diff --git a/docs/manifest.json b/docs/manifest.json
index 13b1b72cceb0f..85f5c250066ff 100644
--- a/docs/manifest.json
+++ b/docs/manifest.json
@@ -200,6 +200,11 @@
           "description": "Prompt the template administrator for additional information about a template",
           "path": "./templates/variables.md"
         },
+        {
+          "title": "Workspace Tags",
+          "description": "Control provisioning using Workspace Tags and Parameters",
+          "path": "./templates/workspace-tags.md"
+        },
         {
           "title": "Administering templates",
           "description": "Configuration settings for template admins",
diff --git a/docs/templates/workspace-tags.md b/docs/templates/workspace-tags.md
new file mode 100644
index 0000000000000..ce886629abfe3
--- /dev/null
+++ b/docs/templates/workspace-tags.md
@@ -0,0 +1,87 @@
+# Workspace Tags
+
+Template administrators can leverage static template tags to limit workspace
+provisioning to designated provisioner groups that have locally deployed
+credentials for creating workspace resources. While this method ensures
+controlled access, it offers limited flexibility and does not permit users to
+select the nodes for their workspace creation.
+
+By using `coder_workspace_tags` and `coder_parameter`s, template administrators
+can enable dynamic tag selection and modify static template tags.
+
+## Dynamic tag selection
+
+Here is a sample `coder_workspace_tags` data resource with a few workspace tags
+specified:
+
+```hcl
+data "coder_workspace_tags" "custom_workspace_tags" {
+  tags = {
+    "zone"        = "developers"
+    "runtime"     = data.coder_parameter.runtime_selector.value
+    "project_id"  = "PROJECT_${data.coder_parameter.project_name.value}"
+    "cache"       = data.coder_parameter.feature_cache_enabled.value == "true" ? "with-cache" : "no-cache"
+  }
+}
+```
+
+**Legend**
+
+- `zone` - static tag value set to `developers`
+- `runtime` - supported by the string-type `coder_parameter` to select
+  provisioner runtime, `runtime_selector`
+- `project_id` - a formatted string supported by the string-type
+  `coder_parameter`, `project_name`
+- `cache` - an HCL condition involving boolean-type `coder_parameter`,
+  `feature_cache_enabled`
+
+Review the
+[full template example](https://github.com/coder/coder/tree/main/examples/workspace-tags)
+using `coder_workspace_tags` and `coder_parameter`s.
+
+## Constraints
+
+### Tagged provisioners
+
+It is possible to choose tag combinations that no provisioner can handle. This
+will cause the provisioner job to get stuck in the queue until a provisioner is
+added that can handle its combination of tags.
+
+Before releasing the template version with configurable workspace tags, ensure
+that every tag set is associated with at least one healthy provisioner.
+
+### Parameters types
+
+Provisioners require job tags to be defined in plain string format. When a
+workspace tag refers to a `coder_parameter` without involving the string
+formatter, for example,
+(`"runtime" = data.coder_parameter.runtime_selector.value`), the Coder
+provisioner server can transform only the following parameter types to strings:
+_string_, _number_, and _bool_.
+
+### Mutability
+
+A mutable `coder_parameter` can be dangerous for a workspace tag as it allows
+the workspace owner to change a provisioner group (due to different tags). In
+most cases, `coder_parameter`s backing `coder_workspace_tags` should be marked
+as immutable and set only once, during workspace creation.
+
+### HCL syntax
+
+When importing the template version with `coder_workspace_tags`, the Coder
+provisioner server extracts raw partial queries for each workspace tag and
+stores them in the database. During workspace build time, the Coder server uses
+the [Hashicorp HCL library](https://github.com/hashicorp/hcl) to evaluate these
+raw queries on-the-fly without processing the entire Terraform template. This
+evaluation is simpler but also limited in terms of available functions,
+variables, and references to other resources.
+
+**Supported syntax**
+
+- Static string: `foobar_tag = "foobaz"`
+- Formatted string: `foobar_tag = "foobaz ${data.coder_parameter.foobaz.value}"`
+- Reference to `coder_parameter`:
+  `foobar_tag = data.coder_parameter.foobar.value`
+- Boolean logic: `production_tag = !data.coder_parameter.staging_env.value`
+- Condition:
+  `cache = data.coder_parameter.feature_cache_enabled.value == "true" ? "with-cache" : "no-cache"`
diff --git a/examples/parameters-dynamic-options/README.md b/examples/parameters-dynamic-options/README.md
index 2c6c00d6acc83..b1c3f2dd3c5e0 100644
--- a/examples/parameters-dynamic-options/README.md
+++ b/examples/parameters-dynamic-options/README.md
@@ -35,6 +35,5 @@ Update the template and push it using the following command:
 ./scripts/coder-dev.sh templates push examples-parameters-dynamic-options \
   -d examples/parameters-dynamic-options \
   --variables-file examples/parameters-dynamic-options/variables.yml \
-  --create \
   -y
 ```
diff --git a/examples/workspace-tags/README.md b/examples/workspace-tags/README.md
new file mode 100644
index 0000000000000..f3fbc86ae8fc1
--- /dev/null
+++ b/examples/workspace-tags/README.md
@@ -0,0 +1,26 @@
+---
+name: Sample Template with Workspace Tags
+description: Review the sample template and introduce dynamic workspace tags to your template
+tags: [local, docker, workspace-tags]
+icon: /icon/docker.png
+---
+
+# Overview
+
+This Coder template presents use of [Workspace Tags](https://coder.com/docs/v2/latest/templates/workspace-tags) [Coder Parameters](https://coder.com/docs/v2/latest/templates/parameters).
+
+# Use case
+
+Template administrators can use static tags to control workspace provisioning, limiting it to specific provisioner groups. However, this restricts workspace users from choosing their preferred workspace nodes.
+
+By using `coder_workspace_tags` and `coder_parameter`s, template administrators can allow dynamic tag selection, avoiding the need to push the same template multiple times with different tags.
+
+## Development
+
+Update the template and push it using the following command:
+
+```
+./scripts/coder-dev.sh templates push examples-workspace-tags \
+  -d examples/workspace-tags \
+  -y
+```
diff --git a/examples/workspace-tags/main.tf b/examples/workspace-tags/main.tf
new file mode 100644
index 0000000000000..f74286741cbb0
--- /dev/null
+++ b/examples/workspace-tags/main.tf
@@ -0,0 +1,170 @@
+terraform {
+  required_providers {
+    coder = {
+      source = "coder/coder"
+    }
+    docker = {
+      source = "kreuzwerker/docker"
+    }
+  }
+}
+
+locals {
+  username = data.coder_workspace.me.owner
+}
+
+data "coder_provisioner" "me" {
+}
+
+data "coder_workspace" "me" {
+}
+
+data "coder_workspace_tags" "custom_workspace_tags" {
+  tags = {
+    "zone"       = "developers"
+    "runtime"    = data.coder_parameter.runtime_selector.value
+    "project_id" = "PROJECT_${data.coder_parameter.project_name.value}"
+    "cache"      = data.coder_parameter.feature_cache_enabled.value == "true" ? "with-cache" : "no-cache"
+  }
+}
+
+data "coder_parameter" "runtime_selector" {
+  name         = "runtime_selector"
+  display_name = "Provisioner Runtime"
+  default      = "development"
+
+  option {
+    name  = "Development (free zone)"
+    value = "development"
+  }
+  option {
+    name  = "Staging (internal access)"
+    value = "staging"
+  }
+  option {
+    name  = "Production (air-gapped)"
+    value = "production"
+  }
+
+  mutable = false
+}
+
+data "coder_parameter" "project_name" {
+  name         = "project_name"
+  display_name = "Project name"
+  description  = "Specify the project name."
+
+  mutable = false
+}
+
+data "coder_parameter" "feature_cache_enabled" {
+  name         = "feature_cache_enabled"
+  display_name = "Enable cache?"
+  type         = "bool"
+  default      = false
+
+  mutable = false
+}
+
+resource "coder_agent" "main" {
+  arch           = data.coder_provisioner.me.arch
+  os             = "linux"
+  startup_script = <<EOF
+    #!/bin/sh
+    # install and start code-server
+    curl -fsSL https://code-server.dev/install.sh | sh -s -- --version 4.8.3
+    code-server --auth none --port 13337
+    EOF
+
+  env = {
+    GIT_AUTHOR_NAME     = "${data.coder_workspace.me.owner}"
+    GIT_COMMITTER_NAME  = "${data.coder_workspace.me.owner}"
+    GIT_AUTHOR_EMAIL    = "${data.coder_workspace.me.owner_email}"
+    GIT_COMMITTER_EMAIL = "${data.coder_workspace.me.owner_email}"
+  }
+}
+
+resource "coder_app" "code-server" {
+  agent_id     = coder_agent.main.id
+  slug         = "code-server"
+  display_name = "code-server"
+  url          = "http://localhost:13337/?folder=/home/${local.username}"
+  icon         = "/icon/code.svg"
+  subdomain    = false
+  share        = "owner"
+
+  healthcheck {
+    url       = "http://localhost:13337/healthz"
+    interval  = 5
+    threshold = 6
+  }
+}
+
+resource "docker_volume" "home_volume" {
+  name = "coder-${data.coder_workspace.me.id}-home"
+  lifecycle {
+    ignore_changes = all
+  }
+  labels {
+    label = "coder.owner"
+    value = data.coder_workspace.me.owner
+  }
+  labels {
+    label = "coder.owner_id"
+    value = data.coder_workspace.me.owner_id
+  }
+  labels {
+    label = "coder.workspace_id"
+    value = data.coder_workspace.me.id
+  }
+  labels {
+    label = "coder.workspace_name_at_creation"
+    value = data.coder_workspace.me.name
+  }
+}
+
+resource "coder_metadata" "home_info" {
+  resource_id = docker_volume.home_volume.id
+
+  item {
+    key   = "size"
+    value = "5 GiB"
+  }
+}
+
+resource "docker_container" "workspace" {
+  count      = data.coder_workspace.me.start_count
+  image      = "ubuntu:22.04"
+  name       = "coder-${data.coder_workspace.me.owner}-${lower(data.coder_workspace.me.name)}"
+  hostname   = data.coder_workspace.me.name
+  entrypoint = ["sh", "-c", replace(coder_agent.main.init_script, "/localhost|127\\.0\\.0\\.1/", "host.docker.internal")]
+  env = [
+    "CODER_AGENT_TOKEN=${coder_agent.main.token}",
+  ]
+  host {
+    host = "host.docker.internal"
+    ip   = "host-gateway"
+  }
+  volumes {
+    container_path = "/home/${local.username}"
+    volume_name    = docker_volume.home_volume.name
+    read_only      = false
+  }
+
+  labels {
+    label = "coder.owner"
+    value = data.coder_workspace.me.owner
+  }
+  labels {
+    label = "coder.owner_id"
+    value = data.coder_workspace.me.owner_id
+  }
+  labels {
+    label = "coder.workspace_id"
+    value = data.coder_workspace.me.id
+  }
+  labels {
+    label = "coder.workspace_name"
+    value = data.coder_workspace.me.name
+  }
+}