diff --git a/cli/ballerina-cli/src/main/resources/create_cmd_templates/lib/lib.bal b/cli/ballerina-cli/src/main/resources/create_cmd_templates/lib/lib.bal
index 7a0681e5344c..ae6ddb6448cb 100644
--- a/cli/ballerina-cli/src/main/resources/create_cmd_templates/lib/lib.bal
+++ b/cli/ballerina-cli/src/main/resources/create_cmd_templates/lib/lib.bal
@@ -1,10 +1,10 @@
 # Returns the string `Hello` with the input string name.
 #
-# + name - name as a string
+# + name - name as a string or nil
 # + return - "Hello, " with the input string name
-public function hello(string name) returns string {
-    if !(name is "") {
-        return "Hello, " + name;
+public function hello(string? name) returns string {
+    if name !is () {
+        return string `Hello, ${name}`;
     }
     return "Hello, World!";
 }
diff --git a/cli/ballerina-cli/src/main/resources/create_cmd_templates/lib/tests/lib_test.bal b/cli/ballerina-cli/src/main/resources/create_cmd_templates/lib/tests/lib_test.bal
index 31ce10dfbb64..4b725d91de93 100644
--- a/cli/ballerina-cli/src/main/resources/create_cmd_templates/lib/tests/lib_test.bal
+++ b/cli/ballerina-cli/src/main/resources/create_cmd_templates/lib/tests/lib_test.bal
@@ -21,8 +21,7 @@ function testFunction() {
 
 @test:Config {}
 function negativeTestFunction() {
-    string name = "";
-    string welcomeMsg = hello(name);
+    string welcomeMsg = hello(());
     test:assertEquals("Hello, World!", welcomeMsg);
 }
 
diff --git a/cli/ballerina-cli/src/main/resources/create_cmd_templates/service/service.bal b/cli/ballerina-cli/src/main/resources/create_cmd_templates/service/service.bal
index 90f6a0cc7979..597a58d2d1fa 100644
--- a/cli/ballerina-cli/src/main/resources/create_cmd_templates/service/service.bal
+++ b/cli/ballerina-cli/src/main/resources/create_cmd_templates/service/service.bal
@@ -5,13 +5,13 @@ import ballerina/http;
 service / on new http:Listener(9090) {
 
     # A resource for generating greetings
-    # + name - the input string name
+    # + name - name as a string or nil
     # + return - string name with hello message or error
-    resource function get greeting(string name) returns string|error {
+    resource function get greeting(string? name) returns string|error {
         // Send a response back to the caller.
-        if name is "" {
+        if name is () {
             return error("name should not be empty!");
         }
-        return "Hello, " + name;
+        return string `Hello, ${name}`;
     }
 }
diff --git a/cli/ballerina-cli/src/main/resources/create_cmd_templates/service/tests/service_test.bal b/cli/ballerina-cli/src/main/resources/create_cmd_templates/service/tests/service_test.bal
index 1e2c013c0280..0d85eb25166e 100644
--- a/cli/ballerina-cli/src/main/resources/create_cmd_templates/service/tests/service_test.bal
+++ b/cli/ballerina-cli/src/main/resources/create_cmd_templates/service/tests/service_test.bal
@@ -23,7 +23,7 @@ function testServiceWithProperName() {
 
 @test:Config {}
 function testServiceWithEmptyName() returns error? {
-    http:Response response = check testClient->get("/greeting/?name=");
+    http:Response response = check testClient->get("/greeting/");
     test:assertEquals(response.statusCode, 500);
     json errorPayload = check response.getJsonPayload();
     test:assertEquals(errorPayload.message, "name should not be empty!");