diff --git a/core/src/com/cloud/storage/template/DownloadManagerImpl.java b/core/src/com/cloud/storage/template/DownloadManagerImpl.java
index b69db88cd53..418d1e6678a 100755
--- a/core/src/com/cloud/storage/template/DownloadManagerImpl.java
+++ b/core/src/com/cloud/storage/template/DownloadManagerImpl.java
@@ -650,6 +650,19 @@ public class DownloadManagerImpl implements DownloadManager {
             }
 
             TemplateInfo tInfo = loc.getTemplateInfo();
+            
+            if ((tInfo.size == tInfo.physicalSize) && (tInfo.installPath.endsWith(ImageFormat.OVA.getFileExtension()))) {
+            	try {
+            	    Processor processor = _processors.get("VMDK Processor");
+            	    VmdkProcessor vmdkProcessor = (VmdkProcessor)processor;
+            	    long vSize = vmdkProcessor.getTemplateVirtualSize(path, tInfo.installPath.substring(tInfo.installPath.lastIndexOf(File.separator) + 1));
+                	tInfo.size = vSize;
+                	loc.updateVirtualSize(vSize);
+                	loc.save();
+            	} catch (Exception e) {
+            		s_logger.error("Unable to get the virtual size of the template: " + tInfo.installPath + " due to " + e.getMessage());
+            	}
+            }
 
             result.put(tInfo.templateName, tInfo);
             s_logger.debug("Added template name: " + tInfo.templateName + ", path: " + tmplt);
diff --git a/core/src/com/cloud/storage/template/TemplateLocation.java b/core/src/com/cloud/storage/template/TemplateLocation.java
index abe0d78525b..0e4d9223979 100644
--- a/core/src/com/cloud/storage/template/TemplateLocation.java
+++ b/core/src/com/cloud/storage/template/TemplateLocation.java
@@ -187,6 +187,10 @@ public class TemplateLocation {
         return true;
     }
     
+    public void updateVirtualSize(long virtualSize) {
+        _props.setProperty("virtualsize", Long.toString(virtualSize));
+    }
+    
     protected boolean checkFormatValidity(FormatInfo info) {
         return (info.format != null && info.size > 0 && info.virtualSize > 0 && info.filename != null && _storage.exists(_templatePath + info.filename) && _storage.getSize(_templatePath + info.filename) == info.size);
     }
diff --git a/core/src/com/cloud/storage/template/VmdkProcessor.java b/core/src/com/cloud/storage/template/VmdkProcessor.java
index e7d5ca9ab55..bd354642fdd 100644
--- a/core/src/com/cloud/storage/template/VmdkProcessor.java
+++ b/core/src/com/cloud/storage/template/VmdkProcessor.java
@@ -75,10 +75,19 @@ public class VmdkProcessor implements Processor {
         FormatInfo info = new FormatInfo();
         info.format = ImageFormat.OVA;
         info.filename = templateName + "." + ImageFormat.OVA.getFileExtension();
-        info.size = _storage.getSize(templateFilePath);
+        info.size = _storage.getSize(templateFilePath);
+        info.virtualSize = getTemplateVirtualSize(templatePath, info.filename);
+
+        // delete original OVA file
+        // templateFile.delete();
+        return info;
+    }
 
+    public long getTemplateVirtualSize(String templatePath, String templateName) throws InternalErrorException {
         // get the virtual size from the OVF file meta data
     	long virtualSize=0;
+        String templateFileFullPath = templatePath.endsWith(File.separator) ? templatePath : templatePath + File.separator;
+    	templateFileFullPath += templateName.endsWith(ImageFormat.OVA.getFileExtension()) ? templateName : templateName + "." + ImageFormat.OVA.getFileExtension();
         String ovfFileName = getOVFFilePath(templateFileFullPath);
         if(ovfFileName == null) {
             String msg = "Unable to locate OVF file in template package directory: " + templatePath; 
@@ -91,7 +100,7 @@ public class VmdkProcessor implements Processor {
         	Element disk  = (Element) ovfDoc.getElementsByTagName("Disk").item(0);
         	virtualSize = Long.parseLong(disk.getAttribute("ovf:capacity"));
         	String allocationUnits = disk.getAttribute("ovf:capacityAllocationUnits");
-        	if (allocationUnits != null) {
+        	if ((virtualSize != 0) && (allocationUnits != null)) {
         		long units = 1;
         		if (allocationUnits.equalsIgnoreCase("KB") || allocationUnits.equalsIgnoreCase("KiloBytes") || allocationUnits.equalsIgnoreCase("byte * 2^10")) {
         			units = 1024;
@@ -101,20 +110,17 @@ public class VmdkProcessor implements Processor {
         			units = 1024 * 1024 * 1024;
         		}
         		virtualSize = virtualSize * units;
+        	} else {
+        		throw new InternalErrorException("Failed to read capacity and capacityAllocationUnits from the OVF file: " + ovfFileName);
         	}
+        	return virtualSize;
         } catch (Exception e) {
         	String msg = "Unable to parse OVF XML document to get the virtual disk size due to"+e;
         	s_logger.error(msg);
         	throw new InternalErrorException(msg);
         }
-
-        info.virtualSize = virtualSize;
-
-        // delete original OVA file
-        // templateFile.delete();
-        return info;
-    }
-
+    }
+    
     private String getOVFFilePath(String srcOVAFileName) {
         File file = new File(srcOVAFileName);
         assert(_storage != null);