refactor: add template resolver pipeline

change/@microsoft-fast-element-8f565910-c32b-471f-8452-2b4d075c7bc7.json

@@ -0,0 +1,7 @@
+{
+  "type": "major",
+  "comment": "Remove TemplateOptions from fast-element definitions and drop templateOptions-based connection/define waiting.",
+  "packageName": "@microsoft/fast-element",
+  "email": "7559015+janechu@users.noreply.github.com",
+  "dependentChangeType": "none"
+}

change/@microsoft-fast-element-df226ab5-6e68-4362-b8ac-35046f0fc68b.json

@@ -0,0 +1,7 @@
+{
+  "type": "minor",
+  "comment": "add function-based template resolver sequencing",
+  "packageName": "@microsoft/fast-element",
+  "email": "7559015+janechu@users.noreply.github.com",
+  "dependentChangeType": "none"
+}

packages/fast-element/DECLARATIVE_DESIGN.md

@@ -533,21 +533,21 @@ tagged templates produce.
 | `children(prop)` | FAST directive used for `f-children` |
 | `ref(prop)` | FAST directive used for `f-ref` |
 
-### Deferred template attachment via define
+### Template attachment after define
 
-Standard `FASTElement.define()` returns a `Promise` that resolves immediately when a template is provided at definition time. When `templateOptions` is `"defer-and-hydrate"` and no template is provided, the `Promise` resolves after a `<f-template>` supplies one via `register()`. This unified API replaces the previous `defineAsync()` / `composeAsync()` methods.
+Standard `FASTElement.define()` returns a `Promise` that resolves immediately once the definition has been composed and any async template resolver has settled. Declarative HTML can define a host element without an initial template and let `<f-template>` attach the template later through `FASTElementDefinition.template`. This unified API replaces the previous `defineAsync()` / `composeAsync()` methods.
 
 ---
 
 ## Hydration Model
 
-When `templateOptions: "defer-and-hydrate"` is used, the server must render:
+For declarative hydration, the server must render:
 
 1. The custom element tag with its attributes and initial state.
 2. A `<template shadowrootmode="open">` containing pre-rendered HTML annotated with FAST's hydration markers.
 3. An `<f-template>` element somewhere in the page that carries the template definition.
 
-Connection gating is handled by the template-pending guard in `ElementController.connect()`. When `templateOptions` is `"defer-and-hydrate"` and no template is available yet, `connect()` returns early. An Observable subscription on `"template"` retriggers `connect()` when the template arrives. The `defer-hydration` and `needs-hydration` attributes are no longer needed in server-rendered markup.
+If a template is attached after an element has already connected, the observable `template` update recreates the controller so hydration can proceed against the existing prerendered markup. The `defer-hydration` and `needs-hydration` attributes are no longer needed in server-rendered markup.
 
 ### Hydration marker formats
 

packages/fast-element/DECLARATIVE_HTML.md

@@ -20,8 +20,8 @@ the package-level hydration overview, see the
 After registering the declarative entrypoint as shown in the README, templates
 are associated with an element through
 `<f-template name="[custom-element-name]"><template>...</template></f-template>`.
-The host custom element should be defined with
-`templateOptions: "defer-and-hydrate"`.
+The host custom element should be defined before the declarative runtime
+processes the matching `<f-template>`.
 
 Example:
 ```html

packages/fast-element/DECLARATIVE_RENDERING.md

@@ -91,11 +91,10 @@ export class MyComponent extends FASTElement {
 
 MyComponent.define({
     name: "my-component",
-    templateOptions: "defer-and-hydrate",
 });
 ```
 
-When the element connects, `ElementController` automatically detects the existing shadow root from SSR and sets `isPrerendered = true`. The template-pending guard in `ElementController.connect()` ensures the element waits for its template before hydrating. The `defer-hydration` and `needs-hydration` attributes are no longer needed — connection gating is handled internally by the template-pending guard.
+When the element connects, `ElementController` automatically detects the existing shadow root from SSR and sets `isPrerendered = true`. If the template is attached after the element has already connected, the observable `template` update recreates the controller so hydration can proceed. The `defer-hydration` and `needs-hydration` attributes are no longer needed.
 
 ## Hydration Comments and Datasets
 

packages/fast-element/DECLARATIVE_RENDERING_LIFECYCLE.md

@@ -13,9 +13,9 @@ core runtime and its declarative entrypoint:
 - **`@microsoft/fast-element/declarative.js`**: Provides the `f-template`
   custom element that processes HTML templates and attaches them to FAST
   elements as a `ViewTemplate` in lieu of an `html` template created during
-  `FASTElement.define()`. When using `f-template` the `FASTElement.define()`
-  method is called with `templateOptions: "defer-and-hydrate"` to defer
-  template attachment.
+  `FASTElement.define()`. When using `f-template`, the host element can be
+  defined without an initial template and the declarative runtime attaches the
+  template later.
 
 ## Lifecycle Phases
 
@@ -39,23 +39,24 @@ The following phases will then be kicked off once the JavaScript is parsed.
 
 ### Phase 1: Partial Element Registration
 
-Custom elements begin their lifecycle by registering as partial definitions with the FAST Element Registry using the `define()` method with `templateOptions: "defer-and-hydrate"`. This allows the element to be registered before its template is available.
+Custom elements begin their lifecycle by registering with FAST via the
+`define()` method before their declarative template is available.
 
 ```typescript
 // Custom element class definition
 class MyComponent extends FASTElement {
     @attr text: string = "";
 }
 
-// Register as partial definition - element is registered but incomplete
+// Register the host element before the declarative template is attached
 MyComponent.define({
     name: "my-component",
 });
 ```
 
 Key characteristics of this phase:
-- Element is in a "partial" state waiting for template attachment
-- `templateOptions` allows for hydration options to be provided. TBD see [this issue](https://github.com/orgs/microsoft/projects/240/views/17?pane=issue&itemId=127653173&issue=microsoft%7Cfast%7C7173).
+- Element is registered before template attachment
+- The definition is completed later when `<f-template>` assigns `definition.template`
 
 ### Phase 2: Template Element Definition
 
@@ -82,20 +83,22 @@ The lifecycle flow during this phase:
 3. **Template Processing**: Processes the HTML template, resolving data bindings, directives, and other template features into the `ViewTemplate` model which is also used by the `@microsoft/fast-element` `html` tag template
 4. **Template Attachment**: Attaches the processed template to the partial element definition via `registeredFastElement.template = resolvedTemplate`
 
-### Phase 4: Composition Completion
+### Phase 4: Template Activation
 
-Once the template is attached to the partial definition, the element completes its composition:
+Once the template is attached to the registered definition, FAST activates it
+for both future and already-connected elements:
 
-1. **`compose()` Execution**: The element definition internally completes its composition process
-2. **Platform Registration**: The completed element definition is fully registered with the platform's custom element registry
+1. **Definition Update**: `TemplateElement` assigns the parsed `ViewTemplate` to `registeredFastElement.template`
+2. **Observable Notification**: Connected elements observing the definition recreate their controller when the `template` property changes
+3. **Future Connections**: New element instances use the attached template immediately
 
 ### Phase 5: Element Instantiation and Hydration
 
 When custom elements are instantiated in the DOM, the following occurs:
 
 1. **Element Creation**: The platform creates instances of the custom element
 2. **Prerendered Content Detection**: `ElementController` detects the existing shadow root from SSR and sets `isPrerendered = true`
-3. **Template-Pending Guard**: If `templateOptions` is `"defer-and-hydrate"` and no template is available yet, `connect()` returns early. An Observable subscription on `"template"` retriggers `connect()` when the template arrives.
+3. **Late Template Attachment**: If an element connected before its template was attached, the observable `template` change recreates its controller.
 4. **Hydration**: Once the template is available, `ElementController` uses `template.hydrate()` to create a `HydrationView` that maps existing DOM nodes to binding targets using `fe:b` / `fe:/b` markers
 
 The DOM after hydration should look like this:
@@ -123,7 +126,7 @@ The `fastElementRegistry` serves as the central coordination point between the t
 Both packages use the Observable pattern for coordination:
 
 - `FASTElementDefinition.register()` uses `Observable.getNotifier()` to notify when elements are registered
-- Template attachment triggers observable notifications to complete the lifecycle
+- Template attachment triggers observable `template` notifications so connected elements can complete rendering or hydration
 
 ## Error Handling
 

packages/fast-element/DESIGN.md

@@ -94,7 +94,7 @@ registry.
 - Holds the element's `FASTElementDefinition` (name, template, styles, observed attributes).
 - Manages a `Stages` state machine: `disconnected → connecting → connected → disconnecting → disconnected`.
 - Exposes `isPrerendered: Promise<boolean>` which resolves to `true` after prerendered content has been hydrated, or `false` when the component is client-side rendered. The `ViewController` interface also exposes `isPrerendered` as `Promise<boolean>` for custom directives. Attribute-skip logic during the hydration bind uses an internal `_skipAttrUpdates` flag that is never exposed as a public boolean.
-- On `connect()`: restores pre-upgrade observable values, calls `connectedCallback` on all `HostBehavior`s, renders the template into the shadow root, and applies styles. When `templateOptions` is `"defer-and-hydrate"` and no template is available yet, `connect()` returns early; an Observable subscription on `"template"` retriggers `connect()` when the template arrives (template-pending guard).
+- On `connect()`: restores pre-upgrade observable values, calls `connectedCallback` on all `HostBehavior`s, renders the current template into the shadow root when one is available, and applies styles.
 - Rendering is split into two modular paths via `renderPrerendered()` and `renderClientSide()`:
   - **Prerendered**: `renderPrerendered()` registers the element in the static hydration tracker, swaps `onAttributeChangedCallback` to a no-op so the upgrade-time burst of callbacks is discarded, hydrates the existing DOM via `template.hydrate()`, then restores the standard handler and removes the element from the tracker. After this point, all future attribute changes flow through the real handler with zero overhead.
   - **Client-side**: `renderClientSide()` clones the compiled fragment, binds, and appends to the host — the standard path with no prerender logic.
@@ -103,11 +103,11 @@ registry.
 - `onAttributeChangedCallback()` is the standard handler that processes attribute changes. During the prerendered bind, it is temporarily swapped to a no-op (see above) to avoid redundant processing of server-rendered attribute values.
 - Exposes `addBehavior` / `removeBehavior` for dynamic `HostBehavior` management (used by `ElementStyles`).
 
-`FASTElementDefinition` wraps all the metadata for a custom element class: its tag name, template, styles, and observed attribute list. It is created by `FASTElement.compose()` (which returns `Promise<FASTElementDefinition>`, always resolving immediately) and registered globally via `fastElementRegistry`. `FASTElement.define()` returns `Promise<TType>` — resolving immediately for complete definitions or deferring when `templateOptions` is `"defer-and-hydrate"` and no template is provided. `FASTElementDefinition.register()` returns `Promise<Function>` — resolving when a definition with the given name has been registered.
+`FASTElementDefinition` wraps all the metadata for a custom element class: its tag name, template, styles, and observed attribute list. It is created by `FASTElement.compose()` (which returns `Promise<FASTElementDefinition>`, always resolving immediately) and registered globally via `fastElementRegistry`. `PartialFASTElementDefinition.template` may be either a concrete `ElementViewTemplate<InstanceType<TType>>` or a `FASTElementTemplateResolver<TType>` function that receives the composed definition and returns the concrete template (sync or async). `FASTElementDefinition.template` always stores the concrete `ElementViewTemplate<InstanceType<TType>>` after composition or resolver settlement. `FASTElement.define()` returns `Promise<TType>` — resolving immediately for complete definitions or definitions without an initial template, and resolving async template resolver functions only after extensions have had a chance to update the definition. `FASTElementDefinition.register()` returns `Promise<Function>` — resolving when a definition with the given name has been registered.
 
 #### Extensions
 
-`FASTElement.define()` and `FASTElementDefinition.define()` accept an optional array of **extension callbacks** (`FASTElementExtension`). Each extension is a function that receives the resolved `FASTElementDefinition` and is invoked **before** the element is registered with the platform via `customElements.define()`. This allows plugins to inspect or act on the definition metadata (name, template, styles, attributes) before any existing DOM elements are upgraded.
+`FASTElement.define()` and `FASTElementDefinition.define()` accept an optional array of **extension callbacks** (`FASTElementExtension`). Each extension is a function that receives the resolved `FASTElementDefinition` and is invoked **before** the element is registered with the platform via `customElements.define()`. `FASTElement.define()` also invokes extensions before any template resolver function is asked to produce a concrete `ElementViewTemplate`, so plugins can attach state that affects template resolution without leaving non-template values on `definition.template`.
 
 ```typescript
 type FASTElementExtension = (definition: FASTElementDefinition) => void;
@@ -375,9 +375,7 @@ flowchart TD
     CTOR[constructor] --> EC[ElementController.forCustomElement creates or locates the controller]
     EC --> ATTACH[Controller captures element + definition, sets $fastController]
 
-    CONN[connectedCallback] --> TGUARD{templateOptions = defer-and-hydrate\nAND no template yet?}
-    TGUARD -->|yes| WAIT[Return early — Observable subscription\non 'template' retriggers connect]
-    TGUARD -->|no| STAGE[stage = connecting]
+    CONN[connectedCallback] --> STAGE[stage = connecting]
     STAGE --> PRERENDER{Existing shadow root\nfrom SSR/DSD?}
     PRERENDER -->|yes| SETFLAG[isPrerendered = true]
     PRERENDER -->|no| NORMAL[isPrerendered = false]
@@ -499,7 +497,7 @@ Below is a conceptual map of the major subsystems and their relationships:
 1. Developer writes a class extending `FASTElement`, decorates properties with `@observable` / `@attr`, and calls `FASTElement.define({ name, template, styles })`.
 2. `FASTElement.define` → `FASTElementDefinition.compose(...).define()` registers the element with the Custom Element Registry.
 3. When the browser upgrades the element, `ElementController.forCustomElement(element)` is called in the constructor.
-4. On `connectedCallback`, the controller renders the template into the shadow root. If the element already has a shadow root from SSR (prerendered content), `renderPrerendered()` uses `template.hydrate()` to map existing DOM nodes to binding targets instead of cloning new DOM. If `templateOptions` is `"defer-and-hydrate"` and no template is available yet, `connect()` returns early and retriggers when the template arrives. Compilation is lazy: the first render call triggers `Compiler.compile()`, subsequent calls clone the already-compiled `DocumentFragment`.
+4. On `connectedCallback`, the controller renders the template into the shadow root. If the element already has a shadow root from SSR (prerendered content), `renderPrerendered()` uses `template.hydrate()` to map existing DOM nodes to binding targets instead of cloning new DOM. If no template is available yet, the element connects without rendering until a later `definition.template` update recreates the controller. Compilation is lazy: the first render call triggers `Compiler.compile()`, subsequent calls clone the already-compiled `DocumentFragment`.
 5. `HTMLView.bind(source)` wires up each `ViewBehavior`. `oneWay` bindings create `ExpressionNotifier`s that track observable dependencies automatically.
 6. When an observed property changes, its notifier fans out to all subscribers. Each binding enqueues a DOM update via `Updates`. The next animation frame drains the queue and applies the mutations.
 7. On `disconnectedCallback`, `HTMLView.unbind()` tears down all bindings; behaviors disconnect; styles are removed.
@@ -550,7 +548,7 @@ src/
 ├── components/
 │   ├── fast-element.ts    # FASTElement, @customElement
 │   ├── element-controller.ts  # ElementController, Stages
-│   ├── fast-definitions.ts    # FASTElementDefinition, TemplateOptions
+│   ├── fast-definitions.ts    # FASTElementDefinition
 │   └── attributes.ts          # AttributeDefinition, @attr, converters
 ├── di/
 │   └── di.ts              # DI container, decorators, resolvers, Registration