diff --git a/lib/ansible/modules/cloud/vmware/vcenter_folder.py b/lib/ansible/modules/cloud/vmware/vcenter_folder.py
index 0d15f77a849..6446a9710a6 100644
--- a/lib/ansible/modules/cloud/vmware/vcenter_folder.py
+++ b/lib/ansible/modules/cloud/vmware/vcenter_folder.py
@@ -24,6 +24,7 @@ version_added: '2.5'
 author:
 - Abhijeet Kasurde (@Akasurde)
 - Christian Kotte (@ckotte) <christian.kotte@gmx.de>
+- Jan Meerkamp (@meerkampdvv)
 notes:
 - Tested on vSphere 6.5
 requirements:
@@ -47,7 +48,6 @@ options:
     description:
     - Name of the parent folder under which new folder needs to be created.
     - This is case sensitive parameter.
-    - Please specify unique folder name as there is no way to detect duplicate names.
     - "If user wants to create a folder under '/DC0/vm/vm_folder', this value will be 'vm_folder'."
     - "If user wants to create a folder under '/DC0/vm/folder1/folder2', this value will be 'folder1/folder2'."
     required: False
@@ -191,7 +191,14 @@ class VmwareFolderManager(PyVmomi):
                         if not part_folder_obj:
                             self.module.fail_json(msg="Could not find folder %s" % part)
                         p_folder_obj = part_folder_obj
-
+                    child_folder_obj = self.get_folder(datacenter_name=datacenter_name,
+                                                       folder_name=folder_name,
+                                                       folder_type=folder_type,
+                                                       parent_folder=p_folder_obj)
+                    if child_folder_obj:
+                        results['result'] = "Folder %s already exists under" \
+                                            " parent folder %s" % (folder_name, parent_folder)
+                        self.module.exit_json(**results)
                 else:
                     p_folder_obj = self.get_folder(datacenter_name=datacenter_name,
                                                    folder_name=parent_folder,
@@ -259,18 +266,34 @@ class VmwareFolderManager(PyVmomi):
             # Check if the folder already exists
             p_folder_obj = None
             if parent_folder:
-                p_folder_obj = self.get_folder(datacenter_name=datacenter_name,
-                                               folder_name=parent_folder,
-                                               folder_type=folder_type)
+                if "/" in parent_folder:
+                    parent_folder_parts = parent_folder.strip('/').split('/')
+                    p_folder_obj = None
+                    for part in parent_folder_parts:
+                        part_folder_obj = self.get_folder(datacenter_name=datacenter_name,
+                                                          folder_name=part,
+                                                          folder_type=folder_type,
+                                                          parent_folder=p_folder_obj)
+                        if not part_folder_obj:
+                            self.module.fail_json(msg="Could not find folder %s" % part)
+                        p_folder_obj = part_folder_obj
+                    folder_obj = self.get_folder(datacenter_name=datacenter_name,
+                                                 folder_name=folder_name,
+                                                 folder_type=folder_type,
+                                                 parent_folder=p_folder_obj)
+                else:
+                    p_folder_obj = self.get_folder(datacenter_name=datacenter_name,
+                                                   folder_name=parent_folder,
+                                                   folder_type=folder_type)
 
-                if not p_folder_obj:
-                    self.module.fail_json(msg="Parent folder %s does not exist" % parent_folder)
+                    if not p_folder_obj:
+                        self.module.fail_json(msg="Parent folder %s does not exist" % parent_folder)
 
-                # Check if folder exists under parent folder
-                folder_obj = self.get_folder(datacenter_name=datacenter_name,
-                                             folder_name=folder_name,
-                                             folder_type=folder_type,
-                                             parent_folder=p_folder_obj)
+                    # Check if folder exists under parent folder
+                    folder_obj = self.get_folder(datacenter_name=datacenter_name,
+                                                 folder_name=folder_name,
+                                                 folder_type=folder_type,
+                                                 parent_folder=p_folder_obj)
             else:
                 folder_obj = self.get_folder(datacenter_name=datacenter_name,
                                              folder_name=folder_name,
diff --git a/test/integration/targets/vcenter_folder/tasks/main.yml b/test/integration/targets/vcenter_folder/tasks/main.yml
index 5eb878dfec5..56cc503892e 100644
--- a/test/integration/targets/vcenter_folder/tasks/main.yml
+++ b/test/integration/targets/vcenter_folder/tasks/main.yml
@@ -126,6 +126,18 @@
   register: yet_another_level
 - debug: var=yet_another_level
 
+- name: Recreate a 3rd level of directory
+  vcenter_folder:
+    hostname: "{{ vcenter_hostname }}"
+    username: "{{ vcenter_username }}"
+    password: "{{ vcenter_password }}"
+    validate_certs: no
+    datacenter: "{{ dc1 }}"
+    folder_name: yet_another_level
+    parent_folder: vm_folder/sub_vm_folder
+    state: present
+  register: recreate_yet_another_level
+- debug: var=recreate_yet_another_level
 
 - debug:
     msg: "{{ all_folder_results }}"
@@ -135,12 +147,26 @@
     that:
         - all_folder_results.changed
         - not recreate_folders.changed
+        - not recreate_yet_another_level.changed
 
 ## Testcase: Delete all types of folder
 #
 # Doesn't work with vcsim. Looks like UnregisterAndDestroy isn't supported.
 - when: vcsim is not defined
   block:
+  - name: Remove a 3rd level of directory
+    vcenter_folder:
+      hostname: "{{ vcenter_hostname }}"
+      username: "{{ vcenter_username }}"
+      password: "{{ vcenter_password }}"
+      validate_certs: no
+      datacenter: "{{ dc1 }}"
+      folder_name: yet_another_level
+      parent_folder: vm_folder/sub_vm_folder
+      state: absent
+    register: remove_yet_another_level
+  - debug: var=remove_yet_another_level
+
   - name: Delete all types of folder
     vcenter_folder:
       hostname: "{{ vcenter_hostname }}"