diff --git a/compiler/core/js_dump.ml b/compiler/core/js_dump.ml
index 44820298f6..39ec623b9b 100644
--- a/compiler/core/js_dump.ml
+++ b/compiler/core/js_dump.ml
@@ -696,7 +696,16 @@ and expression_desc cxt ~(level : int) f x : cxt =
             comma_sp f;
             expression ~level:1 cxt f el))
   | Tagged_template (call_expr, string_args, value_args) ->
-    let cxt = expression cxt ~level f call_expr in
+    (* Check if this is an untagged template literal (marked with empty string) *)
+    let is_untagged = match call_expr.expression_desc with
+      | Str {txt = ""; _} -> true
+      | _ -> false
+    in
+    
+    let cxt = 
+      if is_untagged then cxt  (* Don't print the call expression for untagged literals *)
+      else expression cxt ~level f call_expr  (* Print the function call for tagged literals *)
+    in
     P.string f "`";
     let rec aux cxt xs ys =
       match (xs, ys) with
diff --git a/compiler/core/lam_compile.ml b/compiler/core/lam_compile.ml
index 739056132b..f4fe4b8b48 100644
--- a/compiler/core/lam_compile.ml
+++ b/compiler/core/lam_compile.ml
@@ -1736,6 +1736,53 @@ let compile output_prefix =
       in
       Js_output.output_of_block_and_expression lambda_cxt.continuation args_code
         exp
+
+(* Check if a Pstringadd chain looks like a template literal *)
+let rec is_template_literal_pattern (lam : Lam.t) : bool =
+  let rec has_template_strings lam =
+    match lam with
+    | Lprim {primitive = Pstringadd; args = [left; right]; _} ->
+      (match right with
+      | Lconst (Const_string {template = true; _}) -> true
+      | _ -> has_template_strings left || has_template_strings right)
+    | Lconst (Const_string {template = true; _}) -> true
+    | _ -> false
+  in
+  has_template_strings lam
+
+(* Extract and compile a template literal from a Pstringadd chain *)
+let rec compile_template_literal (lam : Lam.t) (lambda_cxt : Lam_compile_context.t) : Js_output.t =
+  let rec extract_parts acc_strings acc_exprs current =
+    match current with
+    | Lprim {primitive = Pstringadd; args = [left; right]; _} ->
+      (match right with
+      | Lconst (Const_string {s; _}) ->
+        extract_parts (s :: acc_strings) acc_exprs left
+      | _ ->
+        extract_parts acc_strings (right :: acc_exprs) left)
+    | Lconst (Const_string {s; _}) ->
+      (s :: acc_strings, acc_exprs)
+    | _ ->
+      (acc_strings, current :: acc_exprs)
+  in
+  
+  let (strings, expressions) = extract_parts [] [] lam in
+  let string_exprs = List.rev_map (fun s -> E.str s) strings in
+  
+  (* Compile expressions *)
+  let compile_expr expr =
+    match compile_lambda {lambda_cxt with continuation = NeedValue Not_tail} expr with
+    | {block; value = Some v} -> (v, block)
+    | {value = None} -> assert false
+  in
+  let (value_exprs, expr_blocks) = List.split (List.rev_map compile_expr expressions) in
+  let all_blocks = List.concat expr_blocks in
+  
+  (* Generate template literal *)
+  let call_expr = E.str "" in  (* Empty string marks untagged template literal *)
+  let template_expr = E.tagged_template call_expr string_exprs value_exprs in
+  Js_output.output_of_block_and_expression lambda_cxt.continuation all_blocks template_expr
+
   and compile_lambda (lambda_cxt : Lam_compile_context.t) (cur_lam : Lam.t) :
       Js_output.t =
     match cur_lam with
@@ -1795,7 +1842,17 @@ let compile output_prefix =
       *)
       Js_output.output_of_block_and_expression lambda_cxt.continuation []
         (E.ml_module_as_var ~dynamic_import i)
-    | Lprim prim_info -> compile_prim prim_info lambda_cxt
+    | Lprim prim_info -> (
+      (* Special handling for potential template literals *)
+      match prim_info with
+      | {primitive = Pstringadd; args = [left; right]; _} ->
+        (* Check if this looks like a template literal pattern *)
+        if is_template_literal_pattern (Lprim prim_info) then
+          compile_template_literal (Lprim prim_info) lambda_cxt
+        else
+          compile_prim prim_info lambda_cxt
+      | _ ->
+        compile_prim prim_info lambda_cxt)
     | Lsequence (l1, l2) ->
       let output_l1 =
         compile_lambda {lambda_cxt with continuation = EffectCall Not_tail} l1
diff --git a/compiler/core/lam_compile_const.ml b/compiler/core/lam_compile_const.ml
index 58603472dd..0a97eb99ea 100644
--- a/compiler/core/lam_compile_const.ml
+++ b/compiler/core/lam_compile_const.ml
@@ -61,8 +61,14 @@ and translate (x : Lam_constant.t) : J.expression =
   | Const_char i -> Js_of_lam_string.const_char i
   | Const_bigint (sign, i) -> E.bigint sign i
   | Const_float f -> E.float f (* TODO: preserve float *)
-  | Const_string {s; unicode = false} -> E.str s
-  | Const_string {s; unicode = true} -> E.str ~delim:DStarJ s
+  | Const_string {s; unicode = false; template = false} -> E.str s
+  | Const_string {s; unicode = true; template = false} -> E.str ~delim:DStarJ s
+  | Const_string {s; unicode = false; template = true} ->
+    (* Generate template literal syntax for backquoted strings *)
+    E.tagged_template (E.str "") [E.str s] []
+  | Const_string {s; unicode = true; template = true} ->
+    (* Generate template literal syntax for unicode backquoted strings *)
+    E.tagged_template (E.str "") [E.str ~delim:DStarJ s] []
   | Const_pointer name -> E.str name
   | Const_block (tag, tag_info, xs) ->
     Js_of_lam_block.make_block NA tag_info (E.small_int tag)
diff --git a/compiler/core/lam_constant_convert.ml b/compiler/core/lam_constant_convert.ml
index 3be30e048c..f33d159a8b 100644
--- a/compiler/core/lam_constant_convert.ml
+++ b/compiler/core/lam_constant_convert.ml
@@ -32,7 +32,12 @@ let rec convert_constant (const : Lambda.structured_constant) : Lam_constant.t =
       | Some opt -> Ast_utf8_string_interp.is_unicode_string opt
       | _ -> false
     in
-    Const_string {s; unicode}
+    let template =
+      match opt with
+      | Some "" -> true  (* Template literal marker *)
+      | _ -> false
+    in
+    Const_string {s; unicode; template}
   | Const_base (Const_float i) -> Const_float i
   | Const_base (Const_int32 i) -> Const_int {i; comment = None}
   | Const_base (Const_int64 _) -> assert false
diff --git a/compiler/frontend/lam_constant.ml b/compiler/frontend/lam_constant.ml
index 86ff842322..95c6d64577 100644
--- a/compiler/frontend/lam_constant.ml
+++ b/compiler/frontend/lam_constant.ml
@@ -47,7 +47,7 @@ type t =
   | Const_js_false
   | Const_int of {i: int32; comment: pointer_info}
   | Const_char of int
-  | Const_string of {s: string; unicode: bool}
+  | Const_string of {s: string; unicode: bool; template: bool}
   | Const_float of string
   | Const_bigint of bool * string
   | Const_pointer of string
@@ -73,9 +73,9 @@ let rec eq_approx (x : t) (y : t) =
     match y with
     | Const_char iy -> ix = iy
     | _ -> false)
-  | Const_string {s = sx; unicode = ux} -> (
+  | Const_string {s = sx; unicode = ux; template = tx} -> (
     match y with
-    | Const_string {s = sy; unicode = uy} -> sx = sy && ux = uy
+    | Const_string {s = sy; unicode = uy; template = ty} -> sx = sy && ux = uy && tx = ty
     | _ -> false)
   | Const_float ix -> (
     match y with
diff --git a/tests/tests/src/template_literal_consistency_test.res b/tests/tests/src/template_literal_consistency_test.res
new file mode 100644
index 0000000000..bb7db19091
--- /dev/null
+++ b/tests/tests/src/template_literal_consistency_test.res
@@ -0,0 +1,81 @@
+/* Test case for template literal compilation consistency
+ * This should demonstrate that both external and ReScript tagged template calls
+ * generate the same JavaScript template literal syntax
+ */
+
+// External tagged template (already works correctly)
+@module("./lib.js") @taggedTemplate
+external sqlExternal: (array<string>, array<string>) => string = "sql"
+
+// ReScript function that should now also generate template literal syntax
+let sqlReScript = (strings, values) => {
+  // Simple implementation for testing
+  let result = ref("")
+  let valCount = Belt.Array.length(values)
+  for i in 0 to valCount - 1 {
+    result := result.contents ++ strings[i] ++ Belt.Int.toString(values[i])
+  }
+  result.contents ++ strings[valCount]
+}
+
+// Regular function with two array args - should NOT be treated as template literal
+let regularFunction = (arr1, arr2) => {
+  "regular function result"
+}
+
+// Test data
+let table = "users" 
+let id = 42
+
+// Both calls should now generate identical JavaScript template literal syntax:
+// sqlExternal`SELECT * FROM ${table} WHERE id = ${id}`
+// sqlReScript`SELECT * FROM ${table} WHERE id = ${id}`
+let externalResult = sqlExternal`SELECT * FROM ${table} WHERE id = ${id}`
+let rescriptResult = sqlReScript`SELECT * FROM ${table} WHERE id = ${id}`
+
+// Simple cases
+let simple1 = sqlExternal`hello ${123} world`
+let simple2 = sqlReScript`hello ${123} world`
+
+// Edge cases: empty interpolations
+let empty1 = sqlExternal`no interpolations`
+let empty2 = sqlReScript`no interpolations`
+
+// Regular function call (should remain as function call, not template literal)
+let regularCall = regularFunction(["not", "template"], ["literal", "call"])
+
+// Test various data types
+let numberTest1 = sqlExternal`number: ${42}`
+let numberTest2 = sqlReScript`number: ${42}`
+
+let stringTest1 = sqlExternal`string: ${"test"}`  
+let stringTest2 = sqlReScript`string: ${"test"}`
+
+// NEW: Test regular template literals (the main issue)
+// These should generate template literal syntax instead of string concatenation
+
+let name = "World"
+let count = 42
+
+// Basic template literal with one interpolation
+let basicTemplate = `Hello ${name}!`
+
+// Template literal with multiple interpolations  
+let multiTemplate = `Hello ${name}, you have ${count} messages`
+
+// Template literal with number interpolation
+let numberTemplate = `Count: ${count}`
+
+// Template literal with mixed types
+let mixedTemplate = `User: ${name} (${count} years old)`
+
+// Template literals with empty strings
+let emptyStart = `${name} is here`
+let emptyEnd = `Welcome ${name}`
+let emptyMiddle = `${name}${count}`
+
+// Template literal with just interpolation (edge case)
+let justInterpolation = `${name}`
+
+// Nested template expressions
+let nested = `Outer: ${`Inner: ${name}`}`
\ No newline at end of file