diff --git a/packages/core/src/awsService/appBuilder/explorer/nodes/appNode.ts b/packages/core/src/awsService/appBuilder/explorer/nodes/appNode.ts
index 497e5aa22ad..5f8c6b4a81e 100644
--- a/packages/core/src/awsService/appBuilder/explorer/nodes/appNode.ts
+++ b/packages/core/src/awsService/appBuilder/explorer/nodes/appNode.ts
@@ -17,7 +17,6 @@ import { getSamCliContext } from '../../../../shared/sam/cli/samCliContext'
 import { SamCliListResourcesParameters } from '../../../../shared/sam/cli/samCliListResources'
 import { getDeployedResources, StackResource } from '../../../../lambda/commands/listSamResources'
 import * as path from 'path'
-import fs from '../../../../shared/fs/fs'
 import { generateStackNode } from './deployedStack'
 
 export class AppNode implements TreeNode {
@@ -61,19 +60,9 @@ export class AppNode implements TreeNode {
 
             // indicate that App exists, but it is empty
             if (resources.length === 0) {
-                if (await fs.exists(this.location.samTemplateUri)) {
-                    return [
-                        createPlaceholderItem(
-                            localize(
-                                'AWS.appBuilder.explorerNode.app.noResource',
-                                '[No resource found in IaC template]'
-                            )
-                        ),
-                    ]
-                }
                 return [
                     createPlaceholderItem(
-                        localize('AWS.appBuilder.explorerNode.app.noTemplate', '[No IaC templates found in Workspaces]')
+                        localize('AWS.appBuilder.explorerNode.app.noResource', '[No resource found in SAM template]')
                     ),
                 ]
             }
@@ -84,7 +73,7 @@ export class AppNode implements TreeNode {
                 createPlaceholderItem(
                     localize(
                         'AWS.appBuilder.explorerNode.app.noResourceTree',
-                        '[Unable to load Resource tree for this App. Update IaC template]'
+                        '[Unable to load Resource tree for this App. Update SAM template]'
                     )
                 ),
             ]
diff --git a/packages/core/src/awsService/appBuilder/explorer/nodes/rootNode.ts b/packages/core/src/awsService/appBuilder/explorer/nodes/rootNode.ts
index ce0406fd874..941ad8ec0f0 100644
--- a/packages/core/src/awsService/appBuilder/explorer/nodes/rootNode.ts
+++ b/packages/core/src/awsService/appBuilder/explorer/nodes/rootNode.ts
@@ -26,7 +26,7 @@ export async function getAppNodes(): Promise<TreeNode[]> {
     if (appsFound.length === 0) {
         return [
             createPlaceholderItem(
-                localize('AWS.appBuilder.explorerNode.noApps', '[No IaC templates found in Workspaces]')
+                localize('AWS.appBuilder.explorerNode.noApps', '[No SAM templates found in Workspaces]')
             ),
         ]
     }
diff --git a/packages/core/src/test/shared/applicationBuilder/explorer/nodes/appNode.test.ts b/packages/core/src/test/shared/applicationBuilder/explorer/nodes/appNode.test.ts
index 1ebed1f9069..80d83a8303c 100644
--- a/packages/core/src/test/shared/applicationBuilder/explorer/nodes/appNode.test.ts
+++ b/packages/core/src/test/shared/applicationBuilder/explorer/nodes/appNode.test.ts
@@ -90,7 +90,7 @@ describe('AppNode', () => {
 
             const resourceNode = resources[0] as TreeNode
             assert.strictEqual(resourceNode.id, 'placeholder')
-            assert.strictEqual(resourceNode.resource, '[No IaC templates found in Workspaces]')
+            assert.strictEqual(resourceNode.resource, '[No resource found in SAM template]')
             assert(getAppStub.calledOnce)
             assert(getStackNameStub.calledOnce)
             assert(generateStackNodeStub.notCalled)
@@ -157,7 +157,7 @@ describe('AppNode', () => {
             assert.strictEqual(resourceNode.id, 'placeholder')
             assert.strictEqual(
                 resourceNode.resource,
-                '[Unable to load Resource tree for this App. Update IaC template]'
+                '[Unable to load Resource tree for this App. Update SAM template]'
             )
             assert(getAppStub.calledOnce)
             assert(getStackNameStub.notCalled)
diff --git a/packages/core/src/test/shared/applicationBuilder/explorer/nodes/rootNode.test.ts b/packages/core/src/test/shared/applicationBuilder/explorer/nodes/rootNode.test.ts
index a6551bd3507..f5711832ad6 100644
--- a/packages/core/src/test/shared/applicationBuilder/explorer/nodes/rootNode.test.ts
+++ b/packages/core/src/test/shared/applicationBuilder/explorer/nodes/rootNode.test.ts
@@ -34,7 +34,7 @@ describe('getAppNodes', async () => {
         const appNodes = await getAppNodes()
         assert.strictEqual(appNodes.length, 1)
         assert.strictEqual(appNodes[0].id, 'placeholder')
-        assert.strictEqual(appNodes[0].resource, '[No IaC templates found in Workspaces]')
+        assert.strictEqual(appNodes[0].resource, '[No SAM templates found in Workspaces]')
     })
 
     it('should return all SAM projects as AppNode', async () => {
diff --git a/packages/toolkit/.changes/next-release/Bug Fix-3f75e95c-f940-42e3-b0e2-b6a3b9143a58.json b/packages/toolkit/.changes/next-release/Bug Fix-3f75e95c-f940-42e3-b0e2-b6a3b9143a58.json
new file mode 100644
index 00000000000..dd25c6eb821
--- /dev/null
+++ b/packages/toolkit/.changes/next-release/Bug Fix-3f75e95c-f940-42e3-b0e2-b6a3b9143a58.json	
@@ -0,0 +1,4 @@
+{
+	"type": "Bug Fix",
+	"description": "SAM debugging: misleading 'IaC' message/placeholder"
+}