diff --git a/doc/user/group/custom_project_templates.md b/doc/user/group/custom_project_templates.md
index d544003536e194a8144af93695eb5ca68318c42a..41046477b905150696187bd2cc0eada520250d80 100644
--- a/doc/user/group/custom_project_templates.md
+++ b/doc/user/group/custom_project_templates.md
@@ -9,25 +9,35 @@ info: To determine the technical writer assigned to the Stage/Group associated w
 
 > [Introduced](https://gitlab.com/gitlab-org/gitlab/-/issues/6861) in [GitLab Premium](https://about.gitlab.com/pricing/) 11.6.
 
-Custom project templates are useful for organizations that need to create many similar types of
-[projects](../project/index.md).
-Projects created from these templates serve as a common starting point.
+[Group owners](../permissions.md#group-members-permissions) can set a subgroup to
+be the source of project templates that are selectable when a new project is created
+in the group. These templates can be selected when you go to **New project > Create from template**
+in the group and select the **Group** tab.
 
-## Setting up group-level project templates
+Every project in the subgroup, but not nested subgroups, can be selected by members
+of the group when a new project is created.
 
-To use a custom project template for a new project:
+Repository and database information that is copied over to each new project is identical to the
+data exported with the [GitLab Project Import/Export](../project/settings/import_export.md).
+
+To set custom project templates at the instance level, see [Custom instance-level project templates](../admin_area/custom_project_templates.md).
 
-1. [Create a `templates` subgroup](subgroups/index.md).
-1. [Add repositories (projects) to that new subgroup](index.md#add-projects-to-a-group),
-   as your templates.
-1. Edit your group's settings to look to your _templates_ subgroup for templates:
+## Set up group-level project templates
 
-   1. In the left menu, select **Settings > General**. If you don't have access to the
-      group's settings, you may not have sufficient privileges (for example, you may need developer
-      or higher permissions).
-   1. Scroll to **Custom project templates** and select **Expand**. If no **Custom project templates**
-      section displays, make sure you've created a subgroup and added a project (repository) to it.
-   1. Select the **templates** subgroup.
+To set up custom project templates in a group, add the subgroup that contains the
+project templates to the group settings:
+
+1. In the group, create a [subgroup](subgroups/index.md).
+1. [Add projects to the new subgroup](index.md#add-projects-to-a-group) as your templates.
+1. In the left menu for the group, go to **Settings > General**.
+1. Expand **Custom project templates** and select the subgroup.
+
+If all enabled [project features](../project/settings/index.md#sharing-and-permissions)
+(except for GitLab Pages) are set to **Everyone With Access**, then every project
+template in the subgroup is available to every member of the group.
+
+Any projects added to the subgroup later can be selected the next time a group member
+creates a new project.
 
 ### Example structure
 
@@ -54,25 +64,6 @@ gitlab.com/acmeco/
         ...
 ```
 
-### Adjust Settings
-
-Users can configure a GitLab group that serves as template source under a group's
-**Settings > General > Custom project templates**.
-
-NOTE:
-GitLab administrators can [set project templates for an entire GitLab instance](../admin_area/custom_project_templates.md).
-
-Within this section, you can configure the group where all the custom project templates are sourced.
-If all enabled [project features](../project/settings/index.md#sharing-and-permissions)
-(except for GitLab Pages) are set to **Everyone With Access**, then every project template directly
-under the group namespace is available to every signed-in user. However, private projects are
-available only if the user is a member of the project. Also note that only direct subgroups can be
-set as the template source. Projects of nested subgroups of a selected template source cannot be
-used.
-
-Repository and database information that are copied over to each new project are identical to the
-data exported with the [GitLab Project Import/Export](../project/settings/import_export.md).
-
 <!-- ## Troubleshooting
 
 Include any troubleshooting steps that you can foresee. If you know beforehand what issues
diff --git a/ee/app/views/groups/_custom_project_templates_setting.html.haml b/ee/app/views/groups/_custom_project_templates_setting.html.haml
index 56360f37928c258e1d1ddd9fda2df22f74ba669a..6754919f83c35e359eeec09e3057603e550fefdb 100644
--- a/ee/app/views/groups/_custom_project_templates_setting.html.haml
+++ b/ee/app/views/groups/_custom_project_templates_setting.html.haml
@@ -8,8 +8,7 @@
     %button.btn.gl-button.js-settings-toggle{ type: 'button' }
       = expanded ? _('Collapse') : _('Expand')
     %p
-      = s_('GroupSettings|Select a sub-group as the custom project template source for this group.')
-      = link_to s_('GroupSettings|Learn more about group-level project templates.'), help_page_path('user/group/custom_project_templates')
+      = s_('GroupSettings|Select a subgroup to use as the source for custom project templates for this group.')
   .settings-content
     = form_for @group, html: { multipart: true, class: 'gl-show-field-errors' }, authenticity_token: true do |f|
       %input{ type: 'hidden', name: 'update_section', value: 'js-custom-project-templates-settings' }
@@ -18,7 +17,8 @@
       %fieldset
         .form-group
           = f.label :custom_project_templates_group_id, class: 'label-bold' do
-            = _('Custom project templates')
+            = _('Select subgroup')
           = groups_select_tag('group[custom_project_templates_group_id]', data: { groups_filter: 'subgroups', parent_id: @group.id }, selected: @group.custom_project_templates_group_id, class: 'input-clamp allowClear qa-custom-project-template-select', multiple: false)
-
+          - link_start = '<a href="%{url}">'.html_safe % { url: help_page_path('user/group/custom_project_templates.md') }
+          = s_("GroupSettings|The projects in this subgroup can be selected as templates for new projects created in the group. %{link_start}Learn more.%{link_end}").html_safe % { link_start: link_start, link_end: "</a>".html_safe }
       = f.submit _('Save changes'), class: 'btn gl-button btn-success qa-save-changes-button'
diff --git a/locale/gitlab.pot b/locale/gitlab.pot
index 19e8465e68adb1bc0d208e73fbfb5bf7e2eda7ad..ff4b9cb8795254be92ce84012285a114af63ac5c 100644
--- a/locale/gitlab.pot
+++ b/locale/gitlab.pot
@@ -15801,9 +15801,6 @@ msgstr ""
 msgid "GroupSettings|If the parent group's visibility is lower than the group current visibility, visibility levels for subgroups and projects will be changed to match the new parent group's visibility."
 msgstr ""
 
-msgid "GroupSettings|Learn more about group-level project templates."
-msgstr ""
-
 msgid "GroupSettings|New runners registration token has been generated!"
 msgstr ""
 
@@ -15831,7 +15828,7 @@ msgstr ""
 msgid "GroupSettings|Projects will be permanently deleted after a %{waiting_period}-day delay. This delay can be %{link_start}customized by an admin%{link_end} in instance settings. Inherited by subgroups."
 msgstr ""
 
-msgid "GroupSettings|Select a sub-group as the custom project template source for this group."
+msgid "GroupSettings|Select a subgroup to use as the source for custom project templates for this group."
 msgstr ""
 
 msgid "GroupSettings|The Auto DevOps pipeline runs if no alternative CI configuration file is found."
@@ -15840,6 +15837,9 @@ msgstr ""
 msgid "GroupSettings|The default name for the initial branch of new repositories created in the group."
 msgstr ""
 
+msgid "GroupSettings|The projects in this subgroup can be selected as templates for new projects created in the group. %{link_start}Learn more.%{link_end}"
+msgstr ""
+
 msgid "GroupSettings|There was a problem updating Auto DevOps pipeline: %{error_messages}."
 msgstr ""
 
@@ -29437,6 +29437,9 @@ msgstr ""
 msgid "Select strategy activation method"
 msgstr ""
 
+msgid "Select subgroup"
+msgstr ""
+
 msgid "Select subscription"
 msgstr ""