diff --git a/server/src/com/cloud/template/TemplateManagerImpl.java b/server/src/com/cloud/template/TemplateManagerImpl.java
index 51d09ef6cf6..694bd034518 100755
--- a/server/src/com/cloud/template/TemplateManagerImpl.java
+++ b/server/src/com/cloud/template/TemplateManagerImpl.java
@@ -1656,6 +1656,7 @@ public class TemplateManagerImpl extends ManagerBase implements TemplateManager,
                 }
             }
             if (cmd.getDetails() != null) {
+                details.remove("Encrypted.Password"); // new password will be generated during vm deployment from password enabled template
                 details.putAll(cmd.getDetails());
             }
             if (!details.isEmpty()) {
diff --git a/server/src/com/cloud/vm/UserVmManagerImpl.java b/server/src/com/cloud/vm/UserVmManagerImpl.java
index f97ce7496fc..fc8a095cfb7 100755
--- a/server/src/com/cloud/vm/UserVmManagerImpl.java
+++ b/server/src/com/cloud/vm/UserVmManagerImpl.java
@@ -2909,6 +2909,12 @@ public class UserVmManagerImpl extends ManagerBase implements UserVmManager, Vir
                         .getLimitCpuUse(), owner.getDomainId(), owner.getId(), offering.getId(), userData, hostName, diskOfferingId);
                 vm.setUuid(uuidName);
                 vm.setDynamicallyScalable(template.isDynamicallyScalable());
+
+                Map<String, String> details = template.getDetails();
+                if (details != null && !details.isEmpty()) {
+                    vm.details.putAll(details);
+                }
+
                 if (sshPublicKey != null) {
                     vm.setDetail("SSH.PublicKey", sshPublicKey);
                 }
@@ -2982,11 +2988,6 @@ public class UserVmManagerImpl extends ManagerBase implements UserVmManager, Vir
                     }
                 }
 
-                Map<String, String> details = template.getDetails();
-                if (details != null && !details.isEmpty()) {
-                    vm.details.putAll(details);
-                }
-
                 _vmDao.persist(vm);
                 if (customParameters != null && customParameters.size() > 0) {
                     for (String key : customParameters.keySet()) {