diff --git a/action/pipeline/validate.go b/action/pipeline/validate.go
index 81729aa1..641fdc65 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, c.TemplateFiles)
+	p, _, err := client.CompileLite(path, c.Template, false)
 	if err != nil {
 		return err
 	}
diff --git a/action/pipeline/validate_test.go b/action/pipeline/validate_test.go
index 2be7011c..74c4c1f1 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))
+		err := test.config.ValidateLocal(client.WithLocal(isLocal).WithLocalTemplates(test.config.TemplateFiles))
 
 		if test.failure {
 			if err == nil {
diff --git a/command/pipeline/validate.go b/command/pipeline/validate.go
index 652a7133..40a16468 100644
--- a/command/pipeline/validate.go
+++ b/command/pipeline/validate.go
@@ -196,6 +196,7 @@ 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 dba5c160..693b8a2d 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 v0.20.2
-	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/go-vela/sdk-go v0.20.3
+	github.com/go-vela/server v0.20.3
+	github.com/go-vela/types v0.20.3
+	github.com/go-vela/worker v0.20.3
 	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 3228878e..94da625e 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 v0.20.2 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/go-vela/sdk-go v0.20.3 h1:/PSTIT6BsYglr56ldmdQJgM/QYZ0EZG7PDLyAEw1bYc=
+github.com/go-vela/sdk-go v0.20.3/go.mod h1:1cdzmLOXEsSfQp8dDhD6FXsFpxwBIyPGUI/wrEB4E/I=
+github.com/go-vela/server v0.20.3 h1:RPpPpEBMIclimfZgOhUCmZkrJ59g5hYNB3ctFR5N6fs=
+github.com/go-vela/server v0.20.3/go.mod h1:lWZ2MNrBrW37OaQXsnqfp/vGvKzjk21QGodHfaQZmYQ=
+github.com/go-vela/types v0.20.3 h1:vrX9pFTzTHbtfjHdbAwp9Ii3hWx3OSZ8qTINyaq2j2k=
+github.com/go-vela/types v0.20.3/go.mod h1:AXO4oQSygOBQ02fPapsKjQHkx2aQO3zTu7clpvVbXBY=
+github.com/go-vela/worker v0.20.3 h1:OcXPbb9oJ0SZ0uEDFK3k9jC0QIiY3PXB9CdI3rgSHzE=
+github.com/go-vela/worker v0.20.3/go.mod h1:gwhkLFTTyQEnjRdvEcJsxaYhJvVkMlVwXuAsh4bBWig=
 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=