diff --git a/cmd/init.go b/cmd/init.go
index 2cce42ed920..bdd0d2a2286 100644
--- a/cmd/init.go
+++ b/cmd/init.go
@@ -167,7 +167,7 @@ func (c *Config) promptString(field string) string {
 	fmt.Fprintf(c.Stdout(), "%s? ", field)
 	value, err := bufio.NewReader(c.Stdin()).ReadString('\n')
 	if err != nil {
-		chezmoi.ReturnTemplateFuncError(err)
+		panic(err)
 	}
 	return strings.TrimSuffix(value, "\n")
 }
diff --git a/cmd/secretbitwarden.go b/cmd/secretbitwarden.go
index 11e951a6595..edf9deef7a4 100644
--- a/cmd/secretbitwarden.go
+++ b/cmd/secretbitwarden.go
@@ -8,7 +8,6 @@ import (
 	"strings"
 
 	"github.com/spf13/cobra"
-	"github.com/twpayne/chezmoi/lib/chezmoi"
 	vfs "github.com/twpayne/go-vfs"
 )
 
@@ -51,11 +50,11 @@ func (c *Config) bitwardenFunc(args ...string) interface{} {
 	cmd.Stderr = os.Stderr
 	output, err := cmd.Output()
 	if err != nil {
-		chezmoi.ReturnTemplateFuncError(fmt.Errorf("bitwarden: %s %s: %v\n%s", name, strings.Join(args, " "), err, output))
+		panic(fmt.Errorf("bitwarden: %s %s: %v\n%s", name, strings.Join(args, " "), err, output))
 	}
 	var data interface{}
 	if err := json.Unmarshal(output, &data); err != nil {
-		chezmoi.ReturnTemplateFuncError(fmt.Errorf("bitwarden: %s %s: %v\n%s", name, strings.Join(args, " "), err, output))
+		panic(fmt.Errorf("bitwarden: %s %s: %v\n%s", name, strings.Join(args, " "), err, output))
 	}
 	bitwardenCache[key] = data
 	return data
diff --git a/cmd/secretgeneric.go b/cmd/secretgeneric.go
index 3a7b9883862..417c699af57 100644
--- a/cmd/secretgeneric.go
+++ b/cmd/secretgeneric.go
@@ -9,7 +9,6 @@ import (
 	"strings"
 
 	"github.com/spf13/cobra"
-	"github.com/twpayne/chezmoi/lib/chezmoi"
 	vfs "github.com/twpayne/go-vfs"
 )
 
@@ -54,7 +53,7 @@ func (c *Config) secretFunc(args ...string) interface{} {
 	cmd.Stderr = os.Stderr
 	output, err := cmd.Output()
 	if err != nil {
-		chezmoi.ReturnTemplateFuncError(fmt.Errorf("secret: %s %s: %v\n%s", name, strings.Join(args, " "), err, output))
+		panic(fmt.Errorf("secret: %s %s: %v\n%s", name, strings.Join(args, " "), err, output))
 	}
 	value := bytes.TrimSpace(output)
 	secretCache[key] = value
@@ -75,11 +74,11 @@ func (c *Config) secretJSONFunc(args ...string) interface{} {
 	cmd.Stderr = os.Stderr
 	output, err := cmd.Output()
 	if err != nil {
-		chezmoi.ReturnTemplateFuncError(fmt.Errorf("secretJSON: %s %s: %v\n%s", name, strings.Join(args, " "), err, output))
+		panic(fmt.Errorf("secretJSON: %s %s: %v\n%s", name, strings.Join(args, " "), err, output))
 	}
 	var value interface{}
 	if err := json.Unmarshal(output, &value); err != nil {
-		chezmoi.ReturnTemplateFuncError(fmt.Errorf("secretJSON: %s %s: %v\n%s", name, strings.Join(args, " "), err, output))
+		panic(fmt.Errorf("secretJSON: %s %s: %v\n%s", name, strings.Join(args, " "), err, output))
 	}
 	secretJSONCache[key] = value
 	return value
diff --git a/cmd/secretkeepassxc.go b/cmd/secretkeepassxc.go
index 5cc64ec4f38..fb3aad2fc98 100644
--- a/cmd/secretkeepassxc.go
+++ b/cmd/secretkeepassxc.go
@@ -11,7 +11,6 @@ import (
 	"strings"
 
 	"github.com/spf13/cobra"
-	"github.com/twpayne/chezmoi/lib/chezmoi"
 	vfs "github.com/twpayne/go-vfs"
 	"golang.org/x/crypto/ssh/terminal"
 )
@@ -51,7 +50,7 @@ func (c *Config) keePassXCFunc(entry string) interface{} {
 		return data
 	}
 	if c.KeePassXC.Database == "" {
-		chezmoi.ReturnTemplateFuncError(errors.New("keepassxc: keepassxc.database not set"))
+		panic(errors.New("keepassxc: keepassxc.database not set"))
 	}
 	name := c.KeePassXC.Command
 	args := []string{"show"}
@@ -62,7 +61,7 @@ func (c *Config) keePassXCFunc(entry string) interface{} {
 	}
 	data, err := c.runKeePassXCCLICommand(name, args)
 	if err != nil {
-		chezmoi.ReturnTemplateFuncError(fmt.Errorf("keepassxc: %s %s: %s", name, strings.Join(args, " "), err))
+		panic(fmt.Errorf("keepassxc: %s %s: %s", name, strings.Join(args, " "), err))
 	}
 	keePassXCCache[entry] = data
 	return data
diff --git a/cmd/secretkeyring.go b/cmd/secretkeyring.go
index e6587cd9ad4..bbe6a722d8b 100644
--- a/cmd/secretkeyring.go
+++ b/cmd/secretkeyring.go
@@ -4,7 +4,6 @@ import (
 	"fmt"
 
 	"github.com/spf13/cobra"
-	"github.com/twpayne/chezmoi/lib/chezmoi"
 	keyring "github.com/zalando/go-keyring"
 )
 
@@ -51,7 +50,7 @@ func (*Config) keyringFunc(service, user string) string {
 	}
 	password, err := keyring.Get(service, user)
 	if err != nil {
-		chezmoi.ReturnTemplateFuncError(fmt.Errorf("keyring %q %q: %v", service, user, err))
+		panic(fmt.Errorf("keyring %q %q: %v", service, user, err))
 	}
 	keyringCache[key] = password
 	return password
diff --git a/cmd/secretlastpass.go b/cmd/secretlastpass.go
index b705201e585..2ca5753a0f4 100644
--- a/cmd/secretlastpass.go
+++ b/cmd/secretlastpass.go
@@ -14,7 +14,6 @@ import (
 
 	"github.com/coreos/go-semver/semver"
 	"github.com/spf13/cobra"
-	"github.com/twpayne/chezmoi/lib/chezmoi"
 	vfs "github.com/twpayne/go-vfs"
 )
 
@@ -71,7 +70,7 @@ func (c *Config) lastpassOutput(args ...string) ([]byte, error) {
 func (c *Config) lastpassFunc(id string) interface{} {
 	c.Lastpass.versionCheckOnce.Do(func() {
 		if err := c.lastpassVersionCheck(); err != nil {
-			chezmoi.ReturnTemplateFuncError(err)
+			panic(err)
 		}
 	})
 	if data, ok := lastPassCache[id]; ok {
@@ -79,11 +78,11 @@ func (c *Config) lastpassFunc(id string) interface{} {
 	}
 	output, err := c.lastpassOutput("show", "--json", id)
 	if err != nil {
-		chezmoi.ReturnTemplateFuncError(err)
+		panic(err)
 	}
 	var data []map[string]interface{}
 	if err := json.Unmarshal(output, &data); err != nil {
-		chezmoi.ReturnTemplateFuncError(fmt.Errorf("lastpass: parse error: %v\n%q", err, output))
+		panic(fmt.Errorf("lastpass: parse error: %v\n%q", err, output))
 	}
 	for _, d := range data {
 		if note, ok := d["note"].(string); ok {
@@ -130,7 +129,7 @@ func lastpassParseNote(note string) map[string]string {
 		}
 	}
 	if err := s.Err(); err != nil {
-		chezmoi.ReturnTemplateFuncError(fmt.Errorf("lastpassParseNote: %v", err))
+		panic(fmt.Errorf("lastpassParseNote: %v", err))
 	}
 	return result
 }
diff --git a/cmd/secretonepassword.go b/cmd/secretonepassword.go
index c25e4a94782..7114ffc1910 100644
--- a/cmd/secretonepassword.go
+++ b/cmd/secretonepassword.go
@@ -8,7 +8,6 @@ import (
 	"strings"
 
 	"github.com/spf13/cobra"
-	"github.com/twpayne/chezmoi/lib/chezmoi"
 	vfs "github.com/twpayne/go-vfs"
 )
 
@@ -50,11 +49,11 @@ func (c *Config) onepasswordFunc(item string) interface{} {
 	cmd.Stderr = os.Stderr
 	output, err := cmd.Output()
 	if err != nil {
-		chezmoi.ReturnTemplateFuncError(fmt.Errorf("onepassword: %s %s: %v\n%s", name, strings.Join(args, " "), err, output))
+		panic(fmt.Errorf("onepassword: %s %s: %v\n%s", name, strings.Join(args, " "), err, output))
 	}
 	var data interface{}
 	if err := json.Unmarshal(output, &data); err != nil {
-		chezmoi.ReturnTemplateFuncError(fmt.Errorf("onepassword: %s %s: %v\n%s", name, strings.Join(args, " "), err, output))
+		panic(fmt.Errorf("onepassword: %s %s: %v\n%s", name, strings.Join(args, " "), err, output))
 	}
 	onepasswordCache[item] = data
 	return data
diff --git a/cmd/secretpass.go b/cmd/secretpass.go
index eda64c03b67..3f870e27c1d 100644
--- a/cmd/secretpass.go
+++ b/cmd/secretpass.go
@@ -7,7 +7,6 @@ import (
 	"strings"
 
 	"github.com/spf13/cobra"
-	"github.com/twpayne/chezmoi/lib/chezmoi"
 	vfs "github.com/twpayne/go-vfs"
 )
 
@@ -46,7 +45,7 @@ func (c *Config) passFunc(id string) string {
 	}
 	output, err := exec.Command(name, args...).Output()
 	if err != nil {
-		chezmoi.ReturnTemplateFuncError(fmt.Errorf("pass: %s %s: %v", name, strings.Join(args, " "), err))
+		panic(fmt.Errorf("pass: %s %s: %v", name, strings.Join(args, " "), err))
 	}
 	var password string
 	if index := bytes.IndexByte(output, '\n'); index != -1 {
diff --git a/cmd/secretvault.go b/cmd/secretvault.go
index 5b990143572..8fbac70ebb3 100644
--- a/cmd/secretvault.go
+++ b/cmd/secretvault.go
@@ -8,7 +8,6 @@ import (
 	"strings"
 
 	"github.com/spf13/cobra"
-	"github.com/twpayne/chezmoi/lib/chezmoi"
 	vfs "github.com/twpayne/go-vfs"
 )
 
@@ -50,11 +49,11 @@ func (c *Config) vaultFunc(key string) interface{} {
 	cmd.Stderr = os.Stderr
 	output, err := cmd.Output()
 	if err != nil {
-		chezmoi.ReturnTemplateFuncError(fmt.Errorf("vault: %s %s: %v\n%s", name, strings.Join(args, " "), err, output))
+		panic(fmt.Errorf("vault: %s %s: %v\n%s", name, strings.Join(args, " "), err, output))
 	}
 	var data interface{}
 	if err := json.Unmarshal(output, &data); err != nil {
-		chezmoi.ReturnTemplateFuncError(fmt.Errorf("vault: %s %s: %v\n%s", name, strings.Join(args, " "), err, output))
+		panic(fmt.Errorf("vault: %s %s: %v\n%s", name, strings.Join(args, " "), err, output))
 	}
 	vaultCache[key] = data
 	return data
diff --git a/lib/chezmoi/chezmoi.go b/lib/chezmoi/chezmoi.go
index 527fb836d7d..9d06c86ecba 100644
--- a/lib/chezmoi/chezmoi.go
+++ b/lib/chezmoi/chezmoi.go
@@ -26,12 +26,6 @@ const (
 	TemplateSuffix   = ".tmpl"
 )
 
-// A templateFuncError is an error encountered while executing a template
-// function.
-type templateFuncError struct {
-	err error
-}
-
 // A PersistentState is an interface to a persistent state.
 type PersistentState interface {
 	Delete(bucket, key []byte) error
@@ -68,13 +62,6 @@ type parsedSourceFilePath struct {
 	scriptAttributes *ScriptAttributes
 }
 
-// ReturnTemplateFuncError causes template execution to return an error.
-func ReturnTemplateFuncError(err error) {
-	panic(templateFuncError{
-		err: err,
-	})
-}
-
 // dirNames returns the dir names from dirAttributes.
 func dirNames(dirAttributes []DirAttributes) []string {
 	dns := make([]string, len(dirAttributes))
diff --git a/lib/chezmoi/chezmoi_test.go b/lib/chezmoi/chezmoi_test.go
index f7d1195ecc2..fa7e120841f 100644
--- a/lib/chezmoi/chezmoi_test.go
+++ b/lib/chezmoi/chezmoi_test.go
@@ -10,8 +10,7 @@ import (
 func TestReturnTemplateError(t *testing.T) {
 	funcs := map[string]interface{}{
 		"returnTemplateError": func() string {
-			ReturnTemplateFuncError(errors.New("error"))
-			return "foo"
+			panic(errors.New("error"))
 		},
 	}
 	for name, dataString := range map[string]string{
diff --git a/lib/chezmoi/targetstate.go b/lib/chezmoi/targetstate.go
index 8e8818f3870..d2e0e94193a 100644
--- a/lib/chezmoi/targetstate.go
+++ b/lib/chezmoi/targetstate.go
@@ -657,7 +657,7 @@ func (ts *TargetState) executeTemplate(fs vfs.FS, path string) ([]byte, error) {
 	return ts.executeTemplateData(path, data)
 }
 
-func (ts *TargetState) executeTemplateData(name string, data []byte) (_ []byte, err error) {
+func (ts *TargetState) executeTemplateData(name string, data []byte) ([]byte, error) {
 	tmpl, err := template.New(name).Option("missingkey=error").Funcs(ts.TemplateFuncs).Parse(string(data))
 	if err != nil {
 		return nil, err
@@ -668,15 +668,6 @@ func (ts *TargetState) executeTemplateData(name string, data []byte) (_ []byte,
 			return nil, err
 		}
 	}
-	defer func() {
-		if r := recover(); r != nil {
-			if tfe, ok := r.(templateFuncError); ok {
-				err = tfe.err
-			} else {
-				panic(r)
-			}
-		}
-	}()
 	output := &bytes.Buffer{}
 	if err = tmpl.Execute(output, ts.Data); err != nil {
 		return nil, err