diff --git a/modules/chat.py b/modules/chat.py
index de7f19de..7f25254c 100644
--- a/modules/chat.py
+++ b/modules/chat.py
@@ -82,7 +82,11 @@ def generate_chat_prompt(user_input, state, **kwargs):
     history = kwargs.get('history', state['history'])['internal']
 
     # Templates
-    chat_template = jinja_env.from_string(state['chat_template_str'])
+    chat_template_str = state['chat_template_str']
+    if state['mode'] != 'instruct':
+        chat_template_str = replace_character_names(chat_template_str, state['name1'], state['name2'])
+
+    chat_template = jinja_env.from_string(chat_template_str)
     instruction_template = jinja_env.from_string(state['instruction_template_str'])
     chat_renderer = partial(chat_template.render, add_generation_prompt=False, name1=state['name1'], name2=state['name2'])
     instruct_renderer = partial(instruction_template.render, add_generation_prompt=False)