diff --git a/engine/storage/image/src/org/apache/cloudstack/storage/image/TemplateServiceImpl.java b/engine/storage/image/src/org/apache/cloudstack/storage/image/TemplateServiceImpl.java
index 2c829141a1e..a8dec0988f1 100644
--- a/engine/storage/image/src/org/apache/cloudstack/storage/image/TemplateServiceImpl.java
+++ b/engine/storage/image/src/org/apache/cloudstack/storage/image/TemplateServiceImpl.java
@@ -75,6 +75,7 @@ import com.cloud.dc.dao.DataCenterDao;
 import com.cloud.exception.ResourceAllocationException;
 import com.cloud.hypervisor.Hypervisor.HypervisorType;
 import com.cloud.storage.DataStoreRole;
+import com.cloud.storage.Storage.ImageFormat;
 import com.cloud.storage.Storage.TemplateType;
 import com.cloud.storage.StoragePool;
 import com.cloud.storage.VMTemplateStorageResourceAssoc;
@@ -721,6 +722,13 @@ public class TemplateServiceImpl implements TemplateService {
 
     @Override
     public AsyncCallFuture<TemplateApiResult> copyTemplate(TemplateInfo srcTemplate, DataStore destStore) {
+        // for vmware template, we need to check if ova packing is needed, since template created from snapshot does not have .ova file
+        // we invoke createEntityExtractURL to trigger ova packing. Ideally, we can directly use extractURL to pass to following createTemplate. 
+        // Need to understand what is the background to use two different urls for copy and extract.
+        if (srcTemplate.getFormat() == ImageFormat.OVA){
+            ImageStoreEntity tmpltStore = (ImageStoreEntity)srcTemplate.getDataStore();
+            tmpltStore.createEntityExtractUrl(srcTemplate.getInstallPath(), srcTemplate.getFormat(), srcTemplate);
+        }
         // generate a URL from source template ssvm to download to destination data store
         String url = generateCopyUrl(srcTemplate);
         if (url == null) {