diff --git a/qubesadmin/tools/qvm_template_postprocess.py b/qubesadmin/tools/qvm_template_postprocess.py
index f0af0dc..7c1100d 100644
--- a/qubesadmin/tools/qvm_template_postprocess.py
+++ b/qubesadmin/tools/qvm_template_postprocess.py
@@ -216,6 +216,9 @@ def post_install(args):
     if not args.skip_start:
         yield from call_postinstall_service(vm)
 
+    if not args.keep_source:
+        shutil.rmtree(args.dir)
+
     return 0