diff --git a/lib/ansible/modules/cloud/vmware/vmware_guest.py b/lib/ansible/modules/cloud/vmware/vmware_guest.py
index eb9821d9311..a32187ebdc4 100644
--- a/lib/ansible/modules/cloud/vmware/vmware_guest.py
+++ b/lib/ansible/modules/cloud/vmware/vmware_guest.py
@@ -2198,27 +2198,44 @@ class PyVmomiHelper(PyVmomi):
 
         # Mark Template as VM
         elif not self.params['is_template'] and self.current_vm_obj.config.template:
-            if self.params['resource_pool']:
-                resource_pool = self.select_resource_pool_by_name(self.params['resource_pool'])
-
-                if resource_pool is None:
-                    self.module.fail_json(msg='Unable to find resource pool "%(resource_pool)s"' % self.params)
-
-                self.current_vm_obj.MarkAsVirtualMachine(pool=resource_pool)
-
-                # Automatically update VMWare UUID when converting template to VM.
-                # This avoids an interactive prompt during VM startup.
-                uuid_action = [x for x in self.current_vm_obj.config.extraConfig if x.key == "uuid.action"]
-                if not uuid_action:
-                    uuid_action_opt = vim.option.OptionValue()
-                    uuid_action_opt.key = "uuid.action"
-                    uuid_action_opt.value = "create"
-                    self.configspec.extraConfig.append(uuid_action_opt)
-                    self.change_detected = True
+            resource_pool = self.get_resource_pool()
+            kwargs = dict(pool=resource_pool)
 
-                change_applied = True
-            else:
-                self.module.fail_json(msg="Resource pool must be specified when converting template to VM!")
+            if self.params.get('esxi_hostname', None):
+                host_system_obj = self.select_host()
+                kwargs.update(host=host_system_obj)
+
+            try:
+                self.current_vm_obj.MarkAsVirtualMachine(**kwargs)
+            except vim.fault.InvalidState as invalid_state:
+                self.module.fail_json(msg="Virtual machine is not marked"
+                                          " as template : %s" % to_native(invalid_state.msg))
+            except vim.fault.InvalidDatastore as invalid_ds:
+                self.module.fail_json(msg="Converting template to virtual machine"
+                                          " operation cannot be performed on the"
+                                          " target datastores: %s" % to_native(invalid_ds.msg))
+            except vim.fault.CannotAccessVmComponent as cannot_access:
+                self.module.fail_json(msg="Failed to convert template to virtual machine"
+                                          " as operation unable access virtual machine"
+                                          " component: %s" % to_native(cannot_access.msg))
+            except vmodl.fault.InvalidArgument as invalid_argument:
+                self.module.fail_json(msg="Failed to convert template to virtual machine"
+                                          " due to : %s" % to_native(invalid_argument.msg))
+            except Exception as generic_exc:
+                self.module.fail_json(msg="Failed to convert template to virtual machine"
+                                          " due to generic error : %s" % to_native(generic_exc))
+
+            # Automatically update VMWare UUID when converting template to VM.
+            # This avoids an interactive prompt during VM startup.
+            uuid_action = [x for x in self.current_vm_obj.config.extraConfig if x.key == "uuid.action"]
+            if not uuid_action:
+                uuid_action_opt = vim.option.OptionValue()
+                uuid_action_opt.key = "uuid.action"
+                uuid_action_opt.value = "create"
+                self.configspec.extraConfig.append(uuid_action_opt)
+                self.change_detected = True
+
+            change_applied = True
 
         vm_facts = self.gather_facts(self.current_vm_obj)
         return {'changed': change_applied, 'failed': False, 'instance': vm_facts}