diff --git a/.github/workflows/providers-build.yml b/.github/workflows/providers-build.yml
index e0edb5486..560a4601a 100644
--- a/.github/workflows/providers-build.yml
+++ b/.github/workflows/providers-build.yml
@@ -12,7 +12,7 @@ on:
       - 'llama_stack/core/build.*'
       - 'llama_stack/core/*.sh'
       - '.github/workflows/providers-build.yml'
-      - 'llama_stack/templates/**'
+      - 'llama_stack/distributions/**'
       - 'pyproject.toml'
 
   pull_request:
@@ -22,7 +22,7 @@ on:
       - 'llama_stack/core/build.*'
       - 'llama_stack/core/*.sh'
       - '.github/workflows/providers-build.yml'
-      - 'llama_stack/templates/**'
+      - 'llama_stack/distributions/**'
       - 'pyproject.toml'
 
 concurrency:
@@ -33,23 +33,23 @@ jobs:
   generate-matrix:
     runs-on: ubuntu-latest
     outputs:
-      templates: ${{ steps.set-matrix.outputs.templates }}
+      distros: ${{ steps.set-matrix.outputs.distros }}
     steps:
       - name: Checkout repository
         uses: actions/checkout@11bd71901bbe5b1630ceea73d27597364c9af683 # v4.2.2
 
-      - name: Generate Template List
+      - name: Generate Distribution List
         id: set-matrix
         run: |
-          templates=$(ls llama_stack/templates/*/*build.yaml | awk -F'/' '{print $(NF-1)}' | jq -R -s -c 'split("\n")[:-1]')
-          echo "templates=$templates" >> "$GITHUB_OUTPUT"
+          distros=$(ls llama_stack/distributions/*/*build.yaml | awk -F'/' '{print $(NF-1)}' | jq -R -s -c 'split("\n")[:-1]')
+          echo "distros=$distros" >> "$GITHUB_OUTPUT"
 
   build:
     needs: generate-matrix
     runs-on: ubuntu-latest
     strategy:
       matrix:
-        template: ${{ fromJson(needs.generate-matrix.outputs.templates) }}
+        distro: ${{ fromJson(needs.generate-matrix.outputs.distros) }}
         image-type: [venv, container]
       fail-fast: false # We want to run all jobs even if some fail
 
@@ -62,7 +62,7 @@ jobs:
 
       - name: Print build dependencies
         run: |
-          uv run llama stack build --template ${{ matrix.template }} --image-type ${{ matrix.image-type }} --image-name test --print-deps-only
+          uv run llama stack build --distro ${{ matrix.distro }} --image-type ${{ matrix.image-type }} --image-name test --print-deps-only
 
       - name: Run Llama Stack Build
         run: |
@@ -99,16 +99,16 @@ jobs:
 
       - name: Build a single provider
         run: |
-          yq -i '.image_type = "container"' llama_stack/templates/ci-tests/build.yaml
-          yq -i '.image_name = "test"' llama_stack/templates/ci-tests/build.yaml
-          USE_COPY_NOT_MOUNT=true LLAMA_STACK_DIR=. uv run llama stack build --config llama_stack/templates/ci-tests/build.yaml
+          yq -i '.image_type = "container"' llama_stack/distributions/ci-tests/build.yaml
+          yq -i '.image_name = "test"' llama_stack/distributions/ci-tests/build.yaml
+          USE_COPY_NOT_MOUNT=true LLAMA_STACK_DIR=. uv run llama stack build --config llama_stack/distributions/ci-tests/build.yaml
 
       - name: Inspect the container image entrypoint
         run: |
           IMAGE_ID=$(docker images --format "{{.Repository}}:{{.Tag}}" | head -n 1)
           entrypoint=$(docker inspect --format '{{ .Config.Entrypoint }}' $IMAGE_ID)
           echo "Entrypoint: $entrypoint"
-          if [ "$entrypoint" != "[python -m llama_stack.core.server.server --config /app/run.yaml]" ]; then
+          if [ "$entrypoint" != "[python -m llama_stack.core.server.server /app/run.yaml]" ]; then
             echo "Entrypoint is not correct"
             exit 1
           fi
@@ -122,27 +122,27 @@ jobs:
       - name: Install dependencies
         uses: ./.github/actions/setup-runner
 
-      - name: Pin template to UBI9 base
+      - name: Pin distribution to UBI9 base
         run: |
           yq -i '
             .image_type    = "container" |
             .image_name    = "ubi9-test" |
             .distribution_spec.container_image = "registry.access.redhat.com/ubi9:latest"
-          ' llama_stack/templates/ci-tests/build.yaml
+          ' llama_stack/distributions/ci-tests/build.yaml
 
       - name: Build dev container (UBI9)
         env:
           USE_COPY_NOT_MOUNT: "true"
           LLAMA_STACK_DIR: "."
         run: |
-          uv run llama stack build --config llama_stack/templates/ci-tests/build.yaml
+          uv run llama stack build --config llama_stack/distributions/ci-tests/build.yaml
 
       - name: Inspect UBI9 image
         run: |
           IMAGE_ID=$(docker images --format "{{.Repository}}:{{.Tag}}" | head -n 1)
           entrypoint=$(docker inspect --format '{{ .Config.Entrypoint }}' $IMAGE_ID)
           echo "Entrypoint: $entrypoint"
-          if [ "$entrypoint" != "[python -m llama_stack.core.server.server --config /app/run.yaml]" ]; then
+          if [ "$entrypoint" != "[python -m llama_stack.core.server.server /app/run.yaml]" ]; then
             echo "Entrypoint is not correct"
             exit 1
           fi
diff --git a/llama_stack/cli/stack/_build.py b/llama_stack/cli/stack/_build.py
index 6cff920f2..c6e204773 100644
--- a/llama_stack/cli/stack/_build.py
+++ b/llama_stack/cli/stack/_build.py
@@ -428,11 +428,11 @@ def _run_stack_build_command_from_build_config(
         raise RuntimeError(f"Failed to build image {image_name}")
 
     if distro_name:
-        # copy run.yaml from template to build_dir instead of generating it again
-        template_path = importlib.resources.files("llama_stack") / f"templates/{distro_name}/run.yaml"
+        # copy run.yaml from distribution to build_dir instead of generating it again
+        distro_path = importlib.resources.files("llama_stack") / f"distributions/{distro_name}/run.yaml"
         run_config_file = build_dir / f"{distro_name}-run.yaml"
 
-        with importlib.resources.as_file(template_path) as path:
+        with importlib.resources.as_file(distro_path) as path:
             shutil.copy(path, run_config_file)
 
         cprint("Build Successful!", color="green", file=sys.stderr)
@@ -443,7 +443,7 @@ def _run_stack_build_command_from_build_config(
             color="green",
             file=sys.stderr,
         )
-        return template_path
+        return distro_path
     else:
         return _generate_run_config(build_config, build_dir, image_name)