diff --git a/plugins/storage/sharedfs/storagevm/src/main/java/org/apache/cloudstack/storage/sharedfs/lifecycle/StorageVmSharedFSLifeCycle.java b/plugins/storage/sharedfs/storagevm/src/main/java/org/apache/cloudstack/storage/sharedfs/lifecycle/StorageVmSharedFSLifeCycle.java
index ed799e9030be..96c24c1c0ed1 100644
--- a/plugins/storage/sharedfs/storagevm/src/main/java/org/apache/cloudstack/storage/sharedfs/lifecycle/StorageVmSharedFSLifeCycle.java
+++ b/plugins/storage/sharedfs/storagevm/src/main/java/org/apache/cloudstack/storage/sharedfs/lifecycle/StorageVmSharedFSLifeCycle.java
@@ -180,7 +180,10 @@ private UserVm deploySharedFSVM(Long zoneId, Account owner, List<Long> networkId
         for (final Iterator<Hypervisor.HypervisorType> iter = hypervisors.iterator(); iter.hasNext();) {
             final Hypervisor.HypervisorType hypervisor = iter.next();
             VMTemplateVO template = templateDao.findSystemVMReadyTemplate(zoneId, hypervisor, preferredArchitecture);
-            if (template == null && !iter.hasNext()) {
+            if (template == null) {
+                if (iter.hasNext()) {
+                    continue;
+                }
                 throw new CloudRuntimeException(String.format("Unable to find the systemvm template for %s or it was not downloaded in %s.", hypervisor.toString(), zone.toString()));
             }
 
diff --git a/plugins/storage/sharedfs/storagevm/src/test/java/org/apache/cloudstack/storage/sharedfs/lifecycle/StorageVmSharedFSLifeCycleTest.java b/plugins/storage/sharedfs/storagevm/src/test/java/org/apache/cloudstack/storage/sharedfs/lifecycle/StorageVmSharedFSLifeCycleTest.java
index 82d055b9a359..ff0a023e9b6d 100644
--- a/plugins/storage/sharedfs/storagevm/src/test/java/org/apache/cloudstack/storage/sharedfs/lifecycle/StorageVmSharedFSLifeCycleTest.java
+++ b/plugins/storage/sharedfs/storagevm/src/test/java/org/apache/cloudstack/storage/sharedfs/lifecycle/StorageVmSharedFSLifeCycleTest.java
@@ -53,6 +53,7 @@
 import com.cloud.vm.dao.NicDao;
 import com.cloud.vm.dao.UserVmDao;
 import java.io.IOException;
+import java.util.ArrayList;
 import java.util.List;
 import java.util.Optional;
 import org.apache.cloudstack.api.ApiCommandResourceType;
@@ -305,6 +306,23 @@ public void testDeploySharedFSTemplateNotFound() throws ResourceUnavailableExcep
         lifeCycle.deploySharedFS(sharedFS, s_networkId, s_diskOfferingId, s_size, s_minIops, s_maxIops);
     }
 
+    @Test(expected = CloudRuntimeException.class)
+    public void testDeploySharedFSTemplateNotFoundWithMultipleHypervisors() throws ResourceUnavailableException, InsufficientCapacityException, ResourceAllocationException, IOException, OperationTimedoutException {
+        SharedFS sharedFS = mock(SharedFS.class);
+        when(sharedFS.getDataCenterId()).thenReturn(s_zoneId);
+        when(sharedFS.getName()).thenReturn(s_name);
+        when(sharedFS.getServiceOfferingId()).thenReturn(s_serviceOfferingId);
+        when(sharedFS.getFsType()).thenReturn(SharedFS.FileSystemType.valueOf(s_fsFormat));
+        when(sharedFS.getAccountId()).thenReturn(s_ownerId);
+
+        when(accountMgr.getActiveAccountById(s_ownerId)).thenReturn(null);
+        DataCenterVO zone = mock(DataCenterVO.class);
+        when(dataCenterDao.findById(s_zoneId)).thenReturn(zone);
+        when(resourceMgr.getSupportedHypervisorTypes(s_zoneId, false, null)).thenReturn(new ArrayList<>(List.of(Hypervisor.HypervisorType.KVM, Hypervisor.HypervisorType.VMware)));
+
+        lifeCycle.deploySharedFS(sharedFS, s_networkId, s_diskOfferingId, s_size, s_minIops, s_maxIops);
+    }
+
     @Test
     public void testDeleteSharedFS() throws ResourceUnavailableException {
         SharedFS sharedFS = mock(SharedFS.class);