diff --git a/apps/example-app/src/app/examples/08-directive.spec.ts b/apps/example-app/src/app/examples/08-directive.spec.ts
index c36822a3..5df9413a 100644
--- a/apps/example-app/src/app/examples/08-directive.spec.ts
+++ b/apps/example-app/src/app/examples/08-directive.spec.ts
@@ -3,8 +3,8 @@ import { render, screen, fireEvent } from '@testing-library/angular';
 import { SpoilerDirective } from './08-directive';
 
 test('it is possible to test directives', async () => {
-  await render(SpoilerDirective, {
-    template: '<div appSpoiler data-testid="dir"></div>',
+  await render('<div appSpoiler data-testid="dir"></div>', {
+    declarations: [SpoilerDirective],
   });
 
   const directive = screen.getByTestId('dir');
@@ -25,8 +25,8 @@ test('it is possible to test directives with props', async () => {
   const hidden = 'SPOILER ALERT';
   const visible = 'There is nothing to see here ...';
 
-  await render(SpoilerDirective, {
-    template: '<div appSpoiler [hidden]="hidden" [visible]="visible"></div>',
+  await render('<div appSpoiler [hidden]="hidden" [visible]="visible"></div>', {
+    declarations: [SpoilerDirective],
     componentProperties: {
       hidden,
       visible,
@@ -49,8 +49,8 @@ test('it is possible to test directives with props in template', async () => {
   const hidden = 'SPOILER ALERT';
   const visible = 'There is nothing to see here ...';
 
-  await render(SpoilerDirective, {
-    template: `<div appSpoiler hidden="${hidden}" visible="${visible}"></div>`,
+  await render(`<div appSpoiler hidden="${hidden}" visible="${visible}"></div>`, {
+    declarations: [SpoilerDirective],
   });
 
   expect(screen.queryByText(visible)).not.toBeInTheDocument();
diff --git a/projects/testing-library/src/lib/models.ts b/projects/testing-library/src/lib/models.ts
index 6248ef92..b1984477 100644
--- a/projects/testing-library/src/lib/models.ts
+++ b/projects/testing-library/src/lib/models.ts
@@ -250,6 +250,9 @@ export interface RenderComponentOptions<ComponentType, Q extends Queries = typeo
   removeAngularAttributes?: boolean;
 }
 
+/**
+ * @deprecated Use `render(template, { declarations: [SomeDirective] })` instead.
+ */
 // eslint-disable-next-line @typescript-eslint/ban-types
 export interface RenderDirectiveOptions<WrapperType, Properties extends object = {}, Q extends Queries = typeof queries>
   extends RenderComponentOptions<Properties, Q> {
@@ -262,6 +265,8 @@ export interface RenderDirectiveOptions<WrapperType, Properties extends object =
    * const component = await render(SpoilerDirective, {
    *  template: `<div spoiler message='SPOILER'></div>`
    * })
+   *
+   * @deprecated Use `render(template, { declarations: [SomeDirective] })` instead.
    */
   template: string;
   /**
@@ -282,6 +287,27 @@ export interface RenderDirectiveOptions<WrapperType, Properties extends object =
   componentProperties?: Partial<WrapperType & Properties>;
 }
 
+// eslint-disable-next-line @typescript-eslint/ban-types
+export interface RenderTemplateOptions<WrapperType, Properties extends object = {}, Q extends Queries = typeof queries>
+  extends RenderComponentOptions<Properties, Q> {
+  /**
+   * @description
+   * An Angular component to wrap the component in.
+   * The template will be overridden with the `template` option.
+   *
+   * @default
+   * `WrapperComponent`, an empty component that strips the `ng-version` attribute
+   *
+   * @example
+   * const component = await render(SpoilerDirective, {
+   *  template: `<div spoiler message='SPOILER'></div>`
+   *  wrapper: CustomWrapperComponent
+   * })
+   */
+  wrapper?: Type<WrapperType>;
+  componentProperties?: Partial<WrapperType & Properties>;
+}
+
 export interface Config extends Pick<RenderComponentOptions<any>, 'excludeComponentDeclaration'> {
   /**
    * DOM Testing Library config
diff --git a/projects/testing-library/src/lib/testing-library.ts b/projects/testing-library/src/lib/testing-library.ts
index 13f96f06..fe3a22ca 100644
--- a/projects/testing-library/src/lib/testing-library.ts
+++ b/projects/testing-library/src/lib/testing-library.ts
@@ -22,7 +22,7 @@ import {
   waitForOptions as dtlWaitForOptions,
   configure as dtlConfigure,
 } from '@testing-library/dom';
-import { RenderComponentOptions, RenderDirectiveOptions, RenderResult } from './models';
+import { RenderComponentOptions, RenderDirectiveOptions, RenderTemplateOptions, RenderResult } from './models';
 import { getConfig } from './config';
 
 const mountedFixtures = new Set<ComponentFixture<any>>();
@@ -32,14 +32,24 @@ export async function render<ComponentType>(
   component: Type<ComponentType>,
   renderOptions?: RenderComponentOptions<ComponentType>,
 ): Promise<RenderResult<ComponentType, ComponentType>>;
+/**
+ * @deprecated Use `render(template, { declarations: [DirectiveType] })` instead.
+ */
 export async function render<DirectiveType, WrapperType = WrapperComponent>(
   component: Type<DirectiveType>,
   renderOptions?: RenderDirectiveOptions<WrapperType>,
 ): Promise<RenderResult<WrapperType>>;
+export async function render<WrapperType = WrapperComponent>(
+  template: string,
+  renderOptions?: RenderTemplateOptions<WrapperType>,
+): Promise<RenderResult<WrapperType>>;
 
 export async function render<SutType, WrapperType = SutType>(
-  sut: Type<SutType>,
-  renderOptions: RenderComponentOptions<SutType> | RenderDirectiveOptions<WrapperType> = {},
+  sut: Type<SutType> | string,
+  renderOptions:
+    | RenderComponentOptions<SutType>
+    | RenderDirectiveOptions<WrapperType>
+    | RenderTemplateOptions<WrapperType> = {},
 ): Promise<RenderResult<SutType>> {
   const { dom: domConfig, ...globalConfig } = getConfig();
   const {
@@ -69,7 +79,12 @@ export async function render<SutType, WrapperType = SutType>(
   });
 
   TestBed.configureTestingModule({
-    declarations: addAutoDeclarations(sut, { declarations, excludeComponentDeclaration, template, wrapper }),
+    declarations: addAutoDeclarations(sut, {
+      declarations,
+      excludeComponentDeclaration,
+      template,
+      wrapper,
+    }),
     imports: addAutoImports({
       imports: imports.concat(defaultImports),
       routes,
@@ -176,7 +191,7 @@ export async function render<SutType, WrapperType = SutType>(
     detectChanges,
     navigate,
     rerender,
-    debugElement: fixture.debugElement.query(By.directive(sut)),
+    debugElement: typeof sut === 'string' ? fixture.debugElement : fixture.debugElement.query(By.directive(sut)),
     container: fixture.nativeElement,
     debug: (element = fixture.nativeElement, maxLength, options) =>
       Array.isArray(element)
@@ -193,14 +208,18 @@ async function createComponent<SutType>(component: Type<SutType>): Promise<Compo
 }
 
 async function createComponentFixture<SutType>(
-  component: Type<SutType>,
+  sut: Type<SutType> | string,
   { template, wrapper }: Pick<RenderDirectiveOptions<any>, 'template' | 'wrapper'>,
 ): Promise<ComponentFixture<SutType>> {
+  if (typeof sut === 'string') {
+    TestBed.overrideTemplate(wrapper, sut);
+    return createComponent(wrapper);
+  }
   if (template) {
     TestBed.overrideTemplate(wrapper, template);
     return createComponent(wrapper);
   }
-  return createComponent(component);
+  return createComponent(sut);
 }
 
 function setComponentProperties<SutType>(
@@ -248,7 +267,7 @@ function getChangesObj<SutType>(oldProps: Partial<SutType> | null, newProps: Par
 }
 
 function addAutoDeclarations<SutType>(
-  component: Type<SutType>,
+  sut: Type<SutType> | string,
   {
     declarations,
     excludeComponentDeclaration,
@@ -256,9 +275,13 @@ function addAutoDeclarations<SutType>(
     wrapper,
   }: Pick<RenderDirectiveOptions<any>, 'declarations' | 'excludeComponentDeclaration' | 'template' | 'wrapper'>,
 ) {
+  if (typeof sut === 'string') {
+    return [...declarations, wrapper];
+  }
+
   const wrappers = () => (template ? [wrapper] : []);
 
-  const components = () => (excludeComponentDeclaration ? [] : [component]);
+  const components = () => (excludeComponentDeclaration ? [] : [sut]);
 
   return [...declarations, ...wrappers(), ...components()];
 }
diff --git a/projects/testing-library/tests/directive.spec.ts b/projects/testing-library/tests/render-template.spec.ts
similarity index 61%
rename from projects/testing-library/tests/directive.spec.ts
rename to projects/testing-library/tests/render-template.spec.ts
index 08db0eb3..1bc4e30d 100644
--- a/projects/testing-library/tests/directive.spec.ts
+++ b/projects/testing-library/tests/render-template.spec.ts
@@ -1,8 +1,11 @@
+/* eslint-disable testing-library/no-container */
+/* eslint-disable testing-library/render-result-naming-convention */
 import { Directive, HostListener, ElementRef, Input, Output, EventEmitter, Component } from '@angular/core';
 
 import { render, fireEvent } from '../src/public_api';
 
 @Directive({
+  // eslint-disable-next-line @angular-eslint/directive-selector
   selector: '[onOff]',
 })
 export class OnOffDirective {
@@ -21,6 +24,7 @@ export class OnOffDirective {
 }
 
 @Directive({
+  // eslint-disable-next-line @angular-eslint/directive-selector
   selector: '[update]',
 })
 export class UpdateInputDirective {
@@ -32,27 +36,53 @@ export class UpdateInputDirective {
   constructor(private el: ElementRef) {}
 }
 
+@Component({
+  // eslint-disable-next-line @angular-eslint/component-selector
+  selector: 'greeting',
+  template: 'Hello {{ name }}!',
+})
+export class GreetingComponent {
+  @Input() name = 'World';
+}
+
 test('the directive renders', async () => {
-  const component = await render(OnOffDirective, {
-    template: '<div onOff></div>',
+  const component = await render('<div onOff></div>', {
+    declarations: [OnOffDirective],
   });
 
   expect(component.container.querySelector('[onoff]')).toBeInTheDocument();
 });
 
-test('uses the default props', async () => {
+test('the component renders', async () => {
+  const component = await render('<greeting name="Angular"></greeting>', {
+    declarations: [GreetingComponent],
+  });
+
+  expect(component.container.querySelector('greeting')).toBeInTheDocument();
+  expect(component.getByText('Hello Angular!'));
+});
+
+test('the directive renders (compatibility with the deprecated signature)', async () => {
   const component = await render(OnOffDirective, {
     template: '<div onOff></div>',
   });
 
+  expect(component.container.querySelector('[onoff]')).toBeInTheDocument();
+});
+
+test.only('uses the default props', async () => {
+  const component = await render('<div onOff></div>', {
+    declarations: [OnOffDirective],
+  });
+
   fireEvent.click(component.getByText('init'));
   fireEvent.click(component.getByText('on'));
   fireEvent.click(component.getByText('off'));
 });
 
 test('overrides input properties', async () => {
-  const component = await render(OnOffDirective, {
-    template: '<div onOff on="hello"></div>',
+  const component = await render('<div onOff on="hello"></div>', {
+    declarations: [OnOffDirective],
   });
 
   fireEvent.click(component.getByText('init'));
@@ -62,8 +92,8 @@ test('overrides input properties', async () => {
 
 test('overrides input properties via a wrapper', async () => {
   // `bar` will be set as a property on the wrapper component, the property will be used to pass to the directive
-  const component = await render(OnOffDirective, {
-    template: '<div onOff [on]="bar"></div>',
+  const component = await render('<div onOff [on]="bar"></div>', {
+    declarations: [OnOffDirective],
     componentProperties: {
       bar: 'hello',
     },
@@ -77,8 +107,8 @@ test('overrides input properties via a wrapper', async () => {
 test('overrides output properties', async () => {
   const clicked = jest.fn();
 
-  const component = await render(OnOffDirective, {
-    template: '<div onOff (clicked)="clicked($event)"></div>',
+  const component = await render('<div onOff (clicked)="clicked($event)"></div>', {
+    declarations: [OnOffDirective],
     componentProperties: {
       clicked,
     },
@@ -93,8 +123,8 @@ test('overrides output properties', async () => {
 
 describe('removeAngularAttributes', () => {
   test('should remove angular attributes', async () => {
-    await render(OnOffDirective, {
-      template: '<div onOff (clicked)="clicked($event)"></div>',
+    await render('<div onOff (clicked)="clicked($event)"></div>', {
+      declarations: [OnOffDirective],
       removeAngularAttributes: true,
     });
 
@@ -103,8 +133,8 @@ describe('removeAngularAttributes', () => {
   });
 
   test('is disabled by default', async () => {
-    await render(OnOffDirective, {
-      template: '<div onOff (clicked)="clicked($event)"></div>',
+    await render('<div onOff (clicked)="clicked($event)"></div>', {
+      declarations: [OnOffDirective],
     });
 
     expect(document.querySelector('[ng-version]')).not.toBeNull();
@@ -113,8 +143,8 @@ describe('removeAngularAttributes', () => {
 });
 
 test('updates properties and invokes change detection', async () => {
-  const component = await render(UpdateInputDirective, {
-    template: '<div [update]="value" ></div>',
+  const component = await render('<div [update]="value" ></div>', {
+    declarations: [UpdateInputDirective],
     componentProperties: {
       value: 'value1',
     },