diff --git a/README.md b/README.md
index 0c244f0..22dc352 100644
--- a/README.md
+++ b/README.md
@@ -34,22 +34,22 @@ See [`navapbc/platform`](https://github.com/navapbc/platform) for other template
 
 To get started using the template application on your project:
 
-1. Run the [download and install script](./template-only-bin/download-and-install-template.sh) in your project's root directory.
+1. Run the [download and install script](./template-only-bin/download-and-install-template) in your project's root directory.
 
     ```bash
-    curl https://raw.githubusercontent.com/navapbc/template-application-rails/main/template-only-bin/download-and-install-template.sh | bash -s
+    curl https://raw.githubusercontent.com/navapbc/template-application-rails/main/template-only-bin/download-and-install-template | bash -s
     ```
 
     This script will:
 
     1. Clone the template repository
     2. Copy the template files into your project directory
-    3. Remove any files specific to the template repository, like this README.
+    3. Ignore any files specific to the template repository, like this README.
 
     You can optionally pass in a branch, commit hash, or release that you want to install. For example:
 
     ```bash
-    curl https://raw.githubusercontent.com/navapbc/template-application-rails/main/template-only-bin/download-and-install-template.sh | bash -s -- <commit_hash>
+    curl https://raw.githubusercontent.com/navapbc/template-application-rails/main/template-only-bin/download-and-install-template | bash -s -- <commit_hash>
     ```
 2. [Follow the steps in `app-rails/README.md`](./app-rails/README.md) to set up the application locally.
 3. Optional, if using the Platform infrastructure template: [Follow the steps in the `template-infra` README](https://github.com/navapbc/template-infra#installation) to set up the various pieces of your infrastructure.
@@ -58,16 +58,16 @@ To get started using the template application on your project:
 
 If you have previously installed this template and would like to update your project to use a newer version of this application:
 
-1. Run the [download and install script](./template-only-bin/download-and-install-template.sh) in your project's root directory and pass in the branch, commit hash, or release that you want to update to, followed by the name of your application directory (e.g. `app-rails`).
+1. Run the [update script](./template-only-bin/update-template) in your project's root directory and pass in the branch, commit hash, or release that you want to update to, followed by the name of your application directory (e.g. `app-rails`).
 
     ```bash
-    curl https://raw.githubusercontent.com/navapbc/template-application-rails/main/template-only-bin/download-and-install-template.sh | bash -s -- <commit_hash> <app_name>
+    curl https://raw.githubusercontent.com/navapbc/template-application-rails/main/template-only-bin/download-and-install-template | bash -s -- <commit_hash> <app_name>
     ```
 
     This script will:
 
     1. Clone the template repository
     2. Copy the template files into your project directory
-    3. Remove any files specific to the template repository, like this README.
+    3. Ignore any files specific to the template repository, like this README.
 
 ⚠️ Warning! This will modify existing files. Review all changes carefully after executing the script by running `git diff`.
diff --git a/template-only-bin/download-and-install-template.sh b/template-only-bin/download-and-install-template
similarity index 87%
rename from template-only-bin/download-and-install-template.sh
rename to template-only-bin/download-and-install-template
index 0e368cd..19be463 100755
--- a/template-only-bin/download-and-install-template.sh
+++ b/template-only-bin/download-and-install-template
@@ -21,10 +21,6 @@ template_short_name="app-${template_name##*-}"
 target_version=${1:-"main"}
 app_name=${2:-"${template_short_name}"}
 
-echo "template_short_name: ${template_short_name}"
-echo "app_name: ${app_name}"
-echo "target_version: ${target_version}"
-
 git clone "https://github.com/navapbc/${template_name}.git"
 cd "${template_name}"
 
@@ -33,7 +29,7 @@ git checkout "$target_version"
 cd - &> /dev/null
 
 echo "Installing ${template_name}..."
-"./${template_name}/template-only-bin/install-template.sh" "${template_name}" "${app_name}"
+curl "https://raw.githubusercontent.com/navapbc/${template_name}/rocket/update-template-only-bin-scripts/template-only-bin/install-template" | bash -s -- "${template_name}" "${app_name}"
 
 echo "Storing template version in a file..."
 cd "${template_name}"
diff --git a/template-only-bin/install-template.sh b/template-only-bin/install-template
similarity index 50%
rename from template-only-bin/install-template.sh
rename to template-only-bin/install-template
index 3ffe4d1..ecf201e 100755
--- a/template-only-bin/install-template.sh
+++ b/template-only-bin/install-template
@@ -1,7 +1,8 @@
 #!/usr/bin/env bash
 # -----------------------------------------------------------------------------
 # This script installs an application template to your project.
-# Run this script using ./download-and-install-template.sh
+# Run this script using ./download-and-install-template. Expected to be run
+# from the project's root directory.
 #
 # Positional parameters:
 #   template_name (required) – the name of the template to install
@@ -16,34 +17,27 @@ template_name=$1
 template_short_name="app-${template_name##*-}"
 app_name=$2
 
-echo "template_short_name: ${template_short_name}"
-echo "app_name: ${app_name}"
-
 curr_dir=$(pwd)
-script_dir=$(dirname $0)
-template_dir="${script_dir}/.."
 
-cd $template_dir
+cd "${template_name}"
 
-if [ "$template_short_name" != "$app_name" ]; then
+if [ "${template_short_name}" != "${app_name}" ]; then
   echo "Modifying template to use ${app_name} instead of ${template_short_name}..."
-  "./template-only-bin/rename-template-app.sh" "${app_name}" "${template_short_name}"
+  curl "https://raw.githubusercontent.com/navapbc/${template_name}/rocket/update-template-only-bin-scripts/template-only-bin/rename-template-app" | bash -s -- "${template_short_name}" "${app_name}"
 fi
 
-echo "Copying files from $template_name..."
-# Note: Keep this list of paths in sync with INCLUDE_PATHS in update-template.sh
+# Note: Keep this list in sync with the files listed in update-template
+# Copy only relevant files that should be included in the project repo.
+echo "Copying files from ${template_name}..."
+# Copy top level paths.
 cp -r \
-  .github \
-  .gitignore \
   .grype.yml \
   "${app_name}" \
   docker-compose.yml \
   docker-compose.mock-production.yml \
-  docs \
-  $curr_dir
-cd - >& /dev/null
+  ${curr_dir}
+# Copy nested paths. Make any missing directories.
+mkdir -p "${curr_dir}/.github/workflows" && cp ".github/workflows/ci-${app_name}.yml" "${curr_dir}/.github/workflows"
+mkdir -p "${curr_dir}/docs" && cp -r "docs/${app_name}" "${curr_dir}/docs"
 
-echo "Removing files relevant only to template development..."
-# Note: Keep this list of paths in sync with EXCLUDE_OPT in update-template.sh
-rm -rf .github/workflows/template-only-*
-rm -rf .github/ISSUE_TEMPLATE
+cd - >& /dev/null
\ No newline at end of file
diff --git a/template-only-bin/rename-template-app b/template-only-bin/rename-template-app
new file mode 100755
index 0000000..7bb2bba
--- /dev/null
+++ b/template-only-bin/rename-template-app
@@ -0,0 +1,85 @@
+#!/usr/bin/env bash
+# -----------------------------------------------------------------------------
+# This script renames the template application in a project.
+# Run this script in a project's root directory.
+#
+# The project name is the name of the folder in your project's root directory. Use
+# lowercase letters and hyphens. Do not use spaces. Underscores may have unexpected side
+# effects. Choose a unique string that will avoid collisions with commonly used words.
+# By default, the application name is `app-rails`.
+#
+# Positional parameters:
+#   current_name (required) – the current name for the application
+#   new_name (required) - the new name for the application
+# -----------------------------------------------------------------------------
+set -euo pipefail
+
+# Helper to get the correct sed -i behavior for both GNU sed and BSD sed (installed by default on macOS)
+# Hat tip: https://stackoverflow.com/a/38595160
+sedi () {
+  sed --version >/dev/null 2>&1 && sed -i -- "$@" || sed -i "" "$@"
+}
+# Export the function so it can be used in the `find -exec` calls later on
+export -f sedi
+
+current_name=$1
+new_name=$2
+default_name="app-rails"
+
+# Debug:
+echo "---------------------------------------------------------------------"
+echo "current_name: ${current_name}"
+echo "new_name: ${new_name}"
+echo
+
+if [[ "${current_name}" == "${new_name}" ]]; then
+  # Debug:
+  echo "No rename required: ${current_name} == ${new_name}"
+  exit 0
+fi
+
+# Note: Keep this list in sync with the files copied in install-template and update-template
+declare -a include_paths
+include_paths=(.github/workflows/ci-app-rails.yml)
+include_paths+=(.grype.yml)
+include_paths+=(app-rails)
+include_paths+=(docker-compose.yml)
+include_paths+=(docker-compose.mock-production.yml)
+include_paths+=(docs/app-rails)
+
+# Loop through the paths to be included in this template.
+for include_path in "${include_paths[@]}"; do
+  # If the application does not use the default name (i.e. it has already been renamed),
+  # change the include path to use the correct current_name.
+  if [[ "${current_name}" != "${default_name}" ]]; then
+    include_path=$(echo "${include_path}" | sed "s/${default_name}/${current_name}/g")
+  fi
+
+  echo "Checking '${include_path}' to rename '${current_name}' to '${new_name}'..."
+
+  # Skip if the path does not exist.
+  if [[ ! -d "${include_path}" ]] && [[ ! -f "${include_path}" ]]; then
+    echo "Skipping ahead. ${include_path} does not exist in this repo"
+    continue
+  fi
+
+  # Construct the correct string substitution that respects word boundaries.
+  # Hat tip: https://unix.stackexchange.com/a/393968
+  if sed --version >/dev/null 2>&1; then
+    word_boundary_replacement="s/\<${current_name}\>/${new_name}/g"
+  else
+    word_boundary_replacement="s/[[:<:]]${current_name}[[:>:]]/${new_name}/g"
+  fi
+
+  # Replace occurrances of the current_name with the new_name in the path.
+  # If the path is a file, replace in the file.
+  # If the path is a directory, recursively replace in all files in the directory.
+  LC_ALL=C find "${include_path}" -type f -exec bash -c "sedi \"${word_boundary_replacement}\" \"{}\"" \;
+
+  # Rename included paths that contain the current_name.
+  if [[ "${include_path}" =~ "${current_name}" ]]; then
+    new_include_path=$(echo "${include_path}" | sed "s/${current_name}/${new_name}/g")
+    echo "Renaming path from '${include_path}' to '${new_include_path}'..."
+    mv "${include_path}" "${new_include_path}"
+  fi
+done
diff --git a/template-only-bin/rename-template-app.sh b/template-only-bin/rename-template-app.sh
deleted file mode 100755
index a012b93..0000000
--- a/template-only-bin/rename-template-app.sh
+++ /dev/null
@@ -1,46 +0,0 @@
-#!/usr/bin/env bash
-# -----------------------------------------------------------------------------
-# This script renames the application template in your project.
-# Run this script in your project's root directory.
-#
-# Positional parameters:
-#   new_name (required) - the new name for the application, in either snake- or kebab-case
-#   old_name (required) – the old name for the application, in either snake- or kebab-case
-# -----------------------------------------------------------------------------
-set -euo pipefail
-
-# Helper to get the correct sed -i behavior for both GNU sed and BSD sed (installed by default on macOS)
-# Hat tip: https://stackoverflow.com/a/38595160
-sedi () {
-  sed --version >/dev/null 2>&1 && sed -i -- "$@" || sed -i "" "$@"
-}
-# Export the function so it can be used in the `find -exec` calls later on
-export -f sedi
-
-new_name=$1
-old_name=$2
-
-# Don't make assumptions about whether the arguments are snake- or kebab-case. Handle both.
-# Get kebab-case names
-old_name_kebab=$(echo $old_name | tr "_" "-")
-new_name_kebab=$(echo $new_name | tr "_" "-")
-
-# Get snake-case names
-old_name_snake=$(echo $old_name | tr "-" "_")
-new_name_snake=$(echo $new_name | tr "-" "_")
-
-# Rename the app directory
-if [ -d "$old_name" ]; then
-  echo "Renaming ${old_name} to ${new_name}..."
-  mv "${old_name}" "${new_name}"
-fi
-
-# Rename all kebab-case instances
-echo "Performing a find-and-replace for all instances of (kebab-case) '$old_name_kebab' with '$new_name_kebab'..."
-LC_ALL=C find . -type f -not -path "./.git/*" -exec bash -c "sedi \"s/$old_name_kebab/$new_name_kebab/g\" \"{}\"" \;
-
-# Rename all snake-case instances
-echo "Performing a find-and-replace for all instances of (snake-case) '$old_name_snake' with '$new_name_snake'..."
-LC_ALL=C find . -type f -not -path "./.git/*" -exec bash -c "sedi \"s/$old_name_snake/$new_name_snake/g\" \"{}\"" \;
-
-echo "...Done."
diff --git a/template-only-bin/update-template b/template-only-bin/update-template
new file mode 100755
index 0000000..d3a0efc
--- /dev/null
+++ b/template-only-bin/update-template
@@ -0,0 +1,75 @@
+#!/usr/bin/env bash
+# -----------------------------------------------------------------------------
+# This script updates an application template in your project.
+# This script from your project's root directory.
+#
+# Positional parameters:
+#   target_version (optional) – the version of the template application to install.
+#     Defaults to main. Can be any target that can be checked out, including a branch,
+#     version tag, or commit hash.
+#   app_name (optional) – the name of the application, in either snake- or kebab-case
+#     Defaults to app-rails.
+# -----------------------------------------------------------------------------
+set -euo pipefail
+
+# Helper to get the correct sed -i behavior for both GNU sed and BSD sed (installed by default on macOS)
+# Hat tip: https://stackoverflow.com/a/38595160
+sedi () {
+  sed --version >/dev/null 2>&1 && sed -i -- "$@" || sed -i "" "$@"
+}
+# Export the function so it can be used in the `find -exec` calls later on
+export -f sedi
+
+template_name="template-application-rails"
+# Use shell parameter expansion to get the last word, where the delimiter between
+# words is `-`.
+# See https://www.gnu.org/savannah-checkouts/gnu/bash/manual/bash.html#Shell-Parameter-Expansion
+template_short_name="app-${template_name##*-}"
+
+target_version=${1:-"main"}
+app_name=${2:-"${template_short_name}"}
+current_version=$(cat ".${template_name}-version")
+
+git clone "https://github.com/navapbc/${template_name}.git"
+
+echo "Checking out $target_version..."
+cd "${template_name}"
+git checkout "$target_version"
+cd - &> /dev/null
+
+# Note: Keep this list in sync with the files copied in install-template
+cd "${template_name}"
+include_paths=" \
+  .github/workflows/ci-${template_short_name}.yml
+  .grype.yml \
+  ${template_short_name} \
+  docker-compose.yml \
+  docker-compose.mock-production.yml \
+  docs/${template_short_name}"
+git diff $current_version $target_version -- $include_paths > update.patch
+cd - &> /dev/null
+
+if [ "$template_short_name" != "$app_name" ]; then
+  echo "Modifying patch to use ${app_name} instead of ${template_short_name}..."
+  # Construct the correct string substitution that respects word boundaries.
+  # Hat tip: https://unix.stackexchange.com/a/393968
+  if sed --version >/dev/null 2>&1; then
+    word_boundary_replacement="s/\<${template_short_name}\>/${app_name}/g"
+  else
+    word_boundary_replacement="s/[[:<:]]${template_short_name}[[:>:]]/${app_name}/g"
+  fi
+  sedi "${word_boundary_replacement}" "${template_name}/update.patch"
+fi
+
+echo "Applying patch..."
+git apply --allow-empty "${template_name}/update.patch"
+
+echo "Storing template version in a file..."
+cd "${template_name}"
+git rev-parse HEAD >../".${template_name}-version"
+cd - &> /dev/null
+
+echo "Cleaning up ${template_name} folder..."
+rm -fr "${template_name}"
+
+echo "...Done."
\ No newline at end of file