diff --git a/newappvmdlg.ui b/newappvmdlg.ui
index 5a928cc..c2f071a 100644
--- a/newappvmdlg.ui
+++ b/newappvmdlg.ui
@@ -6,8 +6,8 @@
    <rect>
     <x>0</x>
     <y>0</y>
-    <width>500</width>
-    <height>200</height>
+    <width>496</width>
+    <height>215</height>
    </rect>
   </property>
   <property name="windowTitle">
@@ -98,18 +98,28 @@
        </property>
       </widget>
      </item>
+     <item row="3" column="3">
+      <widget class="QRadioButton" name="hvmtpl_radio">
+       <property name="enabled">
+        <bool>false</bool>
+       </property>
+       <property name="text">
+        <string>HVM template</string>
+       </property>
+      </widget>
+     </item>
+     <item row="3" column="0">
+      <widget class="QCheckBox" name="allow_networking">
+       <property name="text">
+        <string>Allow networking</string>
+       </property>
+       <property name="checked">
+        <bool>true</bool>
+       </property>
+      </widget>
+     </item>
     </layout>
    </item>
-   <item>
-    <widget class="QCheckBox" name="allow_networking">
-     <property name="text">
-      <string>Allow networking</string>
-     </property>
-     <property name="checked">
-      <bool>true</bool>
-     </property>
-    </widget>
-   </item>
    <item>
     <widget class="QFrame" name="hvmtemplatewarningbox">
      <property name="frameShape">
@@ -127,7 +137,7 @@
         <x>0</x>
         <y>0</y>
         <width>482</width>
-        <height>30</height>
+        <height>51</height>
        </rect>
       </property>
       <property name="text">
diff --git a/qubesmanager/create_new_vm.py b/qubesmanager/create_new_vm.py
index 6c2332b..fd315d5 100644
--- a/qubesmanager/create_new_vm.py
+++ b/qubesmanager/create_new_vm.py
@@ -59,6 +59,7 @@ class NewVmDlg (QDialog, Ui_NewVMDlg):
             pass
         else: 
             self.hvm_radio.setEnabled(True)
+            self.hvmtpl_radio.setEnabled(True)
 
         self.qvm_collection.lock_db_for_reading()
         self.qvm_collection.load()
@@ -86,6 +87,8 @@ class NewVmDlg (QDialog, Ui_NewVMDlg):
                 return False
             if self.hvm_radio.isChecked():
                 return QubesHVm.is_template_compatible(vm)
+            elif self.hvmtpl_radio.isChecked():
+                return False
             else:
                 return QubesVm.is_template_compatible(vm)
         self.template_vm_list = filter(filter_template, self.qvm_collection.values())
@@ -108,19 +111,28 @@ class NewVmDlg (QDialog, Ui_NewVMDlg):
         if checked:
             self.template_name.setEnabled(True)
             self.allow_networking.setEnabled(False)
+
     def on_proxyvm_radio_toggled(self, checked):
         if checked:
             self.template_name.setEnabled(True)
             self.allow_networking.setEnabled(True)
+
     def on_hvm_radio_toggled(self, checked):
-        if checked:
+        if self.hvm_radio.isChecked() or self.hvmtpl_radio.isChecked():
             self.standalone.setChecked(True)
             self.allow_networking.setEnabled(True)
+            self.standalone.setEnabled(self.hvm_radio.isChecked())
         else:
             self.standalone.setChecked(False)
+            self.standalone.setEnabled(True)
         self.fill_template_list()
+
+    def on_hvmtpl_radio_toggled(self, checked):
+        return self.on_hvm_radio_toggled(checked)
+
     def on_standalone_toggled(self, checked):
-        if checked and self.hvm_radio.isChecked():
+        if checked and (self.hvm_radio.isChecked() or
+                        self.hvmtpl_radio.isChecked()):
             self.template_name.setEnabled(False)
         else:
             self.template_name.setEnabled(True)
@@ -157,8 +169,14 @@ class NewVmDlg (QDialog, Ui_NewVMDlg):
             vmtype = "NetVM"
         elif self.proxyvm_radio.isChecked():
             vmtype = "ProxyVM"
-        else: #hvm_radio.isChecked()
+        elif self.hvm_radio.isChecked():
             vmtype = "HVM"
+        elif self.hvmtpl_radio.isChecked():
+            vmtype = "TemplateHVM"
+        else:
+            QErrorMessage.showMessage(None, "Error creating AppVM!", "Unknown "
+                                                                   "VM type, this is error in Qubes Manager")
+            self.done(0)
 
 
         vmclass = "Qubes" + vmtype.replace("VM", "Vm")