I litterally created a new template for an internal project today and it wasn’t showing up on the template drop down menu. It was freaking me out, I spent a good five minutes trouble shooting it by: Making a new template, making sure that it had the right file permissions, renaming it, renaming the file. And then I googled the problem and came up with this post.
So if this happens to you, or me again:
1. Activate a different theme (I just activated the default)
2. Reactivate your desired theme
3. Go to Manage > Pages
4. And you should now see the Page Template
What I had done to get this not working, is I renamed the theme folder name and it wasn’t really activated in the WordPress dashboard for some reason. But it was still working on the site.