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 7ecc2ac4a08..3d3aa1b7df0 100644
--- a/plugins/hypervisors/vmware/src/com/cloud/storage/resource/VmwareStorageProcessor.java
+++ b/plugins/hypervisors/vmware/src/com/cloud/storage/resource/VmwareStorageProcessor.java
@@ -1585,7 +1585,13 @@ public class VmwareStorageProcessor implements StorageProcessor {
 
                         // let vmMo.destroy to delete volume for us
                         // vmMo.tearDownDevices(new Class<?>[] { VirtualDisk.class, VirtualEthernetCard.class });
-                        vmMo.destroy();
+
+                        if (isManaged) {
+                            vmMo.unregisterVm();
+                        }
+                        else {
+                            vmMo.destroy();
+                        }
 
                         // this.hostService.handleDatastoreAndVmdkDetach(iScsiName, storageHost, storagePort);
                         if (managedIqns != null && !managedIqns.isEmpty()) {
diff --git a/vmware-base/src/com/cloud/hypervisor/vmware/mo/BaseMO.java b/vmware-base/src/com/cloud/hypervisor/vmware/mo/BaseMO.java
index e21591af42c..430eb6deffa 100644
--- a/vmware-base/src/com/cloud/hypervisor/vmware/mo/BaseMO.java
+++ b/vmware-base/src/com/cloud/hypervisor/vmware/mo/BaseMO.java
@@ -70,6 +70,10 @@ public class BaseMO {
         return _name;
     }
 
+    public void unregisterVm() throws Exception {
+        _context.getService().unregisterVM(_mor);
+    }
+
     public boolean destroy() throws Exception {
         ManagedObjectReference morTask = _context.getService().destroyTask(_mor);