diff --git a/lib/ansible/modules/cloud/vmware/vcenter_folder.py b/lib/ansible/modules/cloud/vmware/vcenter_folder.py
index c8328ad66a..7bdcbc8b23 100644
--- a/lib/ansible/modules/cloud/vmware/vcenter_folder.py
+++ b/lib/ansible/modules/cloud/vmware/vcenter_folder.py
@@ -158,12 +158,12 @@ class VmwareFolderManager(PyVmomi):
             try:
                 if parent_folder:
                     folder = self.get_folder_by_name(folder_name=parent_folder)
-                    if folder:
+                    if folder and not self.get_folder_by_name(folder_name=folder_name, parent_folder=folder):
                         folder.CreateFolder(folder_name)
                         results['changed'] = True
                         results['result'] = "Folder '%s' of type '%s' created under %s" \
                                             " successfully." % (folder_name, folder_type, parent_folder)
-                    else:
+                    elif folder is None:
                         self.module.fail_json(msg="Failed to find the parent folder %s"
                                                   " for folder %s" % (parent_folder, folder_name))
                 else:
@@ -208,13 +208,13 @@ class VmwareFolderManager(PyVmomi):
                                               " exception %s " % to_native(e))
             self.module.exit_json(**results)
 
-    def get_folder_by_name(self, folder_name):
+    def get_folder_by_name(self, folder_name, parent_folder=None):
         """
         Function to get managed object of folder by name
         Returns: Managed object of folder by name
 
         """
-        folder_objs = get_all_objs(self.content, [vim.Folder])
+        folder_objs = get_all_objs(self.content, [vim.Folder], parent_folder)
         for folder in folder_objs:
             if folder.name == folder_name:
                 return folder
diff --git a/test/integration/targets/vcenter_folder/tasks/main.yml b/test/integration/targets/vcenter_folder/tasks/main.yml
index 49980e0b1d..addba1d5ba 100644
--- a/test/integration/targets/vcenter_folder/tasks/main.yml
+++ b/test/integration/targets/vcenter_folder/tasks/main.yml
@@ -81,6 +81,23 @@
     - host
     - datastore
     - network
+    
+- name: Recreate all types of sub folder
+  vcenter_folder:
+    hostname: "{{ vcsim }}"
+    username: "{{ vcsim_instance.json.username }}"
+    password: "{{ vcsim_instance.json.password }}"
+    validate_certs: no
+    datacenter: "{{ dc1 }}"
+    folder_name: "sub_{{ item }}_folder"
+    parent_folder: 'vm_folder'
+    state: present
+  register: recreate_folders
+  with_items:
+    - vm
+    - host
+    - datastore
+    - network
 
 - debug: msg="{{ all_folder_results }}"
 
@@ -88,6 +105,7 @@
   assert:
     that:
         - all_folder_results.changed
+        - not recreate_folders.changed
 
 #- name: Delete all types of folder
 #  vcenter_folder: