diff --git a/packages/flame_kenney_xml/pubspec.yaml b/packages/flame_kenney_xml/pubspec.yaml
index b4a523c26b2..c553ec5963d 100644
--- a/packages/flame_kenney_xml/pubspec.yaml
+++ b/packages/flame_kenney_xml/pubspec.yaml
@@ -21,7 +21,7 @@ dependencies:
   flame: ^1.38.0
   flutter:
     sdk: flutter
-  xml: ^6.5.0
+  xml: ">=6.5.0 <8.0.0"
 
 dev_dependencies:
   build_runner: ^2.4.11
diff --git a/packages/flame_tiled/lib/src/flame_tsx_provider.dart b/packages/flame_tiled/lib/src/flame_tsx_provider.dart
index a84571ec255..012b3bb631f 100644
--- a/packages/flame_tiled/lib/src/flame_tsx_provider.dart
+++ b/packages/flame_tiled/lib/src/flame_tsx_provider.dart
@@ -1,36 +1,34 @@
 import 'package:flame/flame.dart';
 import 'package:flutter/services.dart';
 import 'package:tiled/tiled.dart';
-import 'package:xml/xml.dart';
 
-/// A implementation of [TsxProvider] use by RenderableTileMap.
+/// A [ParserProvider] for a single external tileset file loaded from
+/// [Flame.bundle] or a custom asset bundle.
 ///
-/// It uses [Flame.bundle] or a custom asset bundle
-/// and has a built-in cache for the file read.
-class FlameTsxProvider implements TsxProvider {
+/// `RenderableTiledMap` resolves external tilesets on its own, this is only
+/// needed when parsing a map manually, for example through
+/// [TiledMap.parseTmx].
+class FlameTsxProvider implements ParserProvider {
   /// Parsed data for this tsx file.
   final String data;
 
   /// Stored filename for corresponding tsx file.
-  final String _filename;
+  final String filename;
 
-  FlameTsxProvider._(this.data, this._filename);
+  FlameTsxProvider._(this.data, this.filename);
 
   @override
-  String get filename => _filename;
+  bool canProvide(String path) => path == filename;
 
   @override
-  Parser getSource(String key) {
-    final node = XmlDocument.parse(data).rootElement;
-    return XmlParser(node);
-  }
+  Parser getSource(String path) => Parser.fromString(data);
 
-  @override
+  /// Parsed tileset source, or `null` when [data] is empty.
   Parser? getCachedSource() {
     if (data.isEmpty) {
       return null;
     }
-    return getSource('');
+    return getSource(filename);
   }
 
   /// Parses a file returning a [FlameTsxProvider].
diff --git a/packages/flame_tiled/lib/src/renderable_tile_map.dart b/packages/flame_tiled/lib/src/renderable_tile_map.dart
index d0a21e77e93..453d519e8b7 100644
--- a/packages/flame_tiled/lib/src/renderable_tile_map.dart
+++ b/packages/flame_tiled/lib/src/renderable_tile_map.dart
@@ -7,7 +7,6 @@ import 'package:flame/extensions.dart';
 import 'package:flame/flame.dart';
 import 'package:flame/rendering.dart';
 import 'package:flame_tiled/src/extensions.dart';
-import 'package:flame_tiled/src/flame_tsx_provider.dart';
 import 'package:flame_tiled/src/renderable_layers/group_layer.dart';
 import 'package:flame_tiled/src/renderable_layers/renderable_layer.dart';
 import 'package:flame_tiled/src/renderable_layers/tile_layers/tile_layer.dart';
@@ -252,8 +251,9 @@ class RenderableTiledMap {
   ///
   /// {@template renderable_tile_map_path}
   /// The [fileName] is the full path of the map, as declared in the
-  /// `pubspec.yaml`, for example `assets/tiles/map.tmx`. Any external `.tsx`
-  /// tileset the map references is resolved relative to that path.
+  /// `pubspec.yaml`, for example `assets/tiles/map.tmx`. External tilesets
+  /// (`.tsx`) and object templates (`.tx`) that the map references are
+  /// resolved relative to that path.
   /// {@endtemplate}
   ///
   /// {@template tiled_images_directory}
@@ -306,8 +306,8 @@ class RenderableTiledMap {
 
   /// Parses a string returning a [RenderableTiledMap].
   ///
-  /// External `.tsx` tilesets the map references are resolved against
-  /// [tsxDirectory].
+  /// External tilesets (`.tsx`) and object templates (`.tx`) that the map
+  /// references are resolved against [tsxDirectory].
   ///
   /// {@macro tiled_images_directory}
   ///
@@ -330,9 +330,12 @@ class RenderableTiledMap {
     double atlasPackingSpacingY = 0,
     String? package,
   }) async {
+    // tiled calls this once for every external file the map references,
+    // including files referenced from other external files, always with a
+    // path relative to the map.
     final map = await TiledMap.fromString(
       contents,
-      (key) => FlameTsxProvider.parse(key, bundle, tsxDirectory),
+      (path) => (bundle ?? Flame.bundle).loadString('$tsxDirectory$path'),
     );
     return fromTiledMap(
       map,
diff --git a/packages/flame_tiled/pubspec.yaml b/packages/flame_tiled/pubspec.yaml
index 2f25e110756..ae9b0f906b4 100644
--- a/packages/flame_tiled/pubspec.yaml
+++ b/packages/flame_tiled/pubspec.yaml
@@ -22,8 +22,7 @@ dependencies:
   flutter:
     sdk: flutter
   meta: ^1.12.0
-  tiled: ^0.11.0
-  xml: ^6.3.0
+  tiled: ^0.12.0
 
 dev_dependencies:
   dartdoc: ^9.0.0