diff --git a/CONTRIBUTING.md b/CONTRIBUTING.md
index 186c663..77643a0 100644
--- a/CONTRIBUTING.md
+++ b/CONTRIBUTING.md
@@ -125,7 +125,7 @@ copy.
 Then run the tests with:
 
 ```shell
-./scripts/test-app.sh
+./scripts/test-sandbox.sh
 ```
 
 #### Updating template stories
diff --git a/sandbox/templates/components/LiveComponent.stories.js b/sandbox/templates/components/LiveComponent.stories.js
index 71a7816..d743524 100644
--- a/sandbox/templates/components/LiveComponent.stories.js
+++ b/sandbox/templates/components/LiveComponent.stories.js
@@ -1,11 +1,9 @@
 import LiveComponent from './LiveComponent.html.twig';
 import { userEvent, expect, fn, waitFor, within } from '@storybook/test';
+import {twig} from "@sensiolabs/storybook-symfony-webpack5";
 
 export default {
-    component: LiveComponent
-}
-
-export const Default = {
+    component: LiveComponent,
     args: {
         onClick: fn()
     },
@@ -22,3 +20,15 @@ export const Default = {
         await waitFor(() => expect(args.onClick).toHaveBeenCalledOnce());
     }
 }
+
+export const Default = {
+}
+
+export const EmbeddedRender = {
+    render: () => ({
+       components: {LiveComponent},
+       template: twig`
+        <twig:LiveComponent data-storybook-callbacks="{{ onClick }}">
+        </twig:LiveComponent>`
+    }),
+}
diff --git a/src/Controller/StorybookController.php b/src/Controller/StorybookController.php
index 37ae987..cbcdabc 100644
--- a/src/Controller/StorybookController.php
+++ b/src/Controller/StorybookController.php
@@ -23,17 +23,22 @@ public function __construct(
 
     public function __invoke(Request $request, string $story): Response
     {
-        $request = RequestAttributesHelper::withStorybookAttributes($request, ['story' => $story]);
-
         $templateString = $request->getPayload()->get('template');
 
         if (null === $templateString) {
             throw new BadRequestHttpException('Missing "template" in request body.');
         }
 
+        $templateName = \sprintf('%s.html.twig', hash('xxh128', $templateString));
+
+        $request = RequestAttributesHelper::withStorybookAttributes($request, [
+            'story' => $story,
+            'template' => $templateName,
+        ]);
+
         $args = $this->argsProcessor->process($request);
 
-        $storyObj = new Story($story, $templateString, $args);
+        $storyObj = new Story($story, $templateName, $templateString, $args);
 
         $content = $this->storyRenderer->render($storyObj);
 
diff --git a/src/EventListener/ProxyRequestListener.php b/src/EventListener/ProxyRequestListener.php
index 2615ee9..0ba554a 100644
--- a/src/EventListener/ProxyRequestListener.php
+++ b/src/EventListener/ProxyRequestListener.php
@@ -31,6 +31,10 @@ public function onKernelRequest(RequestEvent $event): void
     {
         $request = $event->getRequest();
 
+        if (!$event->isMainRequest() || 'storybook_render' === $request->attributes->get('_route')) {
+            return;
+        }
+
         if (!RequestAttributesHelper::isProxyRequest($request) || !$request->headers->has('referer')) {
             return;
         }
diff --git a/src/Story.php b/src/Story.php
index 593961b..000dbc8 100644
--- a/src/Story.php
+++ b/src/Story.php
@@ -6,6 +6,7 @@ final class Story
 {
     public function __construct(
         private readonly string $id,
+        private readonly string $templateName,
         private readonly string $template,
         private readonly Args $args,
     ) {
@@ -16,6 +17,11 @@ public function getId(): string
         return $this->id;
     }
 
+    public function getTemplateName(): string
+    {
+        return $this->templateName;
+    }
+
     public function getTemplate(): string
     {
         return $this->template;
diff --git a/src/Twig/TwigComponentSubscriber.php b/src/Twig/TwigComponentSubscriber.php
index 28d6a11..6425659 100644
--- a/src/Twig/TwigComponentSubscriber.php
+++ b/src/Twig/TwigComponentSubscriber.php
@@ -8,6 +8,7 @@
 use Symfony\Component\EventDispatcher\EventSubscriberInterface;
 use Symfony\Component\HttpFoundation\RequestStack;
 use Symfony\UX\TwigComponent\Event\PreRenderEvent;
+use Symfony\UX\TwigComponent\MountedComponent;
 
 /**
  * @author Nicolas Rigaud <squrious@protonmail.com>
@@ -25,10 +26,42 @@ public function __construct(
     public static function getSubscribedEvents(): array
     {
         return [
-            PreRenderEvent::class => 'onPreRender',
+            PreRenderEvent::class => [
+                ['inlineRootLiveComponent', 1],
+                ['onPreRender', 0],
+            ],
         ];
     }
 
+    public function inlineRootLiveComponent(PreRenderEvent $event): void
+    {
+        $request = $this->requestStack->getMainRequest();
+
+        if (null === $request || !RequestAttributesHelper::isStorybookRequest($request)) {
+            return;
+        }
+
+        if (!$event->getMetadata()->get('live', false)) {
+            // not a live component, skip
+            return;
+        }
+
+        $storybookAttributes = RequestAttributesHelper::getStorybookAttributes($request);
+
+        $mounted = $event->getMountedComponent();
+
+        if ($mounted->hasExtraMetadata('hostTemplate') && $mounted->getExtraMetadata('hostTemplate') === $storybookAttributes->template) {
+            // Dirty hack here: we are rendering a Live Component in the main story template with the embedded strategy.
+            // The host template actually doesn't exist, which will cause errors because Live Component will try to use
+            // it when re-rendering itself. As this is only useful for blocks resolution, we can safely remove this.
+            // Using reflection because no extension point is available here.
+            $refl = new \ReflectionProperty(MountedComponent::class, 'extraMetadata');
+            $extraMetadata = $refl->getValue($mounted);
+            unset($extraMetadata['hostTemplate'], $extraMetadata['embeddedTemplateIndex']);
+            $refl->setValue($mounted, $extraMetadata);
+        }
+    }
+
     public function onPreRender(PreRenderEvent $event): void
     {
         $request = $this->requestStack->getMainRequest();
diff --git a/src/Util/StorybookAttributes.php b/src/Util/StorybookAttributes.php
index aa4f1f0..4ae9bc6 100644
--- a/src/Util/StorybookAttributes.php
+++ b/src/Util/StorybookAttributes.php
@@ -4,8 +4,13 @@
 
 final class StorybookAttributes
 {
+    private const REQUIRED_ATTRIBUTES = [
+        'story',
+    ];
+
     public function __construct(
         public readonly string $story,
+        public readonly ?string $template = null,
     ) {
     }
 
@@ -14,10 +19,15 @@ public function __construct(
      */
     public static function from(array $attributes): self
     {
-        if (!isset($attributes['story'])) {
-            throw new \InvalidArgumentException('Missing key "story" in attributes.');
+        foreach (self::REQUIRED_ATTRIBUTES as $attribute) {
+            if (!isset($attributes[$attribute])) {
+                throw new \InvalidArgumentException(\sprintf('Missing key "%s" in attributes.', $attribute));
+            }
         }
 
-        return new self(story: $attributes['story']);
+        return new self(
+            story: $attributes['story'],
+            template: $attributes['template'] ?? null,
+        );
     }
 }
diff --git a/tests/Integration/StoryRendererTest.php b/tests/Integration/StoryRendererTest.php
index 35ba71d..9eab3ef 100644
--- a/tests/Integration/StoryRendererTest.php
+++ b/tests/Integration/StoryRendererTest.php
@@ -17,7 +17,7 @@ public function testRenderStoryWithRestrictedContentThrowsException(string $temp
         self::bootKernel();
 
         $renderer = static::getContainer()->get('storybook.story_renderer');
-        $story = new Story('story', $template, new Args());
+        $story = new Story('story', 'story.html.twig', $template, new Args());
 
         $this->expectException(UnauthorizedStoryException::class);
 
@@ -80,7 +80,7 @@ public function testRenderStoryWithAllowedContent(string $template, array $args
         self::bootKernel();
 
         $renderer = static::getContainer()->get('storybook.story_renderer');
-        $story = new Story('story', $template, new Args($args));
+        $story = new Story('story', 'story.html.twig', $template, new Args($args));
 
         $content = $renderer->render($story);
 
@@ -169,7 +169,7 @@ public function testComponentUsingTrait()
 
         $renderer = static::getContainer()->get('storybook.story_renderer');
 
-        $story = new Story('story', '<twig:ComponentUsingTrait />', new Args());
+        $story = new Story('story', 'story.html.twig', '<twig:ComponentUsingTrait />', new Args());
 
         $content = $renderer->render($story);
 
@@ -187,8 +187,8 @@ public function testPassingPropsFromContextVariableWithSameName()
 
         $renderer = static::getContainer()->get('storybook.story_renderer');
 
-        $storyWithFunction = new Story('story', '<twig:AnonymousComponent :prop1="prop1"/>', new Args(['prop1' => 'foo']));
-        $storyWithTag = new Story('story', '<twig:AnonymousComponent :prop1="prop1"></twig:AnonymousComponent>', new Args(['prop1' => 'foo']));
+        $storyWithFunction = new Story('story', 'story.html.twig', '<twig:AnonymousComponent :prop1="prop1"/>', new Args(['prop1' => 'foo']));
+        $storyWithTag = new Story('story', 'story.html.twig', '<twig:AnonymousComponent :prop1="prop1"></twig:AnonymousComponent>', new Args(['prop1' => 'foo']));
 
         $this->assertEquals($renderer->render($storyWithFunction), $renderer->render($storyWithTag));
     }
@@ -199,7 +199,7 @@ public function testComponentAttributeRendering()
 
         $renderer = static::getContainer()->get('storybook.story_renderer');
 
-        $story = new Story('story', '<twig:AnonymousComponent foo="bar"></twig:AnonymousComponent>', new Args());
+        $story = new Story('story', 'story.html.twig', '<twig:AnonymousComponent foo="bar"></twig:AnonymousComponent>', new Args());
 
         $this->assertStringContainsString('foo="bar"', $renderer->render($story));
     }
diff --git a/tests/Unit/StoryRendererTest.php b/tests/Unit/StoryRendererTest.php
index 32d459e..bc11db7 100644
--- a/tests/Unit/StoryRendererTest.php
+++ b/tests/Unit/StoryRendererTest.php
@@ -29,6 +29,7 @@ public function testRender()
 
         $story = new Story(
             'story',
+            'story.html.twig',
             '',
             new Args()
         );
@@ -51,6 +52,7 @@ public function testExceptions(Error $twigError, string $expectedException)
 
         $story = new Story(
             'story',
+            'story.html.twig',
             '',
             new Args()
         );
diff --git a/tests/Unit/Util/StorybookAttributesTest.php b/tests/Unit/Util/StorybookAttributesTest.php
index 89c4df8..3f60f6f 100644
--- a/tests/Unit/Util/StorybookAttributesTest.php
+++ b/tests/Unit/Util/StorybookAttributesTest.php
@@ -7,12 +7,38 @@
 
 class StorybookAttributesTest extends TestCase
 {
-    public function testCreateFromArray()
+    /**
+     * @dataProvider getValidArguments
+     */
+    public function testCreateFromArray(array $array, StorybookAttributes $expected)
     {
-        $attributes = StorybookAttributes::from(['story' => 'story']);
+        $attributes = StorybookAttributes::from($array);
 
-        $this->assertInstanceOf(StorybookAttributes::class, $attributes);
-        $this->assertEquals('story', $attributes->story);
+        $this->assertEquals($expected, $attributes);
+    }
+
+    public static function getValidArguments(): iterable
+    {
+        yield 'only story' => [
+            'array' => [
+                'story' => 'story',
+            ],
+            'expected' => new StorybookAttributes(
+                'story',
+                null
+            ),
+        ];
+
+        yield 'with template name' => [
+            'array' => [
+                'story' => 'story',
+                'template' => 'story.html.twig',
+            ],
+            'expected' => new StorybookAttributes(
+                'story',
+                'story.html.twig'
+            ),
+        ];
     }
 
     public function testCreateFromInvalidArrayThrowsException()