diff --git a/homeassistant/components/template/template_entity.py b/homeassistant/components/template/template_entity.py
index 53d9d2f1a33..49b0edfab02 100644
--- a/homeassistant/components/template/template_entity.py
+++ b/homeassistant/components/template/template_entity.py
@@ -234,9 +234,7 @@ class TemplateEntity(Entity):
         else:
             self._self_ref_update_count = 0
 
-        # If we need to make this less sensitive in the future,
-        # change the '>=' to a '>' here.
-        if self._self_ref_update_count >= len(self._template_attrs):
+        if self._self_ref_update_count > len(self._template_attrs):
             for update in updates:
                 _LOGGER.warning(
                     "Template loop detected while processing event: %s, skipping template render for Template[%s]",
diff --git a/tests/components/template/test_cover.py b/tests/components/template/test_cover.py
index b068f04b87b..7202d8a3a1b 100644
--- a/tests/components/template/test_cover.py
+++ b/tests/components/template/test_cover.py
@@ -1121,3 +1121,48 @@ async def test_state_gets_lowercased(hass):
     hass.states.async_set("binary_sensor.garage_door_sensor", "on")
     await hass.async_block_till_done()
     assert hass.states.get("cover.garage_door").state == STATE_CLOSED
+
+
+async def test_self_referencing_icon_with_no_template_is_not_a_loop(hass, caplog):
+    """Test a self referencing icon with no value template is not a loop."""
+
+    icon_template_str = """{% if is_state('cover.office', 'open') %}
+            mdi:window-shutter-open
+          {% else %}
+            mdi:window-shutter
+          {% endif %}"""
+
+    await setup.async_setup_component(
+        hass,
+        "cover",
+        {
+            "cover": {
+                "platform": "template",
+                "covers": {
+                    "office": {
+                        "icon_template": icon_template_str,
+                        "open_cover": {
+                            "service": "switch.turn_on",
+                            "entity_id": "switch.office_blinds_up",
+                        },
+                        "close_cover": {
+                            "service": "switch.turn_on",
+                            "entity_id": "switch.office_blinds_down",
+                        },
+                        "stop_cover": {
+                            "service": "switch.turn_on",
+                            "entity_id": "switch.office_blinds_up",
+                        },
+                    },
+                },
+            }
+        },
+    )
+
+    await hass.async_block_till_done()
+    await hass.async_start()
+    await hass.async_block_till_done()
+
+    assert len(hass.states.async_all()) == 1
+
+    assert "Template loop detected" not in caplog.text
diff --git a/tests/components/template/test_sensor.py b/tests/components/template/test_sensor.py
index 23d20250f30..8f582f01ef5 100644
--- a/tests/components/template/test_sensor.py
+++ b/tests/components/template/test_sensor.py
@@ -797,9 +797,9 @@ async def test_self_referencing_sensor_loop(hass, caplog):
     assert "Template loop detected" in caplog.text
 
     state = hass.states.get("sensor.test")
-    assert int(state.state) == 1
+    assert int(state.state) == 2
     await hass.async_block_till_done()
-    assert int(state.state) == 1
+    assert int(state.state) == 2
 
 
 async def test_self_referencing_sensor_with_icon_loop(hass, caplog):
@@ -833,11 +833,11 @@ async def test_self_referencing_sensor_with_icon_loop(hass, caplog):
     assert "Template loop detected" in caplog.text
 
     state = hass.states.get("sensor.test")
-    assert int(state.state) == 2
+    assert int(state.state) == 3
     assert state.attributes[ATTR_ICON] == "mdi:greater"
 
     await hass.async_block_till_done()
-    assert int(state.state) == 2
+    assert int(state.state) == 3
 
 
 async def test_self_referencing_sensor_with_icon_and_picture_entity_loop(hass, caplog):
@@ -872,12 +872,12 @@ async def test_self_referencing_sensor_with_icon_and_picture_entity_loop(hass, c
     assert "Template loop detected" in caplog.text
 
     state = hass.states.get("sensor.test")
-    assert int(state.state) == 3
+    assert int(state.state) == 4
     assert state.attributes[ATTR_ICON] == "mdi:less"
     assert state.attributes[ATTR_ENTITY_PICTURE] == "bigpic"
 
     await hass.async_block_till_done()
-    assert int(state.state) == 3
+    assert int(state.state) == 4
 
 
 async def test_self_referencing_entity_picture_loop(hass, caplog):
@@ -917,7 +917,7 @@ async def test_self_referencing_entity_picture_loop(hass, caplog):
 
     state = hass.states.get("sensor.test")
     assert int(state.state) == 1
-    assert state.attributes[ATTR_ENTITY_PICTURE] == "1"
+    assert state.attributes[ATTR_ENTITY_PICTURE] == "2"
 
     await hass.async_block_till_done()
     assert int(state.state) == 1