diff --git a/action/pipeline/validate.go b/action/pipeline/validate.go
index 641fdc65..81729aa1 100644
--- a/action/pipeline/validate.go
+++ b/action/pipeline/validate.go
@@ -107,7 +107,7 @@ func (c *Config) ValidateLocal(client compiler.Engine) error {
 	logrus.Tracef("compiling pipeline %s", path)
 
 	// compile the object into a pipeline
-	p, _, err := client.CompileLite(path, c.Template, false)
+	p, _, err := client.CompileLite(path, c.Template, false, c.TemplateFiles)
 	if err != nil {
 		return err
 	}
diff --git a/action/pipeline/validate_test.go b/action/pipeline/validate_test.go
index 74c4c1f1..2be7011c 100644
--- a/action/pipeline/validate_test.go
+++ b/action/pipeline/validate_test.go
@@ -284,7 +284,7 @@ func TestPipeline_Config_ValidateLocal(t *testing.T) {
 	for _, test := range tests {
 		isLocal := len(test.config.TemplateFiles) > 0
 
-		err := test.config.ValidateLocal(client.WithLocal(isLocal).WithLocalTemplates(test.config.TemplateFiles))
+		err := test.config.ValidateLocal(client.WithLocal(isLocal))
 
 		if test.failure {
 			if err == nil {
diff --git a/command/pipeline/validate.go b/command/pipeline/validate.go
index 40a16468..652a7133 100644
--- a/command/pipeline/validate.go
+++ b/command/pipeline/validate.go
@@ -196,7 +196,6 @@ func validate(c *cli.Context) error {
 	// set when user is sourcing templates from local machine
 	if len(p.TemplateFiles) != 0 {
 		client.WithLocal(true)
-		client.WithLocalTemplates(p.TemplateFiles)
 		client.TemplateDepth = c.Int("max-template-depth")
 	} else {
 		// set max template depth to minimum of 5 and provided value if local templates are not provided.
diff --git a/go.mod b/go.mod
index 6c39a111..dba5c160 100644
--- a/go.mod
+++ b/go.mod
@@ -10,10 +10,10 @@ require (
 	github.com/dustin/go-humanize v1.0.1
 	github.com/gin-gonic/gin v1.9.1
 	github.com/go-git/go-git/v5 v5.8.1
-	github.com/go-vela/sdk-go v0.20.1
-	github.com/go-vela/server v0.20.1
-	github.com/go-vela/types v0.20.1
-	github.com/go-vela/worker v0.20.1
+	github.com/go-vela/sdk-go v0.20.2
+	github.com/go-vela/server v0.20.2
+	github.com/go-vela/types v0.20.2
+	github.com/go-vela/worker v0.20.2
 	github.com/golang-jwt/jwt/v5 v5.0.0
 	github.com/gosuri/uitable v0.0.4
 	github.com/manifoldco/promptui v0.9.0
diff --git a/go.sum b/go.sum
index d861984b..3228878e 100644
--- a/go.sum
+++ b/go.sum
@@ -158,14 +158,14 @@ github.com/go-playground/universal-translator v0.18.1/go.mod h1:xekY+UJKNuX9WP91
 github.com/go-playground/validator/v10 v10.14.0 h1:vgvQWe3XCz3gIeFDm/HnTIbj6UGmg/+t63MyGU2n5js=
 github.com/go-playground/validator/v10 v10.14.0/go.mod h1:9iXMNT7sEkjXb0I+enO7QXmzG6QCsPWY4zveKFVRSyU=
 github.com/go-task/slim-sprig v0.0.0-20210107165309-348f09dbbbc0 h1:p104kn46Q8WdvHunIJ9dAyjPVtrBPhSr3KT2yUst43I=
-github.com/go-vela/sdk-go v0.20.1 h1:c0i4kzeHtvdZHJwCEIK9SsUUc6oSyynYv66IXw6MRCc=
-github.com/go-vela/sdk-go v0.20.1/go.mod h1:LnWNiqcFVv9GARBFLLvgoYycfbi5PI187NrL1FLn8v0=
-github.com/go-vela/server v0.20.1 h1:TsAhCj3wqm4kxfq9M6J8+3MmBKlDeJoTr4UGknT9yQw=
-github.com/go-vela/server v0.20.1/go.mod h1:M4rSAg8arMhIQYXQpc/ZmMbNW73ur8yE88klMk0Dq9w=
-github.com/go-vela/types v0.20.1 h1:hHAX0Iij2J7UZ9f3SlXbwNy481CjKzU9CBfkiLuysVE=
-github.com/go-vela/types v0.20.1/go.mod h1:AXO4oQSygOBQ02fPapsKjQHkx2aQO3zTu7clpvVbXBY=
-github.com/go-vela/worker v0.20.1 h1:3RetSe4+Z3CL4afogomkNdT88EppKh2UOf8UXJ0WPhc=
-github.com/go-vela/worker v0.20.1/go.mod h1:qkJs4581m+K2d7xGQm9P/75cJ3aypZmgQURFG8sZNr0=
+github.com/go-vela/sdk-go v0.20.2 h1:NW5m7Efu4bO6a3R1pZH972OfuCTXuyEQCMs4h/ClS/8=
+github.com/go-vela/sdk-go v0.20.2/go.mod h1:JmJeroTgIQR0hR5liRESYmwtK6FyfvimoNwNGFfI8M0=
+github.com/go-vela/server v0.20.2 h1:PkPkZq98hsqbEUkkYRnyX5V80rAR7Qh5nHKlgH7jE4s=
+github.com/go-vela/server v0.20.2/go.mod h1:GvJ3E3AGbMGxJGaDXev853Te6G0msNqhYdm6bEnne8E=
+github.com/go-vela/types v0.20.2 h1:PnyKJareZTEvVoAOe48tRnOMETVtpm+5JdHqOsMA0v0=
+github.com/go-vela/types v0.20.2/go.mod h1:AXO4oQSygOBQ02fPapsKjQHkx2aQO3zTu7clpvVbXBY=
+github.com/go-vela/worker v0.20.2 h1:tLdPWkdZlCiDSKVcG95xGabqWD0/tDn7oeJJMIJEgFQ=
+github.com/go-vela/worker v0.20.2/go.mod h1:D7rx1LrQSLLL+Fn/OBdk8n4Pf/A5dDfcUgD0cAv2GZY=
 github.com/goccy/go-json v0.10.2 h1:CrxCmQqYDkv1z7lO7Wbh2HN93uovUHgrECaO5ZrCXAU=
 github.com/goccy/go-json v0.10.2/go.mod h1:6MelG93GURQebXPDq3khkgXZkazVtN9CRI+MGFi0w8I=
 github.com/gogo/protobuf v1.3.2 h1:Ov1cvc58UF3b5XjBnZv7+opcTcQFZebYjWzi34vdm4Q=