diff --git a/core/src/com/cloud/storage/template/TemplateConstants.java b/core/src/com/cloud/storage/template/TemplateConstants.java
index 25c2d5b3c074..526a77de4394 100644
--- a/core/src/com/cloud/storage/template/TemplateConstants.java
+++ b/core/src/com/cloud/storage/template/TemplateConstants.java
@@ -35,4 +35,5 @@ public final class TemplateConstants {
     public static final String DEFAULT_SSL_CERT_DOMAIN = "realhostip.com";
     public static final String DEFAULT_HTTP_AUTH_USER = "cloud";
 
+    public static final String VMWARE_SYSTEM_VM_TMPLT_PERMISSIONS = "0777";
 }
diff --git a/plugins/hypervisors/vmware/src/com/cloud/hypervisor/vmware/manager/VmwareManagerImpl.java b/plugins/hypervisors/vmware/src/com/cloud/hypervisor/vmware/manager/VmwareManagerImpl.java
index b0f87af648dc..44b77b8f0d88 100644
--- a/plugins/hypervisors/vmware/src/com/cloud/hypervisor/vmware/manager/VmwareManagerImpl.java
+++ b/plugins/hypervisors/vmware/src/com/cloud/hypervisor/vmware/manager/VmwareManagerImpl.java
@@ -113,6 +113,7 @@
 import com.cloud.storage.ImageStoreDetailsUtil;
 import com.cloud.storage.JavaStorageLayer;
 import com.cloud.storage.StorageLayer;
+import com.cloud.storage.template.TemplateConstants;
 import com.cloud.utils.FileUtil;
 import com.cloud.utils.NumbersUtil;
 import com.cloud.utils.Pair;
@@ -205,6 +206,8 @@ public class VmwareManagerImpl extends ManagerBase implements VmwareManager, Vmw
 
     private final ScheduledExecutorService _hostScanScheduler = Executors.newScheduledThreadPool(1, new NamedThreadFactory("Vmware-Host-Scan"));
 
+    private static boolean s_isSystemVmTmpltPermissionSet = false;
+
     public VmwareManagerImpl() {
         _storageMgr = new VmwareStorageManagerImpl(this);
     }
@@ -729,6 +732,22 @@ private String setupMountPoint(String parent) {
         return mountPoint;
     }
 
+    @Override
+    public synchronized void setSystemVmTmpltPermission(String mountPoint) {
+        if (!s_isSystemVmTmpltPermissionSet) {
+            s_logger.debug("Set permissions for " + mountPoint);
+            String result = null;
+            Script script = new Script(true, "chmod", _timeout, s_logger);
+            script.add("-R", TemplateConstants.VMWARE_SYSTEM_VM_TMPLT_PERMISSIONS, mountPoint);
+            result = script.execute();
+            if (result != null) {
+                s_logger.warn("Unable to set permissions for " + mountPoint + " due to " + result);
+            } else {
+                s_isSystemVmTmpltPermissionSet = true;
+            }
+        }
+    }
+
     private void startupCleanup(String parent) {
         s_logger.info("Cleanup mounted NFS mount points used in previous session");
 
diff --git a/plugins/hypervisors/vmware/src/com/cloud/hypervisor/vmware/manager/VmwareStorageMount.java b/plugins/hypervisors/vmware/src/com/cloud/hypervisor/vmware/manager/VmwareStorageMount.java
index fd139e418b63..e5739fb1cf36 100644
--- a/plugins/hypervisors/vmware/src/com/cloud/hypervisor/vmware/manager/VmwareStorageMount.java
+++ b/plugins/hypervisors/vmware/src/com/cloud/hypervisor/vmware/manager/VmwareStorageMount.java
@@ -18,4 +18,6 @@
 
 public interface VmwareStorageMount {
     String getMountPoint(String storageUrl, Integer nfsVersion);
+
+    void setSystemVmTmpltPermission(String mountPoint);
 }
diff --git a/plugins/hypervisors/vmware/src/com/cloud/storage/resource/VmwareSecondaryStorageResourceHandler.java b/plugins/hypervisors/vmware/src/com/cloud/storage/resource/VmwareSecondaryStorageResourceHandler.java
index d0d5964bfa92..310e1161251d 100644
--- a/plugins/hypervisors/vmware/src/com/cloud/storage/resource/VmwareSecondaryStorageResourceHandler.java
+++ b/plugins/hypervisors/vmware/src/com/cloud/storage/resource/VmwareSecondaryStorageResourceHandler.java
@@ -307,4 +307,9 @@ public String getWorkerName(VmwareContext context, Command cmd, int workerSequen
     public String getMountPoint(String storageUrl, Integer nfsVersion) {
         return _resource.getRootDir(storageUrl, nfsVersion);
     }
+
+    @Override
+    public void setSystemVmTmpltPermission(String mountPoint) {
+        // Do nothing as SSVM uses root account.
+    }
 }
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 802657515fd9..6792d11adf49 100644
--- a/plugins/hypervisors/vmware/src/com/cloud/storage/resource/VmwareStorageProcessor.java
+++ b/plugins/hypervisors/vmware/src/com/cloud/storage/resource/VmwareStorageProcessor.java
@@ -105,6 +105,7 @@
 import com.cloud.storage.StorageLayer;
 import com.cloud.storage.Volume;
 import com.cloud.storage.template.OVAProcessor;
+import com.cloud.storage.template.TemplateConstants;
 import com.cloud.utils.Pair;
 import com.cloud.utils.Ternary;
 import com.cloud.utils.exception.CloudRuntimeException;
@@ -190,6 +191,7 @@ private Pair<VirtualMachineMO, Long> copyTemplateFromSecondaryToPrimary(VmwareHy
 
         String secondaryMountPoint = mountService.getMountPoint(secondaryStorageUrl, nfsVersion);
         s_logger.info("Secondary storage mount point: " + secondaryMountPoint);
+        mountService.setSystemVmTmpltPermission(secondaryMountPoint + "/" + TemplateConstants.DEFAULT_TMPLT_ROOT_DIR);
 
         String srcOVAFileName =
                 VmwareStorageLayoutHelper.getTemplateOnSecStorageFilePath(secondaryMountPoint, templatePathAtSecondaryStorage, templateName,