diff --git a/changelogs/fragments/58737-vmware_guest-fix_clone_guest.yml b/changelogs/fragments/58737-vmware_guest-fix_clone_guest.yml
new file mode 100644
index 0000000000..f34265c25b
--- /dev/null
+++ b/changelogs/fragments/58737-vmware_guest-fix_clone_guest.yml
@@ -0,0 +1,2 @@
+bugfixes:
+  - Fixed disk already exists issue while cloning guest in vmware_guest module (https://github.com/ansible/ansible/issues/56861).
diff --git a/lib/ansible/modules/cloud/vmware/vmware_guest.py b/lib/ansible/modules/cloud/vmware/vmware_guest.py
index 6fcb5541bd..bf092837ec 100644
--- a/lib/ansible/modules/cloud/vmware/vmware_guest.py
+++ b/lib/ansible/modules/cloud/vmware/vmware_guest.py
@@ -1841,7 +1841,9 @@ class PyVmomiHelper(PyVmomi):
                 continue
             elif vm_obj is None or self.params['template']:
                 # We are creating new VM or from Template
-                diskspec.fileOperation = vim.vm.device.VirtualDeviceSpec.FileOperation.create
+                # Only create virtual device if not backed by vmdk in original template
+                if diskspec.device.backing.fileName == '':
+                    diskspec.fileOperation = vim.vm.device.VirtualDeviceSpec.FileOperation.create
 
             # which datastore?
             if expected_disk_spec.get('datastore'):
diff --git a/test/integration/targets/vmware_guest/tasks/clone_resize_disks.yml b/test/integration/targets/vmware_guest/tasks/clone_resize_disks.yml
new file mode 100644
index 0000000000..a366266c1f
--- /dev/null
+++ b/test/integration/targets/vmware_guest/tasks/clone_resize_disks.yml
@@ -0,0 +1,113 @@
+# Test code for the vmware_guest module.
+# Copyright: (c) 2019, Noe Gonzalez <noe.a.gonzalez@gmail.com>
+# GNU General Public License v3.0+ (see COPYING or https://www.gnu.org/licenses/gpl-3.0.txt)
+
+- name: Wait for Flask controller to come up online
+  wait_for:
+    host: "{{ vcsim }}"
+    port: 5000
+    state: started
+
+- name: kill vcsim
+  uri:
+    url: http://{{ vcsim }}:5000/killall
+- name: start vcsim with no folders
+  uri:
+    url: http://{{ vcsim }}:5000/spawn?datacenter=1&cluster=1&folder=0
+  register: vcsim_instance
+
+- name: Wait for Flask controller to come up online
+  wait_for:
+    host: "{{ vcsim }}"
+    port: 443
+    state: started
+
+- name: get a list of VMS from vcsim
+  uri:
+    url: http://{{ vcsim }}:5000/govc_find?filter=VM
+  register: vmlist
+
+- name: get a list of clusters from vcsim
+  uri:
+    url: http://{{ vcsim }}:5000/govc_find?filter=CCR
+  register: clusters
+
+- name: get a list of clusters from vcsim
+  uri:
+    url: http://{{ vcsim }}:5000/govc_find?filter=DC
+  register: datacenters
+
+- debug: var=vcsim_instance
+- debug: var=vmlist
+
+- name: create new VM
+  vmware_guest:
+    validate_certs: False
+    hostname: "{{ vcsim }}"
+    username: "{{ vcsim_instance['json']['username'] }}"
+    password: "{{ vcsim_instance['json']['password'] }}"
+    name: clone_resize_disks_original
+    datacenter: "{{ datacenters['json'][0]|basename }}"
+    cluster: "{{ clusters['json'][0]|basename }}"
+    folder: "/{{ (clusters['json'][0]|basename).split('_')[0] }}/vm"
+    hardware:
+      num_cpus: 1
+      memory_mb: 128
+    guest_id: centos7_64Guest
+    disk:
+      - size_gb: 1
+        type: thin
+        autoselect_datastore: True
+    state: poweredoff
+
+- name: convert to VM template
+  vmware_guest:
+    validate_certs: False
+    hostname: "{{ vcsim }}"
+    username: "{{ vcsim_instance['json']['username'] }}"
+    password: "{{ vcsim_instance['json']['password'] }}"
+    name: clone_resize_disks_original
+    datacenter: "{{ datacenters['json'][0]|basename }}"
+    cluster: "{{ clusters['json'][0]|basename }}"
+    folder: "/{{ (clusters['json'][0]|basename).split('_')[0] }}/vm"
+    is_template: True
+
+- name: clone template and modify disks
+  vmware_guest:
+    validate_certs: False
+    hostname: "{{ vcsim }}"
+    username: "{{ vcsim_instance['json']['username'] }}"
+    password: "{{ vcsim_instance['json']['password'] }}"
+    name: clone_resize_disks_clone
+    datacenter: "{{ datacenters['json'][0]|basename }}"
+    cluster: "{{ clusters['json'][0]|basename }}"
+    folder: "/{{ (clusters['json'][0]|basename).split('_')[0] }}/vm"
+    disk:
+      - size_gb: 2
+        type: thin
+        autoselect_datastore: True
+      - size_gb: 3
+        type: thin
+        autoselect_datastore: True
+    template: clone_resize_disks_original
+    state: poweredoff
+  register: l_clone_template_modify_disks
+
+- assert:
+    that:
+      - l_clone_template_modify_disks.changed | bool
+
+- name: delete VM clone & original template
+  vmware_guest:
+    validate_certs: False
+    hostname: "{{ vcsim }}"
+    username: "{{ vcsim_instance['json']['username'] }}"
+    password: "{{ vcsim_instance['json']['password'] }}"
+    name: "{{ item }}"
+    datacenter: "{{ datacenters['json'][0]|basename }}"
+    cluster: "{{ clusters['json'][0]|basename }}"
+    folder: "/{{ (clusters['json'][0]|basename).split('_')[0] }}/vm"
+    state: absent
+  with_items:
+    - clone_resize_disks_original
+    - clone_resize_disks_clone
diff --git a/test/integration/targets/vmware_guest/tasks/main.yml b/test/integration/targets/vmware_guest/tasks/main.yml
index e2e54f5963..7c26aaa592 100644
--- a/test/integration/targets/vmware_guest/tasks/main.yml
+++ b/test/integration/targets/vmware_guest/tasks/main.yml
@@ -28,5 +28,6 @@
 - include: linked_clone_d1_c1_f0.yml
 - include: boot_firmware_d1_c1_f0.yml
 - include: clone_with_convert.yml
+- include: clone_resize_disks.yml
 #- include: max_connections.yml
-- include: mem_reservation.yml
\ No newline at end of file
+- include: mem_reservation.yml