diff --git a/changelogs/fragments/78703_undefined.yml b/changelogs/fragments/78703_undefined.yml
new file mode 100644
index 00000000000..d9e4a48770e
--- /dev/null
+++ b/changelogs/fragments/78703_undefined.yml
@@ -0,0 +1,3 @@
+---
+bugfixes:
+  - Do not print undefined error message twice (https://github.com/ansible/ansible/issues/78703).
diff --git a/lib/ansible/template/__init__.py b/lib/ansible/template/__init__.py
index efdaa0aec74..77a03389ed9 100644
--- a/lib/ansible/template/__init__.py
+++ b/lib/ansible/template/__init__.py
@@ -1011,12 +1011,16 @@ class Templar:
                     if unsafe:
                         res = wrap_var(res)
             return res
-        except (UndefinedError, AnsibleUndefinedVariable) as e:
+        except UndefinedError as e:
             if fail_on_undefined:
-                raise AnsibleUndefinedVariable(e, orig_exc=e)
-            else:
-                display.debug("Ignoring undefined failure: %s" % to_text(e))
-                return data
+                raise AnsibleUndefinedVariable(e)
+            display.debug("Ignoring undefined failure: %s" % to_text(e))
+            return data
+        except AnsibleUndefinedVariable as e:
+            if fail_on_undefined:
+                raise
+            display.debug("Ignoring undefined failure: %s" % to_text(e))
+            return data
 
     # for backwards compatibility in case anyone is using old private method directly
     _do_template = do_template
diff --git a/test/integration/targets/template/tasks/main.yml b/test/integration/targets/template/tasks/main.yml
index 0a2bebaae99..bd2d8db60ef 100644
--- a/test/integration/targets/template/tasks/main.yml
+++ b/test/integration/targets/template/tasks/main.yml
@@ -714,7 +714,7 @@
 
 - name: check that proper error message is emitted when in operator is used
   assert:
-    that: "\"'y' is undefined\" in error.msg"
+    that: "\"The error was: 'y' is undefined\n\n\" in error.msg"
 
 - template:
     src: template_import_macro_globals.j2