diff --git a/post-processor/vsphere-template/step_choose_datacenter.go b/post-processor/vsphere-template/step_choose_datacenter.go
index 23ad23143..2016595b6 100644
--- a/post-processor/vsphere-template/step_choose_datacenter.go
+++ b/post-processor/vsphere-template/step_choose_datacenter.go
@@ -27,7 +27,7 @@ func (s *stepChooseDatacenter) Run(state multistep.StateBag) multistep.StepActio
 	}
 
 	finder.SetDatacenter(dc)
-	state.Put("datacenter", dc.Name())
+	state.Put("dcPath", dc.InventoryPath)
 	state.Put("finder", finder)
 	return multistep.ActionContinue
 }
diff --git a/post-processor/vsphere-template/step_create_folder.go b/post-processor/vsphere-template/step_create_folder.go
index 80be005ee..8a35672a2 100644
--- a/post-processor/vsphere-template/step_create_folder.go
+++ b/post-processor/vsphere-template/step_create_folder.go
@@ -8,7 +8,7 @@ import (
 
 	"github.com/hashicorp/packer/packer"
 	"github.com/mitchellh/multistep"
-	"github.com/vmware/govmomi/find"
+	"github.com/vmware/govmomi"
 	"github.com/vmware/govmomi/object"
 )
 
@@ -18,39 +18,37 @@ type stepCreateFolder struct {
 
 func (s *stepCreateFolder) Run(state multistep.StateBag) multistep.StepAction {
 	ui := state.Get("ui").(packer.Ui)
-	finder := state.Get("finder").(*find.Finder)
-	dc := state.Get("datacenter").(string)
+	cli := state.Get("client").(*govmomi.Client)
+	dcPath := state.Get("dcPath").(string)
 
 	if s.Folder != "" {
 		ui.Say("Creating or checking destination folders...")
 
-		path := s.Folder
-		base := filepath.Join("/", dc, "vm")
+		base := filepath.Join(dcPath, "vm")
+		path := filepath.ToSlash(filepath.Join(base, s.Folder))
+		si := object.NewSearchIndex(cli.Client)
+
 		var folders []string
-		var root *object.Folder
 		var err error
+		var ref object.Reference
+
 		// We iterate over the path starting with full path
 		// If we don't find it, we save the folder name and continue with the previous path
-		// The iteration ends when we find an existing path or if we don't find any we'll use
-		// the base path
+		// The iteration ends when we find an existing path otherwise it throws error
 		for {
-			root, err = finder.Folder(context.Background(), filepath.ToSlash(filepath.Join(base, path)))
+			ref, err = si.FindByInventoryPath(context.Background(), path)
 			if err != nil {
-				if _, ok := err.(*find.NotFoundError); ok {
-					_, folder := filepath.Split(path)
-					folders = append(folders, folder)
-					if i := strings.LastIndex(path, "/"); i == 0 {
-						root, err = finder.Folder(context.Background(), filepath.ToSlash(base))
-						if err != nil {
-							state.Put("error", err)
-							ui.Error(err.Error())
-							return multistep.ActionHalt
-						}
-						break
-					} else {
-						path = path[:i]
-					}
-				} else {
+				state.Put("error", err)
+				ui.Error(err.Error())
+				return multistep.ActionHalt
+			}
+			if ref == nil {
+				_, folder := filepath.Split(path)
+				folders = append(folders, folder)
+				path = path[:strings.LastIndex(path, "/")]
+
+				if path == dcPath {
+					err = fmt.Errorf("vSphere base path %s not found", filepath.ToSlash(base))
 					state.Put("error", err)
 					ui.Error(err.Error())
 					return multistep.ActionHalt
@@ -60,6 +58,7 @@ func (s *stepCreateFolder) Run(state multistep.StateBag) multistep.StepAction {
 			}
 		}
 
+		root := ref.(*object.Folder)
 		for i := len(folders) - 1; i >= 0; i-- {
 			ui.Message(fmt.Sprintf("Creating folder: %v", folders[i]))
 			root, err = root.CreateFolder(context.Background(), folders[i])
diff --git a/post-processor/vsphere-template/step_move_template.go b/post-processor/vsphere-template/step_move_template.go
index 353f24398..9c337f98f 100644
--- a/post-processor/vsphere-template/step_move_template.go
+++ b/post-processor/vsphere-template/step_move_template.go
@@ -18,13 +18,13 @@ type stepMoveTemplate struct {
 func (s *stepMoveTemplate) Run(state multistep.StateBag) multistep.StepAction {
 	ui := state.Get("ui").(packer.Ui)
 	finder := state.Get("finder").(*find.Finder)
-	dc := state.Get("datacenter").(string)
+	dcPath := state.Get("dcPath").(string)
 	vm := state.Get("vm").(*object.VirtualMachine)
 
 	if s.Folder != "" {
 		ui.Say("Moving template...")
 
-		folder, err := finder.Folder(context.Background(), filepath.ToSlash(filepath.Join("/", dc, "vm", s.Folder)))
+		folder, err := finder.Folder(context.Background(), filepath.ToSlash(filepath.Join(dcPath, "vm", s.Folder)))
 		if err != nil {
 			state.Put("error", err)
 			ui.Error(err.Error())