Blog page wont use blog-template.php

I am wokring on my own wordpress theme. I have a static front page with a custom template and now i wanted to make a tempalte for my blog page (sitelink.com/blog) but for some reason it is taking index.php as the template instead of the blog-template.php

I selected ‘Blog Tempalte’ as my Blog page template when i created the page and i also set it as a blog page in reading settings.

my index.php

<!--header-->
<?php get_header(); ?>
<!--header end-->

<div class="wrapper">
    <div class="main">

        <?php if(have_posts()) : while (have_posts()) : the_post(); ?>

            <div class="post">
                <h1><a href="<?php the_permalink(); ?>"><?php the_title(); ?></a></h1>
                <h6>Posted on <?php the_time('F jS, Y'); ?> by <?php the_author_posts_link(); ?></h6>

                <div class ="entry">
                    <?php the_content(); ?>
                </div>
            </div>

        <?php
            endwhile;
            else:
        ?>
            <p> Sorry, no posts to display.</p>
        <?php endif; ?>

    </div>
</div>

<?php get_sidebar(); ?>
<br />

<!--footer-->
<?php get_footer(); ?>
<!--footer end-->

and my blog-template.php

<!--header-->
<?php
/*
Template Name: Blogpage template
*/
get_header(); ?>
<!--header end-->

<div class="wrapper">
    <div class="main">

        <?php if(have_posts()) : while (have_posts()) : the_post(); ?>

            <div class="post">
                <h1><a href="<?php the_permalink(); ?>"><?php the_title(); ?></a></h1>
                <h6>Posted on <?php the_time('F jS, Y'); ?> by <?php the_author_posts_link(); ?></h6>

                <div class ="entry">
                    <?php the_content(); ?>
                </div>
            </div>

        <?php
            endwhile;
            else:
        ?>
            <p> Sorry, no posts to display.</p>
        <?php endif; ?>

    </div>
</div>

<!--footer-->
<?php get_footer(); ?>
<!--footer end-->

i know there is not much code yet because i want it to work before i style it…

Solutions Collecting From Web of "Blog page wont use blog-template.php"

The page you set as the “page for posts” is really a placeholder, allowing you to access the blog with that “Page’s” permalink, but not displaying it as a WordPress Page and so not pulling in the custom template.

The theme’s home.php template will be used for the blog main page, so put your code into that file (without the Page Template header) and all should be well.