diff --git a/src/Umbraco.Core/Cache/CacheKeys.cs b/src/Umbraco.Core/Cache/CacheKeys.cs
index f0b84ef138..57922d36af 100644
--- a/src/Umbraco.Core/Cache/CacheKeys.cs
+++ b/src/Umbraco.Core/Cache/CacheKeys.cs
@@ -16,7 +16,8 @@ namespace Umbraco.Core.Cache
 
         public const string MemberCacheKey = "UL_GetMember";
 
-        public const string TemplateCacheKey = "template";
+        public const string TemplateFrontEndCacheKey = "template";
+        public const string TemplateBusinessLogicCacheKey = "UmbracoTemplateCache";
 
         public const string UserCacheKey = "UmbracoUser";
 
diff --git a/src/Umbraco.Web/Cache/CacheRefresherEventHandler.cs b/src/Umbraco.Web/Cache/CacheRefresherEventHandler.cs
index f5fb90eafc..17d00ae99d 100644
--- a/src/Umbraco.Web/Cache/CacheRefresherEventHandler.cs
+++ b/src/Umbraco.Web/Cache/CacheRefresherEventHandler.cs
@@ -60,9 +60,12 @@ namespace Umbraco.Web.Cache
             User.Deleting += UserDeleting;
 
             //Bind to template events
+            //NOTE: we need to bind to legacy and new API events currently: http://issues.umbraco.org/issue/U4-1979
 
             Template.AfterSave += TemplateAfterSave;
             Template.AfterDelete += TemplateAfterDelete;
+            FileService.SavedTemplate += FileServiceSavedTemplate;
+            FileService.DeletedTemplate += FileServiceDeletedTemplate;
 
             //Bind to macro events
 
@@ -241,6 +244,27 @@ namespace Umbraco.Web.Cache
         #endregion
 
         #region Template event handlers
+
+        /// <summary>
+        /// Removes cache for template
+        /// </summary>
+        /// <param name="sender"></param>
+        /// <param name="e"></param>
+        static void FileServiceDeletedTemplate(IFileService sender, Core.Events.DeleteEventArgs<ITemplate> e)
+        {
+            e.DeletedEntities.ForEach(x => DistributedCache.Instance.RemoveTemplateCache(x.Id));
+        }
+
+        /// <summary>
+        /// Refresh cache for template
+        /// </summary>
+        /// <param name="sender"></param>
+        /// <param name="e"></param>
+        static void FileServiceSavedTemplate(IFileService sender, Core.Events.SaveEventArgs<ITemplate> e)
+        {
+            e.SavedEntities.ForEach(x => DistributedCache.Instance.RefreshTemplateCache(x.Id));
+        }
+        
         /// <summary>
         /// Removes cache for template
         /// </summary>
diff --git a/src/Umbraco.Web/Cache/DistributedCacheExtensions.cs b/src/Umbraco.Web/Cache/DistributedCacheExtensions.cs
index 85d46bb0a1..36eb98a123 100644
--- a/src/Umbraco.Web/Cache/DistributedCacheExtensions.cs
+++ b/src/Umbraco.Web/Cache/DistributedCacheExtensions.cs
@@ -45,6 +45,7 @@ namespace Umbraco.Web.Cache
         {
             dc.Remove(new Guid(DistributedCache.TemplateRefresherId), templateId);
         } 
+
         #endregion
 
         #region Page cache
diff --git a/src/Umbraco.Web/Cache/TemplateCacheRefresher.cs b/src/Umbraco.Web/Cache/TemplateCacheRefresher.cs
index 5b4c1c3110..0aec83104a 100644
--- a/src/Umbraco.Web/Cache/TemplateCacheRefresher.cs
+++ b/src/Umbraco.Web/Cache/TemplateCacheRefresher.cs
@@ -50,8 +50,11 @@ namespace Umbraco.Web.Cache
 
         private void RemoveFromCache(int id)
         {
-            ApplicationContext.Current.ApplicationCache.ClearCacheByKeySearch(
-                string.Format("{0}{1}", CacheKeys.TemplateCacheKey, id));
+            ApplicationContext.Current.ApplicationCache.ClearCacheItem(
+                string.Format("{0}{1}", CacheKeys.TemplateFrontEndCacheKey, id));
+
+            ApplicationContext.Current.ApplicationCache.ClearCacheItem(
+                string.Format("{0}{1}", CacheKeys.TemplateBusinessLogicCacheKey, id));
         }
 
     }
diff --git a/src/Umbraco.Web/umbraco.presentation/template.cs b/src/Umbraco.Web/umbraco.presentation/template.cs
index 6063bca584..6e596ab5cd 100644
--- a/src/Umbraco.Web/umbraco.presentation/template.cs
+++ b/src/Umbraco.Web/umbraco.presentation/template.cs
@@ -10,6 +10,7 @@ using System.Web.UI;
 using System.Collections;
 using System.Collections.Generic;
 using Umbraco.Core;
+using Umbraco.Core.Cache;
 using Umbraco.Web;
 using Umbraco.Web.Cache;
 using umbraco.DataLayer;
@@ -29,16 +30,11 @@ namespace umbraco
 
         readonly StringBuilder _templateOutput = new StringBuilder();
 
-        // Cache
-        //static System.Web.Caching.Cache templateCache = System.Web.HttpRuntime.Cache;
-
         private string _templateDesign = "";
         int _masterTemplate = -1;
         private string _templateName = "";
         private string _templateAlias = "";
 
-        private const string CacheKey = "template";
-
         #endregion
 
         #region public properties
@@ -498,7 +494,7 @@ namespace umbraco
             var tId = templateID;
 
             var t = ApplicationContext.Current.ApplicationCache.GetCacheItem(
-               string.Format("{0}{1}", CacheKey, tId), () =>
+               string.Format("{0}{1}", CacheKeys.TemplateFrontEndCacheKey, tId), () =>
                {
                    using (var templateData = SqlHelper.ExecuteReader("select nodeId, alias, master, text, design from cmsTemplate inner join umbracoNode node on node.id = cmsTemplate.nodeId where nodeId = @templateID", SqlHelper.CreateParameter("@templateID", templateID)))
                    {
diff --git a/src/umbraco.cms/businesslogic/template/Template.cs b/src/umbraco.cms/businesslogic/template/Template.cs
index da119d857b..26e4ffdddd 100644
--- a/src/umbraco.cms/businesslogic/template/Template.cs
+++ b/src/umbraco.cms/businesslogic/template/Template.cs
@@ -3,6 +3,8 @@ using System.Linq;
 using System.Collections;
 using System.Xml;
 using Umbraco.Core;
+using Umbraco.Core.Cache;
+using Umbraco.Core.IO;
 using Umbraco.Core.Logging;
 using umbraco.DataLayer;
 using System.Text.RegularExpressions;
@@ -10,7 +12,6 @@ using System.IO;
 using System.Collections.Generic;
 using umbraco.cms.businesslogic.cache;
 using umbraco.BusinessLogic;
-using umbraco.IO;
 using umbraco.cms.businesslogic.web;
 
 namespace umbraco.cms.businesslogic.template
@@ -39,10 +40,8 @@ namespace umbraco.cms.businesslogic.template
         public static readonly string UmbracoMasterTemplate = SystemDirectories.Umbraco + "/masterpages/default.master";
         private static Hashtable _templateAliases = new Hashtable();
         private static volatile bool _templateAliasesInitialized = false;
-        private static object templateCacheSyncLock = new object();
-        private static readonly string UmbracoTemplateCacheKey = "UmbracoTemplateCache";
-        private static object _templateLoaderLocker = new object();
-        private static Guid _objectType = new Guid(Constants.ObjectTypes.Template);
+        private static readonly object TemplateLoaderLocker = new object();
+        private static readonly Guid ObjectType = new Guid(Constants.ObjectTypes.Template);
 		private static readonly char[] NewLineChars = Environment.NewLine.ToCharArray();
 
         #endregion
@@ -94,7 +93,6 @@ namespace umbraco.cms.businesslogic.template
 
             if (!e.Cancel)
             {
-                FlushCache();
                 base.Save();
                 FireAfterSave(e);
             }
@@ -211,7 +209,7 @@ namespace umbraco.cms.businesslogic.template
                 SqlHelper.ExecuteNonQuery("Update cmsTemplate set alias = @alias where NodeId = " + this.Id, SqlHelper.CreateParameter("@alias", _alias));
                 _templateAliasesInitialized = false;
 
-                initTemplateAliases();
+                InitTemplateAliases();
             }
 
         }
@@ -402,7 +400,7 @@ namespace umbraco.cms.businesslogic.template
         {
 
             // CMSNode MakeNew(int parentId, Guid objectType, int userId, int level, string text, Guid uniqueID)
-            CMSNode n = CMSNode.MakeNew(-1, _objectType, u.Id, 1, name, Guid.NewGuid());
+            CMSNode n = CMSNode.MakeNew(-1, ObjectType, u.Id, 1, name, Guid.NewGuid());
 
             //ensure unique alias 
             name = helpers.Casing.SafeAlias(name);
@@ -489,7 +487,7 @@ namespace umbraco.cms.businesslogic.template
 
         public static List<Template> GetAllAsList()
         {
-            Guid[] ids = CMSNode.TopMostNodeIds(_objectType);
+            Guid[] ids = CMSNode.TopMostNodeIds(ObjectType);
             List<Template> retVal = new List<Template>();
             foreach (Guid id in ids)
             {
@@ -503,18 +501,18 @@ namespace umbraco.cms.businesslogic.template
         {
             alias = alias.ToLower();
 
-            initTemplateAliases();
+            InitTemplateAliases();
             if (TemplateAliases.ContainsKey(alias))
                 return (int)TemplateAliases[alias];
             else
                 return 0;
         }
 
-        private static void initTemplateAliases()
+        private static void InitTemplateAliases()
         {
             if (!_templateAliasesInitialized)
             {
-                lock (_templateLoaderLocker)
+                lock (TemplateLoaderLocker)
                 {
                     //double check
                     if (!_templateAliasesInitialized)
@@ -552,7 +550,7 @@ namespace umbraco.cms.businesslogic.template
             {
                 //re-set the template aliases
                 _templateAliasesInitialized = false;
-                initTemplateAliases();
+                InitTemplateAliases();
 
                 //delete the template
                 SqlHelper.ExecuteNonQuery("delete from cmsTemplate where NodeId =" + this.Id);
@@ -740,33 +738,33 @@ namespace umbraco.cms.businesslogic.template
 
         }
 
-
+        [Obsolete("Umbraco automatically ensures that template cache is cleared when saving or deleting")]
         protected virtual void FlushCache()
         {
-            // clear local cache
-            cache.Cache.ClearCacheItem(GetCacheKey(Id));
+            ApplicationContext.Current.ApplicationCache.ClearCacheItem(GetCacheKey(Id));
         }
 
         public static Template GetTemplate(int id)
         {
-            return Cache.GetCacheItem<Template>(GetCacheKey(id), templateCacheSyncLock,
+            return ApplicationContext.Current.ApplicationCache.GetCacheItem(
+                GetCacheKey(id),
                 TimeSpan.FromMinutes(30),
-                delegate
-                {
-                    try
+                () =>
                     {
-                        return new Template(id);
-                    }
-                    catch
-                    {
-                        return null;
-                    }
-                });
+                        try
+                        {
+                            return new Template(id);
+                        }
+                        catch
+                        {
+                            return null;
+                        }
+                    });
         }
 
         private static string GetCacheKey(int id)
         {
-            return UmbracoTemplateCacheKey + id;
+            return CacheKeys.TemplateBusinessLogicCacheKey + id;
         }
 		
         public static Template Import(XmlNode n, User u)