diff --git a/src/uu/mktemp/src/mktemp.rs b/src/uu/mktemp/src/mktemp.rs
index 64281e5756a..4d9cd0a1233 100644
--- a/src/uu/mktemp/src/mktemp.rs
+++ b/src/uu/mktemp/src/mktemp.rs
@@ -131,7 +131,8 @@ impl Options {
                 (tmpdir, OsString::from(template))
             }
             Some(template) => {
-                let tmpdir = if let Some(tmpdir) = env::var_os(TMPDIR_ENV_VAR)
+                let tmpdir = if let Some(tmpdir) =
+                    env::var_os(TMPDIR_ENV_VAR).filter(|dir| !dir.is_empty())
                     && matches.get_flag(OPT_T)
                 {
                     Some(PathBuf::from(tmpdir))
@@ -140,13 +141,7 @@ impl Options {
                 } else if matches.get_flag(OPT_T) || matches.contains_id(OPT_TMPDIR) {
                     // If --tmpdir is given without an argument, or -t is given
                     // export in TMPDIR
-                    #[cfg(target_os = "wasi")]
-                    // WASI's `std::env::temp_dir()` unconditionally panics
-                    let default_tmp_dir = env::var_os(TMPDIR_ENV_VAR)
-                        .map_or_else(|| PathBuf::from(FALLBACK_TMPDIR), PathBuf::from);
-                    #[cfg(not(target_os = "wasi"))]
-                    let default_tmp_dir = env::temp_dir();
-                    Some(default_tmp_dir)
+                    Some(get_tmpdir_env_or_default())
                 } else {
                     None
                 };
diff --git a/tests/by-util/test_mktemp.rs b/tests/by-util/test_mktemp.rs
index ca93e30b466..348b053d4df 100644
--- a/tests/by-util/test_mktemp.rs
+++ b/tests/by-util/test_mktemp.rs
@@ -937,6 +937,31 @@ fn test_empty_tmpdir_env_var() {
     }
 }
 
+#[test]
+#[cfg(not(any(windows, target_os = "android")))]
+#[cfg_attr(wasi_runner, ignore = "WASI sandbox: host paths not visible")]
+fn test_empty_tmpdir_env_var_with_template() {
+    for args in [
+        &["-t", "fooXXX"][..],
+        &["-d", "-t", "fooXXX"],
+        &["--tmpdir", "fooXXX"],
+    ] {
+        let result = new_ucmd!().env(TMPDIR, "").args(args).succeeds();
+        let path = result.stdout_str().trim_end();
+        assert!(path.starts_with("/tmp/foo"), "{args:?}: {path}");
+    }
+
+    let (at, mut ucmd) = at_and_ucmd!();
+    at.mkdir("d");
+    let dir = at.plus_as_string("d");
+    let result = ucmd
+        .env(TMPDIR, "")
+        .args(&["-p", &dir, "-t", "fooXXX"])
+        .succeeds();
+    let path = result.stdout_str().trim_end();
+    assert!(path.starts_with(&format!("{dir}/foo")), "{path}");
+}
+
 #[test]
 fn test_nonexistent_dir_prefix() {
     #[cfg(not(windows))]