Create list from custom template in SharePoint with PowerShell

This examples shows how to create new lists from custom list templates in SharePoint using PowerShell and CSOM. Custom list templates are STP-files uploaded to the List Template Gallery on the site. This should work both on-premises (2013/2016) and Online (Office 365).

Note: This example uses commands from the Office Dev PnP PowerShell library, ex. "Connect-PnPContext". I recommend using this library for working this PowerShell and SharePoint (both Online and On-Premises).