diff --git a/sigma/pipelines/loki/loki.py b/sigma/pipelines/loki/loki.py
index 47552a7..657f359 100644
--- a/sigma/pipelines/loki/loki.py
+++ b/sigma/pipelines/loki/loki.py
@@ -1,3 +1,4 @@
+import string
 from dataclasses import dataclass
 from enum import Enum
 from typing import Any, Dict, List, Union
@@ -65,6 +66,7 @@ class CustomLogSourceTransformation(Transformation):
     referencing log source and/or detection fields from the rule"""
 
     selection: Dict[str, Union[str, List[str]]]
+    template: bool = False
 
     def apply(
         self, pipeline: ProcessingPipeline, rule: Union[SigmaRule, SigmaCorrelationRule]
@@ -89,7 +91,7 @@ def apply(
                     detection.to_plain()
                     for detection in rule.detection.detections.values()
                 ]
-                field_values: list[dict[str, Union[str, int, None]]] = [
+                field_values: List[Dict[str, Union[str, int, None]]] = [
                     d for d in plain if isinstance(d, dict)
                 ]
                 if len(field_values) > 0:
@@ -111,9 +113,16 @@ def apply(
                                     label, [str(v) for v in values]
                                 )
                             )
-            rule.custom_attributes[LokiCustomAttributes.LOGSOURCE_SELECTION.value] = (
-                "{" + ",".join(selectors) + "}"
-            )
+            formatted_selectors = "{" + ",".join(selectors) + "}"
+            if self.template:
+                formatted_selectors = string.Template(formatted_selectors).safe_substitute(
+                    category=rule.logsource.category,
+                    product=rule.logsource.product,
+                    service=rule.logsource.service,
+                )
+            rule.custom_attributes[
+                LokiCustomAttributes.LOGSOURCE_SELECTION.value
+            ] = formatted_selectors
         else:
             raise SigmaFeatureNotSupportedByBackendError(
                 "custom log source transforms are not supported for Correlation rules"
diff --git a/tests/test_pipelines_loki.py b/tests/test_pipelines_loki.py
index 023b143..b45fa66 100644
--- a/tests/test_pipelines_loki.py
+++ b/tests/test_pipelines_loki.py
@@ -395,7 +395,12 @@ def test_simple_custom_log_source_pipeline(sigma_rules: SigmaCollection):
             ProcessingItem(
                 identifier="complex_custom_log_source",
                 transformation=CustomLogSourceTransformation(
-                    selection={"job": ["a", "b", "c"], "message|fieldref": "msg"}
+                    selection={
+                        "job": ["a", "b", "c"],
+                        "message|fieldref": "msg",
+                        "env": "$product",
+                    },
+                    template=True,
                 ),
             )
         ],
@@ -403,7 +408,7 @@ def test_simple_custom_log_source_pipeline(sigma_rules: SigmaCollection):
     backend = LogQLBackend(processing_pipeline=pipeline)
     loki_rule = backend.convert(sigma_rules)
     assert loki_rule == [
-        "{job=~`a|b|c`,message=`testing`} | logfmt | msg=~`(?i)^testing$`"
+        "{job=~`a|b|c`,env=`test`,message=`testing`} | logfmt | msg=~`(?i)^testing$`"
     ]