diff --git a/debug_toolbar/panels/templates/panel.py b/debug_toolbar/panels/templates/panel.py
index 72565f016..e9a27130f 100644
--- a/debug_toolbar/panels/templates/panel.py
+++ b/debug_toolbar/panels/templates/panel.py
@@ -96,10 +96,15 @@ def _store_template_info(self, sender, **kwargs):
                 if pformatted is None:
                     temp_layer = {}
                     for key, value in context_layer.items():
+                        # Do not force evaluating LazyObject
+                        if hasattr(value, "_wrapped"):
+                            # SimpleLazyObject has __repr__ which includes actual value
+                            # if it has been already evaluated
+                            temp_layer[key] = repr(value)
                         # Replace any request elements - they have a large
                         # Unicode representation and the request data is
                         # already made available from the Request panel.
-                        if isinstance(value, http.HttpRequest):
+                        elif isinstance(value, http.HttpRequest):
                             temp_layer[key] = "<<request>>"
                         # Replace the debugging sql_queries element. The SQL
                         # data is already made available from the SQL panel.
diff --git a/docs/changes.rst b/docs/changes.rst
index ad3cab34c..3640a6188 100644
--- a/docs/changes.rst
+++ b/docs/changes.rst
@@ -5,6 +5,7 @@ Pending
 -------
 
 * Removed outdated third-party panels from the list.
+* Avoid evaluating ``LazyObject`` in the templates panel.
 
 4.2.0 (2023-08-10)
 ------------------
diff --git a/tests/panels/test_template.py b/tests/panels/test_template.py
index 37e70cfa5..5ce28a880 100644
--- a/tests/panels/test_template.py
+++ b/tests/panels/test_template.py
@@ -2,6 +2,7 @@
 from django.contrib.auth.models import User
 from django.template import Context, RequestContext, Template
 from django.test import override_settings
+from django.utils.functional import SimpleLazyObject
 
 from ..base import BaseTestCase, IntegrationTestCase
 from ..forms import TemplateReprForm
@@ -109,6 +110,14 @@ def test_empty_context(self):
             ["{'False': False, 'None': None, 'True': True}"],
         )
 
+    def test_lazyobject(self):
+        response = self.panel.process_request(self.request)
+        t = Template("")
+        c = Context({"lazy": SimpleLazyObject(lambda: "lazy_value")})
+        t.render(c)
+        self.assertNotIn("lazy_value", self.panel.content)
+
+
 
 @override_settings(
     DEBUG=True, DEBUG_TOOLBAR_PANELS=["debug_toolbar.panels.templates.TemplatesPanel"]