diff --git a/generator/konfig-dash/packages/konfig-cli/src/util/insert-table-of-contents.ts b/generator/konfig-dash/packages/konfig-cli/src/util/insert-table-of-contents.ts
index 53b311b5d0..3d33ad6bb2 100644
--- a/generator/konfig-dash/packages/konfig-cli/src/util/insert-table-of-contents.ts
+++ b/generator/konfig-dash/packages/konfig-cli/src/util/insert-table-of-contents.ts
@@ -19,16 +19,46 @@ export function insertTableOfContents({
   fs.writeFileSync(readmePath, withTocAndReferenceLinkFix)
 }
 
+const { slugify } = require('markdown-toc/lib/utils')
+
 // https://github.com/pypa/readme_renderer/issues/169#issuecomment-808577486
 /**
  * Turns all headings into links by adding <a id="..."></a> after them with no space.
  * Uses regex to avoid parsing the markdown AST.
  */
-function applyReferenceLinkFix(markdown: string): string {
-  const { slugify } = require('markdown-toc/lib/utils')
+/**
+ * Applies reference link fix to markdown text, excluding code blocks.
+ *
+ * @param markdown - The markdown text.
+ * @returns The fixed markdown text.
+ */
+export function applyReferenceLinkFix(markdown: string): string {
+  // This regex matches code blocks.
+  const codeBlockRegex = /```[\s\S]*?```/g
+  // This regex matches headings outside code blocks.
   const headingRegex = /^#+\s+(.*)$/gm
-  return markdown.replace(headingRegex, (match, p1) => {
+
+  // Function to replace headings with slugified anchors.
+  function replaceHeadings(match: string, p1: string): string {
     const slug = slugify(p1)
     return `${match}<a id="${slug}"></a>`
+  }
+
+  // Split the content by code blocks and process non-code sections.
+  const parts = markdown.split(codeBlockRegex)
+  const codeBlocks = markdown.match(codeBlockRegex) || []
+
+  let fixedMarkdown = ''
+  let codeBlockIndex = 0
+
+  parts.forEach((part, index) => {
+    // Apply fix to non-code parts.
+    fixedMarkdown += part.replace(headingRegex, replaceHeadings)
+    // Re-insert code blocks where they were.
+    if (codeBlockIndex < codeBlocks.length) {
+      fixedMarkdown += codeBlocks[codeBlockIndex++]
+    }
   })
+
+  return fixedMarkdown
 }
diff --git a/generator/konfig-dash/packages/konfig-cli/test/util/insert-table-of-contents.test.ts b/generator/konfig-dash/packages/konfig-cli/test/util/insert-table-of-contents.test.ts
new file mode 100644
index 0000000000..aa99f87202
--- /dev/null
+++ b/generator/konfig-dash/packages/konfig-cli/test/util/insert-table-of-contents.test.ts
@@ -0,0 +1,13 @@
+import { applyReferenceLinkFix } from '../../src/util/insert-table-of-contents'
+
+it('apply reference link fix', () => {
+  expect(applyReferenceLinkFix(`# Heading 1`)).toMatchInlineSnapshot(
+    `"# Heading 1<a id="heading-1"></a>"`
+  )
+  expect(applyReferenceLinkFix(`\`\`\`python\n#comment\n\`\`\``))
+    .toMatchInlineSnapshot(`
+    "\`\`\`python
+    #comment
+    \`\`\`"
+  `)
+})