diff --git a/changelogs/fragments/59377-ovirt-vm-when-creating-fix.yml b/changelogs/fragments/59377-ovirt-vm-when-creating-fix.yml
new file mode 100644
index 00000000000..30d2553fbcc
--- /dev/null
+++ b/changelogs/fragments/59377-ovirt-vm-when-creating-fix.yml
@@ -0,0 +1,2 @@
+bugfixes:
+  - ovirt_vm - fix for module failure on creation (https://github.com/ansible/ansible/issues/59385)
diff --git a/lib/ansible/modules/cloud/ovirt/ovirt_vm.py b/lib/ansible/modules/cloud/ovirt/ovirt_vm.py
index 8fcdbbc8562..cd8027431ae 100644
--- a/lib/ansible/modules/cloud/ovirt/ovirt_vm.py
+++ b/lib/ansible/modules/cloud/ovirt/ovirt_vm.py
@@ -2288,6 +2288,8 @@ def main():
         )
         vm = vms_module.search_entity(list_params={'all_content': True})
 
+        # Boolean variable to mark if vm existed before module was executed
+        vm_existed = True if vm else False
         control_state(vm, vms_service, module)
         if state in ('present', 'running', 'next_run'):
             if module.params['xen'] or module.params['kvm'] or module.params['vmware']:
@@ -2372,7 +2374,8 @@ def main():
                         wait_condition=lambda vm: vm.status == otypes.VmStatus.UP,
                     )
             # Allow migrate vm when state present.
-            vms_module._migrate_vm(vm)
+            if vm_existed:
+                vms_module._migrate_vm(vm)
             ret['changed'] = vms_module.changed
         elif state == 'stopped':
             if module.params['xen'] or module.params['kvm'] or module.params['vmware']: