Airspeed - A powerful and easy-to-use templating engine for Python that aims for a high level of compatibility with the popular Velocity library for Java. [Open Source, BSD] - http://dev.sanityinc.com/airspeed/
Kid - A simple template language for XML based vocabularies written in Python, inspired by XSLT, TAL and PHP. [Open Source, MIT] - http://www.kid-templating.org/
SimpleTAL - A standalone implementation of ZOPE's template language. [Open Source, MIT license] - http://www.owlfish.com/software/simpleTAL/
Spyce - Python Server Pages - A server-side language that supports simple and efficient Python-based dynamic HTML generation. [Open Source, OSI-Approved] - http://spyce.sourceforge.net/
Cheetah - A Python-powered template engine and code generator. [Open Source, Python license] - http://www.cheetahtemplate.org/
CherryTemplate - An easy and powerful templating module for Python. It used to be part of CherryPy but is now released as a separate/standalone module. [Open Source, BSD] - http://cherrytemplate.python-hosting.com/
ClearSilver - A fast and powerful HTML template system, which is usable from Python and other languages. [Open Source] - http://www.clearsilver.net/