diff --git a/lib/ansible/module_utils/vmware.py b/lib/ansible/module_utils/vmware.py
index 36a9f8b58ba..a7b9a7b0355 100644
--- a/lib/ansible/module_utils/vmware.py
+++ b/lib/ansible/module_utils/vmware.py
@@ -984,8 +984,16 @@ class PyVmomi(object):
 
         """
         template_obj = None
+        if not template_name:
+            return template_obj
 
-        if template_name:
+        if "/" in template_name:
+            vm_obj_path = os.path.dirname(template_name)
+            vm_obj_name = os.path.basename(template_name)
+            template_obj = find_vm_by_id(self.content, vm_obj_name, vm_id_type="inventory_path", folder=vm_obj_path)
+            if template_obj:
+                return template_obj
+        else:
             template_obj = find_vm_by_id(self.content, vm_id=template_name, vm_id_type="uuid")
             if template_obj:
                 return template_obj
@@ -1006,6 +1014,7 @@ class PyVmomi(object):
                 self.module.fail_json(msg="Multiple virtual machines or templates with same name [%s] found." % template_name)
             elif templates:
                 template_obj = templates[0]
+
         return template_obj
 
     # Cluster related functions
diff --git a/lib/ansible/modules/cloud/vmware/vmware_guest.py b/lib/ansible/modules/cloud/vmware/vmware_guest.py
index b4f1b8597e8..8508a124ba0 100644
--- a/lib/ansible/modules/cloud/vmware/vmware_guest.py
+++ b/lib/ansible/modules/cloud/vmware/vmware_guest.py
@@ -89,6 +89,7 @@ options:
     - If the virtual machine already exists, this parameter will be ignored.
     - This parameter is case sensitive.
     - You can also specify template or VM UUID for identifying source. version_added 2.8. Use C(hw_product_uuid) from M(vmware_guest_facts) as UUID value.
+    - From version 2.8 onwards, absolute path to virtual machine or template can be used.
     aliases: [ 'template_src' ]
   is_template:
     description: