diff --git a/lib/ansible/runner/action_plugins/template.py b/lib/ansible/runner/action_plugins/template.py
index 623d173c095..f7ac3b34e07 100644
--- a/lib/ansible/runner/action_plugins/template.py
+++ b/lib/ansible/runner/action_plugins/template.py
@@ -87,7 +87,7 @@ class ActionModule(object):
         try:
             resultant = template.template_from_file(self.runner.basedir, source, inject, vault_password=self.runner.vault_pass)
         except Exception, e:
-            result = dict(failed=True, msg=str(e))
+            result = dict(failed=True, msg=type(e).__name__ + ": " + str(e))
             return ReturnData(conn=conn, comm_ok=False, result=result)
 
         local_md5 = utils.md5s(resultant)
diff --git a/lib/ansible/utils/template.py b/lib/ansible/utils/template.py
index 7848dd158ac..58fe2287cb5 100644
--- a/lib/ansible/utils/template.py
+++ b/lib/ansible/utils/template.py
@@ -281,6 +281,16 @@ def template_from_file(basedir, path, vars, vault_password=None):
         res = jinja2.utils.concat(t.root_render_func(t.new_context(_jinja2_vars(basedir, vars, t.globals, fail_on_undefined), shared=True)))
     except jinja2.exceptions.UndefinedError, e:
         raise errors.AnsibleUndefinedVariable("One or more undefined variables: %s" % str(e))
+    except jinja2.exceptions.TemplateNotFound, e:
+        # Throw an exception which includes a more user friendly error message
+        # This likely will happen for included sub-template. Not that besides
+        # pure "file not found" it may happen due to Jinja2's "security"
+        # checks on path.
+        values = {'name': realpath, 'subname': str(e)}
+        msg = 'file: %(name)s, error: Cannot find/not allowed to load (include) template %(subname)s' % \
+               values
+        error = errors.AnsibleError(msg)
+        raise error
 
     # The low level calls above do not preserve the newline
     # characters at the end of the input data, so we use the