diff --git a/lib/ansible/modules/cloud/vmware/vcenter_folder.py b/lib/ansible/modules/cloud/vmware/vcenter_folder.py
new file mode 100644
index 0000000000..3090b100f1
--- /dev/null
+++ b/lib/ansible/modules/cloud/vmware/vcenter_folder.py
@@ -0,0 +1,252 @@
+#!/usr/bin/python
+# -*- coding: utf-8 -*-
+# Copyright: (c) 2018, Abhijeet Kasurde <akasurde@redhat.com>
+# GNU General Public License v3.0+ (see COPYING or https://www.gnu.org/licenses/gpl-3.0.txt)
+
+from __future__ import absolute_import, division, print_function
+__metaclass__ = type
+
+
+ANSIBLE_METADATA = {
+    'metadata_version': '1.1',
+    'status': ['preview'],
+    'supported_by': 'community'
+}
+
+DOCUMENTATION = r'''
+---
+module: vcenter_folder
+short_description: Manage folders on given datacenter
+description:
+- This module can be used to create, delete, move and rename folder on then given datacenter.
+version_added: '2.5'
+author:
+- Abhijeet Kasurde (@akasurde)
+notes:
+- Tested on vSphere 6.5
+requirements:
+- python >= 2.6
+- PyVmomi
+options:
+  datacenter:
+    description:
+    - Name of the datacenter.
+    required: True
+  folder_name:
+    description:
+    - Name of folder to be managed.
+    - This is case sensitive parameter.
+    - Folder name should be under 80 characters. This is a VMware restriction.
+    required: True
+  parent_folder:
+    description:
+    - Name of the parent folder under which new folder needs to be created.
+    - This is case sensitive parameter.
+    - Please specify unique folder name as there is no way to detect duplicate names.
+    - "If user wants to create a folder under '/DC0/vm/vm_folder', this value will be 'vm_folder'."
+    required: False
+  folder_type:
+    description:
+    - This is type of folder.
+    - "If set to C(vm), then 'VM and Template Folder' is created under datacenter."
+    - "If set to C(host), then 'Host and Cluster Folder' is created under datacenter."
+    - "If set to C(datastore), then 'Storage Folder' is created under datacenter."
+    - "If set to C(network), then 'Network Folder' is created under datacenter."
+    - This parameter is required, if C(state) is set to C(present) and parent_folder is absent.
+    - This option is ignored, if C(parent_folder) is set.
+    default: vm
+    required: False
+  state:
+    description:
+    - State of folder.
+    - If set to C(present) without parent folder parameter, then folder with C(folder_type) is created.
+    - If set to C(present) with parent folder parameter,  then folder in created under parent folder. C(folder_type) is ignored.
+    - If set to C(absent), then folder is unregistered and destroyed.
+    default: present
+    choices: [ present, absent ]
+extends_documentation_fragment: vmware.documentation
+'''
+
+EXAMPLES = r'''
+- name: Create a VM folder on given datacenter
+  vcenter_folder:
+    hostname: '{{ vcenter_hostname }}'
+    username: '{{ vcenter_username }}'
+    password: '{{ vcenter_password }}'
+    datacenter: datacenter_name
+    folder_name: sample_vm_folder
+    folder_type: vm
+    state: present
+  register: vm_folder_creation_result
+
+- name: Create a datastore folder on given datacenter
+  vcenter_folder:
+    hostname: '{{ vcenter_hostname }}'
+    username: '{{ vcenter_username }}'
+    password: '{{ vcenter_password }}'
+    datacenter: datacenter_name
+    folder_name: sample_datastore_folder
+    folder_type: datastore
+    state: present
+  register: datastore_folder_creation_result
+
+- name: Create a sub folder under VM folder on given datacenter
+  vcenter_folder:
+    hostname: '{{ vcenter_hostname }}'
+    username: '{{ vcenter_username }}'
+    password: '{{ vcenter_password }}'
+    datacenter: datacenter_name
+    folder_name: sample_sub_folder
+    parent_folder: vm_folder
+    state: present
+  register: sub_folder_creation_result
+
+- name: Delete a VM folder on given datacenter
+  vcenter_folder:
+    hostname: '{{ vcenter_hostname }}'
+    username: '{{ vcenter_username }}'
+    password: '{{ vcenter_password }}'
+    datacenter: datacenter_name
+    folder_name: sample_vm_folder
+    folder_type: vm
+    state: absent
+  register: vm_folder_deletion_result
+
+'''
+
+RETURN = r'''
+result:
+    description:
+    - string stating about result
+    returned: success
+    type: string
+    sample: "Folder 'sub_network_folder' of type 'vm' created under vm_folder successfully."
+'''
+
+try:
+    from pyVmomi import vim, vmodl
+except ImportError as e:
+    pass
+
+from ansible.module_utils.basic import AnsibleModule
+from ansible.module_utils.vmware import vmware_argument_spec, PyVmomi, find_datacenter_by_name, wait_for_task, get_all_objs
+from ansible.module_utils._text import to_native
+
+
+class VmwareFolderManager(PyVmomi):
+    def __init__(self, module):
+        super(VmwareFolderManager, self).__init__(module)
+        datacenter_name = self.params.get('datacenter', None)
+        self.datacenter_obj = find_datacenter_by_name(self.content, datacenter_name=datacenter_name)
+        if self.datacenter_obj is None:
+            self.module.fail_json(msg="Failed to find datacenter %s" % datacenter_name)
+
+    def ensure(self):
+        """
+        Function to manage internal state management
+        Returns:
+
+        """
+        state = self.module.params.get('state')
+        folder_type = self.module.params.get('folder_type')
+        folder_name = self.module.params.get('folder_name')
+        parent_folder = self.module.params.get('parent_folder', None)
+        results = dict(changed=False, result=dict())
+        if state == 'present':
+            # Create a new folder
+            try:
+                if parent_folder:
+                    folder = self.get_folder_by_name(folder_name=parent_folder)
+                    if 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:
+                        self.module.fail_json(msg="Failed to find the parent folder %s"
+                                                  " for folder %s" % (parent_folder, folder_name))
+                else:
+                    datacenter_folder_type = {
+                        'vm': self.datacenter_obj.vmFolder,
+                        'host': self.datacenter_obj.hostFolder,
+                        'datastore': self.datacenter_obj.datastoreFolder,
+                        'network': self.datacenter_obj.networkFolder,
+                    }
+                    datacenter_folder_type[folder_type].CreateFolder(folder_name)
+                    results['changed'] = True
+                    results['result'] = "Folder '%s' of type '%s' created successfully" % (folder_name, folder_type)
+            except vim.fault.DuplicateName as duplicate_name:
+                # To be consistent with the other vmware modules, We decided to accept this error
+                # and the playbook should simply carry on with other tasks.
+                # User will have to take care of this exception
+                # https://github.com/ansible/ansible/issues/35388#issuecomment-362283078
+                results['changed'] = False
+                results['result'] = "Failed to create folder as another object has same name" \
+                                    " in the same target folder : %s" % to_native(duplicate_name.msg)
+            except vim.fault.InvalidName as invalid_name:
+                self.module.fail_json(msg="Failed to create folder as folder name is not a valid "
+                                          "entity name : %s" % to_native(invalid_name.msg))
+            except Exception as general_exc:
+                self.module.fail_json(msg="Failed to create folder due to generic"
+                                          " exception : %s " % to_native(general_exc))
+            self.module.exit_json(**results)
+        elif state == 'absent':
+            folder_obj = self.get_folder_by_name(folder_name=folder_name)
+            if folder_obj:
+                try:
+                    task = folder_obj.UnregisterAndDestroy()
+                    results['changed'], results['result'] = wait_for_task(task=task)
+                except vim.fault.ConcurrentAccess as concurrent_access:
+                    self.module.fail_json(msg="Failed to remove folder as another client"
+                                              " modified folder before this operation : %s" % to_native(concurrent_access.msg))
+                except vim.fault.InvalidState as invalid_state:
+                    self.module.fail_json(msg="Failed to remove folder as folder is in"
+                                              " invalid state" % to_native(invalid_state.msg))
+                except Exception as e:
+                    self.module.fail_json(msg="Failed to remove folder due to generic"
+                                              " exception %s " % to_native(e))
+            self.module.exit_json(**results)
+
+    def get_folder_by_name(self, folder_name):
+        """
+        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])
+        for folder in folder_objs:
+            if folder.name == folder_name:
+                return folder
+
+        return None
+
+
+def main():
+    argument_spec = vmware_argument_spec()
+    argument_spec.update(
+        datacenter=dict(type='str', required=True),
+        folder_name=dict(type='str', required=True),
+        parent_folder=dict(type='str', required=False),
+        state=dict(type='str',
+                   choices=['present', 'absent'],
+                   default='present'),
+        folder_type=dict(type='str',
+                         default='vm',
+                         choices=['datastore', 'host', 'network', 'vm'],
+                         required=False),
+    )
+
+    module = AnsibleModule(
+        argument_spec=argument_spec,
+        supports_check_mode=False,
+    )
+
+    if len(module.params.get('folder_name')) > 79:
+        module.fail_json(msg="Failed to manage folder as folder_name can only contain 80 characters.")
+
+    vcenter_folder_mgr = VmwareFolderManager(module)
+    vcenter_folder_mgr.ensure()
+
+
+if __name__ == "__main__":
+    main()
diff --git a/test/integration/targets/vcenter_folder/aliases b/test/integration/targets/vcenter_folder/aliases
new file mode 100644
index 0000000000..dcb429935f
--- /dev/null
+++ b/test/integration/targets/vcenter_folder/aliases
@@ -0,0 +1,3 @@
+posix/ci/cloud/group4/vcenter
+cloud/vcenter
+destructive
diff --git a/test/integration/targets/vcenter_folder/tasks/main.yml b/test/integration/targets/vcenter_folder/tasks/main.yml
new file mode 100644
index 0000000000..bcb446f24e
--- /dev/null
+++ b/test/integration/targets/vcenter_folder/tasks/main.yml
@@ -0,0 +1,144 @@
+# Test code for the vcenter_folder module.
+# Copyright: (c) 2018, Abhijeet Kasurde <akasurde@redhat.com>
+# GNU General Public License v3.0+ (see COPYING or https://www.gnu.org/licenses/gpl-3.0.txt)
+
+- name: make sure pyvmomi is installed
+  pip:
+    name: pyvmomi
+    state: latest
+  when: "{{ ansible_user_id == 'root' }}"
+
+- name: store the vcenter container ip
+  set_fact:
+    vcsim: "{{ lookup('env', 'vcenter_host') }}"
+
+- debug: var=vcsim
+
+- name: Wait for Flask controller to come up online
+  wait_for:
+    host: "{{ vcsim }}"
+    port: 5000
+    state: started
+
+- name: kill vcsim
+  uri:
+    url: http://{{ vcsim }}:5000/killall
+
+- name: start vcsim
+  uri:
+    url: http://{{ vcsim }}:5000/spawn?cluster=2
+  register: vcsim_instance
+
+- debug:
+    var: vcsim_instance
+
+- name: Wait for vcsim server to come up online
+  wait_for:
+    host: "{{ vcsim }}"
+    port: 443
+    state: started
+
+- name: get datacenter
+  uri:
+    url: http://{{ vcsim }}:5000/govc_find?filter=DC
+  register: datacenters
+
+- name: get a datacenter
+  set_fact:
+    dc1: "{{ datacenters.json[0] | basename }}"
+
+- name: Create all types of folder
+  vcenter_folder:
+    hostname: "{{ vcsim }}"
+    username: "{{ vcsim_instance.json.username }}"
+    password: "{{ vcsim_instance.json.password }}"
+    validate_certs: no
+    datacenter: "{{ dc1 }}"
+    folder_name: "{{ item }}_folder"
+    folder_type: "{{ item }}"
+    state: present
+  register: all_folder_results
+  with_items:
+    - vm
+    - host
+    - datastore
+    - network
+
+- debug: msg="{{ all_folder_results }}"
+
+- name: ensure everything for {{ dc1 }}
+  assert:
+    that:
+        - all_folder_results.changed
+
+- name: Create 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: all_folder_results
+  with_items:
+    - vm
+    - host
+    - datastore
+    - network
+
+- debug: msg="{{ all_folder_results }}"
+
+- name: ensure everything for {{ dc1 }}
+  assert:
+    that:
+        - all_folder_results.changed
+
+#- name: Delete all types of folder
+#  vcenter_folder:
+#    hostname: "{{ vcsim }}"
+#    username: "{{ vcsim_instance.json.username }}"
+#    password: "{{ vcsim_instance.json.password }}"
+#    validate_certs: no
+#    datacenter: "{{ dc1 }}"
+#    folder_name: "{{ item }}_folder"
+#    folder_type: "{{ item }}"
+#    state: absent
+#  register: all_folder_results
+#  with_items:
+#    - vm
+#    - host
+#    - datastore
+#    - network
+
+#- debug: msg="{{ all_folder_results }}"
+
+#- name: ensure everything for {{ dc1 }}
+#  assert:
+#    that:
+#        - all_folder_results.changed
+
+#- name: Delete all types of folder again
+#  vcenter_folder:
+#    hostname: "{{ vcsim }}"
+#    username: "{{ vcsim_instance.json.username }}"
+#    password: "{{ vcsim_instance.json.password }}"
+#    validate_certs: no
+#    datacenter: "{{ dc1 }}"
+#    folder_name: "{{ item }}_folder"
+#    folder_type: "{{ item }}"
+#    state: absent
+#  register: all_folder_results
+#  with_items:
+#    - vm
+#    - host
+#    - datastore
+#    - network
+
+#- debug: msg="{{ all_folder_results }}"
+
+#- name: ensure everything for {{ dc1 }}
+#  assert:
+#    that:
+#        - not all_folder_results.changed