diff --git a/docs/architecture.md b/docs/architecture.md
index 97e9934..15ad72c 100644
--- a/docs/architecture.md
+++ b/docs/architecture.md
@@ -179,8 +179,10 @@ For example, `{"base_image":"sandbox:latest","setup_script":"echo ready"}`
 reuses a template only while the tag resolves to the same digest. A new digest
 creates a `building` record and returns `202 Accepted`. The build uses the
 saved digest reference even if the tag moves again. Callers poll until the
-template becomes `available` or `failed`. A pull or store failure returns
-`502`; a provider without template support returns `400`.
+template becomes `available` or `failed`. A `POST` for a `failed` template
+builds the same record again, and its `last_error` stays until that build
+ends. A pull or store failure returns `502`; a provider without template
+support returns `400`.
 
 Templates outlive hosts. Each provider owns these operations through
 `TemplateCapability`. Image pulls and store loads finish before the create
diff --git a/src/templates/api.py b/src/templates/api.py
index 314c8a9..b207b30 100644
--- a/src/templates/api.py
+++ b/src/templates/api.py
@@ -35,7 +35,7 @@ async def create_template(
     service: TemplateServiceDep,
 ) -> Template:
     try:
-        template, created = await service.get_or_create(
+        template, needs_build = await service.get_or_create(
             provider=payload.provider,
             base_image=payload.base_image,
             setup_script=payload.setup_script,
@@ -52,7 +52,7 @@ async def create_template(
             detail="template creation could not be completed",
         ) from exc
 
-    if created:
+    if needs_build:
         background_tasks.add_task(service.build, template.id)
     return template
 
diff --git a/src/templates/service.py b/src/templates/service.py
index be46de8..0edb40c 100644
--- a/src/templates/service.py
+++ b/src/templates/service.py
@@ -92,10 +92,17 @@ async def get_or_create(
                 .where(Template.base_image == resolved_base_image)
                 .where(Template.base_image_ref == base_image_ref)
                 .where(Template.setup_script_hash == setup_script_hash)
+                .with_for_update()
             )
         ).scalar_one_or_none()
         if not winner:
             raise TemplateStateError("template creation race could not be resolved")
+        if winner.status == TemplateStatus.FAILED.value:
+            # last_error stays readable until the new build ends.
+            winner.status = TemplateStatus.BUILDING.value
+            winner.updated_at = now
+            await self.session.commit()
+            return winner, True
         return winner, False
 
     async def build(self, template_id: uuid.UUID) -> None:
diff --git a/src/templates/tests/test_api.py b/src/templates/tests/test_api.py
index 003fdf0..665adf8 100644
--- a/src/templates/tests/test_api.py
+++ b/src/templates/tests/test_api.py
@@ -126,6 +126,29 @@ async def test_duplicate_create_returns_existing_without_rebuilding(client, temp
     ]
 
 
+async def test_create_builds_a_failed_template_again_and_keeps_its_error_while_it_builds(
+    client, template_provider
+):
+    """A failed record builds again on the next create; its error stays until that build ends."""
+    template_provider.build_error = OSError("builder crashed")
+    body = {"provider": template_provider.name, "setup_script": SETUP_SCRIPT, "label": "retry"}
+    first = await client.post("/templates", headers=AUTH_HEADERS, json=body)
+    template_provider.build_error = None
+
+    second = await client.post("/templates", headers=AUTH_HEADERS, json=body)
+    polled = await client.get(f"/templates/{first.json()['id']}", headers=AUTH_HEADERS)
+
+    assert second.status_code == 202
+    assert second.json()["id"] == first.json()["id"]
+    assert second.json()["status"] == TemplateStatus.BUILDING.value
+    assert second.json()["last_error"] == "OSError: builder crashed"
+    assert polled.json()["status"] == TemplateStatus.AVAILABLE.value
+    assert polled.json()["last_error"] == ""
+    assert (
+        template_provider.built == [(template_provider.base_image_ref, SETUP_SCRIPT, "retry")] * 2
+    )
+
+
 async def test_concurrent_creates_resolve_unique_index_race(template_provider):
     """Concurrent identical inserts converge on the unique-index winner."""
     async with (
@@ -150,7 +173,7 @@ async def test_concurrent_creates_resolve_unique_index_race(template_provider):
         )
 
     assert results[0][0].id == results[1][0].id
-    assert sorted(created for _, created in results) == [False, True]
+    assert sorted(needs_build for _, needs_build in results) == [False, True]
 
     async with async_session_factory() as session:
         count = await session.scalar(select(func.count()).select_from(Template))