diff --git a/server/src/content/instantiation.rs b/server/src/content/instantiation.rs
new file mode 100644
index 000000000..4749b48ca
--- /dev/null
+++ b/server/src/content/instantiation.rs
@@ -0,0 +1,197 @@
+//! Template instantiation engine (#161).
+//!
+//! Wires the full pipeline: `FullTemplateDef` → NPC spawn (via spawn.rs) →
+//! triangle generation (via template.rs) → instance tracking.
+//!
+//! **Pipeline:**
+//! 1. Validate the `FullTemplateDef` (schema-level checks).
+//! 2. Call `spawn_template_npcs` to create NPC entities and wire relationships.
+//! 3. Call `generate_intra_template_triangles` to generate `TriangleState` values.
+//! 4. Spawn each `TriangleState` as an ECS entity with the `ActiveSim` marker.
+//! 5. Register the live instance in `ActiveTemplateInstances`.
+//!
+//! **Instance lifecycle:**
+//! Instances are tracked by `TemplateId` in `ActiveTemplateInstances`.
+//! `unload_template` despawns all NPC and triangle entities and removes the
+//! entry from `ActiveTemplateInstances`.
+//!
+//! **Determinism (D-010):** given the same `FullTemplateDef`, `TemplateId`,
+//! `world_seed`, and `SimRng` state, the spawned NPC and triangle layout is
+//! identical.
+
+use std::collections::BTreeMap;
+
+use bevy_ecs::prelude::*;
+
+use crate::content::spawn::spawn_template_npcs;
+use crate::content::template::{
+    generate_intra_template_triangles, FullTemplateDef, TemplateId,
+};
+use crate::simulation::rng::SimRng;
+use crate::simulation::tier::ActiveSim;
+
+// ===========================================================================
+// Public types
+// ===========================================================================
+
+/// A live template instance — the result of `instantiate_template`.
+///
+/// Holds entity handles for all NPCs and triangle entities spawned from a
+/// single `FullTemplateDef`. Required by `unload_template` to despawn them.
+#[derive(Debug, Clone)]
+pub struct TemplateInstance {
+    /// Template this instance was created from.
+    pub template_id: TemplateId,
+    /// ECS entities for the NPC role slots (one per `RoleSchema`).
+    pub npc_entities: Vec<Entity>,
+    /// ECS entities for the generated `TriangleState` components.
+    pub triangle_entities: Vec<Entity>,
+    /// Non-fatal warnings from triangle generation (e.g., fallback assignments).
+    pub warnings: Vec<String>,
+}
+
+/// Resource tracking all currently active template instances.
+///
+/// Key = `TemplateId.0` (deterministic u64). Initialized on demand by
+/// `instantiate_template`; may also be initialized explicitly with
+/// `world.init_resource::<ActiveTemplateInstances>()`.
+///
+/// **Determinism (D-010):** `BTreeMap` for consistent iteration order.
+#[derive(Resource, Default, Debug)]
+pub struct ActiveTemplateInstances {
+    instances: BTreeMap<u64, TemplateInstance>,
+}
+
+impl ActiveTemplateInstances {
+    /// Register a new instance. Overwrites any existing entry for the same ID.
+    pub fn insert(&mut self, instance: TemplateInstance) {
+        self.instances.insert(instance.template_id.0, instance);
+    }
+
+    /// Look up a live instance by template ID.
+    pub fn get(&self, template_id: TemplateId) -> Option<&TemplateInstance> {
+        self.instances.get(&template_id.0)
+    }
+
+    /// Remove and return an instance (used by `unload_template`).
+    pub fn remove(&mut self, template_id: TemplateId) -> Option<TemplateInstance> {
+        self.instances.remove(&template_id.0)
+    }
+
+    /// Number of active instances.
+    pub fn len(&self) -> usize {
+        self.instances.len()
+    }
+
+    /// `true` if no instances are active.
+    pub fn is_empty(&self) -> bool {
+        self.instances.is_empty()
+    }
+}
+
+// ===========================================================================
+// Instantiation
+// ===========================================================================
+
+/// Instantiate a template: validate, spawn NPCs, generate triangles, register.
+///
+/// **Preconditions:**
+/// - `EntityRegistry` must be initialized as a world resource (done by
+///   `SimulationPlugin` at startup).
+/// - `ActiveTemplateInstances` is initialized on demand inside this function.
+///
+/// **Returns** the created `TemplateInstance` (also stored in
+/// `ActiveTemplateInstances`).
+///
+/// **Errors:** returns `Err(String)` if `template_def.validate()` fails.
+pub fn instantiate_template(
+    world: &mut World,
+    template_def: &FullTemplateDef,
+    template_id: TemplateId,
+    world_seed: u64,
+    rng: &mut SimRng,
+) -> Result<TemplateInstance, String> {
+    // Schema validation before any ECS mutations.
+    template_def.validate()?;
+
+    // Phases 1–3: NPC spawn + relationship wiring + cross-template ref map.
+    let spawn_result = spawn_template_npcs(world, template_def, template_id, world_seed, rng);
+
+    // Phase 4: Generate intra-template triangle state values.
+    let tri_result =
+        generate_intra_template_triangles(world, template_id, &template_def.triangles, rng);
+
+    let warnings = tri_result.warnings;
+
+    // Spawn each TriangleState as a dedicated ECS entity with ActiveSim so
+    // the escalation system can pick it up (D-087).
+    let triangle_entities: Vec<Entity> = tri_result
+        .triangles
+        .into_iter()
+        .map(|state| world.spawn((ActiveSim, state)).id())
+        .collect();
+
+    let instance = TemplateInstance {
+        template_id,
+        npc_entities: spawn_result.entities,
+        triangle_entities,
+        warnings,
+    };
+
+    // Register in ActiveTemplateInstances (init if absent).
+    world.init_resource::<ActiveTemplateInstances>();
+    world
+        .resource_mut::<ActiveTemplateInstances>()
+        .insert(instance.clone());
+
+    Ok(instance)
+}
+
+// ===========================================================================
+// Lifecycle: unload
+// ===========================================================================
+
+/// Unload a template instance: despawn all entities and remove from tracking.
+///
+/// No-op (with a warning log) if the given `template_id` is not active.
+pub fn unload_template(world: &mut World, template_id: TemplateId) {
+    let instance = world
+        .resource_mut::<ActiveTemplateInstances>()
+        .remove(template_id);
+
+    let Some(instance) = instance else {
+        tracing::warn!(
+            "unload_template: TemplateId({}) not active — no-op",
+            template_id.0
+        );
+        return;
+    };
+
+    let mut despawned = 0usize;
+    for entity in instance.npc_entities.iter().chain(instance.triangle_entities.iter()) {
+        if world.get_entity(*entity).is_ok() {
+            world.despawn(*entity);
+            despawned += 1;
+        }
+    }
+
+    tracing::info!(
+        "unload_template: TemplateId({}) unloaded — {} entities despawned",
+        template_id.0,
+        despawned,
+    );
+}
+
+// ===========================================================================
+// YAML loader
+// ===========================================================================
+
+/// Load a `FullTemplateDef` from a YAML file on disk.
+///
+/// Returns `Err(String)` if the file cannot be read or fails YAML parsing.
+pub fn load_template_from_file(path: &std::path::Path) -> Result<FullTemplateDef, String> {
+    let content = std::fs::read_to_string(path)
+        .map_err(|e| format!("failed to read {:?}: {}", path, e))?;
+    serde_yaml::from_str::<FullTemplateDef>(&content)
+        .map_err(|e| format!("failed to parse {:?}: {}", path, e))
+}
diff --git a/server/src/content/mod.rs b/server/src/content/mod.rs
index 34e71eeb0..aefd49acf 100644
--- a/server/src/content/mod.rs
+++ b/server/src/content/mod.rs
@@ -11,6 +11,7 @@
 //! handles the mapping between the two representations.
 
 pub mod hot_reload;
+pub mod instantiation;
 pub mod line_pool;
 pub mod loader;
 pub mod spawn;
diff --git a/server/tests/template_instantiation.rs b/server/tests/template_instantiation.rs
new file mode 100644
index 000000000..86ae6bc93
--- /dev/null
+++ b/server/tests/template_instantiation.rs
@@ -0,0 +1,221 @@
+//! End-to-end tests for the template instantiation engine (#161).
+//!
+//! Verifies the full pipeline:
+//!   load YAML → validate → spawn NPCs → generate triangles → lifecycle
+//!
+//! Spec refs:
+//! - D-023: three-tier content model
+//! - D-024: 10-axis NPC model, minimum 2 triangles per social site
+//! - D-025: social site as atomic template unit, single-ownership
+//! - D-010: determinism (same seed → same layout)
+
+use std::path::PathBuf;
+
+use bevy_ecs::prelude::*;
+use settled_reach_server::{
+    content::{
+        instantiation::{
+            instantiate_template, load_template_from_file, unload_template,
+            ActiveTemplateInstances,
+        },
+        template::{TemplateId, TemplateOwnership, TriangleState},
+    },
+    knowledge::{registry::EntityRegistry, StableEntityId},
+    simulation::rng::SimRng,
+};
+
+// ---------------------------------------------------------------------------
+// Helpers
+// ---------------------------------------------------------------------------
+
+fn templates_dir() -> PathBuf {
+    PathBuf::from(env!("CARGO_MANIFEST_DIR")).join("data/templates")
+}
+
+fn make_test_world() -> World {
+    let mut world = World::new();
+    world.init_resource::<EntityRegistry>();
+    world
+}
+
+// ---------------------------------------------------------------------------
+// End-to-end: load logistics-hub YAML, instantiate, assert structure (#161)
+// ---------------------------------------------------------------------------
+
+#[test]
+fn template_instantiation_end_to_end_logistics_hub() {
+    let path = templates_dir().join("logistics-hub.yaml");
+    let template_def =
+        load_template_from_file(&path).expect("logistics-hub.yaml must load and parse");
+
+    let mut world = make_test_world();
+    let template_id = TemplateId::from_seed_and_slug(42, "logistics-hub");
+    let mut rng = SimRng::new(42);
+
+    let instance = instantiate_template(&mut world, &template_def, template_id, 42, &mut rng)
+        .expect("logistics-hub must instantiate without validation errors");
+
+    // --- NPCs: all 4 role slots filled ---
+    assert_eq!(
+        instance.npc_entities.len(),
+        4,
+        "logistics-hub has 4 role slots — 4 NPC entities expected"
+    );
+
+    // --- TemplateOwnership on every NPC ---
+    let expected_roles = [
+        "logistics-manager",
+        "dock-worker",
+        "ring-contact",
+        "security-guard",
+    ];
+    let mut seen_roles: Vec<String> = Vec::new();
+    for &entity in &instance.npc_entities {
+        let ownership = world
+            .get::<TemplateOwnership>(entity)
+            .expect("every spawned NPC must have TemplateOwnership");
+        assert_eq!(
+            ownership.template_id, template_id,
+            "TemplateOwnership.template_id must match the instantiated template"
+        );
+        let role = &ownership.role_id.0;
+        assert!(
+            expected_roles.contains(&role.as_str()),
+            "unexpected role '{}' — not in logistics-hub role list",
+            role,
+        );
+        seen_roles.push(role.clone());
+    }
+    // Every role slot must appear exactly once.
+    for role in &expected_roles {
+        assert_eq!(
+            seen_roles.iter().filter(|r| r.as_str() == *role).count(),
+            1,
+            "role '{}' must appear exactly once",
+            role,
+        );
+    }
+
+    // --- 2+ TriangleState entities (D-024 minimum) ---
+    assert!(
+        instance.triangle_entities.len() >= 2,
+        "logistics-hub must produce at least 2 TriangleState entities (D-024), got {}",
+        instance.triangle_entities.len(),
+    );
+    for &entity in &instance.triangle_entities {
+        assert!(
+            world.get::<TriangleState>(entity).is_some(),
+            "triangle entity {:?} must carry a TriangleState component",
+            entity,
+        );
+    }
+
+    // --- Instance registered in ActiveTemplateInstances ---
+    let active = world.resource::<ActiveTemplateInstances>();
+    assert!(
+        active.get(template_id).is_some(),
+        "instantiated template must be tracked in ActiveTemplateInstances",
+    );
+}
+
+// ---------------------------------------------------------------------------
+// Lifecycle: unload despawns all entities
+// ---------------------------------------------------------------------------
+
+#[test]
+fn template_instantiation_unload_despawns_entities() {
+    let path = templates_dir().join("logistics-hub.yaml");
+    let template_def = load_template_from_file(&path).expect("must parse");
+
+    let mut world = make_test_world();
+    let template_id = TemplateId::from_seed_and_slug(99, "logistics-hub");
+    let mut rng = SimRng::new(99);
+
+    let instance =
+        instantiate_template(&mut world, &template_def, template_id, 99, &mut rng)
+            .expect("must instantiate");
+
+    let all_entities: Vec<Entity> = instance
+        .npc_entities
+        .iter()
+        .chain(instance.triangle_entities.iter())
+        .cloned()
+        .collect();
+
+    assert!(!all_entities.is_empty(), "sanity: some entities were spawned");
+
+    unload_template(&mut world, template_id);
+
+    // All spawned entities must be gone.
+    for entity in &all_entities {
+        assert!(
+            world.get_entity(*entity).is_err(),
+            "entity {:?} must be despawned after unload_template",
+            entity,
+        );
+    }
+
+    // Instance removed from tracking.
+    let active = world.resource::<ActiveTemplateInstances>();
+    assert!(
+        active.get(template_id).is_none(),
+        "unloaded template must be removed from ActiveTemplateInstances",
+    );
+}
+
+// ---------------------------------------------------------------------------
+// Determinism: same seed → same NPC StableId assignment (D-010)
+// ---------------------------------------------------------------------------
+
+#[test]
+fn template_instantiation_is_deterministic() {
+    let path = templates_dir().join("logistics-hub.yaml");
+    let template_def = load_template_from_file(&path).expect("must parse");
+    let template_id = TemplateId::from_seed_and_slug(42, "logistics-hub");
+
+    let mut world1 = make_test_world();
+    let instance1 =
+        instantiate_template(&mut world1, &template_def, template_id, 42, &mut SimRng::new(42))
+            .expect("must instantiate");
+
+    let mut world2 = make_test_world();
+    let instance2 =
+        instantiate_template(&mut world2, &template_def, template_id, 42, &mut SimRng::new(42))
+            .expect("must instantiate");
+
+    // Collect (role → StableId) pairs from each world and compare.
+    let role_stable_ids = |world: &World, entities: &[Entity]| {
+        let mut pairs: Vec<(String, u64)> = entities
+            .iter()
+            .map(|&e| {
+                let role = world.get::<TemplateOwnership>(e).unwrap().role_id.0.clone();
+                let sid = world.get::<StableEntityId>(e).unwrap().0 .0;
+                (role, sid)
+            })
+            .collect();
+        pairs.sort();
+        pairs
+    };
+
+    let pairs1 = role_stable_ids(&world1, &instance1.npc_entities);
+    let pairs2 = role_stable_ids(&world2, &instance2.npc_entities);
+
+    assert_eq!(
+        pairs1, pairs2,
+        "instantiate_template must be deterministic (D-010): same seed → same layout"
+    );
+}
+
+// ---------------------------------------------------------------------------
+// YAML loading: invalid path returns Err
+// ---------------------------------------------------------------------------
+
+#[test]
+fn load_template_from_file_nonexistent_path_returns_err() {
+    let path = templates_dir().join("nonexistent-template-xyzzy.yaml");
+    let result = load_template_from_file(&path);
+    assert!(
+        result.is_err(),
+        "loading a nonexistent file must return Err"
+    );
+}