diff --git a/docs/drvesx.html.in b/docs/drvesx.html.in
index da9d2a1ba711051b7a79aebca44ab1628edcd60d..7d323b352169cb0f3a78687784e0e55f93524161 100644
--- a/docs/drvesx.html.in
+++ b/docs/drvesx.html.in
@@ -56,7 +56,7 @@ esx://example-esx.com/?no_verify=1     (ESX over HTTPS, but doesn't verify the s
         URIs have this general form (<code>[...]</code> marks an optional part).
     </p>
 <pre>
-type://[username@]hostname[:port]/[datacenter[/cluster]/server][?extraparameters]
+type://[username@]hostname[:port]/[[folder/...]datacenter/[folder/...][cluster/]server][?extraparameters]
 </pre>
     <p>
         The <code>type://</code> is either <code>esx://</code> or
@@ -79,6 +79,14 @@ type://[username@]hostname[:port]/[datacenter[/cluster]/server][?extraparameters
     </p>
 <pre>
 vpx://example-vcenter.com/dc1/cluster1/example-esx.com
+</pre>
+    <p>
+        Datacenters and clusters can be organized in folders, those have to be
+        specified as well. The driver can handle folders
+        <span class="since">since 0.9.7</span>.
+    </p>
+<pre>
+vpx://example-vcenter.com/folder1/dc1/folder2/example-esx.com
 </pre>
 
 
diff --git a/src/esx/esx_driver.c b/src/esx/esx_driver.c
index 5d0b6dbd51e04aa0ba62648e3d40bb6441e2e701..dfeef8533239a53f3297b8f6a1b43f7916dfbe96 100644
--- a/src/esx/esx_driver.c
+++ b/src/esx/esx_driver.c
@@ -722,7 +722,7 @@ esxConnectToHost(esxPrivate *priv, virConnectAuthPtr auth,
     if (esxVI_Context_Alloc(&priv->host) < 0 ||
         esxVI_Context_Connect(priv->host, url, ipAddress, username, password,
                               priv->parsedUri) < 0 ||
-        esxVI_Context_LookupObjectsByPath(priv->host, priv->parsedUri) < 0) {
+        esxVI_Context_LookupManagedObjects(priv->host) < 0) {
         goto cleanup;
     }
 
@@ -804,8 +804,7 @@ esxConnectToVCenter(esxPrivate *priv, virConnectAuthPtr auth,
     char *url = NULL;
 
     if (hostSystemIpAddress == NULL &&
-        (priv->parsedUri->path_datacenter == NULL ||
-         priv->parsedUri->path_computeResource == NULL)) {
+        (priv->parsedUri->path == NULL || STREQ(priv->parsedUri->path, "/"))) {
         ESX_ERROR(VIR_ERR_INVALID_ARG, "%s",
                   _("Path has to specify the datacenter and compute resource"));
         return -1;
@@ -869,13 +868,13 @@ esxConnectToVCenter(esxPrivate *priv, virConnectAuthPtr auth,
     }
 
     if (hostSystemIpAddress != NULL) {
-        if (esxVI_Context_LookupObjectsByHostSystemIp(priv->vCenter,
-                                                      hostSystemIpAddress) < 0) {
+        if (esxVI_Context_LookupManagedObjectsByHostSystemIp
+              (priv->vCenter, hostSystemIpAddress) < 0) {
             goto cleanup;
         }
     } else {
-        if (esxVI_Context_LookupObjectsByPath(priv->vCenter,
-                                              priv->parsedUri) < 0) {
+        if (esxVI_Context_LookupManagedObjectsByPath(priv->vCenter,
+                                                     priv->parsedUri->path) < 0) {
             goto cleanup;
         }
     }
@@ -894,8 +893,8 @@ esxConnectToVCenter(esxPrivate *priv, virConnectAuthPtr auth,
 
 
 /*
- * URI format: {vpx|esx|gsx}://[<username>@]<hostname>[:<port>]/[<path>][?<query parameter> ...]
- *             <path> = <datacenter>/<computeresource>[/<hostsystem>]
+ * URI format: {vpx|esx|gsx}://[<username>@]<hostname>[:<port>]/[<path>][?<query parameter>...]
+ *             <path> = [<folder>/...]<datacenter>/[<folder>/...]<computeresource>[/<hostsystem>]
  *
  * If no port is specified the default port is set dependent on the scheme and
  * transport parameter:
@@ -909,7 +908,8 @@ esxConnectToVCenter(esxPrivate *priv, virConnectAuthPtr auth,
  * For a vpx:// connection <path> references a host managed by the vCenter.
  * In case the host is part of a cluster then <computeresource> is the cluster
  * name. Otherwise <computeresource> and <hostsystem> are equal and the later
- * can be omitted.
+ * can be omitted. As datacenters and computeresources can be organized in
+ * folders those have to be included in <path>.
  *
  * Optional query parameters:
  * - transport={http|https}
@@ -977,6 +977,12 @@ esxOpen(virConnectPtr conn, virConnectAuthPtr auth,
         return VIR_DRV_OPEN_ERROR;
     }
 
+    if (STRCASENEQ(conn->uri->scheme, "vpx") &&
+        conn->uri->path != NULL && STRNEQ(conn->uri->path, "/")) {
+        VIR_WARN("Ignoring unexpected path '%s' for non-vpx scheme '%s'",
+                 conn->uri->path, conn->uri->scheme);
+    }
+
     /* Require server part */
     if (conn->uri->server == NULL) {
         ESX_ERROR(VIR_ERR_INVALID_ARG, "%s",
@@ -2769,7 +2775,7 @@ esxDomainGetXMLDesc(virDomainPtr domain, unsigned int flags)
                       domain->conn->uri->server, domain->conn->uri->port);
     virBufferURIEncodeString(&buffer, directoryAndFileName);
     virBufferAddLit(&buffer, "?dcPath=");
-    virBufferURIEncodeString(&buffer, priv->primary->datacenter->name);
+    virBufferURIEncodeString(&buffer, priv->primary->datacenterPath);
     virBufferAddLit(&buffer, "&dsName=");
     virBufferURIEncodeString(&buffer, datastoreName);
 
@@ -3237,7 +3243,7 @@ esxDomainDefineXML(virConnectPtr conn, const char *xml)
 
     virBufferURIEncodeString(&buffer, escapedName);
     virBufferAddLit(&buffer, ".vmx?dcPath=");
-    virBufferURIEncodeString(&buffer, priv->primary->datacenter->name);
+    virBufferURIEncodeString(&buffer, priv->primary->datacenterPath);
     virBufferAddLit(&buffer, "&dsName=");
     virBufferURIEncodeString(&buffer, datastoreName);
 
diff --git a/src/esx/esx_util.c b/src/esx/esx_util.c
index c14179d7f1971fee9aa05a28fbe10e79a98df7e4..1925802f490ae551ad2d8270f21cdf3e10daa063 100644
--- a/src/esx/esx_util.c
+++ b/src/esx/esx_util.c
@@ -51,7 +51,6 @@ esxUtil_ParseUri(esxUtil_ParsedUri **parsedUri, xmlURIPtr uri)
     int noVerify;
     int autoAnswer;
     char *tmp;
-    char *saveptr;
 
     if (parsedUri == NULL || *parsedUri != NULL) {
         ESX_VI_ERROR(VIR_ERR_INTERNAL_ERROR, "%s", _("Invalid argument"));
@@ -184,26 +183,13 @@ esxUtil_ParseUri(esxUtil_ParsedUri **parsedUri, xmlURIPtr uri)
         }
     }
 
-    /* Expected format: [/]<datacenter>/<computeresource>[/<hostsystem>] */
     if (uri->path != NULL) {
-        tmp = strdup(uri->path);
+        (*parsedUri)->path = strdup(uri->path);
 
-        if (tmp == NULL) {
+        if ((*parsedUri)->path == NULL) {
             virReportOOMError();
             goto cleanup;
         }
-
-        if (esxVI_String_DeepCopyValue(&(*parsedUri)->path_datacenter,
-                                       strtok_r(tmp, "/", &saveptr)) < 0 ||
-            esxVI_String_DeepCopyValue(&(*parsedUri)->path_computeResource,
-                                       strtok_r(NULL, "/", &saveptr)) < 0 ||
-            esxVI_String_DeepCopyValue(&(*parsedUri)->path_hostSystem,
-                                       strtok_r(NULL, "", &saveptr)) < 0) {
-            VIR_FREE(tmp);
-            goto cleanup;
-        }
-
-        VIR_FREE(tmp);
     }
 
     if ((*parsedUri)->transport == NULL) {
@@ -242,9 +228,7 @@ esxUtil_FreeParsedUri(esxUtil_ParsedUri **parsedUri)
     VIR_FREE((*parsedUri)->transport);
     VIR_FREE((*parsedUri)->vCenter);
     VIR_FREE((*parsedUri)->proxy_hostname);
-    VIR_FREE((*parsedUri)->path_datacenter);
-    VIR_FREE((*parsedUri)->path_computeResource);
-    VIR_FREE((*parsedUri)->path_hostSystem);
+    VIR_FREE((*parsedUri)->path);
 
     VIR_FREE(*parsedUri);
 }
diff --git a/src/esx/esx_util.h b/src/esx/esx_util.h
index 39fdb6db415f4e8ff07a435c299988cd85088912..8d172e10a709c4ede2e28150148936e12440ccf4 100644
--- a/src/esx/esx_util.h
+++ b/src/esx/esx_util.h
@@ -37,9 +37,7 @@ struct _esxUtil_ParsedUri {
     int proxy_type;
     char *proxy_hostname;
     int proxy_port;
-    char *path_datacenter;
-    char *path_computeResource;
-    char *path_hostSystem;
+    char *path;
 };
 
 int esxUtil_ParseUri(esxUtil_ParsedUri **parsedUri, xmlURIPtr uri);
diff --git a/src/esx/esx_vi.c b/src/esx/esx_vi.c
index 86e5739a34080bc17982a915723a5b754bf324be..21892a0119225bae1dd7963f6a863a10911952de 100644
--- a/src/esx/esx_vi.c
+++ b/src/esx/esx_vi.c
@@ -616,8 +616,11 @@ ESX_VI__TEMPLATE__FREE(Context,
     esxVI_UserSession_Free(&item->session);
     VIR_FREE(item->sessionLock);
     esxVI_Datacenter_Free(&item->datacenter);
+    VIR_FREE(item->datacenterPath);
     esxVI_ComputeResource_Free(&item->computeResource);
+    VIR_FREE(item->computeResourcePath);
     esxVI_HostSystem_Free(&item->hostSystem);
+    VIR_FREE(item->hostSystemName);
     esxVI_SelectionSpec_Free(&item->selectSet_folderToChildEntity);
     esxVI_SelectionSpec_Free(&item->selectSet_hostSystemToParent);
     esxVI_SelectionSpec_Free(&item->selectSet_hostSystemToVm);
@@ -789,21 +792,25 @@ esxVI_Context_Connect(esxVI_Context *ctx, const char *url,
 }
 
 int
-esxVI_Context_LookupObjectsByPath(esxVI_Context *ctx,
-                                  esxUtil_ParsedUri *parsedUri)
+esxVI_Context_LookupManagedObjects(esxVI_Context *ctx)
 {
-    char *hostSystemName = NULL;
     /* Lookup Datacenter */
-    if (esxVI_LookupDatacenter(ctx, parsedUri->path_datacenter,
-                               ctx->service->rootFolder, NULL, &ctx->datacenter,
+    if (esxVI_LookupDatacenter(ctx, NULL, ctx->service->rootFolder, NULL,
+                               &ctx->datacenter,
                                esxVI_Occurrence_RequiredItem) < 0) {
         return -1;
     }
 
+    ctx->datacenterPath = strdup(ctx->datacenter->name);
+
+    if (ctx->datacenterPath == NULL) {
+        virReportOOMError();
+        return -1;
+    }
+
     /* Lookup (Cluster)ComputeResource */
-    if (esxVI_LookupComputeResource(ctx, parsedUri->path_computeResource,
-                                    ctx->datacenter->hostFolder, NULL,
-                                    &ctx->computeResource,
+    if (esxVI_LookupComputeResource(ctx, NULL, ctx->datacenter->hostFolder,
+                                    NULL, &ctx->computeResource,
                                     esxVI_Occurrence_RequiredItem) < 0) {
         return -1;
     }
@@ -814,38 +821,240 @@ esxVI_Context_LookupObjectsByPath(esxVI_Context *ctx,
         return -1;
     }
 
+    ctx->computeResourcePath = strdup(ctx->computeResource->name);
+
+    if (ctx->computeResourcePath == NULL) {
+        virReportOOMError();
+        return -1;
+    }
+
     /* Lookup HostSystem */
-    if (parsedUri->path_hostSystem == NULL &&
-        STREQ(ctx->computeResource->_reference->type,
-              "ClusterComputeResource")) {
-        ESX_VI_ERROR(VIR_ERR_INVALID_ARG, "%s",
-                     _("Path has to specify the host system"));
+    if (esxVI_LookupHostSystem(ctx, NULL, ctx->computeResource->_reference,
+                               NULL, &ctx->hostSystem,
+                               esxVI_Occurrence_RequiredItem) < 0) {
         return -1;
     }
 
-    if (parsedUri->path_hostSystem != NULL ||
-        (parsedUri->path_computeResource != NULL &&
-         parsedUri->path_hostSystem == NULL)) {
-        if (parsedUri->path_hostSystem != NULL) {
-            hostSystemName = parsedUri->path_hostSystem;
+    ctx->hostSystemName = strdup(ctx->hostSystem->name);
+
+    if (ctx->hostSystemName == NULL) {
+        virReportOOMError();
+        return -1;
+    }
+
+    return 0;
+}
+
+int
+esxVI_Context_LookupManagedObjectsByPath(esxVI_Context *ctx, const char *path)
+{
+    int result = -1;
+    char *tmp = NULL;
+    char *saveptr = NULL;
+    char *previousItem = NULL;
+    char *item = NULL;
+    virBuffer buffer = VIR_BUFFER_INITIALIZER;
+    esxVI_ManagedObjectReference *root = NULL;
+    esxVI_Folder *folder = NULL;
+
+    tmp = strdup(path);
+
+    if (tmp == NULL) {
+        virReportOOMError();
+        goto cleanup;
+    }
+
+    /* Lookup Datacenter */
+    item = strtok_r(tmp, "/", &saveptr);
+
+    if (item == NULL) {
+        ESX_VI_ERROR(VIR_ERR_INVALID_ARG,
+                     _("Path '%s' does not specify a datacenter"), path);
+        goto cleanup;
+    }
+
+    root = ctx->service->rootFolder;
+
+    while (ctx->datacenter == NULL && item != NULL) {
+        esxVI_Folder_Free(&folder);
+
+        /* Try to lookup item as a folder */
+        if (esxVI_LookupFolder(ctx, item, root, NULL, &folder,
+                               esxVI_Occurrence_OptionalItem) < 0) {
+            goto cleanup;
+        }
+
+        if (folder != NULL) {
+            /* It's a folder, use it as new lookup root */
+            if (root != ctx->service->rootFolder) {
+                esxVI_ManagedObjectReference_Free(&root);
+            }
+
+            root = folder->_reference;
+            folder->_reference = NULL;
+        } else {
+            /* Try to lookup item as a datacenter */
+            if (esxVI_LookupDatacenter(ctx, item, root, NULL, &ctx->datacenter,
+                                       esxVI_Occurrence_OptionalItem) < 0) {
+                goto cleanup;
+            }
+        }
+
+        /* Build datacenter path */
+        if (virBufferUse(&buffer) > 0) {
+            virBufferAddChar(&buffer, '/');
+        }
+
+        virBufferAdd(&buffer, item, -1);
+
+        previousItem = item;
+        item = strtok_r(NULL, "/", &saveptr);
+    }
+
+    if (ctx->datacenter == NULL) {
+        ESX_VI_ERROR(VIR_ERR_INTERNAL_ERROR,
+                     _("Could not find datacenter specified in '%s'"), path);
+        goto cleanup;
+    }
+
+    if (virBufferError(&buffer)) {
+        virReportOOMError();
+        goto cleanup;
+    }
+
+    ctx->datacenterPath = virBufferContentAndReset(&buffer);
+
+    /* Lookup (Cluster)ComputeResource */
+    if (item == NULL) {
+        ESX_VI_ERROR(VIR_ERR_INVALID_ARG,
+                     _("Path '%s' does not specify a compute resource"), path);
+        goto cleanup;
+    }
+
+    if (root != ctx->service->rootFolder) {
+        esxVI_ManagedObjectReference_Free(&root);
+    }
+
+    root = ctx->datacenter->hostFolder;
+
+    while (ctx->computeResource == NULL && item != NULL) {
+        esxVI_Folder_Free(&folder);
+
+        /* Try to lookup item as a folder */
+        if (esxVI_LookupFolder(ctx, item, root, NULL, &folder,
+                               esxVI_Occurrence_OptionalItem) < 0) {
+            goto cleanup;
+        }
+
+        if (folder != NULL) {
+            /* It's a folder, use it as new lookup root */
+            if (root != ctx->datacenter->hostFolder) {
+                esxVI_ManagedObjectReference_Free(&root);
+            }
+
+            root = folder->_reference;
+            folder->_reference = NULL;
         } else {
-            hostSystemName = parsedUri->path_computeResource;
+            /* Try to lookup item as a compute resource */
+            if (esxVI_LookupComputeResource(ctx, item, root, NULL,
+                                            &ctx->computeResource,
+                                            esxVI_Occurrence_OptionalItem) < 0) {
+                goto cleanup;
+            }
+        }
+
+        /* Build compute resource path */
+        if (virBufferUse(&buffer) > 0) {
+            virBufferAddChar(&buffer, '/');
+        }
+
+        virBufferAdd(&buffer, item, -1);
+
+        previousItem = item;
+        item = strtok_r(NULL, "/", &saveptr);
+    }
+
+    if (ctx->computeResource == NULL) {
+        ESX_VI_ERROR(VIR_ERR_INTERNAL_ERROR,
+                     _("Could not find compute resource specified in '%s'"),
+                     path);
+        goto cleanup;
+    }
+
+    if (ctx->computeResource->resourcePool == NULL) {
+        ESX_VI_ERROR(VIR_ERR_INTERNAL_ERROR, "%s",
+                     _("Could not retrieve resource pool"));
+        goto cleanup;
+    }
+
+    if (virBufferError(&buffer)) {
+        virReportOOMError();
+        goto cleanup;
+    }
+
+    ctx->computeResourcePath = virBufferContentAndReset(&buffer);
+
+    /* Lookup HostSystem */
+    if (STREQ(ctx->computeResource->_reference->type,
+              "ClusterComputeResource")) {
+        if (item == NULL) {
+            ESX_VI_ERROR(VIR_ERR_INVALID_ARG,
+                         _("Path '%s' does not specify a host system"), path);
+            goto cleanup;
         }
+
+        /* The path specified a cluster, it has to specify a host system too */
+        previousItem = item;
+        item = strtok_r(NULL, "/", &saveptr);
+    }
+
+    if (item != NULL) {
+        ESX_VI_ERROR(VIR_ERR_INVALID_ARG,
+                     _("Path '%s' ends with an excess item"), path);
+        goto cleanup;
     }
 
-    if (esxVI_LookupHostSystem(ctx, hostSystemName,
+    ctx->hostSystemName = strdup(previousItem);
+
+    if (ctx->hostSystemName == NULL) {
+        virReportOOMError();
+        goto cleanup;
+    }
+
+    if (esxVI_LookupHostSystem(ctx, ctx->hostSystemName,
                                ctx->computeResource->_reference, NULL,
                                &ctx->hostSystem,
-                               esxVI_Occurrence_RequiredItem) < 0) {
-        return -1;
+                               esxVI_Occurrence_OptionalItem) < 0) {
+        goto cleanup;
     }
 
-    return 0;
+    if (ctx->hostSystem == NULL) {
+        ESX_VI_ERROR(VIR_ERR_INTERNAL_ERROR,
+                     _("Could not find host system specified in '%s'"), path);
+        goto cleanup;
+    }
+
+    result = 0;
+
+  cleanup:
+    if (result < 0) {
+        virBufferFreeAndReset(&buffer);
+    }
+
+    if (root != ctx->service->rootFolder &&
+        (ctx->datacenter == NULL || root != ctx->datacenter->hostFolder)) {
+        esxVI_ManagedObjectReference_Free(&root);
+    }
+
+    VIR_FREE(tmp);
+    esxVI_Folder_Free(&folder);
+
+    return result;
 }
 
 int
-esxVI_Context_LookupObjectsByHostSystemIp(esxVI_Context *ctx,
-                                          const char *hostSystemIpAddress)
+esxVI_Context_LookupManagedObjectsByHostSystemIp(esxVI_Context *ctx,
+                                                 const char *hostSystemIpAddress)
 {
     int result = -1;
     esxVI_ManagedObjectReference *managedObjectReference = NULL;
@@ -1491,8 +1700,7 @@ esxVI_BuildSelectSetCollection(esxVI_Context *ctx)
     /* Folder -> childEntity (ManagedEntity) */
     if (esxVI_BuildSelectSet(&ctx->selectSet_folderToChildEntity,
                              "folderToChildEntity",
-                             "Folder", "childEntity",
-                             "folderToChildEntity\0") < 0) {
+                             "Folder", "childEntity", NULL) < 0) {
         return -1;
     }
 
@@ -1689,9 +1897,10 @@ esxVI_LookupObjectContentByType(esxVI_Context *ctx,
     objectSpec->obj = root;
     objectSpec->skip = esxVI_Boolean_False;
 
-    if (STRNEQ(root->type, type)) {
+    if (STRNEQ(root->type, type) || STREQ(root->type, "Folder")) {
         if (STREQ(root->type, "Folder")) {
-            if (STREQ(type, "Datacenter") || STREQ(type, "ComputeResource") ||
+            if (STREQ(type, "Folder") || STREQ(type, "Datacenter") ||
+                STREQ(type, "ComputeResource") ||
                 STREQ(type, "ClusterComputeResource")) {
                 objectSpec->selectSet = ctx->selectSet_folderToChildEntity;
             } else {
diff --git a/src/esx/esx_vi.h b/src/esx/esx_vi.h
index 0b3f889b5ec81e668c010b10584445a230c8752f..78d3986096471547d8ebab57d7b38b1d5af4ef7a 100644
--- a/src/esx/esx_vi.h
+++ b/src/esx/esx_vi.h
@@ -204,8 +204,11 @@ struct _esxVI_Context {
     esxVI_UserSession *session; /* ... except the session ... */
     virMutexPtr sessionLock; /* ... that is protected by this mutex */
     esxVI_Datacenter *datacenter;
+    char *datacenterPath; /* including folders */
     esxVI_ComputeResource *computeResource;
+    char *computeResourcePath; /* including folders */
     esxVI_HostSystem *hostSystem;
+    char *hostSystemName;
     esxVI_SelectionSpec *selectSet_folderToChildEntity;
     esxVI_SelectionSpec *selectSet_hostSystemToParent;
     esxVI_SelectionSpec *selectSet_hostSystemToVm;
@@ -221,10 +224,10 @@ void esxVI_Context_Free(esxVI_Context **ctx);
 int esxVI_Context_Connect(esxVI_Context *ctx, const char *ipAddress,
                           const char *url, const char *username,
                           const char *password, esxUtil_ParsedUri *parsedUri);
-int esxVI_Context_LookupObjectsByPath(esxVI_Context *ctx,
-                                      esxUtil_ParsedUri *parsedUri);
-int esxVI_Context_LookupObjectsByHostSystemIp(esxVI_Context *ctx,
-                                              const char *hostSystemIpAddress);
+int esxVI_Context_LookupManagedObjects(esxVI_Context *ctx);
+int esxVI_Context_LookupManagedObjectsByPath(esxVI_Context *ctx, const char *path);
+int esxVI_Context_LookupManagedObjectsByHostSystemIp(esxVI_Context *ctx,
+                                                     const char *hostSystemIpAddress);
 int esxVI_Context_Execute(esxVI_Context *ctx, const char *methodName,
                           const char *request, esxVI_Response **response,
                           esxVI_Occurrence occurrence);
diff --git a/src/esx/esx_vi_generator.input b/src/esx/esx_vi_generator.input
index 361a6e70458163057b5272787d650a48c8105af1..1a67a8cadb3a10d291a18b2e9683922356b9ce8f 100644
--- a/src/esx/esx_vi_generator.input
+++ b/src/esx/esx_vi_generator.input
@@ -755,6 +755,10 @@ managed object Datacenter            extends ManagedEntity
 end
 
 
+managed object Folder                extends ManagedEntity
+end
+
+
 managed object HostSystem            extends ManagedEntity
     HostConfigManager                        configManager                  r
 end