diff --git a/workflow/common/util.go b/workflow/common/util.go
index 10c1990ffd4c..9f54c2e249a1 100644
--- a/workflow/common/util.go
+++ b/workflow/common/util.go
@@ -537,15 +537,6 @@ func MergeReferredTemplate(tmpl *wfv1.Template, referred *wfv1.Template) (*wfv1.
 	newTmpl := referred.DeepCopy()
 
 	newTmpl.Name = tmpl.Name
-
-	emptymap := map[string]string{}
-	newTmpl, err := ProcessArgs(newTmpl, &tmpl.Arguments, emptymap, emptymap, false)
-	if err != nil {
-		return nil, err
-	}
-	newTmpl.Arguments = wfv1.Arguments{}
-
-	newTmpl.Inputs = *tmpl.Inputs.DeepCopy()
 	newTmpl.Outputs = *tmpl.Outputs.DeepCopy()
 
 	if len(tmpl.NodeSelector) > 0 {
diff --git a/workflow/controller/operator.go b/workflow/controller/operator.go
index 95592cf18af4..e3865893bc59 100644
--- a/workflow/controller/operator.go
+++ b/workflow/controller/operator.go
@@ -1083,12 +1083,12 @@ func (woc *wfOperationCtx) executeTemplate(nodeName string, orgTmpl wfv1.Templat
 		return node, ErrDeadlineExceeded
 	}
 
-	newTmplCtx, tmpl, err := tmplCtx.ResolveTemplate(orgTmpl)
+	localParams := make(map[string]string)
+	newTmplCtx, tmpl, err := tmplCtx.ResolveTemplate(orgTmpl, &args, woc.globalParams, localParams, false)
 	if err != nil {
 		return woc.initializeNode(nodeName, wfv1.NodeTypeSkipped, orgTmpl, boundaryID, wfv1.NodeError, err.Error()), err
 	}
 	// Perform parameter substitution of the template.
-	localParams := make(map[string]string)
 	if tmpl.IsPodType() {
 		localParams[common.LocalVarPodName] = woc.wf.NodeID(nodeName)
 	}
diff --git a/workflow/templateresolution/context.go b/workflow/templateresolution/context.go
index 32d46db53a5c..a8662c7e1639 100644
--- a/workflow/templateresolution/context.go
+++ b/workflow/templateresolution/context.go
@@ -115,12 +115,12 @@ func (ctx *Context) GetTemplateBase(tmplHolder wfv1.TemplateHolder) (wfv1.Templa
 
 // ResolveTemplate digs into referenes and returns a merged template.
 // This method is the public start point of template resolution.
-func (ctx *Context) ResolveTemplate(tmplHolder wfv1.TemplateHolder) (*Context, *wfv1.Template, error) {
-	return ctx.resolveTemplateImpl(tmplHolder, 0)
+func (ctx *Context) ResolveTemplate(tmplHolder wfv1.TemplateHolder, args wfv1.ArgumentsProvider, globalParams, localParams map[string]string, validateOnly bool) (*Context, *wfv1.Template, error) {
+	return ctx.resolveTemplateImpl(tmplHolder, args, globalParams, localParams, validateOnly, 0)
 }
 
 // resolveTemplateImpl digs into referenes and returns a merged template.
-func (ctx *Context) resolveTemplateImpl(tmplHolder wfv1.TemplateHolder, depth int) (*Context, *wfv1.Template, error) {
+func (ctx *Context) resolveTemplateImpl(tmplHolder wfv1.TemplateHolder, args wfv1.ArgumentsProvider, globalParams, localParams map[string]string, validateOnly bool, depth int) (*Context, *wfv1.Template, error) {
 	// Avoid infinite references
 	if depth > maxResolveDepth {
 		return nil, nil, errors.Errorf(errors.CodeBadRequest, "template reference exceeded max depth (%d)", maxResolveDepth)
@@ -139,13 +139,21 @@ func (ctx *Context) resolveTemplateImpl(tmplHolder wfv1.TemplateHolder, depth in
 	}
 	newTmplCtx := ctx.WithTemplateBase(newTmplBase)
 
+	tmpTmpl := &wfv1.Template{Inputs: *tmpl.Inputs.DeepCopy(), Arguments: *tmpl.Arguments.DeepCopy()}
+	processedTmpl, err := common.ProcessArgs(tmpTmpl, args, globalParams, localParams, validateOnly)
+	if err != nil {
+		return nil, nil, err
+	}
+	tmpl.Inputs = processedTmpl.Inputs
+	tmpl.Arguments = processedTmpl.Arguments
+
 	// Return a concrete template without digging into it.
 	if tmpl.GetType() != wfv1.TemplateTypeUnknown {
 		return newTmplCtx, tmpl, nil
 	}
 
 	// Dig into nested references with new template base.
-	finalTmplCtx, newTmpl, err := newTmplCtx.resolveTemplateImpl(tmpl, depth+1)
+	finalTmplCtx, newTmpl, err := newTmplCtx.resolveTemplateImpl(tmpl, &tmpl.Arguments, globalParams, localParams, validateOnly, depth+1)
 	if err != nil {
 		return nil, nil, err
 	}
diff --git a/workflow/templateresolution/context_test.go b/workflow/templateresolution/context_test.go
index cace58241044..f83d7e8a9674 100644
--- a/workflow/templateresolution/context_test.go
+++ b/workflow/templateresolution/context_test.go
@@ -256,6 +256,7 @@ func TestGetTemplateBase(t *testing.T) {
 }
 
 func TestResolveTemplate(t *testing.T) {
+	emptymap := map[string]string{}
 	wfClientset := fakewfclientset.NewSimpleClientset()
 	err := createWorkflowTemplate(wfClientset, anotherWorkflowTemplateYaml)
 	if err != nil {
@@ -270,7 +271,7 @@ func TestResolveTemplate(t *testing.T) {
 
 	// Get the template of template name.
 	tmplHolder := wfv1.Template{Template: "whalesay"}
-	ctx, tmpl, err := ctx.ResolveTemplate(&tmplHolder)
+	ctx, tmpl, err := ctx.ResolveTemplate(&tmplHolder, &wfv1.Arguments{}, emptymap, emptymap, false)
 	if !assert.NoError(t, err) {
 		t.Fatal(err)
 	}
@@ -283,7 +284,7 @@ func TestResolveTemplate(t *testing.T) {
 
 	// Get the template of template reference.
 	tmplHolder = wfv1.Template{TemplateRef: &wfv1.TemplateRef{Name: "some-workflow-template", Template: "whalesay"}}
-	ctx, tmpl, err = ctx.ResolveTemplate(&tmplHolder)
+	ctx, tmpl, err = ctx.ResolveTemplate(&tmplHolder, &wfv1.Arguments{}, emptymap, emptymap, false)
 	if !assert.NoError(t, err) {
 		t.Fatal(err)
 	}
@@ -297,7 +298,7 @@ func TestResolveTemplate(t *testing.T) {
 
 	// Get the template of local nested template reference.
 	tmplHolder = wfv1.Template{TemplateRef: &wfv1.TemplateRef{Name: "some-workflow-template", Template: "local-whalesay"}}
-	ctx, tmpl, err = ctx.ResolveTemplate(&tmplHolder)
+	ctx, tmpl, err = ctx.ResolveTemplate(&tmplHolder, &wfv1.Arguments{}, emptymap, emptymap, false)
 	if !assert.NoError(t, err) {
 		t.Fatal(err)
 	}
@@ -311,7 +312,7 @@ func TestResolveTemplate(t *testing.T) {
 
 	// Get the template of nested template reference.
 	tmplHolder = wfv1.Template{TemplateRef: &wfv1.TemplateRef{Name: "some-workflow-template", Template: "another-whalesay"}}
-	ctx, tmpl, err = ctx.ResolveTemplate(&tmplHolder)
+	ctx, tmpl, err = ctx.ResolveTemplate(&tmplHolder, &wfv1.Arguments{}, emptymap, emptymap, false)
 	if !assert.NoError(t, err) {
 		t.Fatal(err)
 	}
@@ -327,7 +328,8 @@ func TestResolveTemplate(t *testing.T) {
 	tmplHolder = wfv1.Template{
 		TemplateRef: &wfv1.TemplateRef{Name: "some-workflow-template", Template: "whalesay-with-arguments"},
 	}
-	ctx, tmpl, err = ctx.ResolveTemplate(&tmplHolder)
+	msgValue := "from-args"
+	ctx, tmpl, err = ctx.ResolveTemplate(&tmplHolder, &wfv1.Arguments{Parameters: []wfv1.Parameter{{Name: "message", Value: &msgValue}}}, emptymap, emptymap, false)
 	if !assert.NoError(t, err) {
 		t.Fatal(err)
 	}
@@ -337,13 +339,14 @@ func TestResolveTemplate(t *testing.T) {
 	}
 	assert.Equal(t, "some-workflow-template", wftmpl.Name)
 	assert.Equal(t, "whalesay-with-arguments", tmpl.Name)
-	assert.Equal(t, []string{"{{inputs.parameters.message}}-foo"}, tmpl.Container.Args)
+	assert.Equal(t, "from-args-foo", *tmpl.Inputs.Parameters[0].Value)
+	assert.Equal(t, []string{"{{inputs.parameters.message}}"}, tmpl.Container.Args)
 
 	// Get the template of nested template reference with arguments.
 	tmplHolder = wfv1.Template{
 		TemplateRef: &wfv1.TemplateRef{Name: "some-workflow-template", Template: "nested-whalesay-with-arguments"},
 	}
-	ctx, tmpl, err = ctx.ResolveTemplate(&tmplHolder)
+	ctx, tmpl, err = ctx.ResolveTemplate(&tmplHolder, &wfv1.Arguments{Parameters: []wfv1.Parameter{{Name: "message", Value: &msgValue}}}, emptymap, emptymap, false)
 	if !assert.NoError(t, err) {
 		t.Fatal(err)
 	}
@@ -353,15 +356,16 @@ func TestResolveTemplate(t *testing.T) {
 	}
 	assert.Equal(t, "some-workflow-template", wftmpl.Name)
 	assert.Equal(t, "nested-whalesay-with-arguments", tmpl.Name)
-	assert.Equal(t, []string{"{{inputs.parameters.message}}-bar-foo"}, tmpl.Container.Args)
+	assert.Equal(t, "from-args-bar-foo", *tmpl.Inputs.Parameters[0].Value)
+	assert.Equal(t, []string{"{{inputs.parameters.message}}"}, tmpl.Container.Args)
 
 	// Get the template of infinite loop template reference.
 	tmplHolder = wfv1.Template{TemplateRef: &wfv1.TemplateRef{Name: "some-workflow-template", Template: "infinite-loop-whalesay"}}
-	_, _, err = ctx.ResolveTemplate(&tmplHolder)
+	_, _, err = ctx.ResolveTemplate(&tmplHolder, &wfv1.Arguments{}, emptymap, emptymap, false)
 	assert.EqualError(t, err, "template reference exceeded max depth (10)")
 
 	// Get the template of local infinite loop template.
 	tmplHolder = wfv1.Template{TemplateRef: &wfv1.TemplateRef{Name: "some-workflow-template", Template: "infinite-local-loop-whalesay"}}
-	_, _, err = ctx.ResolveTemplate(&tmplHolder)
+	_, _, err = ctx.ResolveTemplate(&tmplHolder, &wfv1.Arguments{}, emptymap, emptymap, false)
 	assert.EqualError(t, err, "template reference exceeded max depth (10)")
 }
diff --git a/workflow/validate/validate.go b/workflow/validate/validate.go
index 85e6a2d60e0e..2e9094281ec8 100644
--- a/workflow/validate/validate.go
+++ b/workflow/validate/validate.go
@@ -283,7 +283,8 @@ func (ctx *templateValidationCtx) validateTemplateHolder(tmplHolder wfv1.Templat
 			}
 		}
 	}
-	tmplCtx, tmpl, err := tmplCtx.ResolveTemplate(tmplHolder)
+
+	tmplCtx, tmpl, err := tmplCtx.ResolveTemplate(tmplHolder, args, ctx.globalParams, map[string]string{}, true)
 	if err != nil {
 		if argoerr, ok := err.(errors.ArgoError); ok && argoerr.Code() == errors.CodeNotFound {
 			if tmplRef != nil {
@@ -565,16 +566,22 @@ func (ctx *templateValidationCtx) validateSteps(scope map[string]interface{}, tm
 			if err != nil {
 				return err
 			}
-			resolvedTmpl, err := ctx.validateTemplateHolder(&step, tmplCtx, &step.Arguments, scope)
+			resolvedTmpl, err := ctx.validateTemplateHolder(&step, tmplCtx, &FakeArguments{}, scope)
 			if err != nil {
 				return errors.Errorf(errors.CodeBadRequest, "templates.%s.steps[%d].%s %s", tmpl.Name, i, step.Name, err.Error())
 			}
 			resolvedTemplates[step.Name] = resolvedTmpl
 		}
-		for _, step := range stepGroup {
+		for i, step := range stepGroup {
 			aggregate := len(step.WithItems) > 0 || step.WithParam != ""
 			resolvedTmpl := resolvedTemplates[step.Name]
 			ctx.addOutputsToScope(resolvedTmpl, fmt.Sprintf("steps.%s", step.Name), scope, aggregate)
+
+			// Validate the template again with actual arguments.
+			_, err = ctx.validateTemplateHolder(&step, tmplCtx, &step.Arguments, scope)
+			if err != nil {
+				return errors.Errorf(errors.CodeBadRequest, "templates.%s.steps[%d].%s %s", tmpl.Name, i, step.Name, err.Error())
+			}
 		}
 	}
 	return nil