diff --git a/packages/kit/src/internal/template.ts b/packages/kit/src/internal/template.ts
index 00feb2bdae..8672429638 100644
--- a/packages/kit/src/internal/template.ts
+++ b/packages/kit/src/internal/template.ts
@@ -6,6 +6,7 @@ import { genDynamicImport, genImport, genSafeVariableName } from 'knitwork'
 import type { NuxtTemplate } from '@nuxt/schema'
 
 /** @deprecated */
+// TODO: Remove support for compiling ejs templates in v4
 export async function compileTemplate (template: NuxtTemplate, ctx: any) {
   const data = { ...ctx, options: template.options }
   if (template.src) {
diff --git a/packages/nuxt/src/core/app.ts b/packages/nuxt/src/core/app.ts
index 565e5e2959..523f1d7d5a 100644
--- a/packages/nuxt/src/core/app.ts
+++ b/packages/nuxt/src/core/app.ts
@@ -1,4 +1,4 @@
-import { promises as fsp } from 'node:fs'
+import { promises as fsp, mkdirSync, writeFileSync } from 'node:fs'
 import { dirname, join, resolve } from 'pathe'
 import { defu } from 'defu'
 import { compileTemplate, findPath, normalizePlugin, normalizeTemplate, resolveAlias, resolveFiles, resolvePath, templateUtils, tryResolveModule } from '@nuxt/kit'
@@ -32,15 +32,21 @@ export async function generateApp (nuxt: Nuxt, app: NuxtApp, options: { filter?:
   app.templates = app.templates.map(tmpl => normalizeTemplate(tmpl))
 
   // Compile templates into vfs
+  // TODO: remove utils in v4
   const templateContext = { utils: templateUtils, nuxt, app }
   const filteredTemplates = (app.templates as Array<ReturnType<typeof normalizeTemplate>>)
     .filter(template => !options.filter || options.filter(template))
 
-  await Promise.all(filteredTemplates
+  const writes: Array<() => void> = []
+  await Promise.allSettled(filteredTemplates
     .map(async (template) => {
-      const contents = await compileTemplate(template, templateContext)
-
       const fullPath = template.dst || resolve(nuxt.options.buildDir, template.filename!)
+      const mark = performance.mark(fullPath)
+      const contents = await compileTemplate(template, templateContext).catch((e) => {
+        console.error(`[nuxt] Could not compile template \`${template.filename}\`.`)
+        throw e
+      })
+
       nuxt.vfs[fullPath] = contents
 
       const aliasPath = '#build/' + template.filename!.replace(/\.\w+$/, '')
@@ -51,12 +57,25 @@ export async function generateApp (nuxt: Nuxt, app: NuxtApp, options: { filter?:
         nuxt.vfs[fullPath.replace(/\//g, '\\')] = contents
       }
 
+      const perf = performance.measure(fullPath, mark?.name) // TODO: remove when Node 14 reaches EOL
+      const setupTime = perf ? Math.round((perf.duration * 100)) / 100 : 0 // TODO: remove when Node 14 reaches EOL
+
+      if (nuxt.options.debug || setupTime > 500) {
+        console.info(`[nuxt] compiled \`${template.filename}\` in ${setupTime}ms`)
+      }
+
       if (template.write) {
-        await fsp.mkdir(dirname(fullPath), { recursive: true })
-        await fsp.writeFile(fullPath, contents, 'utf8')
+        writes.push(() => {
+          mkdirSync(dirname(fullPath), { recursive: true })
+          writeFileSync(fullPath, contents, 'utf8')
+        })
       }
     }))
 
+  // Write template files in single synchronous step to avoid (possible) additional
+  // runtime overhead of cascading HMRs from vite/webpack
+  for (const write of writes) { write() }
+
   await nuxt.callHook('app:templatesGenerated', app, filteredTemplates, options)
 }