diff --git a/backend/main.py b/backend/main.py
index ad60af4..eb63054 100644
--- a/backend/main.py
+++ b/backend/main.py
@@ -854,15 +854,24 @@ async def create_note_from_template(request: Request, data: dict):
         # Apply placeholder replacements
         final_content = apply_template_placeholders(template_content, note_path)
         
-        # Save the note
-        success = save_note(config['storage']['notes_dir'], note_path, final_content)
+        # Run on_note_create hook BEFORE saving (allows plugins to modify initial content)
+        final_content = plugin_manager.run_hook_with_return(
+            'on_note_create',
+            note_path=note_path,
+            initial_content=final_content
+        )
+        
+        # Run on_note_save hook (can transform content, e.g., encrypt)
+        transformed_content = plugin_manager.run_hook('on_note_save', note_path=note_path, content=final_content)
+        if transformed_content is None:
+            transformed_content = final_content
+        
+        # Save the note with the (potentially modified/transformed) content
+        success = save_note(config['storage']['notes_dir'], note_path, transformed_content)
         
         if not success:
             raise HTTPException(status_code=500, detail="Failed to create note from template")
         
-        # Run plugin hooks
-        plugin_manager.run_hook('on_note_create', note_path=note_path, initial_content=final_content)
-        
         return {
             "success": True,
             "path": note_path,
diff --git a/frontend/app.js b/frontend/app.js
index 811f718..9ed5e39 100644
--- a/frontend/app.js
+++ b/frontend/app.js
@@ -634,6 +634,13 @@ function noteApp() {
                     notePath = `${targetFolder}/${notePath}`;
                 }
                 
+                // CRITICAL: Check if note already exists
+                const existingNote = this.notes.find(note => note.path === notePath);
+                if (existingNote) {
+                    alert(`A note named "${this.newTemplateNoteName.trim()}" already exists in this location.\nPlease choose a different name.`);
+                    return;
+                }
+                
                 // Create note from template
                 const response = await fetch('/api/templates/create-note', {
                     method: 'POST',