diff --git a/.gitignore b/.gitignore
index 22ee9f5b3..e0169f27b 100644
--- a/.gitignore
+++ b/.gitignore
@@ -2,4 +2,6 @@
 .glide/
 vendor/
 packer-builder-vsphere
+packer-builder-vsphere.exe
 bin/
+test*.json
diff --git a/README.md b/README.md
index f7f5c2014..523384c53 100644
--- a/README.md
+++ b/README.md
@@ -85,7 +85,7 @@ Post-processing:
       "password": "{{user `vsphere_password`}}",
 
       "template": "ubuntu",
-      "folder_name": "folder",
+      "folder_name": "folder1/folder2",
       "vm_name": "vm-1",
       "host": "esxi-1.domain.com",
       "resource_pool": "pool1/pool2",
diff --git a/step_clone_vm.go b/step_clone_vm.go
index be2e2bb53..8aa425de0 100644
--- a/step_clone_vm.go
+++ b/step_clone_vm.go
@@ -36,7 +36,7 @@ func (s *StepCloneVM) Run(state multistep.StateBag) multistep.StepAction {
 	ui.Say("start cloning...")
 
 	// Get folder
-	folder, err := finder.FolderOrDefault(ctx, s.config.FolderName)
+	folder, err := finder.FolderOrDefault(ctx, fmt.Sprintf("/%v/vm/%v", dc.Name(), s.config.FolderName))
 	if err != nil {
 		state.Put("error", err)
 		return multistep.ActionHalt