diff --git a/changelogs/fragments/93-bugfix-vm_name-required b/changelogs/fragments/93-bugfix-vm_name-required
new file mode 100644
index 00000000..68c42c6d
--- /dev/null
+++ b/changelogs/fragments/93-bugfix-vm_name-required
@@ -0,0 +1,3 @@
+---
+minor_changes:
+  - info - Made vm_name variable required only when state is set to present in content_template module
\ No newline at end of file
diff --git a/plugins/modules/content_template.py b/plugins/modules/content_template.py
index 2ed94d8c..4b811ef5 100644
--- a/plugins/modules/content_template.py
+++ b/plugins/modules/content_template.py
@@ -37,7 +37,7 @@
         description:
         - The name of the VM to be used to create template.
         type: str
-        required: true
+        required: only if state is set to present
     host:
         description:
         - Host onto which the virtual machine template should be placed.
@@ -206,7 +206,7 @@ def main():
     argument_spec.update(
         template=dict(type='str', required=True),
         library=dict(type='str', required=True),
-        vm_name=dict(type='str', required=True),
+        vm_name=dict(type='str', required=(argument_spec['state'] == 'present')),
         host=dict(type='str'),
         cluster=dict(type='str'),
         resource_pool=dict(type='str'),