      this.appConfig$.next(mergedConfig);
+    }
   }
 
   private handleConfigSideEffects(overrides: IAppConfigOverride = {}, config: IAppConfig) {
diff --git a/src/app/shared/services/skin/skin.service.ts b/src/app/shared/services/skin/skin.service.ts
index 1356b3ed93..6a31601f6b 100644
--- a/src/app/shared/services/skin/skin.service.ts
+++ b/src/app/shared/services/skin/skin.service.ts
@@ -51,7 +51,7 @@ export class SkinService extends SyncServiceBase {
       const override = this.generateOverrideConfig(targetSkin);
       const revert = this.generateRevertConfig(targetSkin);
       console.log("[SKIN] SET", { targetSkin, override, revert });
-      this.appConfigService.setAppConfig(override);
+      this.appConfigService.setAppConfig(override, "skin");
       this.revertOverride = revert;
       this.currentSkin = targetSkin;