diff --git a/share/doc/xsd/oned.conf b/share/doc/xsd/oned.conf
index e251b157f42..0d9318825c3 100644
--- a/share/doc/xsd/oned.conf
+++ b/share/doc/xsd/oned.conf
@@ -371,7 +371,7 @@ IM_MAD = [ NAME="dummy", SUNSTONE_NAME="Testing", EXECUTABLE="one_im_dummy"]
 #
 #   type      : driver type, supported drivers: xen, kvm, xml
 #
-#   keep_snapshots: do not remove snapshots on power on/off cycles and live 
+#   keep_snapshots: do not remove snapshots on power on/off cycles and live
 #   migrations if the hypervisor supports that.
 #
 #   imported_vms_actions : comma-separated list of actions supported
@@ -770,6 +770,7 @@ VM_RESTRICTED_ATTR = "MEMORY_COST"
 VM_RESTRICTED_ATTR = "DISK_COST"
 VM_RESTRICTED_ATTR = "PCI"
 VM_RESTRICTED_ATTR = "USER_INPUTS"
+VM_RESTRICTED_ATTR = "DEPLOY_FOLDER"
 
 #VM_RESTRICTED_ATTR = "RANK"
 #VM_RESTRICTED_ATTR = "SCHED_RANK"
diff --git a/share/etc/oned.conf b/share/etc/oned.conf
index 9f65a101ae8..95b1e9fc8a4 100644
--- a/share/etc/oned.conf
+++ b/share/etc/oned.conf
@@ -824,6 +824,7 @@ VM_RESTRICTED_ATTR = "EMULATOR"
 VM_RESTRICTED_ATTR = "USER_INPUTS/CPU"
 VM_RESTRICTED_ATTR = "USER_INPUTS/MEMORY"
 VM_RESTRICTED_ATTR = "USER_INPUTS/VCPU"
+VM_RESTRICTED_ATTR = "DEPLOY_FOLDER"
 
 #VM_RESTRICTED_ATTR = "RANK"
 #VM_RESTRICTED_ATTR = "SCHED_RANK"
diff --git a/src/cli/one_helper.rb b/src/cli/one_helper.rb
index 0abd683bf21..86d60f897fb 100644
--- a/src/cli/one_helper.rb
+++ b/src/cli/one_helper.rb
@@ -352,6 +352,13 @@ module OpenNebulaHelper
             :name   => 'report_ready',
             :large  => '--report_ready',
             :description => 'Sends READY=YES to OneGate, useful for OneFlow'
+        },
+        {
+            :name   => 'deploy_folder',
+            :large  => '--deploy_folder path',
+            :format => String,
+            :description => "In a vCenter environment sets the the VMs and Template folder where the VM will be placed in." \
+            " The path uses slashes to separate folders. For example: --deploy_folder \"/Management/VMs\""
         }
     ]
 
@@ -1126,6 +1133,8 @@ def self.create_template(options, template_obj=nil)
             template<<' ]' << "\n"
         end
 
+        template<<"DEPLOY_FOLDER=#{options[:deploy_folder]}\n" if options[:deploy_folder]
+
         context=create_context(options)
         template<<context if context
 
diff --git a/src/sunstone/etc/sunstone-views/admin.yaml b/src/sunstone/etc/sunstone-views/admin.yaml
index e51a18541d8..882ae09ea0f 100644
--- a/src/sunstone/etc/sunstone-views/admin.yaml
+++ b/src/sunstone/etc/sunstone-views/admin.yaml
@@ -48,6 +48,10 @@ features:
     # will be set to the same value as VCPU, that will still be visible for the
     # end users
     instantiate_hide_cpu: false
+
+    # True to show an input to specify the the VMs and Template path/folder where a vCenter VM will
+    # deployed to
+    vcenter_deploy_folder: false
 tabs:
     dashboard-tab:
         # The following widgets can be used inside any of the '_per_row' settings
diff --git a/src/sunstone/etc/sunstone-views/admin_vcenter.yaml b/src/sunstone/etc/sunstone-views/admin_vcenter.yaml
index b021aed0902..8f830b070e1 100644
--- a/src/sunstone/etc/sunstone-views/admin_vcenter.yaml
+++ b/src/sunstone/etc/sunstone-views/admin_vcenter.yaml
@@ -48,6 +48,10 @@ features:
     # will be set to the same value as VCPU, that will still be visible for the
     # end users
     instantiate_hide_cpu: false
+
+    # True to show an input to specify the the VMs and Template path/folder where a vCenter VM will
+    # deployed to
+    vcenter_deploy_folder: true
 tabs:
     dashboard-tab:
         # The following widgets can be used inside any of the '_per_row' settings
diff --git a/src/sunstone/etc/sunstone-views/groupadmin.yaml b/src/sunstone/etc/sunstone-views/groupadmin.yaml
index 435c88aa320..fe5ecc70520 100644
--- a/src/sunstone/etc/sunstone-views/groupadmin.yaml
+++ b/src/sunstone/etc/sunstone-views/groupadmin.yaml
@@ -48,6 +48,10 @@ features:
     # will be set to the same value as VCPU, that will still be visible for the
     # end users
     instantiate_hide_cpu: false
+
+    # True to show an input to specify the the VMs and Template path/folder where a vCenter VM will
+    # deployed to
+    vcenter_deploy_folder: false
 tabs:
     dashboard-tab:
         # The following widgets can be used inside any of the '_per_row' settings
diff --git a/src/sunstone/etc/sunstone-views/groupadmin_vcenter.yaml b/src/sunstone/etc/sunstone-views/groupadmin_vcenter.yaml
index a9f1ef612a3..b48cc8dff80 100644
--- a/src/sunstone/etc/sunstone-views/groupadmin_vcenter.yaml
+++ b/src/sunstone/etc/sunstone-views/groupadmin_vcenter.yaml
@@ -48,6 +48,10 @@ features:
     # will be set to the same value as VCPU, that will still be visible for the
     # end users
     instantiate_hide_cpu: true
+
+    # True to show an input to specify the the VMs and Template path/folder where a vCenter VM will
+    # deployed to
+    vcenter_deploy_folder: false
 tabs:
     dashboard-tab:
         # The following widgets can be used inside any of the '_per_row' settings
diff --git a/src/sunstone/etc/sunstone-views/user.yaml b/src/sunstone/etc/sunstone-views/user.yaml
index 28b52a69619..9d3671ffb3d 100644
--- a/src/sunstone/etc/sunstone-views/user.yaml
+++ b/src/sunstone/etc/sunstone-views/user.yaml
@@ -48,6 +48,10 @@ features:
     # will be set to the same value as VCPU, that will still be visible for the
     # end users
     instantiate_hide_cpu: false
+
+    # True to show an input to specify the the VMs and Template path/folder where a vCenter VM will
+    # deployed to
+    vcenter_deploy_folder: false
 tabs:
     dashboard-tab:
         # The following widgets can be used inside any of the '_per_row' settings
diff --git a/src/sunstone/public/app/tabs/templates-tab/form-panels/create/wizard-tabs/general.js b/src/sunstone/public/app/tabs/templates-tab/form-panels/create/wizard-tabs/general.js
index c5bf6e7cda2..790e845c639 100644
--- a/src/sunstone/public/app/tabs/templates-tab/form-panels/create/wizard-tabs/general.js
+++ b/src/sunstone/public/app/tabs/templates-tab/form-panels/create/wizard-tabs/general.js
@@ -114,7 +114,7 @@ define(function(require) {
       memory *= 1024;
     memory = memory * 24 * 30; //24 hours and 30 days
     document.getElementById('total_value_memory').textContent = convertCostNumber(memory);
-    $(".total_memory_cost", context).show(); 
+    $(".total_memory_cost", context).show();
   }
 
   function _setup(context) {
@@ -137,14 +137,14 @@ define(function(require) {
      context.on("change", "#CPU_COST", function() {
       var cpu = document.getElementById('CPU_COST').value;
       document.getElementById('total_value_cpu').textContent = convertCostNumber(cpu * 24 * 30);
-      $(".total_cpu_cost", context).show(); 
+      $(".total_cpu_cost", context).show();
       CapacityCreate.calculatedRealCpu();
     });
 
     context.on("change", "#DISK_COST", function() {
       var disk = document.getElementById('DISK_COST').value;
       document.getElementById('total_value_disk').textContent = convertCostNumber(disk * 1024 * 24 * 30);
-      $(".total_disk_cost", context).show(); 
+      $(".total_disk_cost", context).show();
     });
 
     context.on("change", "#LOGO", function() {
@@ -187,6 +187,9 @@ define(function(require) {
         'VM_TEMPLATE': WizardFields.retrieveInput($("#vcenter_template_uuid", context))
       };
 
+      if (Config.isFeatureEnabled("vcenter_deploy_folder")) {
+        templateJSON["DEPLOY_FOLDER"] = WizardFields.retrieveInput($("#vcenter_deploy_folder", context))
+      }
       templateJSON["KEEP_DISKS_ON_DONE"] = $("#KEEP_DISKS", context).is(':checked')?"YES":"NO"
     }
 
@@ -201,7 +204,7 @@ define(function(require) {
     }
 
     var userInputs = {};
-    
+
     // Retrieve Datastore Attribute
     var dsInput = $(".vcenter_datastore_input", context);
     if (dsInput.length > 0) {
@@ -275,6 +278,17 @@ define(function(require) {
 
     delete templateJSON["KEEP_DISKS_ON_DONE"];
 
+    if (Config.isFeatureEnabled("vcenter_deploy_folder")) {
+      if (templateJSON["HYPERVISOR"] == 'vcenter' &&
+        templateJSON["DEPLOY_FOLDER"]) {
+        WizardFields.fillInput($("#vcenter_deploy_folder", context), templateJSON["DEPLOY_FOLDER"]);
+      }
+    } else {
+      $(".vcenter_deploy_folder_input", context).remove();
+    }
+
+    delete templateJSON["DEPLOY_FOLDER"];
+
     if (templateJSON["HYPERVISOR"] == 'vcenter') {
       var publicClouds = templateJSON["PUBLIC_CLOUD"];
 
diff --git a/src/sunstone/public/app/tabs/templates-tab/form-panels/create/wizard-tabs/general/html.hbs b/src/sunstone/public/app/tabs/templates-tab/form-panels/create/wizard-tabs/general/html.hbs
index 26e33213c58..02414628ef1 100644
--- a/src/sunstone/public/app/tabs/templates-tab/form-panels/create/wizard-tabs/general/html.hbs
+++ b/src/sunstone/public/app/tabs/templates-tab/form-panels/create/wizard-tabs/general/html.hbs
@@ -120,6 +120,15 @@
       </label>
     </div>
   </div>
+  <div class="vcenter_deploy_folder_input row">
+    <div class="medium-6 columns">
+      <label  for="vcenter_deploy_folder">
+        {{tr "Deployment Folder"}}
+        {{{tip (tr "If specified, the the VMs and Template folder path where the VM will be created inside the data center. The path is delimited by slashes e.g /Management/VMs. If no path is set the VM will be deployed in the same folder where the template exists.")}}}
+      </label>
+      <input type="text" id="vcenter_deploy_folder"/>
+    </div>
+  </div>
 </fieldset>
 <div class="row">
   <div class="capacityCreate large-12 columns">{{{capacityCreateHTML}}}</div>
diff --git a/src/sunstone/public/app/tabs/templates-tab/form-panels/instantiate.js b/src/sunstone/public/app/tabs/templates-tab/form-panels/instantiate.js
index d3ecbcc1fd6..a7e81d804af 100644
--- a/src/sunstone/public/app/tabs/templates-tab/form-panels/instantiate.js
+++ b/src/sunstone/public/app/tabs/templates-tab/form-panels/instantiate.js
@@ -31,6 +31,7 @@ define(function(require) {
   var WizardFields = require('utils/wizard-fields');
   var DisksResize = require('utils/disks-resize');
   var NicsSection = require('utils/nics-section');
+  var DeployFolder = require('utils/deploy-folder');
   var CapacityInputs = require('tabs/templates-tab/form-panels/create/wizard-tabs/general/capacity-inputs');
   var Config = require('sunstone-config');
 
@@ -206,6 +207,13 @@ define(function(require) {
         tmp_json.PCI = pcis;
       }
 
+      if (Config.isFeatureEnabled("vcenter_deploy_folder")){
+        if(!$.isEmptyObject(original_tmpl.TEMPLATE.PUBLIC_CLOUD.TYPE) &&
+          original_tmpl.TEMPLATE.PUBLIC_CLOUD.TYPE === 'vcenter'){
+          $.extend(tmp_json, DeployFolder.retrieveChanges($(".deployFolderContext"  + template_id)));
+        }
+      }
+
       capacityContext = $(".capacityContext"  + template_id, context);
       $.extend(tmp_json, CapacityInputs.retrieveChanges(capacityContext));
 
@@ -262,6 +270,10 @@ define(function(require) {
               'securityGroups': Config.isFeatureEnabled("secgroups")
             });
 
+          deployFolderContext = $(".deployFolderContext"  + template_json.VMTEMPLATE.ID, context);
+          DeployFolder.setup(deployFolderContext);
+          DeployFolder.fill(deployFolderContext, template_json.VMTEMPLATE);
+
           var inputs_div = $(".template_user_inputs" + template_json.VMTEMPLATE.ID, context);
 
           UserInputs.vmTemplateInsert(
diff --git a/src/sunstone/public/app/tabs/templates-tab/form-panels/instantiate/templateRow.hbs b/src/sunstone/public/app/tabs/templates-tab/form-panels/instantiate/templateRow.hbs
index 1b6cdab2c68..d95c3fedd2f 100644
--- a/src/sunstone/public/app/tabs/templates-tab/form-panels/instantiate/templateRow.hbs
+++ b/src/sunstone/public/app/tabs/templates-tab/form-panels/instantiate/templateRow.hbs
@@ -51,4 +51,10 @@
       </div>
     </div>
   </div>
+   <div class="row">
+    <div class="medium-6 small-12 columns deployFolderContext{{element.ID}}">
+      <div class="provision_deploy_folder_selector">
+      </div>
+    </div>
+  </div>
 </div>
\ No newline at end of file
diff --git a/src/sunstone/public/app/utils/deploy-folder.js b/src/sunstone/public/app/utils/deploy-folder.js
new file mode 100644
index 00000000000..f021fc2d19c
--- /dev/null
+++ b/src/sunstone/public/app/utils/deploy-folder.js
@@ -0,0 +1,74 @@
+/* -------------------------------------------------------------------------- */
+/* Copyright 2002-2016, OpenNebula Project, OpenNebula Systems                */
+/*                                                                            */
+/* Licensed under the Apache License, Version 2.0 (the "License"); you may    */
+/* not use this file except in compliance with the License. You may obtain    */
+/* a copy of the License at                                                   */
+/*                                                                            */
+/* http://www.apache.org/licenses/LICENSE-2.0                                 */
+/*                                                                            */
+/* Unless required by applicable law or agreed to in writing, software        */
+/* distributed under the License is distributed on an "AS IS" BASIS,          */
+/* WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.   */
+/* See the License for the specific language governing permissions and        */
+/* limitations under the License.                                             */
+/* -------------------------------------------------------------------------- */
+
+define(function(require){
+  var Locale = require('utils/locale');
+  var Config = require('sunstone-config');
+  var OpenNebula = require('opennebula');
+  var OpenNebulaImage = require('opennebula/image');
+  var UserInputs = require('utils/user-inputs');
+  var WizardFields = require('utils/wizard-fields');
+  var DeployFolderTemplate = require('hbs!./deploy-folder/html');
+
+  return {
+    'setup': _setup,
+    'fill': _fill,
+    'retrieveChanges': _retrieveChanges
+  };
+
+  function _setup(context) {
+    if (!Config.isFeatureEnabled("vcenter_deploy_folder")){
+      $(context).remove();
+    }
+  }
+
+  function _fill(context, element) {
+
+    if (Config.isFeatureEnabled("vcenter_deploy_folder")){
+      var deployFolderContext = context;
+      var template_public_cloud_type = element.TEMPLATE.PUBLIC_CLOUD.TYPE
+
+      if ($.isEmptyObject(template_public_cloud_type)) {
+        deployFolderContext.html("");
+      } else {
+        if (template_public_cloud_type === 'vcenter') {
+          var deploy_folder = element.TEMPLATE.DEPLOY_FOLDER
+          deployFolderContext.html(DeployFolderTemplate());
+          $("#deploy_folder_input", deployFolderContext).val(deploy_folder);
+          $("#deploy_folder_input", deployFolderContext).data("original_value",deploy_folder);
+        } else {
+          deployFolderContext.html("");
+        }
+      }
+    }
+  }
+
+
+  function _retrieveChanges(context) {
+
+    var templateJSON = WizardFields.retrieve(context);
+    var fields = $('[wizard_field]', context);
+
+    fields.each(function() {
+      var field_name = $(this).attr('wizard_field');
+      if (templateJSON[field_name] == $(this).data("original_value")){
+          delete templateJSON[field_name];
+      }
+    });
+
+    return templateJSON;
+  }
+});
\ No newline at end of file
diff --git a/src/sunstone/public/app/utils/deploy-folder/html.hbs b/src/sunstone/public/app/utils/deploy-folder/html.hbs
new file mode 100644
index 00000000000..9bb686bb7e5
--- /dev/null
+++ b/src/sunstone/public/app/utils/deploy-folder/html.hbs
@@ -0,0 +1,29 @@
+{{! -------------------------------------------------------------------------- }}
+{{! Copyright 2002-2016, OpenNebula Project, OpenNebula Systems                }}
+{{!                                                                            }}
+{{! Licensed under the Apache License, Version 2.0 (the "License"); you may    }}
+{{! not use this file except in compliance with the License. You may obtain    }}
+{{! a copy of the License at                                                   }}
+{{!                                                                            }}
+{{! http://www.apache.org/licenses/LICENSE-2.0                                 }}
+{{!                                                                            }}
+{{! Unless required by applicable law or agreed to in writing, software        }}
+{{! distributed under the License is distributed on an "AS IS" BASIS,          }}
+{{! WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.   }}
+{{! See the License for the specific language governing permissions and        }}
+{{! limitations under the License.                                             }}
+{{! -------------------------------------------------------------------------- }}
+
+<fieldset>
+  <legend>
+    <i class="fa fa-folder"></i> {{tr "vCenter Deployment"}}
+  </legend>
+  <div class="deployContainer">
+    <label for="deploy_folder_input">
+        {{tr "Deployment Folder"}}
+        {{{tip (tr "If specified, the VMs and Template folder path where the VM will be created inside the data center. The path is delimited by slashes e.g /Management/VMs. If no path is set the VM will be deployed in the same folder where the template exists.")}}}
+    </label>
+    <input type="text" name="deploy_folder_input" id="deploy_folder_input" wizard_field="DEPLOY_FOLDER"/>
+  </div>
+</fieldset>
+
diff --git a/src/vmm_mad/remotes/vcenter/vcenter_driver.rb b/src/vmm_mad/remotes/vcenter/vcenter_driver.rb
index cc52895b156..bf748677dcc 100644
--- a/src/vmm_mad/remotes/vcenter/vcenter_driver.rb
+++ b/src/vmm_mad/remotes/vcenter/vcenter_driver.rb
@@ -2490,6 +2490,21 @@ def self.clone_vm(xml_text, hostname, datastore, ops = {})
         connection  = VIClient.new(hid)
         vc_template = connection.find_vm_fast(uuid, ops[:ref], ops[:name])
 
+        deploy_folder = nil
+        deploy_folder_name = xml.root.elements["/VM/USER_TEMPLATE/DEPLOY_FOLDER"]
+
+        if !deploy_folder_name.nil?
+            deploy_folder_name = deploy_folder_name.text
+            if !deploy_folder_name.empty?
+                # Look for folder object
+                deploy_folder = connection.dc.find_folder(deploy_folder_name)
+            end
+        end
+
+        if deploy_folder.nil?
+            deploy_folder = vc_template.parent
+        end
+
         # Find out requested and available resource pool
 
         req_rp = nil
@@ -2598,7 +2613,7 @@ def self.clone_vm(xml_text, hostname, datastore, ops = {})
             storage_spec = RbVmomi::VIM.StoragePlacementSpec(
                 type: 'clone',
                 cloneName: vcenter_name,
-                folder: vc_template.parent,
+                folder: deploy_folder,
                 podSelectionSpec: pod_spec,
                 vm: vc_template,
                 cloneSpec: clone_spec
@@ -2624,7 +2639,7 @@ def self.clone_vm(xml_text, hostname, datastore, ops = {})
 
             begin
             vm = vc_template.CloneVM_Task(
-                   :folder => vc_template.parent,
+                   :folder => deploy_folder,
                    :name   => vcenter_name,
                    :spec   => clone_spec).wait_for_completion
             rescue Exception => e
@@ -2639,7 +2654,7 @@ def self.clone_vm(xml_text, hostname, datastore, ops = {})
 
                 vm.Destroy_Task.wait_for_completion
                 vm = vc_template.CloneVM_Task(
-                    :folder => vc_template.parent,
+                    :folder => deploy_folder,
                     :name   => vcenter_name,
                     :spec   => clone_spec).wait_for_completion
             end