diff --git a/src/aiida/cmdline/commands/cmd_computer.py b/src/aiida/cmdline/commands/cmd_computer.py
index 67123f8a24..7606daa10a 100644
--- a/src/aiida/cmdline/commands/cmd_computer.py
+++ b/src/aiida/cmdline/commands/cmd_computer.py
@@ -8,6 +8,7 @@
 ###########################################################################
 """`verdi computer` command."""
 
+import json
 import pathlib
 import traceback
 from copy import deepcopy
@@ -270,6 +271,19 @@ def set_computer_builder(ctx, param, value):
     return value
 
 
+# Helper function to set template vars in context
+def set_template_vars_in_context(ctx, param, value):
+    """Set template variables in the context for the config provider to use."""
+    if value:
+        try:
+            template_var_dict = json.loads(value)
+            # Store template vars in context for the config provider
+            ctx._template_vars = template_var_dict
+        except json.JSONDecodeError as e:
+            raise click.BadParameter(f'Invalid JSON in template-vars: {e}')
+    return value
+
+
 @verdi_computer.command('setup')
 @options_computer.LABEL()
 @options_computer.HOSTNAME()
@@ -285,22 +299,32 @@ def set_computer_builder(ctx, param, value):
 @options_computer.PREPEND_TEXT()
 @options_computer.APPEND_TEXT()
 @options.NON_INTERACTIVE()
-@options.CONFIG_FILE()
+@options.TEMPLATE_VARS()  # This should come before TEMPLATE_FILE
+@options.TEMPLATE_FILE()  # This will process the template and set defaults
 @click.pass_context
 @with_dbenv()
 def computer_setup(ctx, non_interactive, **kwargs):
     """Create a new computer."""
     from aiida.orm.utils.builders.computer import ComputerBuilder
 
-    if kwargs['label'] in get_computer_names():
+    # Debug output
+    print(f'Debug: non_interactive = {non_interactive}')
+    print(f'Debug: kwargs keys = {list(kwargs.keys())}')
+    print(f'Debug: ctx.default_map = {ctx.default_map}')
+
+    # Check for existing computer
+    if kwargs.get('label') and kwargs['label'] in get_computer_names():
         echo.echo_critical(
             'A computer called {c} already exists. '
             'Use "verdi computer duplicate {c}" to set up a new '
             'computer starting from the settings of {c}.'.format(c=kwargs['label'])
         )
 
-    kwargs['transport'] = kwargs['transport'].name
-    kwargs['scheduler'] = kwargs['scheduler'].name
+    # Convert entry points to their names
+    if kwargs.get('transport'):
+        kwargs['transport'] = kwargs['transport'].name
+    if kwargs.get('scheduler'):
+        kwargs['scheduler'] = kwargs['scheduler'].name
 
     computer_builder = ComputerBuilder(**kwargs)
     try:
diff --git a/src/aiida/cmdline/params/options/main.py b/src/aiida/cmdline/params/options/main.py
index 364711f21a..20daf9d3af 100644
--- a/src/aiida/cmdline/params/options/main.py
+++ b/src/aiida/cmdline/params/options/main.py
@@ -8,11 +8,14 @@
 ###########################################################################
 """Module with pre-defined reusable commandline options that can be used as `click` decorators."""
 
+import json
 import pathlib
 
 import click
 
 from aiida.brokers.rabbitmq.defaults import BROKER_DEFAULTS
+from aiida.cmdline.utils import echo
+from aiida.cmdline.utils.template_config import load_and_process_template
 from aiida.common.log import LOG_LEVELS, configure_logging
 from aiida.manage.external.postgres import DEFAULT_DBINFO
 
@@ -113,6 +116,8 @@
     'SORT',
     'START_DATE',
     'SYMLINK_CALCS',
+    'TEMPLATE_FILE',
+    'TEMPLATE_VARS',
     'TIMEOUT',
     'TRAJECTORY_INDEX',
     'TRANSPORT',
@@ -910,3 +915,73 @@ def set_log_level(ctx, _param, value):
     show_default=True,
     help='End date for node mtime range selection for node collection dumping.',
 )
+
+import click
+
+from aiida.cmdline.utils import echo
+
+from .overridable import OverridableOption
+
+
+# Template processing callback
+def process_template_callback(ctx, param, value):
+    """Process template file and update context defaults."""
+    if not value:
+        return value
+
+    ctx.default_map = ctx.default_map or {}
+
+    # Get template vars from context if they were set by TEMPLATE_VARS option
+    template_vars = getattr(ctx, '_template_vars', None)
+
+    # Check if we're in non-interactive mode
+    non_interactive = ctx.params.get('non_interactive', False)
+
+    try:
+        # Load and process the template
+        config_data = load_and_process_template(value, interactive=not non_interactive, template_vars=template_vars)
+
+        # Update the default map with template values
+        for key, template_value in config_data.items():
+            if key not in ctx.default_map:
+                ctx.default_map[key] = template_value
+
+    except Exception as e:
+        echo.echo_critical(f'Error processing template: {e}')
+
+    return value
+
+
+# Template vars callback
+def set_template_vars_callback(ctx, param, value):
+    """Set template variables in the context for the template option to use."""
+    if value:
+        try:
+            template_var_dict = json.loads(value)
+            # Store template vars in context for the template option to use
+            ctx._template_vars = template_var_dict
+        except json.JSONDecodeError as e:
+            raise click.BadParameter(f'Invalid JSON in template-vars: {e}')
+    return value
+
+
+# Template options using simple OverridableOption with callbacks
+TEMPLATE_VARS = OverridableOption(
+    '--template-vars',
+    type=click.STRING,
+    is_eager=True,  # Process before template option
+    callback=set_template_vars_callback,
+    expose_value=False,  # Don't pass to command function
+    help='JSON string containing template variable values for non-interactive mode. '
+    'Example: \'{"label": "my-computer", "slurm_account": "my_account"}\'',
+)
+
+TEMPLATE_FILE = OverridableOption(
+    '--template',
+    type=click.STRING,
+    is_eager=True,  # Process template before other options
+    callback=process_template_callback,
+    expose_value=False,  # Don't pass template to the command function
+    help='Load computer setup from configuration file in YAML format (local path or URL). '
+    'Supports Jinja2 templates with interactive prompting.',
+)
diff --git a/src/aiida/cmdline/utils/template_config.py b/src/aiida/cmdline/utils/template_config.py
new file mode 100644
index 0000000000..eb64b1bb78
--- /dev/null
+++ b/src/aiida/cmdline/utils/template_config.py
@@ -0,0 +1,150 @@
+from typing import Any, Dict, List, Optional
+
+import click
+import requests
+import yaml
+from jinja2 import BaseLoader, Environment, meta
+
+from aiida.cmdline.utils import echo
+
+
+class StringTemplateLoader(BaseLoader):
+    """Jinja2 loader that loads templates from strings."""
+
+    def __init__(self, template_string: str):
+        self.template_string = template_string
+
+    def get_source(self, environment, template):
+        return self.template_string, None, lambda: True
+
+
+def prompt_for_template_variables(template_variables: Dict[str, Any]) -> Dict[str, Any]:
+    """Prompt user for template variables based on metadata definitions."""
+    values = {}
+
+    echo.echo_report('Template variables detected. Please provide values:')
+    echo.echo('')
+
+    for var_name, var_config in template_variables.items():
+        key_display = var_config.get('key_display', var_name)
+        description = var_config.get('description', f'Value for {var_name}')
+        var_type = var_config.get('type', 'text')
+        default = var_config.get('default')
+        options = var_config.get('options', [])
+
+        # Display help text
+        echo.echo(f'{click.style(key_display, fg="yellow")}')
+        echo.echo(f'  {description}')
+
+        if var_type == 'list' and options:
+            echo.echo(f'  Options: {", ".join(options)}')
+            while True:
+                value = click.prompt('  Enter value', default=default, show_default=True if default else False)
+                if value in options:
+                    values[var_name] = value
+                    break
+                else:
+                    echo.echo_error(f'Invalid option. Please choose from: {", ".join(options)}')
+        else:
+            value = click.prompt('  Enter value', default=default, show_default=True if default else False)
+            values[var_name] = value
+
+        echo.echo('')
+
+    return values
+
+
+def detect_template_variables(template_content: str) -> List[str]:
+    """Detect Jinja2 variables in template content."""
+    env = Environment(loader=StringTemplateLoader(template_content))
+    ast = env.parse(template_content)
+    return list(meta.find_undeclared_variables(ast))
+
+
+def load_and_process_template(
+    file_path_or_url: str, interactive: bool = True, template_vars: Optional[Dict[str, Any]] = None
+) -> Dict[str, Any]:
+    """Load and process a template configuration file."""
+
+    # Load content
+    if file_path_or_url.startswith(('http://', 'https://')):
+        try:
+            response = requests.get(file_path_or_url, timeout=10)
+            response.raise_for_status()
+            content = response.text
+        except requests.RequestException as e:
+            raise click.BadParameter(f'Failed to fetch URL {file_path_or_url}: {e}')
+    else:
+        try:
+            with open(file_path_or_url, 'r', encoding='utf-8') as f:
+                content = f.read()
+        except IOError as e:
+            raise click.BadParameter(f'Failed to read file {file_path_or_url}: {e}')
+
+    # Parse YAML to get metadata
+    try:
+        full_config = yaml.safe_load(content)
+    except yaml.YAMLError as e:
+        raise click.BadParameter(f'Invalid YAML: {e}')
+
+    # Extract metadata and template variables (if they exist)
+    metadata = full_config.pop('metadata', {})
+    template_variables = metadata.get('template_variables', {})
+
+    # Detect variables that need values
+    detected_vars = detect_template_variables(content)
+
+    # If no template variables detected, just return the config
+    if not detected_vars:
+        return full_config
+
+    # Filter to only prompt for variables that are actually used and defined in metadata
+    vars_to_prompt = {var: config for var, config in template_variables.items() if var in detected_vars}
+
+    if vars_to_prompt:
+        if interactive:
+            # Interactive prompting for template variables
+            template_values = prompt_for_template_variables(vars_to_prompt)
+        else:
+            # Non-interactive mode
+            if not template_vars:
+                raise click.BadParameter(
+                    f'Template variables detected ({", ".join(detected_vars)}) but no values provided. '
+                    'Use --template-vars to provide values in JSON format.'
+                )
+            template_values = template_vars
+
+        # Render the template with provided values
+        env = Environment(loader=StringTemplateLoader(content))
+        template = env.from_string(content)
+        rendered_content = template.render(**template_values)
+
+        # Parse the rendered YAML
+        try:
+            config = yaml.safe_load(rendered_content)
+        except yaml.YAMLError as e:
+            raise click.BadParameter(f'Invalid YAML after template rendering: {e}')
+    else:
+        # Template variables detected but none defined in metadata
+        # This could happen with simple Jinja variables like {{ username }}
+        if interactive:
+            echo.echo_warning(f'Template variables detected ({", ".join(detected_vars)}) but no metadata found.')
+            echo.echo_warning('You may need to provide values manually or the template may not render correctly.')
+
+        if template_vars:
+            # Try to render with provided vars
+            env = Environment(loader=StringTemplateLoader(content))
+            template = env.from_string(content)
+            rendered_content = template.render(**template_vars)
+            try:
+                config = yaml.safe_load(rendered_content)
+            except yaml.YAMLError as e:
+                raise click.BadParameter(f'Invalid YAML after template rendering: {e}')
+        else:
+            # Return original config and hope for the best
+            config = full_config
+
+    # Remove metadata section if it exists
+    config.pop('metadata', None)
+
+    return config