diff --git a/plugins/hypervisors/vmware/src/com/cloud/hypervisor/guru/VMwareGuru.java b/plugins/hypervisors/vmware/src/com/cloud/hypervisor/guru/VMwareGuru.java
index 7b6accf5357..d8076fd5d68 100644
--- a/plugins/hypervisors/vmware/src/com/cloud/hypervisor/guru/VMwareGuru.java
+++ b/plugins/hypervisors/vmware/src/com/cloud/hypervisor/guru/VMwareGuru.java
@@ -531,6 +531,7 @@ public class VMwareGuru extends HypervisorGuruBase implements HypervisorGuru, Co
                 // FIXME: Fix                    long checkPointId2 = _checkPointMgr.pushCheckPoint(new VmwareCleanupMaid(hostDetails.get("guid"), workerName2));
                 cmd.setContextParam("worker2", workerName2);
                 cmd.setContextParam("checkpoint2", String.valueOf(checkPointId2));
+                cmd.setContextParam("searchexludefolders", _vmwareMgr.s_vmwareSearchExcludeFolder.value());
             }
 
             return new Pair<Boolean, Long>(Boolean.TRUE, cmdTarget.first().getId());
diff --git a/plugins/hypervisors/vmware/src/com/cloud/hypervisor/vmware/manager/VmwareManager.java b/plugins/hypervisors/vmware/src/com/cloud/hypervisor/vmware/manager/VmwareManager.java
index 65963eb25bd..4a4d2ea7a53 100644
--- a/plugins/hypervisors/vmware/src/com/cloud/hypervisor/vmware/manager/VmwareManager.java
+++ b/plugins/hypervisors/vmware/src/com/cloud/hypervisor/vmware/manager/VmwareManager.java
@@ -39,6 +39,9 @@ public interface VmwareManager {
     public static final ConfigKey<Boolean> s_vmwareCleanOldWorderVMs = new ConfigKey<Boolean>("Advanced", Boolean.class, "vmware.clean.old.worker.vms", "false",
             "If a worker vm is older then twice the 'job.expire.minutes' + 'job.cancel.threshold.minutes' , remove it.", true, ConfigKey.Scope.Global);
 
+    static final ConfigKey<String> s_vmwareSearchExcludeFolder = new ConfigKey<String>("Advanced", String.class, "vmware.search.exclude.folders", null,
+            "Comma seperated list of Datastore Folders to exclude from VMWare search", true, ConfigKey.Scope.Global);
+
     String composeWorkerName();
 
     String getSystemVMIsoFileNameOnDatastore();
diff --git a/plugins/hypervisors/vmware/src/com/cloud/hypervisor/vmware/manager/VmwareManagerImpl.java b/plugins/hypervisors/vmware/src/com/cloud/hypervisor/vmware/manager/VmwareManagerImpl.java
index c003b442ffe..53e3239113e 100644
--- a/plugins/hypervisors/vmware/src/com/cloud/hypervisor/vmware/manager/VmwareManagerImpl.java
+++ b/plugins/hypervisors/vmware/src/com/cloud/hypervisor/vmware/manager/VmwareManagerImpl.java
@@ -229,7 +229,7 @@ public class VmwareManagerImpl extends ManagerBase implements VmwareManager, Vmw
 
     @Override
     public ConfigKey<?>[] getConfigKeys() {
-        return new ConfigKey<?>[] {s_vmwareNicHotplugWaitTimeout, s_vmwareCleanOldWorderVMs, templateCleanupInterval};
+        return new ConfigKey<?>[] {s_vmwareNicHotplugWaitTimeout, s_vmwareCleanOldWorderVMs, templateCleanupInterval, s_vmwareSearchExcludeFolder};
     }
 
     @Override
diff --git a/plugins/hypervisors/vmware/src/com/cloud/hypervisor/vmware/manager/VmwareStorageManagerImpl.java b/plugins/hypervisors/vmware/src/com/cloud/hypervisor/vmware/manager/VmwareStorageManagerImpl.java
index 3158ad47925..00298cedc75 100644
--- a/plugins/hypervisors/vmware/src/com/cloud/hypervisor/vmware/manager/VmwareStorageManagerImpl.java
+++ b/plugins/hypervisors/vmware/src/com/cloud/hypervisor/vmware/manager/VmwareStorageManagerImpl.java
@@ -307,6 +307,7 @@ public class VmwareStorageManagerImpl implements VmwareStorageManager {
         String snapshotUuid = cmd.getSnapshotUuid(); // not null: Precondition.
         String prevSnapshotUuid = cmd.getPrevSnapshotUuid();
         String prevBackupUuid = cmd.getPrevBackupUuid();
+        String searchExcludedFolders = cmd.getContextParam("searchexludefolders");
         VirtualMachineMO workerVm = null;
         String workerVMName = null;
         String volumePath = cmd.getVolumePath();
@@ -344,7 +345,7 @@ public class VmwareStorageManagerImpl implements VmwareStorageManager {
                         workerVm = vmMo;
 
                         // attach volume to worker VM
-                        String datastoreVolumePath = getVolumePathInDatastore(dsMo, volumePath + ".vmdk");
+                        String datastoreVolumePath = getVolumePathInDatastore(dsMo, volumePath + ".vmdk", searchExcludedFolders);
                         vmMo.attachDisk(new String[] {datastoreVolumePath}, morDs);
                     }
                 }
@@ -986,6 +987,8 @@ public class VmwareStorageManagerImpl implements VmwareStorageManager {
         VirtualMachineMO workerVm = null;
         VirtualMachineMO vmMo = null;
         String exportName = UUID.randomUUID().toString();
+        String searchExcludedFolders = cmd.getContextParam("searchexludefolders");
+
 
         try {
             ManagedObjectReference morDs = HypervisorHostHelper.findDatastoreWithBackwardsCompatibility(hyperHost, poolId);
@@ -1009,7 +1012,7 @@ public class VmwareStorageManagerImpl implements VmwareStorageManager {
                 }
 
                 //attach volume to worker VM
-                String datastoreVolumePath = getVolumePathInDatastore(dsMo, volumePath + ".vmdk");
+                String datastoreVolumePath = getVolumePathInDatastore(dsMo, volumePath + ".vmdk", searchExcludedFolders);
                 workerVm.attachDisk(new String[] {datastoreVolumePath}, morDs);
                 vmMo = workerVm;
             }
@@ -1030,8 +1033,8 @@ public class VmwareStorageManagerImpl implements VmwareStorageManager {
         }
     }
 
-    private String getVolumePathInDatastore(DatastoreMO dsMo, String volumeFileName) throws Exception {
-        String datastoreVolumePath = dsMo.searchFileInSubFolders(volumeFileName, true);
+    private String getVolumePathInDatastore(DatastoreMO dsMo, String volumeFileName, String searchExcludeFolders) throws Exception {
+        String datastoreVolumePath = dsMo.searchFileInSubFolders(volumeFileName, true, searchExcludeFolders);
         if (datastoreVolumePath == null) {
             throw new CloudRuntimeException("Unable to find file " + volumeFileName + " in datastore " + dsMo.getName());
         }
diff --git a/plugins/hypervisors/vmware/src/com/cloud/hypervisor/vmware/resource/VmwareResource.java b/plugins/hypervisors/vmware/src/com/cloud/hypervisor/vmware/resource/VmwareResource.java
index b8a3495dd6a..ccb5d0f7abb 100644
--- a/plugins/hypervisors/vmware/src/com/cloud/hypervisor/vmware/resource/VmwareResource.java
+++ b/plugins/hypervisors/vmware/src/com/cloud/hypervisor/vmware/resource/VmwareResource.java
@@ -645,7 +645,7 @@ public class VmwareResource implements StoragePoolResource, ServerResource, Vmwa
         ManagedObjectReference vmFolderMor = dataCenterMo.getVmFolder();
 
         //2nd param
-        String vmxFilePath = dsMo.searchFileInSubFolders(vmName + ".vmx", false);
+        String vmxFilePath = dsMo.searchFileInSubFolders(vmName + ".vmx", false, VmwareManager.s_vmwareSearchExcludeFolder.value());
 
         // 5th param
         ManagedObjectReference morPool = hyperHost.getHyperHostOwnerResourcePool();
@@ -1683,7 +1683,7 @@ public class VmwareResource implements StoragePoolResource, ServerResource, Vmwa
                     assert (vmSpec.getMinSpeed() != null) && (rootDiskDataStoreDetails != null);
 
                     boolean vmFolderExists = rootDiskDataStoreDetails.second().folderExists(String.format("[%s]", rootDiskDataStoreDetails.second().getName()), vmNameOnVcenter);
-                    String vmxFileFullPath = dsRootVolumeIsOn.searchFileInSubFolders(vmNameOnVcenter + ".vmx", false);
+                    String vmxFileFullPath = dsRootVolumeIsOn.searchFileInSubFolders(vmNameOnVcenter + ".vmx", false, VmwareManager.s_vmwareSearchExcludeFolder.value());
                     if (vmFolderExists && vmxFileFullPath != null) { // VM can be registered only if .vmx is present.
                         registerVm(vmNameOnVcenter, dsRootVolumeIsOn);
                         vmMo = hyperHost.findVmOnHyperHost(vmInternalCSName);
@@ -2360,7 +2360,7 @@ public class VmwareResource implements StoragePoolResource, ServerResource, Vmwa
                 DatastoreFile file = new DatastoreFile(disks[i]);
                 if (!isManaged && file.getDir() != null && file.getDir().isEmpty()) {
                     s_logger.info("Perform run-time datastore folder upgrade. sync " + disks[i] + " to VM folder");
-                    disks[i] = VmwareStorageLayoutHelper.syncVolumeToVmDefaultFolder(dcMo, vmMo.getName(), dsMo, file.getFileBaseName());
+                    disks[i] = VmwareStorageLayoutHelper.syncVolumeToVmDefaultFolder(dcMo, vmMo.getName(), dsMo, file.getFileBaseName(), VmwareManager.s_vmwareSearchExcludeFolder.value());
                 }
             }
             return disks;
@@ -2370,13 +2370,13 @@ public class VmwareResource implements StoragePoolResource, ServerResource, Vmwa
 
         if (isManaged) {
             if (volumeTO.getVolumeType() == Volume.Type.ROOT) {
-                datastoreDiskPath = VmwareStorageLayoutHelper.syncVolumeToVmDefaultFolder(dcMo, vmMo.getName(), dsMo, volumeTO.getName());
+                datastoreDiskPath = VmwareStorageLayoutHelper.syncVolumeToVmDefaultFolder(dcMo, vmMo.getName(), dsMo, volumeTO.getName(), VmwareManager.s_vmwareSearchExcludeFolder.value());
             }
             else {
                 datastoreDiskPath = dsMo.getDatastorePath(dsMo.getName() + ".vmdk");
             }
         } else {
-            datastoreDiskPath = VmwareStorageLayoutHelper.syncVolumeToVmDefaultFolder(dcMo, vmMo.getName(), dsMo, volumeTO.getPath());
+            datastoreDiskPath = VmwareStorageLayoutHelper.syncVolumeToVmDefaultFolder(dcMo, vmMo.getName(), dsMo, volumeTO.getPath(), VmwareManager.s_vmwareSearchExcludeFolder.value());
         }
 
         if (!dsMo.fileExists(datastoreDiskPath)) {
@@ -2802,7 +2802,7 @@ public class VmwareResource implements StoragePoolResource, ServerResource, Vmwa
                     vmFolder = new DatastoreFile(fileInDatastore.getDatastoreName(), fileInDatastore.getDir());
                 DatastoreMO dsMo = new DatastoreMO(dcMo.getContext(), dcMo.findDatastore(fileInDatastore.getDatastoreName()));
                 s_logger.debug("Deleting file: " + file.getName());
-                dsMo.deleteFile(file.getName(), dcMo.getMor(), true);
+                dsMo.deleteFile(file.getName(), dcMo.getMor(), true, VmwareManager.s_vmwareSearchExcludeFolder.value());
             }
             // Delete files that are present in the VM folder - this will take care of the VM disks as well.
             DatastoreMO vmFolderDsMo = new DatastoreMO(dcMo.getContext(), dcMo.findDatastore(vmFolder.getDatastoreName()));
@@ -2811,7 +2811,7 @@ public class VmwareResource implements StoragePoolResource, ServerResource, Vmwa
                 for (String file : files) {
                     String vmDiskFileFullPath = String.format("%s/%s", vmFolder.getPath(), file);
                     s_logger.debug("Deleting file: " + vmDiskFileFullPath);
-                    vmFolderDsMo.deleteFile(vmDiskFileFullPath, dcMo.getMor(), true);
+                    vmFolderDsMo.deleteFile(vmDiskFileFullPath, dcMo.getMor(), true, VmwareManager.s_vmwareSearchExcludeFolder.value());
                 }
             }
             // Delete VM folder
diff --git a/plugins/hypervisors/vmware/src/com/cloud/storage/resource/VmwareStorageLayoutHelper.java b/plugins/hypervisors/vmware/src/com/cloud/storage/resource/VmwareStorageLayoutHelper.java
index 4096333c493..fc79a4b0faf 100644
--- a/plugins/hypervisors/vmware/src/com/cloud/storage/resource/VmwareStorageLayoutHelper.java
+++ b/plugins/hypervisors/vmware/src/com/cloud/storage/resource/VmwareStorageLayoutHelper.java
@@ -67,6 +67,11 @@ public class VmwareStorageLayoutHelper {
     }
 
     public static String findVolumeDatastoreFullPath(DatastoreMO dsMo, String vmName, String vmdkFileName) throws Exception {
+        return findVolumeDatastoreFullPath(dsMo, vmName, vmdkFileName, null);
+    }
+
+    public static String findVolumeDatastoreFullPath(DatastoreMO dsMo, String vmName, String vmdkFileName, String excludeFolders) throws Exception {
+
         if (vmName != null) {
             String path = getVmwareDatastorePathFromVmdkFileName(dsMo, vmName, vmdkFileName);
             if (!dsMo.fileExists(path)) {
@@ -80,7 +85,7 @@ public class VmwareStorageLayoutHelper {
             String path = getLegacyDatastorePathFromVmdkFileName(dsMo, vmdkFileName);
             if (!dsMo.fileExists(path)) {
                 // Datastore file movement is not atomic operations, we need to sync and repair
-                path = dsMo.searchFileInSubFolders(vmdkFileName, false);
+                path = dsMo.searchFileInSubFolders(vmdkFileName, false, excludeFolders);
 
                 // to save one call to vCenter, we won't check file existence for this round, so the caller
                 // may still fail with exception, but if that's case, we will let it fail anyway
@@ -90,6 +95,10 @@ public class VmwareStorageLayoutHelper {
     }
 
     public static String syncVolumeToVmDefaultFolder(DatacenterMO dcMo, String vmName, DatastoreMO ds, String vmdkName) throws Exception {
+        return syncVolumeToVmDefaultFolder(dcMo, vmName, ds, vmdkName, null);
+    }
+
+    public static String syncVolumeToVmDefaultFolder(DatacenterMO dcMo, String vmName, DatastoreMO ds, String vmdkName, String excludeFolders) throws Exception {
 
         assert (ds != null);
         if (!ds.folderExists(String.format("[%s]", ds.getName()), vmName)) {
@@ -109,7 +118,7 @@ public class VmwareStorageLayoutHelper {
             // be left over in its previous owner VM. We will do a fixup synchronization here by moving it to root
             // again.
             //
-            syncVolumeToRootFolder(dcMo, ds, vmdkName, vmName);
+            syncVolumeToRootFolder(dcMo, ds, vmdkName, vmName, excludeFolders);
         }
 
         if (ds.fileExists(vmdkFullCloneModeLegacyPair[1])) {
@@ -134,7 +143,11 @@ public class VmwareStorageLayoutHelper {
     }
 
     public static void syncVolumeToRootFolder(DatacenterMO dcMo, DatastoreMO ds, String vmdkName, String vmName) throws Exception {
-        String fileDsFullPath = ds.searchFileInSubFolders(vmdkName + ".vmdk", false);
+        syncVolumeToRootFolder(dcMo, ds, vmdkName, null);
+    }
+
+    public static void syncVolumeToRootFolder(DatacenterMO dcMo, DatastoreMO ds, String vmdkName, String vmName, String excludeFolders) throws Exception {
+        String fileDsFullPath = ds.searchFileInSubFolders(vmdkName + ".vmdk", false, excludeFolders);
         if (fileDsFullPath == null)
             return;
 
@@ -259,13 +272,17 @@ public class VmwareStorageLayoutHelper {
     }
 
     public static void deleteVolumeVmdkFiles(DatastoreMO dsMo, String volumeName, DatacenterMO dcMo) throws Exception {
+        deleteVolumeVmdkFiles(dsMo, volumeName, dcMo, null);
+    }
+
+    public static void deleteVolumeVmdkFiles(DatastoreMO dsMo, String volumeName, DatacenterMO dcMo, String excludeFolders) throws Exception {
 
         String fileName = volumeName + ".vmdk";
         String fileFullPath = getLegacyDatastorePathFromVmdkFileName(dsMo, fileName);
         if (!dsMo.fileExists(fileFullPath))
-            fileFullPath = dsMo.searchFileInSubFolders(fileName, false);
+            fileFullPath = dsMo.searchFileInSubFolders(fileName, false, excludeFolders);
         if (fileFullPath != null) {
-            dsMo.deleteFile(fileFullPath, dcMo.getMor(), true);
+            dsMo.deleteFile(fileFullPath, dcMo.getMor(), true, excludeFolders);
         } else {
             s_logger.warn("Unable to locate VMDK file: " + fileName);
         }
@@ -273,9 +290,9 @@ public class VmwareStorageLayoutHelper {
         fileName = volumeName + "-flat.vmdk";
         fileFullPath = getLegacyDatastorePathFromVmdkFileName(dsMo, fileName);
         if (!dsMo.fileExists(fileFullPath))
-            fileFullPath = dsMo.searchFileInSubFolders(fileName, false);
+            fileFullPath = dsMo.searchFileInSubFolders(fileName, false, excludeFolders);
         if (fileFullPath != null) {
-            dsMo.deleteFile(fileFullPath, dcMo.getMor(), true);
+            dsMo.deleteFile(fileFullPath, dcMo.getMor(), true, excludeFolders);
         } else {
             s_logger.warn("Unable to locate VMDK file: " + fileName);
         }
@@ -283,9 +300,9 @@ public class VmwareStorageLayoutHelper {
         fileName = volumeName + "-delta.vmdk";
         fileFullPath = getLegacyDatastorePathFromVmdkFileName(dsMo, fileName);
         if (!dsMo.fileExists(fileFullPath))
-            fileFullPath = dsMo.searchFileInSubFolders(fileName, false);
+            fileFullPath = dsMo.searchFileInSubFolders(fileName, false, excludeFolders);
         if (fileFullPath != null) {
-            dsMo.deleteFile(fileFullPath, dcMo.getMor(), true);
+            dsMo.deleteFile(fileFullPath, dcMo.getMor(), true, excludeFolders);
         } else {
             s_logger.warn("Unable to locate VMDK file: " + fileName);
         }
diff --git a/plugins/hypervisors/vmware/src/com/cloud/storage/resource/VmwareStorageProcessor.java b/plugins/hypervisors/vmware/src/com/cloud/storage/resource/VmwareStorageProcessor.java
index 802657515fd..012556eb1ca 100644
--- a/plugins/hypervisors/vmware/src/com/cloud/storage/resource/VmwareStorageProcessor.java
+++ b/plugins/hypervisors/vmware/src/com/cloud/storage/resource/VmwareStorageProcessor.java
@@ -450,6 +450,7 @@ public class VmwareStorageProcessor implements StorageProcessor {
         VolumeObjectTO volume = (VolumeObjectTO)destData;
         DataStoreTO primaryStore = volume.getDataStore();
         DataStoreTO srcStore = template.getDataStore();
+        String searchExcludedFolders = cmd.getContextParam("searchexludefolders");
 
         try {
             VmwareContext context = hostService.getServiceContext(null);
@@ -481,7 +482,7 @@ public class VmwareStorageProcessor implements StorageProcessor {
                     String volumeDatastorePath = vmdkFilePair[0];
                     synchronized (this) {
                         s_logger.info("Delete file if exists in datastore to clear the way for creating the volume. file: " + volumeDatastorePath);
-                        VmwareStorageLayoutHelper.deleteVolumeVmdkFiles(dsMo, vmdkName, dcMo);
+                        VmwareStorageLayoutHelper.deleteVolumeVmdkFiles(dsMo, vmdkName, dcMo, searchExcludedFolders);
                         vmMo.createDisk(volumeDatastorePath, (int)(volume.getSize() / (1024L * 1024L)), morDatastore, -1);
                         vmMo.detachDisk(volumeDatastorePath, false);
                     }
@@ -527,14 +528,14 @@ public class VmwareStorageProcessor implements StorageProcessor {
                 vmMo.destroy();
 
                 String srcFile = dsMo.getDatastorePath(vmdkName, true);
-                dsMo.deleteFile(srcFile, dcMo.getMor(), true);
+                dsMo.deleteFile(srcFile, dcMo.getMor(), true, searchExcludedFolders);
             }
             // restoreVM - move the new ROOT disk into corresponding VM folder
             VirtualMachineMO restoreVmMo = dcMo.findVm(volume.getVmName());
             if (restoreVmMo != null) {
                 String vmNameInVcenter = restoreVmMo.getName(); // VM folder name in datastore will be VM's name in vCenter.
                 if (dsMo.folderExists(String.format("[%s]", dsMo.getName()), vmNameInVcenter)) {
-                    VmwareStorageLayoutHelper.syncVolumeToVmDefaultFolder(dcMo, vmNameInVcenter, dsMo, vmdkFileBaseName);
+                    VmwareStorageLayoutHelper.syncVolumeToVmDefaultFolder(dcMo, vmNameInVcenter, dsMo, vmdkFileBaseName, searchExcludedFolders);
                 }
             }
 
@@ -631,8 +632,8 @@ public class VmwareStorageProcessor implements StorageProcessor {
 
     }
 
-    private String getVolumePathInDatastore(DatastoreMO dsMo, String volumeFileName) throws Exception {
-        String datastoreVolumePath = dsMo.searchFileInSubFolders(volumeFileName, true);
+    private String getVolumePathInDatastore(DatastoreMO dsMo, String volumeFileName, String searchExcludedFolders) throws Exception {
+        String datastoreVolumePath = dsMo.searchFileInSubFolders(volumeFileName, true, searchExcludedFolders);
         assert (datastoreVolumePath != null) : "Virtual disk file missing from datastore.";
         return datastoreVolumePath;
     }
@@ -642,6 +643,7 @@ public class VmwareStorageProcessor implements StorageProcessor {
         VirtualMachineMO workerVm = null;
         VirtualMachineMO vmMo = null;
         String exportName = UUID.randomUUID().toString().replace("-", "");
+        String searchExcludedFolders = cmd.getContextParam("searchexludefolders");
 
         try {
             ManagedObjectReference morDs = HypervisorHostHelper.findDatastoreWithBackwardsCompatibility(hyperHost, poolId);
@@ -665,7 +667,7 @@ public class VmwareStorageProcessor implements StorageProcessor {
                 }
 
                 // attach volume to worker VM
-                String datastoreVolumePath = getVolumePathInDatastore(dsMo, volumePath + ".vmdk");
+                String datastoreVolumePath = getVolumePathInDatastore(dsMo, volumePath + ".vmdk", searchExcludedFolders);
                 workerVm.attachDisk(new String[] {datastoreVolumePath}, morDs);
                 vmMo = workerVm;
             }
@@ -690,6 +692,7 @@ public class VmwareStorageProcessor implements StorageProcessor {
         VolumeObjectTO srcVolume = (VolumeObjectTO)cmd.getSrcTO();
         VolumeObjectTO destVolume = (VolumeObjectTO)cmd.getDestTO();
         String vmName = srcVolume.getVmName();
+        String searchExcludedFolders = cmd.getContextParam("searchexludefolders");
 
         VmwareContext context = hostService.getServiceContext(cmd);
         try {
@@ -1380,7 +1383,7 @@ public class VmwareStorageProcessor implements StorageProcessor {
                 if (isManaged) {
                     datastoreVolumePath = dsMo.getDatastorePath(dsMo.getName() + ".vmdk");
                 } else {
-                    datastoreVolumePath = VmwareStorageLayoutHelper.syncVolumeToVmDefaultFolder(dsMo.getOwnerDatacenter().first(), vmName, dsMo, volumeTO.getPath());
+                    datastoreVolumePath = VmwareStorageLayoutHelper.syncVolumeToVmDefaultFolder(dsMo.getOwnerDatacenter().first(), vmName, dsMo, volumeTO.getPath(), VmwareManager.s_vmwareSearchExcludeFolder.value());
                 }
             } else {
                 if (isManaged) {
@@ -1415,7 +1418,7 @@ public class VmwareStorageProcessor implements StorageProcessor {
                 if (isManaged) {
                     handleDatastoreAndVmdkDetachManaged(diskUuid, iScsiName, storageHost, storagePort);
                 } else {
-                    VmwareStorageLayoutHelper.syncVolumeToRootFolder(dsMo.getOwnerDatacenter().first(), dsMo, volumeTO.getPath(), vmName);
+                    VmwareStorageLayoutHelper.syncVolumeToRootFolder(dsMo.getOwnerDatacenter().first(), dsMo, volumeTO.getPath(), vmName, VmwareManager.s_vmwareSearchExcludeFolder.value());
                 }
             }
 
@@ -1591,7 +1594,7 @@ public class VmwareStorageProcessor implements StorageProcessor {
                     }
                     catch (Exception e) {
                         s_logger.error("Deleting file " + volumeDatastorePath + " due to error: " + e.getMessage());
-                        VmwareStorageLayoutHelper.deleteVolumeVmdkFiles(dsMo, volumeUuid.toString(), dcMo);
+                        VmwareStorageLayoutHelper.deleteVolumeVmdkFiles(dsMo, volumeUuid.toString(), dcMo, VmwareManager.s_vmwareSearchExcludeFolder.value());
                         throw new CloudRuntimeException("Unable to create volume due to: " + e.getMessage());
                     }
                 }
@@ -1753,7 +1756,7 @@ public class VmwareStorageProcessor implements StorageProcessor {
                 }
             }
 
-            VmwareStorageLayoutHelper.deleteVolumeVmdkFiles(dsMo, vol.getPath(), new DatacenterMO(context, morDc));
+            VmwareStorageLayoutHelper.deleteVolumeVmdkFiles(dsMo, vol.getPath(), new DatacenterMO(context, morDc), VmwareManager.s_vmwareSearchExcludeFolder.value());
 
             return new Answer(cmd, true, "Success");
         } catch (Throwable e) {
diff --git a/vmware-base/src/com/cloud/hypervisor/vmware/mo/DatastoreMO.java b/vmware-base/src/com/cloud/hypervisor/vmware/mo/DatastoreMO.java
index 290e1a0bdb6..1152ba5078a 100644
--- a/vmware-base/src/com/cloud/hypervisor/vmware/mo/DatastoreMO.java
+++ b/vmware-base/src/com/cloud/hypervisor/vmware/mo/DatastoreMO.java
@@ -166,6 +166,10 @@ public class DatastoreMO extends BaseMO {
     }
 
     public boolean deleteFile(String path, ManagedObjectReference morDc, boolean testExistence) throws Exception {
+        return deleteFile(path, morDc, testExistence, null);
+    }
+
+    public boolean deleteFile(String path, ManagedObjectReference morDc, boolean testExistence, String excludeFolders) throws Exception {
         String datastoreName = getName();
         ManagedObjectReference morFileManager = _context.getServiceContent().getFileManager();
 
@@ -180,7 +184,7 @@ public class DatastoreMO extends BaseMO {
 
         try {
             if (testExistence && !fileExists(fullPath)) {
-                String searchResult = searchFileInSubFolders(file.getFileName(), true);
+                String searchResult = searchFileInSubFolders(file.getFileName(), true, excludeFolders);
                 if (searchResult == null) {
                     return true;
                 } else {
@@ -352,8 +356,13 @@ public class DatastoreMO extends BaseMO {
     }
 
     public String searchFileInSubFolders(String fileName, boolean caseInsensitive) throws Exception {
+        return searchFileInSubFolders(fileName,caseInsensitive,null);
+    }
+
+    public String searchFileInSubFolders(String fileName, boolean caseInsensitive, String excludeFolders) throws Exception {
         String datastorePath = "[" + getName() + "]";
         String rootDirectoryFilePath = String.format("%s %s", datastorePath, fileName);
+        String[] searchExcludedFolders = getSearchExcludedFolders(excludeFolders);
         if (fileExists(rootDirectoryFilePath)) {
             return rootDirectoryFilePath;
         }
@@ -380,6 +389,9 @@ public class DatastoreMO extends BaseMO {
                     if (parentFolderPath.endsWith("]"))
                         absoluteFileName += " ";
                     absoluteFileName += fi.getPath();
+                    if(isValidCloudStackFolderPath(parentFolderPath, searchExcludedFolders)) {
+                        return absoluteFileName;
+                    }
                     break;
                 }
             }
@@ -387,6 +399,20 @@ public class DatastoreMO extends BaseMO {
         return absoluteFileName;
     }
 
+    private String[] getSearchExcludedFolders(String excludeFolders) {
+        return excludeFolders != null ?  excludeFolders.replaceAll("\\s","").split(",") : new String[] {};
+    }
+
+    private boolean isValidCloudStackFolderPath(String dataStoreFolderPath, String[] searchExcludedFolders) throws Exception {
+        String dsFolder = dataStoreFolderPath.replaceFirst("\\[" + getName() + "\\]", "").trim();
+        for( String excludedFolder : searchExcludedFolders) {
+            if (dsFolder.startsWith(excludedFolder)) {
+                return  false;
+            }
+        }
+        return true;
+    }
+
     public boolean isAccessibleToHost(String hostValue) throws Exception {
         boolean isAccessible = true;
         List<DatastoreHostMount> hostMounts = getHostMounts();
diff --git a/vmware-base/test/com/cloud/hypervisor/vmware/mo/DatastoreMOTest.java b/vmware-base/test/com/cloud/hypervisor/vmware/mo/DatastoreMOTest.java
new file mode 100644
index 00000000000..394d199ce50
--- /dev/null
+++ b/vmware-base/test/com/cloud/hypervisor/vmware/mo/DatastoreMOTest.java
@@ -0,0 +1,114 @@
+// Licensed to the Apache Software Foundation (ASF) under one
+// or more contributor license agreements.  See the NOTICE file
+// distributed with this work for additional information
+// regarding copyright ownership.  The ASF licenses this file
+// to you 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.
+
+package com.cloud.hypervisor.vmware.mo;
+
+import com.cloud.hypervisor.vmware.util.VmwareClient;
+import com.cloud.hypervisor.vmware.util.VmwareContext;
+import com.vmware.vim25.FileInfo;
+import com.vmware.vim25.HostDatastoreBrowserSearchResults;
+import com.vmware.vim25.ManagedObjectReference;
+import com.vmware.vim25.VimPortType;
+import org.junit.After;
+import org.junit.Before;
+import org.junit.Test;
+import org.junit.runner.RunWith;
+import org.mockito.Mock;
+import org.powermock.api.mockito.PowerMockito;
+import org.powermock.core.classloader.annotations.PrepareForTest;
+import org.powermock.modules.junit4.PowerMockRunner;
+
+import java.util.ArrayList;
+
+import static org.junit.Assert.assertEquals;
+import static org.mockito.Matchers.any;
+import static org.mockito.Matchers.eq;
+import static org.mockito.Mockito.when;
+
+/**
+ * Created by sudharma_jain on 6/13/17.
+ */
+@RunWith(PowerMockRunner.class)
+@PrepareForTest(DatastoreMO.class)
+public class DatastoreMOTest {
+    @Mock
+    VmwareContext _context ;
+    @Mock
+    VmwareClient _client;
+    @Mock
+    ManagedObjectReference _mor;
+    @Mock
+    HostDatastoreBrowserMO browserMo;
+    @Mock
+    VimPortType vimPortType;
+
+    DatastoreMO datastoreMO ;
+    String fileName = "ROOT-5.vmdk";
+
+
+    @Before
+    public void setUp() throws Exception {
+
+        datastoreMO = new DatastoreMO(_context, _mor);
+        PowerMockito.whenNew(HostDatastoreBrowserMO.class).withAnyArguments().thenReturn(browserMo);
+        when(_context.getVimClient()).thenReturn(_client);
+        when(_client.getDynamicProperty(any(ManagedObjectReference.class), eq("name"))).thenReturn("252d36c96cfb32f48ce7756ccb79ae37");
+
+        ArrayList<HostDatastoreBrowserSearchResults> results = new ArrayList<>();
+
+        HostDatastoreBrowserSearchResults r1 =  new HostDatastoreBrowserSearchResults();
+        FileInfo f1 = new FileInfo();
+        f1.setPath(fileName);
+        r1.getFile().add(f1);
+        r1.setFolderPath("[252d36c96cfb32f48ce7756ccb79ae37] .snapshot/hourly.2017-02-23_1705/i-2-5-VM/");
+
+        HostDatastoreBrowserSearchResults r2 =  new HostDatastoreBrowserSearchResults();
+        FileInfo f2 = new FileInfo();
+        f2.setPath(fileName);
+        r2.getFile().add(f2);
+        r2.setFolderPath("[252d36c96cfb32f48ce7756ccb79ae37] .snapshot/hourly.2017-02-23_1605/i-2-5-VM/");
+
+        HostDatastoreBrowserSearchResults r3 =  new HostDatastoreBrowserSearchResults();
+        FileInfo f3 = new FileInfo();
+        f3.setPath(fileName);
+        r3.getFile().add(f3);
+        r3.setFolderPath("[252d36c96cfb32f48ce7756ccb79ae37] i-2-5-VM/");
+
+        results.add(r1);
+        results.add(r2);
+        results.add(r3);
+
+        when(browserMo.searchDatastore(any(String.class), any(String.class), eq(true))).thenReturn(null);
+        when(browserMo.searchDatastoreSubFolders(any(String.class),any(String.class), any(Boolean.class) )).thenReturn(results);
+    }
+
+    @After
+    public void tearDown() throws Exception {
+
+    }
+
+    @Test
+    public void testSearchFileInSubFolders() throws Exception {
+        assertEquals("Unexpected Behavior: search should exclude .snapshot folder", "[252d36c96cfb32f48ce7756ccb79ae37] i-2-5-VM/ROOT-5.vmdk", datastoreMO.searchFileInSubFolders(fileName, false, ".snapshot") );
+    }
+
+    @Test
+    public void testSearchFileInSubFoldersWithExcludeMultipleFolders() throws Exception {
+        assertEquals("Unexpected Behavior: search should exclude folders", datastoreMO.searchFileInSubFolders(fileName, false, "i-2-5-VM, .snapshot/hourly.2017-02-23_1705"), "[252d36c96cfb32f48ce7756ccb79ae37] .snapshot/hourly.2017-02-23_1605/i-2-5-VM/ROOT-5.vmdk" );
+    }
+
+}
\ No newline at end of file