diff --git a/packages/create-block/lib/index.js b/packages/create-block/lib/index.js
index 0420446bf90ec6..08c86727a904de 100644
--- a/packages/create-block/lib/index.js
+++ b/packages/create-block/lib/index.js
@@ -14,8 +14,8 @@ const log = require( './log' );
 const { engines, version } = require( '../package.json' );
 const scaffold = require( './scaffold' );
 const {
-	getPluginTemplate,
 	getDefaultValues,
+	getProjectTemplate,
 	runPrompts,
 } = require( './templates' );
 
@@ -81,9 +81,10 @@ program
 		) => {
 			await checkSystemRequirements( engines );
 			try {
-				const pluginTemplate = await getPluginTemplate( templateName );
+				const projectTemplate =
+					await getProjectTemplate( templateName );
 				const availableVariants = Object.keys(
-					pluginTemplate.variants
+					projectTemplate.variants
 				);
 				if ( variant && ! availableVariants.includes( variant ) ) {
 					if ( ! availableVariants.length ) {
@@ -113,7 +114,7 @@ program
 
 				if ( slug ) {
 					const defaultValues = getDefaultValues(
-						pluginTemplate,
+						projectTemplate,
 						variant
 					);
 					const answers = {
@@ -123,7 +124,7 @@ program
 						title: capitalCase( slug ),
 						...optionsValues,
 					};
-					await scaffold( pluginTemplate, answers );
+					await scaffold( projectTemplate, answers );
 				} else {
 					log.info( '' );
 					log.info(
@@ -143,12 +144,12 @@ program
 					}
 
 					const defaultValues = getDefaultValues(
-						pluginTemplate,
+						projectTemplate,
 						variant
 					);
 
 					const blockAnswers = await runPrompts(
-						pluginTemplate,
+						projectTemplate,
 						[
 							'slug',
 							'namespace',
@@ -156,8 +157,8 @@ program
 							'description',
 							'dashicon',
 							'category',
-							'textdomain',
-						],
+							! plugin && 'textdomain',
+						].filter( Boolean ),
 						variant,
 						optionsValues
 					);
@@ -170,7 +171,7 @@ program
 							default: false,
 						} ) )
 							? await runPrompts(
-									pluginTemplate,
+									projectTemplate,
 									[
 										'pluginURI',
 										'version',
@@ -185,7 +186,7 @@ program
 							  )
 							: {};
 
-					await scaffold( pluginTemplate, {
+					await scaffold( projectTemplate, {
 						...defaultValues,
 						...optionsValues,
 						variant,
diff --git a/packages/create-block/lib/prompts.js b/packages/create-block/lib/prompts.js
index 94cd50c47a9555..88bdaf22635d36 100644
--- a/packages/create-block/lib/prompts.js
+++ b/packages/create-block/lib/prompts.js
@@ -77,9 +77,8 @@ const category = {
 
 const textdomain = {
 	type: 'input',
-	name: 'textdomain',
 	message:
-		'The text domain used to internationalize text in the block (by default it will be same as slug):',
+		'The text domain used to make strings translatable in the block (optional):',
 	validate( input ) {
 		if ( input.length && ! /^[a-z][a-z0-9\-]*$/.test( input ) ) {
 			return 'Invalid text domain specified. Text domain can contain only lowercase alphanumeric characters or dashes, and start with a letter.';
diff --git a/packages/create-block/lib/templates.js b/packages/create-block/lib/templates.js
index d26170929c7702..db78ee80aa429a 100644
--- a/packages/create-block/lib/templates.js
+++ b/packages/create-block/lib/templates.js
@@ -158,7 +158,7 @@ const configToTemplate = async ( {
 	};
 };
 
-const getPluginTemplate = async ( templateName ) => {
+const getProjectTemplate = async ( templateName ) => {
 	if ( predefinedPluginTemplates[ templateName ] ) {
 		return await configToTemplate(
 			predefinedPluginTemplates[ templateName ]
@@ -225,12 +225,13 @@ const getPluginTemplate = async ( templateName ) => {
 	}
 };
 
-const getDefaultValues = ( pluginTemplate, variant ) => {
+const getDefaultValues = ( projectTemplate, variant ) => {
 	return {
 		$schema: 'https://schemas.wp.org/trunk/block.json',
 		apiVersion: 3,
 		namespace: 'create-block',
 		category: 'widgets',
+		textdomain: '',
 		author: 'The WordPress Contributors',
 		license: 'GPL-2.0-or-later',
 		licenseURI: 'https://www.gnu.org/licenses/gpl-2.0.html',
@@ -244,19 +245,19 @@ const getDefaultValues = ( pluginTemplate, variant ) => {
 		editorStyle: 'file:./index.css',
 		style: 'file:./style-index.css',
 		transformer: ( view ) => view,
-		...pluginTemplate.defaultValues,
-		...pluginTemplate.variants?.[ variant ],
-		variantVars: getVariantVars( pluginTemplate.variants, variant ),
+		...projectTemplate.defaultValues,
+		...projectTemplate.variants?.[ variant ],
+		variantVars: getVariantVars( projectTemplate.variants, variant ),
 	};
 };
 
 const runPrompts = async (
-	pluginTemplate,
+	projectTemplate,
 	promptNames,
 	variant,
 	optionsValues
 ) => {
-	const defaultValues = getDefaultValues( pluginTemplate, variant );
+	const defaultValues = getDefaultValues( projectTemplate, variant );
 	const result = {};
 	for ( const promptName of promptNames ) {
 		if ( Object.keys( optionsValues ).includes( promptName ) ) {
@@ -291,7 +292,7 @@ const getVariantVars = ( variants, variant ) => {
 };
 
 module.exports = {
-	getPluginTemplate,
 	getDefaultValues,
+	getProjectTemplate,
 	runPrompts,
 };