diff --git a/rancher2/schema_machine_config_v2_vsphere.go b/rancher2/schema_machine_config_v2_vsphere.go
index 31f92403..105e5e07 100644
--- a/rancher2/schema_machine_config_v2_vsphere.go
+++ b/rancher2/schema_machine_config_v2_vsphere.go
@@ -6,7 +6,7 @@ import (
 )
 
 const (
-	machineConfigV2VmwarevsphereCreationTypeDefault = "vm"
+	machineConfigV2VmwarevsphereCreationTypeDefault = "template"
 )
 
 var (