diff --git a/packages/core/schematics/ng-generate/control-flow-migration/util.ts b/packages/core/schematics/ng-generate/control-flow-migration/util.ts
index 86b7e2b692b8..87e8ecfec9a7 100644
--- a/packages/core/schematics/ng-generate/control-flow-migration/util.ts
+++ b/packages/core/schematics/ng-generate/control-flow-migration/util.ts
@@ -284,7 +284,7 @@ export function getTemplates(template: string): Map<string, Template> {
     // count usages of each ng-template
     for (let [key, tmpl] of visitor.templates) {
       const escapeKey = escapeRegExp(key.slice(1));
-      const regex = new RegExp(`[^a-zA-Z0-9-<\']${escapeKey}\\W`, 'gm');
+      const regex = new RegExp(`[^a-zA-Z0-9-<(\']${escapeKey}\\W`, 'gm');
       const matches = template.match(regex);
       tmpl.count = matches?.length ?? 0;
       tmpl.generateContents(template);
@@ -295,6 +295,15 @@ export function getTemplates(template: string): Map<string, Template> {
   return new Map<string, Template>();
 }
 
+export function updateTemplates(
+    template: string, templates: Map<string, Template>): Map<string, Template> {
+  const updatedTemplates = getTemplates(template);
+  for (let [key, tmpl] of updatedTemplates) {
+    templates.set(key, tmpl);
+  }
+  return templates;
+}
+
 function wrapIntoI18nContainer(i18nAttr: Attribute, content: string) {
   const {start, middle, end} = generatei18nContainer(i18nAttr, content);
   return `${start}${middle}${end}`;
@@ -341,14 +350,35 @@ export function processNgTemplates(template: string): {migrated: string, err: Er
         if (t.count === matches.length + 1 && safeToRemove) {
           template = template.replace(t.contents, '');
         }
+        // templates may have changed structure from nested replaced templates
+        // so we need to reprocess them before the next loop.
+        updateTemplates(template, templates);
       }
     }
+    // template placeholders may still exist if the ng-template name is not
+    // present in the component. This could be because it's passed in from
+    // another component. In that case, we need to replace any remaining
+    // template placeholders with template outlets.
+    template = replaceRemainingPlaceholders(template);
     return {migrated: template, err: undefined};
   } catch (err) {
     return {migrated: template, err: err as Error};
   }
 }
 
+function replaceRemainingPlaceholders(template: string): string {
+  const replaceRegex = new RegExp(`#\\w*\\|`, 'g');
+  const placeholders = [...template.matchAll(replaceRegex)];
+  let migrated = template;
+  for (let ph of placeholders) {
+    const placeholder = ph[0];
+    const name = placeholder.slice(1, placeholder.length - 1);
+    migrated =
+        template.replace(placeholder, `<ng-template [ngTemplateOutlet]="${name}"></ng-template>`);
+  }
+  return migrated;
+}
+
 /**
  * determines if the CommonModule can be safely removed from imports
  */
diff --git a/packages/core/schematics/test/control_flow_migration_spec.ts b/packages/core/schematics/test/control_flow_migration_spec.ts
index d28fe664dd26..aac93e7096f6 100644
--- a/packages/core/schematics/test/control_flow_migration_spec.ts
+++ b/packages/core/schematics/test/control_flow_migration_spec.ts
@@ -3970,6 +3970,82 @@ describe('control flow migration', () => {
         `}`,
       ].join('\n'));
     });
+
+    it('should migrate nested template usage correctly', async () => {
+      writeFile('/comp.ts', `
+        import {Component} from '@angular/core';
+        import {NgIf} from '@angular/common';
+
+        @Component({
+          templateUrl: './comp.html'
+        })
+        class Comp {
+          show = false;
+        }
+      `);
+
+      writeFile('/comp.html', [
+        `<ng-container *ngIf="!(condition$ | async); else template">`,
+        `  Hello!`,
+        `</ng-container>`,
+        `<ng-template #bar>Bar</ng-template>`,
+        `<ng-template #foo>Foo</ng-template>`,
+        `<ng-template #template>`,
+        `  <ng-container`,
+        `    *ngIf="(foo$ | async) === true; then foo; else bar"`,
+        `  ></ng-container>`,
+        `</ng-template>`,
+      ].join('\n'));
+
+      await runMigration();
+      const content = tree.readContent('/comp.html');
+
+      expect(content).toBe([
+        `@if (!(condition$ | async)) {`,
+        `  Hello!`,
+        `} @else {`,
+        `  @if ((foo$ | async) === true) {`,
+        `    Foo`,
+        `  } @else {`,
+        `    Bar`,
+        `  }`,
+        `}\n`,
+      ].join('\n'));
+    });
+
+    it('should add an ngTemplateOutlet when the template placeholder does not match a template',
+       async () => {
+         writeFile('/comp.ts', `
+        import {Component} from '@angular/core';
+        import {NgIf} from '@angular/common';
+
+        @Component({
+          templateUrl: './comp.html'
+        })
+        class Comp {
+          show = false;
+        }
+      `);
+
+         writeFile('/comp.html', [
+           `<button *ngIf="active; else defaultTemplate">`,
+           `  Hello!`,
+           `</button>`,
+         ].join('\n'));
+
+         await runMigration();
+         const content = tree.readContent('/comp.html');
+
+         expect(content).toBe([
+           `@if (active) {`,
+           `  <button>`,
+           `    Hello!`,
+           `  </button>`,
+           `} @else {`,
+           `  <ng-template [ngTemplateOutlet]="defaultTemplate"></ng-template>`,
+           `}`,
+         ].join('\n'));
+       });
   });
 
   describe('formatting', () => {