diff --git a/src/BlockTemplatesController.php b/src/BlockTemplatesController.php
index be1fa2ea7da..7ea5ca9ce1a 100644
--- a/src/BlockTemplatesController.php
+++ b/src/BlockTemplatesController.php
@@ -25,18 +25,11 @@ class BlockTemplatesController {
 	private $template_parts_directory;
 
 	/**
-	 * Directory name of the block template directory.
+	 * Directory which contains all templates
 	 *
 	 * @var string
 	 */
-	const TEMPLATES_DIR_NAME = 'block-templates';
-
-	/**
-	 * Directory name of the block template parts directory.
-	 *
-	 * @var string
-	 */
-	const TEMPLATE_PARTS_DIR_NAME = 'block-template-parts';
+	const TEMPLATES_ROOT_DIR = 'templates';
 
 	/**
 	 * Constructor.
@@ -44,8 +37,10 @@ class BlockTemplatesController {
 	public function __construct() {
 		// This feature is gated for WooCommerce versions 6.0.0 and above.
 		if ( defined( 'WC_VERSION' ) && version_compare( WC_VERSION, '6.0.0', '>=' ) ) {
-			$this->templates_directory      = plugin_dir_path( __DIR__ ) . 'templates/' . self::TEMPLATES_DIR_NAME;
-			$this->template_parts_directory = plugin_dir_path( __DIR__ ) . 'templates/' . self::TEMPLATE_PARTS_DIR_NAME;
+			$root_path = plugin_dir_path( __DIR__ ) . self::TEMPLATES_ROOT_DIR . DIRECTORY_SEPARATOR;
+
+			$this->templates_directory      = $root_path . BlockTemplateUtils::DIRECTORY_NAMES['TEMPLATES'];
+			$this->template_parts_directory = $root_path . BlockTemplateUtils::DIRECTORY_NAMES['TEMPLATE_PARTS'];
 			$this->init();
 		}
 	}
@@ -61,7 +56,7 @@ protected function init() {
 
 	/**
 	 * This function checks if there's a blocks template (ultimately it resolves either a saved blocks template from the
-	 * database or a template file in `woo-gutenberg-products-block/templates/block-templates/`)
+	 * database or a template file in `woo-gutenberg-products-block/templates/templates/`)
 	 * to return to pre_get_posts short-circuiting the query in Gutenberg.
 	 *
 	 * @param \WP_Block_Template|null $template Return a block template object to short-circuit the default query,
@@ -311,14 +306,8 @@ public function get_block_templates_from_woocommerce( $slugs, $already_found_tem
 		$template_files = BlockTemplateUtils::gutenberg_get_template_paths( $directory );
 		$templates      = array();
 
-		if ( 'wp_template_part' === $template_type ) {
-			$dir_name = self::TEMPLATE_PARTS_DIR_NAME;
-		} else {
-			$dir_name = self::TEMPLATES_DIR_NAME;
-		}
-
 		foreach ( $template_files as $template_file ) {
-			$template_slug = BlockTemplateUtils::generate_template_slug_from_path( $template_file, $dir_name );
+			$template_slug = BlockTemplateUtils::generate_template_slug_from_path( $template_file );
 
 			// This template does not have a slug we're looking for. Skip it.
 			if ( is_array( $slugs ) && count( $slugs ) > 0 && ! in_array( $template_slug, $slugs, true ) ) {
diff --git a/src/BlockTypes/MiniCart.php b/src/BlockTypes/MiniCart.php
index 9a1b2d78a03..2ee0aff9e25 100644
--- a/src/BlockTypes/MiniCart.php
+++ b/src/BlockTypes/MiniCart.php
@@ -387,7 +387,7 @@ protected function get_markup( $attributes ) {
 		if ( '' === $template_part_contents ) {
 			$template_part_contents = do_blocks(
 				// phpcs:ignore WordPress.WP.AlternativeFunctions.file_get_contents_file_get_contents
-				file_get_contents( Package::get_path() . 'templates/block-template-parts/mini-cart.html' )
+				file_get_contents( Package::get_path() . 'templates/' . BlockTemplateUtils::DIRECTORY_NAMES['TEMPLATE_PARTS'] . '/mini-cart.html' )
 			);
 		}
 
diff --git a/src/Utils/BlockTemplateUtils.php b/src/Utils/BlockTemplateUtils.php
index c856ce17e4c..fc50cd059b9 100644
--- a/src/Utils/BlockTemplateUtils.php
+++ b/src/Utils/BlockTemplateUtils.php
@@ -254,15 +254,12 @@ public static function convert_slug_to_title( $template_slug ) {
 	 * Converts template paths into a slug
 	 *
 	 * @param string $path The template's path.
-	 * @param string $directory_name The template's directory name.
 	 * @return string slug
 	 */
-	public static function generate_template_slug_from_path( $path, $directory_name = 'block-templates' ) {
-		return substr(
-			$path,
-			strpos( $path, $directory_name . DIRECTORY_SEPARATOR ) + 1 + strlen( $directory_name ),
-			-5
-		);
+	public static function generate_template_slug_from_path( $path ) {
+		$template_extension = '.html';
+
+		return basename( $path, $template_extension );
 	}
 
 	/**
@@ -298,8 +295,8 @@ public static function get_theme_template_path( $template_slug, $template_type =
 			function( $carry, $item ) use ( $template_filename ) {
 				$filepath = DIRECTORY_SEPARATOR . $item . DIRECTORY_SEPARATOR . $template_filename;
 
-				$carry[] = get_template_directory() . $filepath;
 				$carry[] = get_stylesheet_directory() . $filepath;
+				$carry[] = get_template_directory() . $filepath;
 
 				return $carry;
 			},
diff --git a/templates/block-template-parts/mini-cart.html b/templates/parts/mini-cart.html
similarity index 100%
rename from templates/block-template-parts/mini-cart.html
rename to templates/parts/mini-cart.html
diff --git a/templates/block-templates/archive-product.html b/templates/templates/archive-product.html
similarity index 100%
rename from templates/block-templates/archive-product.html
rename to templates/templates/archive-product.html
diff --git a/templates/block-templates/single-product.html b/templates/templates/single-product.html
similarity index 100%
rename from templates/block-templates/single-product.html
rename to templates/templates/single-product.html
diff --git a/templates/block-templates/taxonomy-product_cat.html b/templates/templates/taxonomy-product_cat.html
similarity index 100%
rename from templates/block-templates/taxonomy-product_cat.html
rename to templates/templates/taxonomy-product_cat.html
diff --git a/templates/block-templates/taxonomy-product_tag.html b/templates/templates/taxonomy-product_tag.html
similarity index 100%
rename from templates/block-templates/taxonomy-product_tag.html
rename to templates/templates/taxonomy-product_tag.html