diff --git a/conf/vmware.yaml.template b/conf/vmware.yaml.template
index 3045e383fef..40cc70d1f20 100644
--- a/conf/vmware.yaml.template
+++ b/conf/vmware.yaml.template
@@ -21,6 +21,8 @@ VMWARE:
   CLUSTER:
   # DATASTORE: vmware datastore
   DATASTORE:
+  # datastore_cluster: storage datastore cluster
+  DATASTORE_CLUSTER:
   # VM_NAME: Name of VM to power On/Off & delete
   VM_NAME:
   # VMware Compute resource image data
diff --git a/tests/foreman/api/test_computeresource_vmware.py b/tests/foreman/api/test_computeresource_vmware.py
new file mode 100644
index 00000000000..f4498ccf89f
--- /dev/null
+++ b/tests/foreman/api/test_computeresource_vmware.py
@@ -0,0 +1,115 @@
+"""
+:Requirement: Computeresource Vmware
+
+:CaseComponent: ComputeResources-VMWare
+
+:Team: Rocket
+
+:CaseImportance: High
+
+:CaseAutomation: Automated
+
+"""
+
+from fauxfactory import gen_string
+import pytest
+from wait_for import wait_for
+
+from robottelo.config import settings
+
+
+@pytest.mark.e2e
+@pytest.mark.on_premises_provisioning
+@pytest.mark.parametrize('setting_update', ['destroy_vm_on_host_delete=True'], indirect=True)
+@pytest.mark.parametrize('vmware', ['vmware7', 'vmware8'], indirect=True)
+@pytest.mark.parametrize('pxe_loader', ['bios', 'uefi'], indirect=True)
+@pytest.mark.parametrize('provision_method', ['build', 'bootdisk'])
+@pytest.mark.rhel_ver_match('[8]')
+def test_positive_provision_end_to_end(
+    request,
+    setting_update,
+    module_provisioning_rhel_content,
+    module_provisioning_sat,
+    module_sca_manifest_org,
+    module_location,
+    pxe_loader,
+    module_vmware_cr,
+    module_vmware_hostgroup,
+    provision_method,
+    vmware,
+    vmwareclient,
+):
+    """Provision a host on vmware compute resource with
+    the help of hostgroup.
+
+    :id: 6985e7c0-d258-4fc4-833b-e680804b55e8
+
+    :steps:
+
+        1. Configure provisioning setup.
+        2. Create VMware CR
+        3. Configure host group setup.
+        4. Provision a host on VMware
+        5. Verify created host on VMware with wrapanapi
+
+    :expectedresults: Host is provisioned succesfully with hostgroup
+
+    :CaseImportance: Critical
+
+    :Verifies: SAT-23417
+
+    :customerscenario: true
+
+    :BZ: 2186114
+    """
+    sat = module_provisioning_sat.sat
+    name = gen_string('alpha').lower()
+    host = sat.api.Host(
+        hostgroup=module_vmware_hostgroup,
+        organization=module_sca_manifest_org,
+        location=module_location,
+        name=name,
+        operatingsystem=module_provisioning_rhel_content.os,
+        subnet=module_provisioning_sat.subnet,
+        compute_attributes={
+            'path': '/Datacenters/SatQE-Datacenter/vm/',
+            'cpus': 2,
+            'memory_mb': 6000,
+            'firmware': 'bios' if pxe_loader.vm_firmware == 'bios' else 'efi',
+            'cluster': f'{settings.vmware.cluster}',
+            'start': '1',
+            'guest_id': 'rhel8_64Guest',
+            'volumes_attributes': {
+                '0': {
+                    'size_gb': 10,
+                    'thin': '1',
+                    'storage_pod': f'{settings.vmware.datastore_cluster}',
+                },
+            },
+        },
+        interfaces_attributes={
+            '0': {
+                'type': 'interface',
+                'primary': True,
+                'managed': True,
+                'compute_attributes': {
+                    'model': 'VirtualVmxnet3',
+                    'network': f'VLAN {settings.provisioning.vlan_id}',
+                },
+            }
+        },
+        provision_method=provision_method,
+        build=True,
+    ).create(create_missing=False)
+
+    request.addfinalizer(lambda: sat.provisioning_cleanup(host.name))
+    assert host.name == f'{name}.{module_provisioning_sat.domain.name}'
+    # check if vm is created on vmware
+    assert vmwareclient.does_vm_exist(host.name) is True
+    # check the build status
+    wait_for(
+        lambda: host.read().build_status_label != 'Pending installation',
+        timeout=1500,
+        delay=10,
+    )
+    assert host.read().build_status_label == 'Installed'