diff --git a/qubes/api/admin.py b/qubes/api/admin.py
index 6f8a316d2..43e8ee469 100644
--- a/qubes/api/admin.py
+++ b/qubes/api/admin.py
@@ -1062,8 +1062,7 @@ async def _vm_create(self, vm_type, allow_pool=False,
         if self.arg:
             if hasattr(vm_class, 'template'):
                 if self.arg not in self.app.domains:
-                    raise qubes.api.PermissionDenied(
-                        'Template {} does not exist'.format(self.arg))
+                    raise qubes.exc.QubesVMNotFoundError(self.arg)
                 kwargs['template'] = self.app.domains[self.arg]
             else:
                 raise qubes.exc.QubesValueError(