diff --git a/src/cloud-element-templates/CalledElementBehavior.js b/src/cloud-element-templates/CalledElementBehavior.js
new file mode 100644
index 00000000..9995edce
--- /dev/null
+++ b/src/cloud-element-templates/CalledElementBehavior.js
@@ -0,0 +1,46 @@
+import CommandInterceptor from 'diagram-js/lib/command/CommandInterceptor';
+import { is } from 'bpmn-js/lib/util/ModelUtil';
+
+import { findExtension } from './Helper';
+
+/**
+ * Enforces no variable propagation for templated call activities.
+ */
+export class CalledElementBehavior extends CommandInterceptor {
+  constructor(eventBus, modeling) {
+    super(eventBus, modeling);
+
+    this._modeling = modeling;
+
+    this.postExecuted(
+      'propertiesPanel.zeebe.changeTemplate', this._handleTemplateChange, true, this);
+  }
+
+  _handleTemplateChange(context) {
+    if (!context.newTemplate) {
+      return;
+    }
+
+    const { element } = context;
+
+    if (!is(element, 'bpmn:CallActivity')) {
+      return;
+    }
+
+    const calledElement = findExtension(element, 'zeebe:CalledElement');
+
+    if (!calledElement) {
+      return;
+    }
+
+    this._modeling.updateModdleProperties(element, calledElement, {
+      propagateAllChildVariables: false,
+      propagateAllParentVariables: false
+    });
+  }
+}
+
+CalledElementBehavior.$inject = [
+  'eventBus',
+  'modeling'
+];
diff --git a/src/cloud-element-templates/create/CalledElementBindingProvider.js b/src/cloud-element-templates/create/CalledElementBindingProvider.js
index 101d995c..f02476f4 100644
--- a/src/cloud-element-templates/create/CalledElementBindingProvider.js
+++ b/src/cloud-element-templates/create/CalledElementBindingProvider.js
@@ -3,8 +3,6 @@ import {
 } from '../CreateHelper';
 import { getDefaultValue } from '../Helper';
 
-import { ensureNoPropagation } from '../util/calledElement';
-
 
 export class CalledElementBindingProvider {
   static create(element, options) {
@@ -30,4 +28,9 @@ export class CalledElementBindingProvider {
 
     calledElement.set(propertyName, value);
   }
-}
\ No newline at end of file
+}
+
+function ensureNoPropagation(calledElement) {
+  calledElement.set('propagateAllChildVariables', false);
+  calledElement.set('propagateAllParentVariables', false);
+}
diff --git a/src/cloud-element-templates/index.js b/src/cloud-element-templates/index.js
index 9dd32295..14fcc678 100644
--- a/src/cloud-element-templates/index.js
+++ b/src/cloud-element-templates/index.js
@@ -10,6 +10,7 @@ import ElementTemplatesPropertiesProvider from './ElementTemplatesPropertiesProv
 import UpdateTemplatePropertiesOrder from './UpdateTemplatePropertiesOrder';
 import { ReferencedElementBehavior } from './ReferencedElementBehavior';
 import { GeneratedValueBehavior } from './GeneratedValueBehavior';
+import { CalledElementBehavior } from './CalledElementBehavior';
 
 
 export default {
@@ -25,7 +26,8 @@ export default {
     'elementTemplatesConditionChecker',
     'generatedValueBehavior',
     'referencedElementBehavior',
-    'updateTemplatePropertiesOrder'
+    'updateTemplatePropertiesOrder',
+    'calledElementBehavior'
   ],
   elementTemplates: [ 'type', ElementTemplates ],
   elementTemplatesLoader: [ 'type', ElementTemplatesLoader ],
@@ -34,5 +36,6 @@ export default {
   elementTemplatesConditionChecker: [ 'type', ElementTemplatesConditionChecker ],
   generatedValueBehavior: [ 'type', GeneratedValueBehavior ],
   referencedElementBehavior: [ 'type', ReferencedElementBehavior ],
-  updateTemplatePropertiesOrder: [ 'type', UpdateTemplatePropertiesOrder ]
+  updateTemplatePropertiesOrder: [ 'type', UpdateTemplatePropertiesOrder ],
+  calledElementBehavior: [ 'type', CalledElementBehavior ]
 };
diff --git a/src/cloud-element-templates/util/calledElement.js b/src/cloud-element-templates/util/calledElement.js
deleted file mode 100644
index e39683dc..00000000
--- a/src/cloud-element-templates/util/calledElement.js
+++ /dev/null
@@ -1,4 +0,0 @@
-export function ensureNoPropagation(calledElement) {
-  calledElement.set('propagateAllChildVariables', false);
-  calledElement.set('propagateAllParentVariables', false);
-}
diff --git a/test/spec/cloud-element-templates/cmd/ChangeElementTemplateHandler.spec.js b/test/spec/cloud-element-templates/cmd/ChangeElementTemplateHandler.spec.js
index e8397a68..c8d21a99 100644
--- a/test/spec/cloud-element-templates/cmd/ChangeElementTemplateHandler.spec.js
+++ b/test/spec/cloud-element-templates/cmd/ChangeElementTemplateHandler.spec.js
@@ -1722,12 +1722,9 @@ describe('cloud-element-templates/cmd - ChangeElementTemplateHandler', function(
         const calledElement = findExtension(task, 'zeebe:CalledElement');
 
         expect(calledElement).to.exist;
-        expect(calledElement).to.jsonEqual({
-          $type: 'zeebe:CalledElement',
-          processId: 'paymentProcess',
-          propagateChildVariables: false,
-          propagateParentVariables: false
-        });
+        expect(calledElement).to.have.property('processId', 'paymentProcess');
+        expect(calledElement).to.have.property('propagateAllChildVariables', false);
+        expect(calledElement).to.have.property('propagateAllParentVariables', false);
       }));
 
 
@@ -1769,12 +1766,9 @@ describe('cloud-element-templates/cmd - ChangeElementTemplateHandler', function(
         const calledElement = findExtension(task, 'zeebe:CalledElement');
 
         expect(calledElement).to.exist;
-        expect(calledElement).to.jsonEqual({
-          $type: 'zeebe:CalledElement',
-          processId: 'paymentProcess',
-          propagateChildVariables: false,
-          propagateParentVariables: false
-        });
+        expect(calledElement).to.have.property('processId', 'paymentProcess');
+        expect(calledElement).to.have.property('propagateAllChildVariables', false);
+        expect(calledElement).to.have.property('propagateAllParentVariables', false);
       }));
     });