diff --git a/changelogs/fragments/93-bugfix-vm_name-required b/changelogs/fragments/93-bugfix-vm_name-required
index 005ffcac..68c42c6d 100644
--- a/changelogs/fragments/93-bugfix-vm_name-required
+++ b/changelogs/fragments/93-bugfix-vm_name-required
@@ -1,3 +1,3 @@
 ---
 minor_changes:
-  - info - Made vm_name variable not required in content_template module
\ No newline at end of file
+  - 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 8ed9d9bc..4b811ef5 100644
--- a/plugins/modules/content_template.py
+++ b/plugins/modules/content_template.py
@@ -37,6 +37,7 @@
         description:
         - The name of the VM to be used to create template.
         type: str
+        required: only if state is set to present
     host:
         description:
         - Host onto which the virtual machine template should be placed.
@@ -205,7 +206,7 @@ def main():
     argument_spec.update(
         template=dict(type='str', required=True),
         library=dict(type='str', required=True),
-        vm_name=dict(type='str'),
+        vm_name=dict(type='str', required=(argument_spec['state'] == 'present')),
         host=dict(type='str'),
         cluster=dict(type='str'),
         resource_pool=dict(type='str'),