diff --git a/lib/modules/manager/docker-compose/__fixtures__/docker-compose.4.yml.j2 b/lib/modules/manager/docker-compose/__fixtures__/docker-compose.4.yml.j2
new file mode 100644
index 00000000000000..8cb81b431a622b
--- /dev/null
+++ b/lib/modules/manager/docker-compose/__fixtures__/docker-compose.4.yml.j2
@@ -0,0 +1,26 @@
+---
+version: "3"
+
+networks:
+  {{ network_name }}:
+    external: true
+  frontend:
+    external: true
+
+services:
+  web:
+    image: "node:42.0.0"
+    networks:
+      - {{ network_name }}
+      - frontend
+    ports:
+      - "80:8000"
+    deploy:
+      replicas: 2
+      update_config:
+        parallelism: 2
+        delay: 10s
+      placement:
+        {{ placement | indent(8) }}
+      restart_policy:
+        condition: on-failure
diff --git a/lib/modules/manager/docker-compose/extract.spec.ts b/lib/modules/manager/docker-compose/extract.spec.ts
index a089c8b465a612..1c3a7ab0272886 100644
--- a/lib/modules/manager/docker-compose/extract.spec.ts
+++ b/lib/modules/manager/docker-compose/extract.spec.ts
@@ -6,6 +6,7 @@ const yamlFile1 = Fixtures.get('docker-compose.1.yml');
 const yamlFile3 = Fixtures.get('docker-compose.3.yml');
 const yamlFile3NoVersion = Fixtures.get('docker-compose.3-no-version.yml');
 const yamlFile3DefaultValue = Fixtures.get('docker-compose.3-default-val.yml');
+const yamlFile4Templated = Fixtures.get('docker-compose.4.yml.j2');
 
 describe('modules/manager/docker-compose/extract', () => {
   describe('extractPackageFile()', () => {
@@ -56,6 +57,23 @@ describe('modules/manager/docker-compose/extract', () => {
       expect(res?.deps).toHaveLength(1);
     });
 
+    it('extracts can parse a templated yaml file', () => {
+      const res = extractPackageFile(yamlFile4Templated, '', {});
+      expect(res).toEqual({
+        deps: [
+          {
+            depName: 'node',
+            currentValue: '42.0.0',
+            currentDigest: undefined,
+            replaceString: 'node:42.0.0',
+            autoReplaceStringTemplate:
+              '{{depName}}{{#if newValue}}:{{newValue}}{{/if}}{{#if newDigest}}@{{newDigest}}{{/if}}',
+            datasource: 'docker',
+          },
+        ],
+      });
+    });
+
     it('extracts can parse yaml tags for version 3', () => {
       const compose = codeBlock`
           web:
diff --git a/lib/util/yaml.spec.ts b/lib/util/yaml.spec.ts
index d45ab5d3d613e0..0edd6f4122756e 100644
--- a/lib/util/yaml.spec.ts
+++ b/lib/util/yaml.spec.ts
@@ -181,11 +181,11 @@ describe('util/yaml', () => {
       ).toEqual([
         {
           myObject: {
-            aString: null,
+            aString: 'd1ddada',
           },
         },
         {
-          foo: null,
+          foo: '06de5ba',
         },
       ]);
     });
@@ -273,25 +273,94 @@ services:
       ).toThrow();
     });
 
-    it('should parse content with template', () => {
+    it('should parse content with basic templates', () => {
       expect(
         parseSingleYaml(
           codeBlock`
-      myObject:
-        aString: {{value}}
-        {% if test.enabled %}
-        myNestedObject:
-          aNestedString: {{value}}
-        {% endif %}
-      `,
+            object:
+              string: "string"
+              number: 42
+              stringTemplated: "{{value}}"
+              numberTemplated: {{42}}
+              list:
+            {% if test.enabled %}
+                - {{value}}
+            {% endif %}
+                - listEntry
+          `,
           { removeTemplates: true },
         ),
       ).toEqual({
-        myObject: {
-          aString: null,
-          myNestedObject: {
-            aNestedString: null,
+        object: {
+          // Hash for `{{value}}`
+          string: 'string',
+          number: 42,
+          // Hash for `{{value}}`
+          stringTemplated: 'f00c233',
+          // Hash for `{{42}}`
+          numberTemplated: 'df35179',
+          list: ['f00c233', 'listEntry'],
+        },
+      });
+    });
+
+    it('should parse content with templated yaml keys', () => {
+      expect(
+        parseSingleYaml(
+          codeBlock`
+            object:
+              string: "string"
+              {{aKey}}:
+                string: "string"
+                number: 12
+              {{anotherKey}}:
+                string: "another string"
+                number: 30
+              number: 42
+          `,
+          { removeTemplates: true },
+        ),
+      ).toEqual({
+        object: {
+          string: 'string',
+          // Hash for `{{aKey}}`
+          '94fdf85': {
+            string: 'string',
+            number: 12,
+          },
+          // Hash for `{{anotherKey}}`
+          '8904e7f': {
+            string: 'another string',
+            number: 30,
+          },
+          number: 42,
+        },
+      });
+    });
+
+    it('should parse content with templated value in objects', () => {
+      expect(
+        parseSingleYaml(
+          codeBlock`
+            object:
+              string: "string"
+              childObject:
+                {{value}}
+                key: value
+              anotherChildObject:
+                {{value}}
+              number: 42
+          `,
+          { removeTemplates: true },
+        ),
+      ).toEqual({
+        object: {
+          string: 'string',
+          childObject: {
+            key: 'value',
           },
+          anotherChildObject: null,
+          number: 42,
         },
       });
     });
diff --git a/lib/util/yaml.ts b/lib/util/yaml.ts
index e8d5ef50ae2eae..8c0d226d96fe92 100644
--- a/lib/util/yaml.ts
+++ b/lib/util/yaml.ts
@@ -1,3 +1,4 @@
+import crypto from 'crypto';
 import type {
   CreateNodeOptions,
   DocumentOptions,
@@ -140,14 +141,25 @@ export function dump(obj: any, opts?: DumpOptions): string {
   return stringify(obj, opts);
 }
 
+function getShortHash(data: any): string {
+  return crypto.createHash('sha256').update(data).digest('hex').substring(0, 7);
+}
+
 function massageContent(content: string, options?: YamlOptions): string {
   if (options?.removeTemplates) {
-    return content
-      .replace(regEx(/\s+{{.+?}}:.+/gs), '')
-      .replace(regEx(/{{`.+?`}}/gs), '')
-      .replace(regEx(/{{.+?}}/gs), '')
-      .replace(regEx(/{%`.+?`%}/gs), '')
-      .replace(regEx(/{%.+?%}/g), '');
+    return (
+      content
+        // NOTE: It seems safe to empty a line that only
+        // contains a Jinja2 tag entry.
+        .replace(regEx(/^(\s*)?{{.+?}}$/gm), '')
+        .replace(regEx(/{{`.+?`}}/gs), '')
+        // NOTE: In order to keep a proper Yaml syntax before
+        // the parsing, we're remplacing each of the remaining
+        // Jinja2 by a hash of the whole matched tag.
+        .replace(regEx(/{{.+?}}/g), getShortHash)
+        .replace(regEx(/{%`.+?`%}/gs), '')
+        .replace(regEx(/{%.+?%}/g), '')
+    );
   }
 
   return content;