diff --git a/.chronus/changes/fix-model-properties-filter-2024-8-10-23-48-58.md b/.chronus/changes/fix-model-properties-filter-2024-8-10-23-48-58.md
new file mode 100644
index 0000000000..18f47a48c1
--- /dev/null
+++ b/.chronus/changes/fix-model-properties-filter-2024-8-10-23-48-58.md
@@ -0,0 +1,8 @@
+---
+# Change versionKind to one of: internal, fix, dependencies, feature, deprecation, breaking
+changeKind: fix
+packages:
+  - "@azure-tools/typespec-client-generator-core"
+---
+
+fix-model-properties-filter-metadata
diff --git a/packages/typespec-client-generator-core/src/types.ts b/packages/typespec-client-generator-core/src/types.ts
index 5d4c997561..0c0db00126 100644
--- a/packages/typespec-client-generator-core/src/types.ts
+++ b/packages/typespec-client-generator-core/src/types.ts
@@ -39,6 +39,7 @@ import {
   getHttpPart,
   getServers,
   isHeader,
+  isMetadata,
   isOrExtendsHttpFile,
   isStatusCode,
 } from "@typespec/http";
@@ -1428,6 +1429,7 @@ function addPropertiesToModelType(
     if (
       isStatusCode(context.program, property) ||
       isNeverOrVoidType(property.type) ||
+      isMetadata(context.program, property) ||
       sdkType.kind !== "model"
     ) {
       continue;
diff --git a/packages/typespec-client-generator-core/test/types/model-types.test.ts b/packages/typespec-client-generator-core/test/types/model-types.test.ts
index 71e30c7796..c59e4ecffb 100644
--- a/packages/typespec-client-generator-core/test/types/model-types.test.ts
+++ b/packages/typespec-client-generator-core/test/types/model-types.test.ts
@@ -1328,6 +1328,28 @@ describe("typespec-client-generator-core: model types", () => {
     strictEqual(catalog.properties.length, 2);
     strictEqual(deployment.properties.length, 2);
   });
+  it("arm proxy resource template model", async () => {
+    await runner.compileWithBuiltInAzureResourceManagerService(`
+        @usage(Usage.input | Usage.output)
+        model Catalog is ProxyResource<CatalogProperties> {
+          @pattern("^[A-Za-z0-9_-]{1,50}$")
+          @key("catalogName")
+          @segment("catalogs")
+          name: string;
+        }
+
+        @usage(Usage.input | Usage.output)
+        model CatalogProperties {
+          test?: string;
+        }
+      `);
+    const models = runner.context.sdkPackage.models;
+    strictEqual(models.length, 4);
+    const catalog = models.find((x) => x.name === "Catalog");
+    ok(catalog);
+    strictEqual(catalog.properties.length, 1);
+    strictEqual(catalog.properties[0].name, "properties");
+  });
   it("model with deprecated annotation", async () => {
     await runner.compileAndDiagnose(`
         @service({})