diff --git a/changelogs/fragments/56125-vmware_vm_facts-use_folder.yml b/changelogs/fragments/56125-vmware_vm_facts-use_folder.yml
new file mode 100644
index 00000000000..d0339f5c526
--- /dev/null
+++ b/changelogs/fragments/56125-vmware_vm_facts-use_folder.yml
@@ -0,0 +1,2 @@
+minor_changes:
+- vmware_vm_facts supports folder as a filter to gather fact for VM (https://github.com/ansible/ansible/issues/56125).
diff --git a/lib/ansible/modules/cloud/vmware/vmware_vm_facts.py b/lib/ansible/modules/cloud/vmware/vmware_vm_facts.py
index 4af7d913123..0241ef0cf2d 100644
--- a/lib/ansible/modules/cloud/vmware/vmware_vm_facts.py
+++ b/lib/ansible/modules/cloud/vmware/vmware_vm_facts.py
@@ -50,6 +50,21 @@ options:
       default: no
       type: bool
       version_added: 2.8
+    folder:
+      description:
+        - Specify a folder location of VMs to gather facts from.
+        - 'Examples:'
+        - '   folder: /ha-datacenter/vm'
+        - '   folder: ha-datacenter/vm'
+        - '   folder: /datacenter1/vm'
+        - '   folder: datacenter1/vm'
+        - '   folder: /datacenter1/vm/folder1'
+        - '   folder: datacenter1/vm/folder1'
+        - '   folder: /folder1/datacenter1/vm'
+        - '   folder: folder1/datacenter1/vm'
+        - '   folder: /folder1/datacenter1/vm/folder2'
+      type: str
+      version_added: 2.9
 extends_documentation_fragment: vmware.documentation
 '''
 
@@ -161,7 +176,14 @@ class VmwareVmFacts(PyVmomi):
         """
         Get all virtual machines and related configurations information
         """
-        virtual_machines = get_all_objs(self.content, [vim.VirtualMachine])
+        folder = self.params.get('folder')
+        folder_obj = None
+        if folder:
+            folder_obj = self.content.searchIndex.FindByInventoryPath(folder)
+            if not folder_obj:
+                self.module.fail_json(msg="Failed to find folder specified by %(folder)s" % self.params)
+
+        virtual_machines = get_all_objs(self.content, [vim.VirtualMachine], folder=folder_obj)
         _virtual_machines = []
 
         for vm in virtual_machines:
@@ -234,6 +256,7 @@ def main():
     argument_spec.update(
         vm_type=dict(type='str', choices=['vm', 'all', 'template'], default='all'),
         show_attribute=dict(type='bool', default='no'),
+        folder=dict(type='str'),
     )
 
     module = AnsibleModule(
diff --git a/test/integration/targets/vmware_vm_facts/tasks/main.yml b/test/integration/targets/vmware_vm_facts/tasks/main.yml
index 80fd76725fb..74430a421ce 100644
--- a/test/integration/targets/vmware_vm_facts/tasks/main.yml
+++ b/test/integration/targets/vmware_vm_facts/tasks/main.yml
@@ -10,8 +10,8 @@
     setup_datastore: true
     setup_virtualmachines: true
 
-
-- name: Get facts about available vms
+- &vm_data
+  name: Get facts about available vms
   vmware_vm_facts:
     validate_certs: false
     hostname: "{{ vcenter_hostname }}"
@@ -21,7 +21,8 @@
 
 - debug: var=vm_facts_0001
 
-- name: Verify if VM facts exist
+- &vm_fact_check
+  name: Verify if VM facts exist
   assert:
     that:
       - "item.esxi_hostname is defined"
@@ -36,17 +37,37 @@
   vars:
     query: "[?guest_name=='DC0_H0_VM0']"
 
+- <<: *vm_data
+  name: Get facts about available vms in check mode
+  check_mode: yes
 
-- name: Get facts about available vms in check mode
-  vmware_vm_facts:
+- <<: *vm_fact_check
+  name: Verify if VM facts exist in check mode
+
+- name: Get folder name from VM
+  vmware_guest_find:
     validate_certs: false
     hostname: "{{ vcenter_hostname }}"
     username: "{{ vcenter_username }}"
     password: "{{ vcenter_password }}"
-  register: vm_facts_0001
-  check_mode: yes
+    name: "DC0_H0_VM0"
+  register: folder_path_info
 
-- name: Verify if VM facts exist in check mode
+- set_fact:
+    folder_path: "{{ folder_path_info.folders[0] }}"
+  when: folder_path_info.folders is defined
+
+- name: Gather facts about VM using folder
+  vmware_vm_facts:
+    hostname: "{{ vcenter_hostname }}"
+    username: "{{ vcenter_username }}"
+    password: "{{ vcenter_password }}"
+    validate_certs: no
+    folder: "{{ folder_path }}"
+  register: vm_facts
+  when: folder_path_info.folders is defined
+
+- name: Check if facts are returned for VM with folder specified
   assert:
     that:
       - "item.esxi_hostname is defined"
@@ -56,8 +77,7 @@
       - "item.power_state is defined"
       - "item.uuid is defined"
       - "item.vm_network is defined"
-      - "item.attributes is defined"
   with_items:
-    - "{{ vm_facts_0001.virtual_machines | json_query(query) }}"
+    - "{{ vm_facts.virtual_machines | json_query(query) }}"
   vars:
     query: "[?guest_name=='DC0_H0_VM0']"