Description: The ‘Template Reference’ in the context of AWS CloudFormation is a feature that allows users to refer to other resources or outputs within the same template efficiently and in an organized manner. This functionality is crucial for creating infrastructure as code, as it facilitates the management and reuse of components within a template. By using references, developers can link resources together, allowing for a more dynamic and flexible configuration. For example, when creating an EC2 instance, one can reference a security group previously defined in the same template, ensuring that the instance has the appropriate network settings. References also help maintain clarity in the template structure, as they allow users to avoid code duplication and improve readability. In summary, ‘Template Reference’ is an essential tool for optimizing resource creation and management in cloud environments, promoting cleaner and more efficient development practices.