diff --git a/builder/vmware/common/output_config.go b/builder/vmware/common/output_config.go
index e99919dcb..5cc859a64 100644
--- a/builder/vmware/common/output_config.go
+++ b/builder/vmware/common/output_config.go
@@ -10,13 +10,39 @@ import (
 )
 
 type OutputConfig struct {
-	// This is the path to the directory where the
-	// resulting virtual machine will be created. This may be relative or absolute.
-	// If relative, the path is relative to the working directory when packer
-	// is executed. This directory must not exist or be empty prior to running
-	// the builder. By default this is output-BUILDNAME where "BUILDNAME" is the
-	// name of the build.
+	// This is the path on your local machine (the one running Packer) to the
+	// directory where the resulting virtual machine will be created.
+	// This may be relative or absolute. If relative, the path is relative to
+	// the working directory when packer is executed.
+	//
+	// If you are running a remote esx build, the output_dir is the path on your
+	// local machine (the machine running Packer) to which Packer will export
+	// the vm if you have `"skip_export": false`. If you want to manage the
+	// virtual machine's path on the remote datastore, use `remote_output_dir`.
+	//
+	// This directory must not exist or be empty prior to running
+	// the builder.
+	//
+	// By default this is output-BUILDNAME where "BUILDNAME" is the name of the
+	// build.
 	OutputDir string `mapstructure:"output_directory" required:"false"`
+	// This is the directoy on your remote esx host where you will save your
+	// vm, relative to your remote_datastore.
+	//
+	// This option's default value is your `vm_name`, and the final path of your
+	// vm will be vmfs/volumes/$remote_datastore/$vm_name/$vm_name.vmx where
+	// `$remote_datastore` and `$vm_name` match their corresponding template
+	// options
+	//
+	// For example, setting `"remote_output_directory": "path/to/subdir`
+	// will create a directory `/vmfs/volumes/remote_datastore/path/to/subdir`.
+	//
+	// Packer will not create the remote datastore for you; it must already
+	// exist. However, Packer will create all directories defined in the option
+	// that do not currently exist.
+	//
+	// This option will be ignored unless you are building on a remote esx host.
+	RemoteOutputDir string `mapstructure:"remote_output_directory" required:"false"`
 }
 
 func (c *OutputConfig) Prepare(ctx *interpolate.Context, pc *common.PackerConfig) []error {
diff --git a/builder/vmware/common/remote_driver_mock.go b/builder/vmware/common/remote_driver_mock.go
index 8bcc1f8a8..f20e5e69f 100644
--- a/builder/vmware/common/remote_driver_mock.go
+++ b/builder/vmware/common/remote_driver_mock.go
@@ -33,7 +33,11 @@ type RemoteDriverMock struct {
 	RemovedCachePath string
 	CacheRemoved     bool
 
+	ReturnValDirExists bool
+
 	ReloadVMErr error
+
+	outputDir string
 }
 
 func (d *RemoteDriverMock) UploadISO(path string, checksum string, ui packer.Ui) (string, error) {
@@ -81,3 +85,33 @@ func (d *RemoteDriverMock) RemoveCache(localPath string) error {
 func (d *RemoteDriverMock) ReloadVM() error {
 	return d.ReloadVMErr
 }
+
+// the following functions satisfy the Outputdir interface
+
+func (d *RemoteDriverMock) DirExists() (bool, error) {
+	return d.ReturnValDirExists, nil
+}
+
+func (d *RemoteDriverMock) ListFiles() ([]string, error) {
+	return []string{}, nil
+}
+
+func (d *RemoteDriverMock) MkdirAll() error {
+	return nil
+}
+
+func (d *RemoteDriverMock) Remove(string) error {
+	return nil
+}
+
+func (d *RemoteDriverMock) RemoveAll() error {
+	return nil
+}
+
+func (d *RemoteDriverMock) SetOutputDir(s string) {
+	d.outputDir = s
+}
+
+func (d *RemoteDriverMock) String() string {
+	return d.outputDir
+}
diff --git a/builder/vmware/common/step_output_dir.go b/builder/vmware/common/step_output_dir.go
index b7f45c5e1..f063e1f08 100644
--- a/builder/vmware/common/step_output_dir.go
+++ b/builder/vmware/common/step_output_dir.go
@@ -16,13 +16,62 @@ import (
 type StepOutputDir struct {
 	Force bool
 
+	OutputConfig *OutputConfig
+	VMName       string
+
+	RemoteType string
+
 	success bool
 }
 
-func (s *StepOutputDir) Run(ctx context.Context, state multistep.StateBag) multistep.StepAction {
-	dir := state.Get("dir").(OutputDir)
-	ui := state.Get("ui").(packer.Ui)
+func (s *StepOutputDir) SetOutputAndExportDirs(state multistep.StateBag) OutputDir {
+	driver := state.Get("driver")
 
+	// Hold on to your pants. The output configuration is a little more complex
+	// than you'd expect because of all the moving parts between local and
+	// remote output, and exports, and legacy behavior.
+	var dir OutputDir
+	switch d := driver.(type) {
+	case OutputDir:
+		// The driver fulfils the OutputDir interface so that it can create
+		// output files on the remote instance.
+		dir = d
+	default:
+		// The driver will be running the build and creating the output
+		// directory locally
+		dir = new(LocalOutputDir)
+	}
+
+	// If remote type is esx, we need to track both the output dir on the remote
+	// instance and the output dir locally. exportOutputPath is where we track
+	// the local output dir.
+	exportOutputPath := s.OutputConfig.OutputDir
+
+	if s.RemoteType != "" {
+		if s.OutputConfig.RemoteOutputDir != "" {
+			// User set the remote output dir.
+			s.OutputConfig.OutputDir = s.OutputConfig.RemoteOutputDir
+		} else {
+			// Default output dir to vm name. On remote esx instance, this will
+			// become something like /vmfs/volumes/mydatastore/vmname/vmname.vmx
+			s.OutputConfig.OutputDir = s.VMName
+		}
+	}
+	// Remember, this one's either the output from a local build, or the remote
+	// output from a remote build. Not the local export path for a remote build.
+	dir.SetOutputDir(s.OutputConfig.OutputDir)
+
+	// Set dir in the state for use in file cleanup and artifact
+	state.Put("dir", dir)
+	state.Put("export_output_path", exportOutputPath)
+	return dir
+}
+
+func (s *StepOutputDir) Run(ctx context.Context, state multistep.StateBag) multistep.StepAction {
+	ui := state.Get("ui").(packer.Ui)
+	ui.Say("Configuring output and export directories...")
+
+	dir := s.SetOutputAndExportDirs(state)
 	exists, err := dir.DirExists()
 	if err != nil {
 		state.Put("error", err)
@@ -31,7 +80,7 @@ func (s *StepOutputDir) Run(ctx context.Context, state multistep.StateBag) multi
 
 	if exists {
 		if s.Force {
-			ui.Say("Deleting previous output directory...")
+			ui.Message("Deleting previous output directory...")
 			dir.RemoveAll()
 		} else {
 			state.Put("error", fmt.Errorf(
diff --git a/builder/vmware/common/step_output_dir_test.go b/builder/vmware/common/step_output_dir_test.go
index 3726a9354..51a5d9348 100644
--- a/builder/vmware/common/step_output_dir_test.go
+++ b/builder/vmware/common/step_output_dir_test.go
@@ -9,16 +9,14 @@ import (
 	"github.com/hashicorp/packer/helper/multistep"
 )
 
-func testOutputDir(t *testing.T) *LocalOutputDir {
+func testOutputDir(t *testing.T) string {
 	td, err := ioutil.TempDir("", "packer")
 	if err != nil {
 		t.Fatalf("err: %s", err)
 	}
 	os.RemoveAll(td)
 
-	result := new(LocalOutputDir)
-	result.SetOutputDir(td)
-	return result
+	return td
 }
 
 func TestStepOutputDir_impl(t *testing.T) {
@@ -27,12 +25,20 @@ func TestStepOutputDir_impl(t *testing.T) {
 
 func TestStepOutputDir(t *testing.T) {
 	state := testState(t)
-	step := new(StepOutputDir)
+	driver := new(DriverMock)
+	state.Put("driver", driver)
 
-	dir := testOutputDir(t)
+	td := testOutputDir(t)
+	outconfig := &OutputConfig{
+		OutputDir: td,
+	}
+
+	step := &StepOutputDir{
+		OutputConfig: outconfig,
+		VMName:       "testVM",
+	}
 	// Delete the test output directory when done
-	defer os.RemoveAll(dir.dir)
-	state.Put("dir", dir)
+	defer os.RemoveAll(td)
 
 	// Test the run
 	if action := step.Run(context.Background(), state); action != multistep.ActionContinue {
@@ -41,29 +47,37 @@ func TestStepOutputDir(t *testing.T) {
 	if _, ok := state.GetOk("error"); ok {
 		t.Fatal("should NOT have error")
 	}
-	if _, err := os.Stat(dir.dir); err != nil {
+	if _, err := os.Stat(td); err != nil {
 		t.Fatalf("err: %s", err)
 	}
 
 	// Test the cleanup
 	step.Cleanup(state)
-	if _, err := os.Stat(dir.dir); err != nil {
+	if _, err := os.Stat(td); err != nil {
 		t.Fatalf("err: %s", err)
 	}
 }
 
 func TestStepOutputDir_existsNoForce(t *testing.T) {
 	state := testState(t)
-	step := new(StepOutputDir)
 
-	dir := testOutputDir(t)
-	state.Put("dir", dir)
+	td := testOutputDir(t)
+	outconfig := &OutputConfig{
+		OutputDir: td,
+	}
+
+	step := &StepOutputDir{
+		OutputConfig: outconfig,
+		VMName:       "testVM",
+	}
+	// Delete the test output directory when done
+	defer os.RemoveAll(td)
 
 	// Make sure the dir exists
-	if err := os.MkdirAll(dir.dir, 0755); err != nil {
+	if err := os.MkdirAll(td, 0755); err != nil {
 		t.Fatalf("err: %s", err)
 	}
-	defer os.RemoveAll(dir.dir)
+	defer os.RemoveAll(td)
 
 	// Test the run
 	if action := step.Run(context.Background(), state); action != multistep.ActionHalt {
@@ -75,24 +89,33 @@ func TestStepOutputDir_existsNoForce(t *testing.T) {
 
 	// Test the cleanup
 	step.Cleanup(state)
-	if _, err := os.Stat(dir.dir); err != nil {
+	if _, err := os.Stat(td); err != nil {
 		t.Fatal("should not delete dir")
 	}
 }
 
 func TestStepOutputDir_existsForce(t *testing.T) {
 	state := testState(t)
-	step := new(StepOutputDir)
+
+	td := testOutputDir(t)
+	outconfig := &OutputConfig{
+		OutputDir: td,
+	}
+
+	step := &StepOutputDir{
+		OutputConfig: outconfig,
+		VMName:       "testVM",
+	}
 	step.Force = true
 
-	dir := testOutputDir(t)
-	state.Put("dir", dir)
+	// Delete the test output directory when done
+	defer os.RemoveAll(td)
 
 	// Make sure the dir exists
-	if err := os.MkdirAll(dir.dir, 0755); err != nil {
+	if err := os.MkdirAll(td, 0755); err != nil {
 		t.Fatalf("err: %s", err)
 	}
-	defer os.RemoveAll(dir.dir)
+	defer os.RemoveAll(td)
 
 	// Test the run
 	if action := step.Run(context.Background(), state); action != multistep.ActionContinue {
@@ -101,17 +124,22 @@ func TestStepOutputDir_existsForce(t *testing.T) {
 	if _, ok := state.GetOk("error"); ok {
 		t.Fatal("should NOT have error")
 	}
-	if _, err := os.Stat(dir.dir); err != nil {
+	if _, err := os.Stat(td); err != nil {
 		t.Fatalf("err: %s", err)
 	}
 }
 
 func TestStepOutputDir_cancel(t *testing.T) {
 	state := testState(t)
-	step := new(StepOutputDir)
+	td := testOutputDir(t)
+	outconfig := &OutputConfig{
+		OutputDir: td,
+	}
 
-	dir := testOutputDir(t)
-	state.Put("dir", dir)
+	step := &StepOutputDir{
+		OutputConfig: outconfig,
+		VMName:       "testVM",
+	}
 
 	// Test the run
 	if action := step.Run(context.Background(), state); action != multistep.ActionContinue {
@@ -120,24 +148,29 @@ func TestStepOutputDir_cancel(t *testing.T) {
 	if _, ok := state.GetOk("error"); ok {
 		t.Fatal("should NOT have error")
 	}
-	if _, err := os.Stat(dir.dir); err != nil {
+	if _, err := os.Stat(td); err != nil {
 		t.Fatalf("err: %s", err)
 	}
 
 	// Test cancel/halt
 	state.Put(multistep.StateCancelled, true)
 	step.Cleanup(state)
-	if _, err := os.Stat(dir.dir); err == nil {
+	if _, err := os.Stat(td); err == nil {
 		t.Fatal("directory should not exist")
 	}
 }
 
 func TestStepOutputDir_halt(t *testing.T) {
 	state := testState(t)
-	step := new(StepOutputDir)
+	td := testOutputDir(t)
+	outconfig := &OutputConfig{
+		OutputDir: td,
+	}
 
-	dir := testOutputDir(t)
-	state.Put("dir", dir)
+	step := &StepOutputDir{
+		OutputConfig: outconfig,
+		VMName:       "testVM",
+	}
 
 	// Test the run
 	if action := step.Run(context.Background(), state); action != multistep.ActionContinue {
@@ -146,14 +179,46 @@ func TestStepOutputDir_halt(t *testing.T) {
 	if _, ok := state.GetOk("error"); ok {
 		t.Fatal("should NOT have error")
 	}
-	if _, err := os.Stat(dir.dir); err != nil {
+	if _, err := os.Stat(td); err != nil {
 		t.Fatalf("err: %s", err)
 	}
 
 	// Test cancel/halt
 	state.Put(multistep.StateHalted, true)
 	step.Cleanup(state)
-	if _, err := os.Stat(dir.dir); err == nil {
+	if _, err := os.Stat(td); err == nil {
 		t.Fatal("directory should not exist")
 	}
 }
+
+func TestStepOutputDir_Remote(t *testing.T) {
+	// Tests remote driver
+	state := testState(t)
+	driver := new(RemoteDriverMock)
+	state.Put("driver", driver)
+
+	td := testOutputDir(t)
+	outconfig := &OutputConfig{
+		OutputDir:       td,
+		RemoteOutputDir: "remote_path",
+	}
+
+	step := &StepOutputDir{
+		OutputConfig: outconfig,
+		VMName:       "testVM",
+		RemoteType:   "esx5",
+	}
+	// Delete the test output directory when done
+	defer os.RemoveAll(td)
+
+	// Test the run
+	if action := step.Run(context.Background(), state); action != multistep.ActionContinue {
+		t.Fatalf("bad action: %#v", action)
+	}
+
+	// We don't pre-create the output path for export but we do set it in state.
+	exportOutputPath := state.Get("export_output_path").(string)
+	if exportOutputPath != td {
+		t.Fatalf("err: should have set export_output_path!")
+	}
+}
diff --git a/builder/vmware/common/step_shutdown_test.go b/builder/vmware/common/step_shutdown_test.go
index c59f495e6..952a0914e 100644
--- a/builder/vmware/common/step_shutdown_test.go
+++ b/builder/vmware/common/step_shutdown_test.go
@@ -12,8 +12,20 @@ import (
 	"github.com/hashicorp/packer/packer"
 )
 
+func testLocalOutputDir(t *testing.T) *LocalOutputDir {
+	td, err := ioutil.TempDir("", "packer")
+	if err != nil {
+		t.Fatalf("err: %s", err)
+	}
+	os.RemoveAll(td)
+
+	result := new(LocalOutputDir)
+	result.SetOutputDir(td)
+	return result
+}
+
 func testStepShutdownState(t *testing.T) multistep.StateBag {
-	dir := testOutputDir(t)
+	dir := testLocalOutputDir(t)
 	if err := dir.MkdirAll(); err != nil {
 		t.Fatalf("err: %s", err)
 	}
diff --git a/builder/vmware/iso/builder.go b/builder/vmware/iso/builder.go
index 0a492246d..adf1ff08a 100644
--- a/builder/vmware/iso/builder.go
+++ b/builder/vmware/iso/builder.go
@@ -36,29 +36,10 @@ func (b *Builder) Run(ctx context.Context, ui packer.Ui, hook packer.Hook) (pack
 		return nil, fmt.Errorf("Failed creating VMware driver: %s", err)
 	}
 
-	// Determine the output dir implementation
-	var dir vmwcommon.OutputDir
-	switch d := driver.(type) {
-	case vmwcommon.OutputDir:
-		dir = d
-	default:
-		dir = new(vmwcommon.LocalOutputDir)
-	}
-
-	// The OutputDir will track remote esxi output; exportOutputPath preserves
-	// the path to the output on the machine running Packer.
-	exportOutputPath := b.config.OutputDir
-
-	if b.config.RemoteType != "" {
-		b.config.OutputDir = b.config.VMName
-	}
-	dir.SetOutputDir(b.config.OutputDir)
-
 	// Setup the state bag
 	state := new(multistep.BasicStateBag)
 	state.Put("config", &b.config)
 	state.Put("debug", b.config.PackerDebug)
-	state.Put("dir", dir)
 	state.Put("driver", driver)
 	state.Put("hook", hook)
 	state.Put("ui", ui)
@@ -80,7 +61,10 @@ func (b *Builder) Run(ctx context.Context, ui packer.Ui, hook packer.Hook) (pack
 			Url:         b.config.ISOUrls,
 		},
 		&vmwcommon.StepOutputDir{
-			Force: b.config.PackerForce,
+			Force:        b.config.PackerForce,
+			OutputConfig: &b.config.OutputConfig,
+			RemoteType:   b.config.RemoteType,
+			VMName:       b.config.VMName,
 		},
 		&common.StepCreateFloppy{
 			Files:       b.config.FloppyConfig.FloppyFiles,
@@ -179,7 +163,6 @@ func (b *Builder) Run(ctx context.Context, ui packer.Ui, hook packer.Hook) (pack
 			SkipExport:     b.config.SkipExport,
 			VMName:         b.config.VMName,
 			OVFToolOptions: b.config.OVFToolOptions,
-			OutputDir:      exportOutputPath,
 		},
 	}
 
@@ -202,6 +185,7 @@ func (b *Builder) Run(ctx context.Context, ui packer.Ui, hook packer.Hook) (pack
 	}
 
 	// Compile the artifact list
+	exportOutputPath := state.Get("export_output_path").(string) // set in StepOutputDir
 	return vmwcommon.NewArtifact(b.config.RemoteType, b.config.Format, exportOutputPath,
 		b.config.VMName, b.config.SkipExport, b.config.KeepRegistered, state)
 }
diff --git a/builder/vmware/iso/config.hcl2spec.go b/builder/vmware/iso/config.hcl2spec.go
index bfb5a1b26..394aa9da0 100644
--- a/builder/vmware/iso/config.hcl2spec.go
+++ b/builder/vmware/iso/config.hcl2spec.go
@@ -56,6 +56,7 @@ type FlatConfig struct {
 	Serial                    *string           `mapstructure:"serial" required:"false" cty:"serial" hcl:"serial"`
 	Parallel                  *string           `mapstructure:"parallel" required:"false" cty:"parallel" hcl:"parallel"`
 	OutputDir                 *string           `mapstructure:"output_directory" required:"false" cty:"output_directory" hcl:"output_directory"`
+	RemoteOutputDir           *string           `mapstructure:"remote_output_directory" required:"false" cty:"remote_output_directory" hcl:"remote_output_directory"`
 	Headless                  *bool             `mapstructure:"headless" required:"false" cty:"headless" hcl:"headless"`
 	VNCBindAddress            *string           `mapstructure:"vnc_bind_address" required:"false" cty:"vnc_bind_address" hcl:"vnc_bind_address"`
 	VNCPortMin                *int              `mapstructure:"vnc_port_min" required:"false" cty:"vnc_port_min" hcl:"vnc_port_min"`
@@ -194,6 +195,7 @@ func (*FlatConfig) HCL2Spec() map[string]hcldec.Spec {
 		"serial":                         &hcldec.AttrSpec{Name: "serial", Type: cty.String, Required: false},
 		"parallel":                       &hcldec.AttrSpec{Name: "parallel", Type: cty.String, Required: false},
 		"output_directory":               &hcldec.AttrSpec{Name: "output_directory", Type: cty.String, Required: false},
+		"remote_output_directory":        &hcldec.AttrSpec{Name: "remote_output_directory", Type: cty.String, Required: false},
 		"headless":                       &hcldec.AttrSpec{Name: "headless", Type: cty.Bool, Required: false},
 		"vnc_bind_address":               &hcldec.AttrSpec{Name: "vnc_bind_address", Type: cty.String, Required: false},
 		"vnc_port_min":                   &hcldec.AttrSpec{Name: "vnc_port_min", Type: cty.Number, Required: false},
diff --git a/builder/vmware/vmx/builder.go b/builder/vmware/vmx/builder.go
index ef5a47814..c43c90f63 100644
--- a/builder/vmware/vmx/builder.go
+++ b/builder/vmware/vmx/builder.go
@@ -41,28 +41,9 @@ func (b *Builder) Run(ctx context.Context, ui packer.Ui, hook packer.Hook) (pack
 		return nil, fmt.Errorf("Failed creating VMware driver: %s", err)
 	}
 
-	// Determine the output dir implementation
-	var dir vmwcommon.OutputDir
-	switch d := driver.(type) {
-	case vmwcommon.OutputDir:
-		dir = d
-	default:
-		dir = new(vmwcommon.LocalOutputDir)
-	}
-
-	// The OutputDir will track remote esxi output; exportOutputPath preserves
-	// the path to the output on the machine running Packer.
-	exportOutputPath := b.config.OutputDir
-
-	if b.config.RemoteType != "" {
-		b.config.OutputDir = b.config.VMName
-	}
-	dir.SetOutputDir(b.config.OutputDir)
-
 	// Set up the state.
 	state := new(multistep.BasicStateBag)
 	state.Put("debug", b.config.PackerDebug)
-	state.Put("dir", dir)
 	state.Put("driver", driver)
 	state.Put("hook", hook)
 	state.Put("ui", ui)
@@ -77,7 +58,10 @@ func (b *Builder) Run(ctx context.Context, ui packer.Ui, hook packer.Hook) (pack
 			ToolsUploadFlavor: b.config.ToolsUploadFlavor,
 		},
 		&vmwcommon.StepOutputDir{
-			Force: b.config.PackerForce,
+			Force:        b.config.PackerForce,
+			OutputConfig: &b.config.OutputConfig,
+			RemoteType:   b.config.RemoteType,
+			VMName:       b.config.VMName,
 		},
 		&common.StepCreateFloppy{
 			Files:       b.config.FloppyConfig.FloppyFiles,
@@ -91,8 +75,8 @@ func (b *Builder) Run(ctx context.Context, ui packer.Ui, hook packer.Hook) (pack
 			Checksum:  "none",
 		},
 		&StepCloneVMX{
-			OutputDir: b.config.OutputDir,
 			Path:      b.config.SourcePath,
+			OutputDir: &b.config.OutputDir,
 			VMName:    b.config.VMName,
 			Linked:    b.config.Linked,
 		},
@@ -177,7 +161,6 @@ func (b *Builder) Run(ctx context.Context, ui packer.Ui, hook packer.Hook) (pack
 			SkipExport:     b.config.SkipExport,
 			VMName:         b.config.VMName,
 			OVFToolOptions: b.config.OVFToolOptions,
-			OutputDir:      exportOutputPath,
 		},
 	}
 
@@ -201,6 +184,7 @@ func (b *Builder) Run(ctx context.Context, ui packer.Ui, hook packer.Hook) (pack
 
 	// Artifact
 	log.Printf("Generating artifact...")
+	exportOutputPath := state.Get("export_output_path").(string) // set in StepOutputDir
 	return vmwcommon.NewArtifact(b.config.RemoteType, b.config.Format, exportOutputPath,
 		b.config.VMName, b.config.SkipExport, b.config.KeepRegistered, state)
 }
diff --git a/builder/vmware/vmx/config.hcl2spec.go b/builder/vmware/vmx/config.hcl2spec.go
index 6544a0081..2b817b80f 100644
--- a/builder/vmware/vmx/config.hcl2spec.go
+++ b/builder/vmware/vmx/config.hcl2spec.go
@@ -41,6 +41,7 @@ type FlatConfig struct {
 	RemotePrivateKey          *string           `mapstructure:"remote_private_key_file" required:"false" cty:"remote_private_key_file" hcl:"remote_private_key_file"`
 	SkipValidateCredentials   *bool             `mapstructure:"skip_validate_credentials" required:"false" cty:"skip_validate_credentials" hcl:"skip_validate_credentials"`
 	OutputDir                 *string           `mapstructure:"output_directory" required:"false" cty:"output_directory" hcl:"output_directory"`
+	RemoteOutputDir           *string           `mapstructure:"remote_output_directory" required:"false" cty:"remote_output_directory" hcl:"remote_output_directory"`
 	Headless                  *bool             `mapstructure:"headless" required:"false" cty:"headless" hcl:"headless"`
 	VNCBindAddress            *string           `mapstructure:"vnc_bind_address" required:"false" cty:"vnc_bind_address" hcl:"vnc_bind_address"`
 	VNCPortMin                *int              `mapstructure:"vnc_port_min" required:"false" cty:"vnc_port_min" hcl:"vnc_port_min"`
@@ -156,6 +157,7 @@ func (*FlatConfig) HCL2Spec() map[string]hcldec.Spec {
 		"remote_private_key_file":        &hcldec.AttrSpec{Name: "remote_private_key_file", Type: cty.String, Required: false},
 		"skip_validate_credentials":      &hcldec.AttrSpec{Name: "skip_validate_credentials", Type: cty.Bool, Required: false},
 		"output_directory":               &hcldec.AttrSpec{Name: "output_directory", Type: cty.String, Required: false},
+		"remote_output_directory":        &hcldec.AttrSpec{Name: "remote_output_directory", Type: cty.String, Required: false},
 		"headless":                       &hcldec.AttrSpec{Name: "headless", Type: cty.Bool, Required: false},
 		"vnc_bind_address":               &hcldec.AttrSpec{Name: "vnc_bind_address", Type: cty.String, Required: false},
 		"vnc_port_min":                   &hcldec.AttrSpec{Name: "vnc_port_min", Type: cty.Number, Required: false},
diff --git a/builder/vmware/vmx/step_clone_vmx.go b/builder/vmware/vmx/step_clone_vmx.go
index cb2b4aa2f..b7e65e7d5 100644
--- a/builder/vmware/vmx/step_clone_vmx.go
+++ b/builder/vmware/vmx/step_clone_vmx.go
@@ -16,7 +16,7 @@ import (
 
 // StepCloneVMX takes a VMX file and clones the VM into the output directory.
 type StepCloneVMX struct {
-	OutputDir string
+	OutputDir *string
 	Path      string
 	VMName    string
 	Linked    bool
@@ -33,7 +33,7 @@ func (s *StepCloneVMX) Run(ctx context.Context, state multistep.StateBag) multis
 	ui := state.Get("ui").(packer.Ui)
 
 	// Set the path we want for the new .vmx file and clone
-	vmxPath := filepath.Join(s.OutputDir, s.VMName+".vmx")
+	vmxPath := filepath.Join(*s.OutputDir, s.VMName+".vmx")
 	ui.Say("Cloning source VM...")
 	log.Printf("Cloning from: %s", s.Path)
 	log.Printf("Cloning to: %s", vmxPath)
@@ -96,7 +96,7 @@ func (s *StepCloneVMX) Run(ctx context.Context, state multistep.StateBag) multis
 	var diskFullPaths []string
 	for _, diskFilename := range diskFilenames {
 		log.Printf("Found attached disk with filename: %s", diskFilename)
-		diskFullPaths = append(diskFullPaths, filepath.Join(s.OutputDir, diskFilename))
+		diskFullPaths = append(diskFullPaths, filepath.Join(*s.OutputDir, diskFilename))
 	}
 
 	if len(diskFullPaths) == 0 {
diff --git a/builder/vmware/vmx/step_clone_vmx_test.go b/builder/vmware/vmx/step_clone_vmx_test.go
index d781df687..da2828061 100644
--- a/builder/vmware/vmx/step_clone_vmx_test.go
+++ b/builder/vmware/vmx/step_clone_vmx_test.go
@@ -62,7 +62,7 @@ func TestStepCloneVMX(t *testing.T) {
 
 	state := testState(t)
 	step := new(StepCloneVMX)
-	step.OutputDir = td
+	step.OutputDir = &td
 	step.Path = sourcePath
 	step.VMName = "foo"
 
diff --git a/website/pages/partials/builder/vmware/common/OutputConfig-not-required.mdx b/website/pages/partials/builder/vmware/common/OutputConfig-not-required.mdx
index 6487377d5..8ad2776dc 100644
--- a/website/pages/partials/builder/vmware/common/OutputConfig-not-required.mdx
+++ b/website/pages/partials/builder/vmware/common/OutputConfig-not-required.mdx
@@ -1,8 +1,34 @@
 <!-- Code generated from the comments of the OutputConfig struct in builder/vmware/common/output_config.go; DO NOT EDIT MANUALLY -->
 
-- `output_directory` (string) - This is the path to the directory where the
-  resulting virtual machine will be created. This may be relative or absolute.
-  If relative, the path is relative to the working directory when packer
-  is executed. This directory must not exist or be empty prior to running
-  the builder. By default this is output-BUILDNAME where "BUILDNAME" is the
-  name of the build.
+- `output_directory` (string) - This is the path on your local machine (the one running Packer) to the
+  directory where the resulting virtual machine will be created.
+  This may be relative or absolute. If relative, the path is relative to
+  the working directory when packer is executed.
+  
+  If you are running a remote esx build, the output_dir is the path on your
+  local machine (the machine running Packer) to which Packer will export
+  the vm if you have `"skip_export": false`. If you want to manage the
+  virtual machine's path on the remote datastore, use `remote_output_dir`.
+  
+  This directory must not exist or be empty prior to running
+  the builder.
+  
+  By default this is output-BUILDNAME where "BUILDNAME" is the name of the
+  build.
+
+- `remote_output_directory` (string) - This is the directoy on your remote esx host where you will save your
+  vm, relative to your remote_datastore.
+  
+  This option's default value is your `vm_name`, and the final path of your
+  vm will be vmfs/volumes/$remote_datastore/$vm_name/$vm_name.vmx where
+  `$remote_datastore` and `$vm_name` match their corresponding template
+  options
+  
+  For example, setting `"remote_output_directory": "path/to/subdir`
+  will create a directory `/vmfs/volumes/remote_datastore/path/to/subdir`.
+  
+  Packer will not create the remote datastore for you; it must already
+  exist. However, Packer will create all directories defined in the option
+  that do not currently exist.
+  
+  This option will be ignored unless you are building on a remote esx host.