diff --git a/server/src/com/cloud/api/query/QueryManagerImpl.java b/server/src/com/cloud/api/query/QueryManagerImpl.java
index 95f260d53c2..f61d6736e92 100644
--- a/server/src/com/cloud/api/query/QueryManagerImpl.java
+++ b/server/src/com/cloud/api/query/QueryManagerImpl.java
@@ -3070,9 +3070,9 @@ public class QueryManagerImpl extends MutualExclusiveIdsManagerBase implements Q
 
         boolean listAll = false;
         if (templateFilter != null && templateFilter == TemplateFilter.all) {
-            if (caller.getType() != Account.ACCOUNT_TYPE_ADMIN) {
+            if (caller.getType() == Account.ACCOUNT_TYPE_NORMAL) {
                 throw new InvalidParameterValueException("Filter " + TemplateFilter.all
-                        + " can be specified by root admin only");
+                        + " can be specified by admin only");
             }
             listAll = true;
         }
@@ -3255,6 +3255,19 @@ public class QueryManagerImpl extends MutualExclusiveIdsManagerBase implements Q
                     scc.addOr("accountId", SearchCriteria.Op.IN, permittedAccountIds.toArray());
                 }
                 sc.addAnd("publicTemplate", SearchCriteria.Op.SC, scc);
+            }else if (templateFilter == TemplateFilter.all && caller.getType() != Account.ACCOUNT_TYPE_ADMIN ){
+                SearchCriteria<TemplateJoinVO> scc = _templateJoinDao.createSearchCriteria();
+                scc.addOr("publicTemplate", SearchCriteria.Op.EQ, true);
+
+                if (listProjectResourcesCriteria == ListProjectResourcesCriteria.SkipProjectResources) {
+                    scc.addOr("domainPath", SearchCriteria.Op.LIKE, _domainDao.findById(caller.getDomainId()).getPath() + "%");
+                } else {
+                    if (!permittedAccounts.isEmpty()) {
+                        scc.addOr("accountId", SearchCriteria.Op.IN, permittedAccountIds.toArray());
+                        scc.addOr("sharedAccountId", SearchCriteria.Op.IN, permittedAccountIds.toArray());
+                    }
+                }
+                sc.addAnd("publicTemplate", SearchCriteria.Op.SC, scc);
             }
 
             // add tags criteria
diff --git a/test/integration/component/test_escalation_listTemplateDomainAdmin.py b/test/integration/component/test_escalation_listTemplateDomainAdmin.py
index 5c52c062c15..087e45b8924 100644
--- a/test/integration/component/test_escalation_listTemplateDomainAdmin.py
+++ b/test/integration/component/test_escalation_listTemplateDomainAdmin.py
@@ -126,7 +126,7 @@ class TestlistTemplatesDomainAdmin(cloudstackTestCase):
             hypervisor=self.hypervisor,
             account=self.account2.name,
             domainid=self.account2.domainid,
-            templatefilter=self.testdata["templatefilter"]
+            templatefilter="all"
 
         )
 
diff --git a/test/integration/component/test_templates.py b/test/integration/component/test_templates.py
index c8384d97c89..fb56011bed3 100644
--- a/test/integration/component/test_templates.py
+++ b/test/integration/component/test_templates.py
@@ -675,6 +675,5 @@ class TestListTemplate(cloudstackTestCase):
                                     DomainName=self.newdomain_account.domain)
         try:
             list_template_response = Template.list(self.domain_user_api_client, templatefilter='all')
-            self.fail("Domain admin is able to use templatefilter='all' in listTemplates API call")
         except Exception as e:
-            self.debug("ListTemplates API with templatefilter='all' is not permitted for domain admin user")
+            self.fail("Domain admin should be able to use templatefilter='all' in listTemplates API call")