diff --git a/ansible/roles/nova-cell/tasks/external_ceph.yml b/ansible/roles/nova-cell/tasks/external_ceph.yml
index fdf1aa6b80..30a6799767 100644
--- a/ansible/roles/nova-cell/tasks/external_ceph.yml
+++ b/ansible/roles/nova-cell/tasks/external_ceph.yml
@@ -41,7 +41,7 @@
 - name: Extract cinder key from file
   set_fact:
     cinder_cephx_raw_key:
-      "{{ lookup('file', cinder_cephx_keyring_file.stat.path) | regex_search('key\\s*=.*$', multiline=True) | regex_replace('key\\s*=\\s*(.*)\\s*', '\\1') }}"
+      "{{ lookup('template', cinder_cephx_keyring_file.stat.path) | regex_search('key\\s*=.*$', multiline=True) | regex_replace('key\\s*=\\s*(.*)\\s*', '\\1') }}"
   changed_when: false
   when:
     - cinder_backend_ceph | bool
diff --git a/releasenotes/notes/external-ceph-cinder_key-1a4c38fff3e2ab3c.yaml b/releasenotes/notes/external-ceph-cinder_key-1a4c38fff3e2ab3c.yaml
new file mode 100644
index 0000000000..bcdd4f39b1
--- /dev/null
+++ b/releasenotes/notes/external-ceph-cinder_key-1a4c38fff3e2ab3c.yaml
@@ -0,0 +1,10 @@
+---
+fixes:
+  - |
+    Fixes external ceph cinder keyring is not imported into libvirt if
+    templated.
+    Per now, ansible/roles/nova-cell/tasks/external_ceph.yml looks
+    cinder_cephx_raw_key up as file from cinder_cephx_keyring_file.stat.path
+    To allow templated cinderkeyrings, the lookup is changed to "template"
+    Fixes `LP#2089229
+    <https://bugs.launchpad.net/kolla-ansible/+bug/2089229>`__