diff --git a/plugins/hypervisors/vmware/src/main/java/com/cloud/hypervisor/vmware/resource/VmwareResource.java b/plugins/hypervisors/vmware/src/main/java/com/cloud/hypervisor/vmware/resource/VmwareResource.java
index 04b9bdca39b5..42b4338b15f0 100644
--- a/plugins/hypervisors/vmware/src/main/java/com/cloud/hypervisor/vmware/resource/VmwareResource.java
+++ b/plugins/hypervisors/vmware/src/main/java/com/cloud/hypervisor/vmware/resource/VmwareResource.java
@@ -5828,11 +5828,19 @@ protected Answer execute(GetVmIpAddressCommand cmd) {
                 if (toolsStatus == VirtualMachineToolsStatus.TOOLS_NOT_INSTALLED) {
                     details += "Vmware tools not installed.";
                 } else {
-                    ip = guestInfo.getIpAddress();
-                    if (ip != null) {
-                        result = true;
+                    var normalizedMac = cmd.getMacAddress().replaceAll("-", ":");
+                    for(var guestInfoNic : guestInfo.getNet()) {
+                        var normalizedNicMac = guestInfoNic.getMacAddress().replaceAll("-", ":");
+                        if (!result && normalizedNicMac.equalsIgnoreCase(normalizedMac)) {
+                            result = true;
+                            details = null;
+                            for (var ipAddr : guestInfoNic.getIpAddress()) {
+                                if(NetUtils.isIpWithInCidrRange(ipAddr, cmd.getVmNetworkCidr())) {
+                                    details = ipAddr;
+                                }
+                            }
+                        }
                     }
-                    details = ip;
                 }
             } else {
                 details += "VM " + vmName + " no longer exists on vSphere host: " + hyperHost.getHyperHostName();
diff --git a/server/src/main/java/com/cloud/vm/UserVmManagerImpl.java b/server/src/main/java/com/cloud/vm/UserVmManagerImpl.java
index bb0297c5abbd..06b9041e510f 100644
--- a/server/src/main/java/com/cloud/vm/UserVmManagerImpl.java
+++ b/server/src/main/java/com/cloud/vm/UserVmManagerImpl.java
@@ -751,7 +751,7 @@ private class VmIpAddrFetchThread extends ManagedContextRunnable {
         String networkCidr;
         String macAddress;
 
-        public VmIpAddrFetchThread(long vmId, long nicId, String instanceName, boolean windows, Long hostId, String networkCidr, String macAddress) {
+        public VmIpAddrFetchThread(long vmId, String vmUuid, long nicId, String instanceName, boolean windows, Long hostId, String networkCidr, String macAddress) {
             this.vmId = vmId;
             this.vmUuid = vmUuid;
             this.nicId = nicId;
@@ -773,8 +773,13 @@ protected void runInContext() {
                 Answer answer = _agentMgr.send(hostId, cmd);
                 if (answer.getResult()) {
                     String vmIp = answer.getDetails();
-
-                    if (NetUtils.isValidIp4(vmIp)) {
+                    if (null == vmIp) {
+                        // we got a valid response and the NIC does not have an IP assigned, as such we will update the database with null
+                        if (nic.getIPv4Address() != null) {
+                            nic.setIPv4Address(null);
+                            _nicDao.update(nicId, nic);
+                        }
+                    } else if (NetUtils.isValidIp4(vmIp)) {
                         // set this vm ip addr in vm nic.
                         if (nic != null) {
                             nic.setIPv4Address(vmIp);
@@ -789,12 +794,8 @@ protected void runInContext() {
                         }
                     }
                 } else {
-                    //previously vm has ip and nic table has ip address. After vm restart or stop/start
-                    //if vm doesnot get the ip then set the ip in nic table to null
-                    if (nic.getIPv4Address() != null) {
-                        nic.setIPv4Address(null);
-                        _nicDao.update(nicId, nic);
-                    }
+                    // since no changes are being done, we should not decrement IP usage
+                    decrementCount = false;
                     if (answer.getDetails() != null) {
                         logger.debug("Failed to get vm ip for Vm [id: {}, uuid: {}, name: {}], details: {}",
                                 vmId, vmUuid, vmName, answer.getDetails());
@@ -2688,7 +2689,8 @@ protected void runInContext() {
                             VirtualMachineProfile vmProfile = new VirtualMachineProfileImpl(userVm);
                             VirtualMachine vm = vmProfile.getVirtualMachine();
                             boolean isWindows = _guestOSCategoryDao.findById(_guestOSDao.findById(vm.getGuestOSId()).getCategoryId()).getName().equalsIgnoreCase("Windows");
-                            _vmIpFetchThreadExecutor.execute(new VmIpAddrFetchThread(vmId, nicId, vmInstance.getInstanceName(),
+
+                            _vmIpFetchThreadExecutor.execute(new VmIpAddrFetchThread(vmId, vmInstance.getUuid(), nicId, vmInstance.getInstanceName(),
                                     isWindows, vm.getHostId(), network.getCidr(), nicVo.getMacAddress()));
 
                         }