diff --git a/changelog/26863.txt b/changelog/26863.txt
new file mode 100644
index 0000000000..75d864e6c8
--- /dev/null
+++ b/changelog/26863.txt
@@ -0,0 +1,3 @@
+```release-note:bug
+agent: Correctly constructs kv-v2 secret paths in nested namespaces. 
+```
\ No newline at end of file
diff --git a/go.mod b/go.mod
index 7c951a28d7..406ec1bc74 100644
--- a/go.mod
+++ b/go.mod
@@ -82,7 +82,7 @@ require (
 	github.com/hashicorp/cap v0.6.0
 	github.com/hashicorp/cap/ldap v0.0.0-20240328153749-fcfe271d0227
 	github.com/hashicorp/cli v1.1.6
-	github.com/hashicorp/consul-template v0.37.5
+	github.com/hashicorp/consul-template v0.37.6
 	github.com/hashicorp/consul/api v1.27.0
 	github.com/hashicorp/errwrap v1.1.0
 	github.com/hashicorp/eventlogger v0.2.8
diff --git a/go.sum b/go.sum
index 58fee486a7..f481e8fdfa 100644
--- a/go.sum
+++ b/go.sum
@@ -2333,6 +2333,8 @@ github.com/hashicorp/cli v1.1.6 h1:CMOV+/LJfL1tXCOKrgAX0uRKnzjj/mpmqNXloRSy2K8=
 github.com/hashicorp/cli v1.1.6/go.mod h1:MPon5QYlgjjo0BSoAiN0ESeT5fRzDjVRp+uioJ0piz4=
 github.com/hashicorp/consul-template v0.37.5 h1:pTM6+oWdGW0rDvhPzdCa9iVtn227uG1DePu1Q0ydM64=
 github.com/hashicorp/consul-template v0.37.5/go.mod h1:tT9BVCw6W4JUxHJlv+onPuUzBTiYwvPRfXYPDgXDbIA=
+github.com/hashicorp/consul-template v0.37.6 h1:7iz+BjuO4/LHQn/x04o3b+42UspILcIKZQk6DQJd59M=
+github.com/hashicorp/consul-template v0.37.6/go.mod h1:tT9BVCw6W4JUxHJlv+onPuUzBTiYwvPRfXYPDgXDbIA=
 github.com/hashicorp/consul/api v1.1.0/go.mod h1:VmuI/Lkw1nC05EYQWNKwWGbkg+FbDBtguAZLlVdkD9Q=
 github.com/hashicorp/consul/api v1.27.0 h1:gmJ6DPKQog1426xsdmgk5iqDyoRiNc+ipBdJOqKQFjc=
 github.com/hashicorp/consul/api v1.27.0/go.mod h1:JkekNRSou9lANFdt+4IKx3Za7XY0JzzpQjEb4Ivo1c8=