diff --git a/pkg/tmpl/context.go b/pkg/tmpl/context.go
index 6c119415..2cfce655 100644
--- a/pkg/tmpl/context.go
+++ b/pkg/tmpl/context.go
@@ -5,3 +5,12 @@ type Context struct {
 	basePath  string
 	readFile  func(string) ([]byte, error)
 }
+
+// SetBasePath sets the base path for the template
+func (c *Context) SetBasePath(path string) {
+	c.basePath = path
+}
+
+func (c *Context) SetReadFile(f func(string) ([]byte, error)) {
+	c.readFile = f
+}
diff --git a/pkg/tmpl/context_funcs.go b/pkg/tmpl/context_funcs.go
index 0131db33..e709ad51 100644
--- a/pkg/tmpl/context_funcs.go
+++ b/pkg/tmpl/context_funcs.go
@@ -172,6 +172,10 @@ func (c *Context) ReadFile(filename string) (string, error) {
 		path = filepath.Join(c.basePath, filename)
 	}
 
+	if c.readFile == nil {
+		return "", fmt.Errorf("readFile is not implemented")
+	}
+
 	bytes, err := c.readFile(path)
 	if err != nil {
 		return "", err
diff --git a/test/e2e/template/helmfile/snapshot_test.go b/test/e2e/template/helmfile/snapshot_test.go
index c2b2d960..6eef2ad1 100644
--- a/test/e2e/template/helmfile/snapshot_test.go
+++ b/test/e2e/template/helmfile/snapshot_test.go
@@ -16,7 +16,7 @@ func TestHelmfileTemplateWithBuildCommand(t *testing.T) {
 	_, filename, _, _ := runtime.Caller(0)
 	projectRoot := filepath.Join(filepath.Dir(filename), "..", "..", "..", "..")
 	helmfileBin := filepath.Join(projectRoot, "helmfile")
-	testdataDir := "testdata"
+	testdataDir := "testdata/snapshot"
 
 	entries, err := os.ReadDir(testdataDir)
 	require.NoError(t, err)
diff --git a/test/e2e/template/helmfile/testdata/issue_2098_release_template_needs/input.yaml b/test/e2e/template/helmfile/testdata/snapshot/issue_2098_release_template_needs/input.yaml
similarity index 100%
rename from test/e2e/template/helmfile/testdata/issue_2098_release_template_needs/input.yaml
rename to test/e2e/template/helmfile/testdata/snapshot/issue_2098_release_template_needs/input.yaml
diff --git a/test/e2e/template/helmfile/testdata/issue_2098_release_template_needs/output.yaml b/test/e2e/template/helmfile/testdata/snapshot/issue_2098_release_template_needs/output.yaml
similarity index 100%
rename from test/e2e/template/helmfile/testdata/issue_2098_release_template_needs/output.yaml
rename to test/e2e/template/helmfile/testdata/snapshot/issue_2098_release_template_needs/output.yaml
diff --git a/test/e2e/template/helmfile/testdata/tmpl/readfile.txt b/test/e2e/template/helmfile/testdata/tmpl/readfile.txt
new file mode 100644
index 00000000..30d74d25
--- /dev/null
+++ b/test/e2e/template/helmfile/testdata/tmpl/readfile.txt
@@ -0,0 +1 @@
+test
\ No newline at end of file
diff --git a/test/e2e/template/helmfile/tmpl_test.go b/test/e2e/template/helmfile/tmpl_test.go
new file mode 100644
index 00000000..548f36f3
--- /dev/null
+++ b/test/e2e/template/helmfile/tmpl_test.go
@@ -0,0 +1,254 @@
+package helmfile
+
+import (
+	"bytes"
+	"os"
+	"testing"
+	"text/template"
+
+	"github.com/helmfile/helmfile/pkg/tmpl"
+	"github.com/stretchr/testify/require"
+)
+
+type tmplTestCase struct {
+	//  envs are set in the test environment
+	envs map[string]string
+	// name of the test
+	name string
+	// tmplString is the template string to be parsed
+	tmplString string
+	// data is the data to be passed to the template
+	data interface{}
+	// wantErr is true if the template should fail to parse
+	wantErr bool
+	// output is the expected output of the template
+	output string
+}
+
+// setEnvs sets the environment variables for the test case
+func (t *tmplTestCase) setEnvs() {
+	for k, v := range t.envs {
+		os.Setenv(k, v)
+	}
+}
+
+// unSetEnvs unsets the environment variables for the test case
+func (t *tmplTestCase) unSetEnvs() {
+	for k := range t.envs {
+		os.Unsetenv(k)
+	}
+}
+
+var requireEnvTestCases = []tmplTestCase{
+	{
+		envs: map[string]string{
+			"TEST_VAR1": "test1",
+		},
+		name:       "requiredEnvWithEnvs",
+		tmplString: `{{ requiredEnv "TEST_VAR1" }}`,
+		output:     "test1",
+	},
+	{
+		name:       "requiredEnv",
+		tmplString: `{{ requiredEnv "TEST_VAR" }}`,
+		wantErr:    true,
+	},
+}
+
+var requiredTestCases = []tmplTestCase{
+	{
+		name:       "requiredWithEmptyString",
+		tmplString: `{{ "" | required "required" }}`,
+		wantErr:    true,
+	},
+	{
+		name:       "required",
+		tmplString: `{{ "test" | required "required" }}`,
+		output:     "test",
+	},
+}
+
+var envExecTestCases = []tmplTestCase{
+	{
+		name:       "envExecWithEnvs",
+		tmplString: `{{ envExec (dict "testkey" "test2") "bash" (list "-c" "echo -n $testkey" ) }}`,
+		output:     "test2",
+	},
+	{
+		name:       "envExec",
+		tmplString: `{{ envExec (dict) "bash" (list "-c" "echo -n $testkey" ) }}`,
+	},
+	{
+		name:       "envExecInvalidEnvType",
+		wantErr:    true,
+		tmplString: `{{ envExec "dict" "bash" (list "-c" "echo -n $testkey" ) }}`,
+	},
+}
+
+var execTestCases = []tmplTestCase{
+	{
+		name:       "exec",
+		tmplString: `{{ exec "bash" (list "-c" "echo -n $testkey" ) }}`,
+	},
+	{
+		name:       "execWithError",
+		wantErr:    true,
+		tmplString: `{{ exec "bash" (list "-c" "exit 1" ) }}`,
+	},
+}
+
+var readFileTestCases = []tmplTestCase{
+	{
+		name:       "readFile",
+		tmplString: `{{ readFile "./testdata/tmpl/readfile.txt" }}`,
+		output:     "test",
+	},
+	{
+		name:       "readFileWithError",
+		tmplString: `{{ readFile "./testdata/tmpl/readfile_error.txt" }}`,
+		wantErr:    true,
+	},
+}
+
+var toYamlTestCases = []tmplTestCase{
+	{
+		data: map[string]string{
+			"test": "test",
+		},
+		name:       "toYaml",
+		tmplString: `{{ . | toYaml }}`,
+		output:     "test: test\n",
+	},
+}
+
+var fromYamlTestCases = []tmplTestCase{
+	{
+		name: "fromYaml",
+		tmplString: `{{ $value :=  "test: test" | fromYaml }}
+		             {{- $value.test }}`,
+		output: "test",
+	},
+}
+
+var setValueAtPathTestCases = []tmplTestCase{
+	{
+		data: map[string]interface{}{
+			"root": map[string]interface{}{
+				"testKey": map[string]interface{}{
+					"testKey2": "test",
+				},
+			},
+		},
+		name: "setValueAtPath",
+		tmplString: `{{- $newValues := . | setValueAtPath "root.testKey.testKey2" "testNewValue" }}
+		             {{- $newValues.root.testKey.testKey2 }}`,
+		output: "testNewValue",
+	},
+	{
+		data: map[string]interface{}{
+			"root": "test",
+		},
+		wantErr:    true,
+		name:       "setValueAtPathWithInvalidPath",
+		tmplString: `{{ . | setValueAtPath "root.nokey" "testNewValue" }}`,
+	},
+}
+
+var getTestCases = []tmplTestCase{
+	{
+		data: map[string]interface{}{
+			"root": map[string]interface{}{
+				"testGetKey": map[string]interface{}{
+					"testGetKey2": "test",
+				},
+			},
+		},
+		name:       "get",
+		tmplString: `{{- . | get "root.testGetKey.testGetKey2" "notfound" }}`,
+		output:     "test",
+	},
+	{
+		data: map[string]interface{}{
+			"root": map[string]interface{}{
+				"testGetKey": map[string]interface{}{
+					"testGetKey2": "test",
+				},
+			},
+		},
+		name:       "getNotExistWithDefault",
+		tmplString: `{{- . | get "root.testGetKey.testGetKey3" "notfound" }}`,
+		output:     "notfound",
+	},
+}
+
+var tplTestCases = []tmplTestCase{
+	{
+		data: map[string]interface{}{
+			"root": "tplvalue",
+		},
+		name:       "tpl",
+		tmplString: `{{ . | tpl "{{ .root }}" }}`,
+		output:     "tplvalue",
+	},
+	{
+		data:       map[string]interface{}{},
+		name:       "tplInvalidTemplate",
+		wantErr:    true,
+		tmplString: `{{ . | tpl "{{ .root }}" }}`,
+	},
+}
+
+// tmplTestCases are the test cases for the template tests
+type tmplE2e struct {
+	tcs []tmplTestCase
+}
+
+// append for append testcase into tmplTestCases
+func (t *tmplE2e) append(ts ...tmplTestCase) {
+	t.tcs = append(t.tcs, ts...)
+}
+
+// load for  load testcase into tmplTestCases
+func (t *tmplE2e) load() {
+	t.append(requireEnvTestCases...)
+	t.append(requiredTestCases...)
+	t.append(envExecTestCases...)
+	t.append(execTestCases...)
+	t.append(readFileTestCases...)
+	t.append(toYamlTestCases...)
+	t.append(fromYamlTestCases...)
+	t.append(setValueAtPathTestCases...)
+	t.append(getTestCases...)
+	t.append(tplTestCases...)
+}
+
+var tmplE2eTest = tmplE2e{}
+
+// TestTmplStrings tests the template string
+func TestTmplStrings(t *testing.T) {
+	c := &tmpl.Context{}
+	c.SetBasePath(".")
+	c.SetReadFile(os.ReadFile)
+	tmpl := template.New("stringTemplateTest").Funcs(c.CreateFuncMap())
+
+	tmplE2eTest.load()
+
+	for _, tc := range tmplE2eTest.tcs {
+		t.Run(tc.name, func(t *testing.T) {
+			tc.setEnvs()
+			defer tc.unSetEnvs()
+			tmpl, err := tmpl.Parse(tc.tmplString)
+			require.Nilf(t, err, "error parsing template: %v", err)
+
+			var tplResult bytes.Buffer
+			err = tmpl.Execute(&tplResult, tc.data)
+			if tc.wantErr {
+				require.Error(t, err)
+			} else {
+				require.NoError(t, err)
+			}
+			require.Equal(t, tc.output, tplResult.String())
+		})
+	}
+
+}