diff --git a/app/models/service_retire_task.rb b/app/models/service_retire_task.rb
index 5081056122aa..38f7a1c634ec 100644
--- a/app/models/service_retire_task.rb
+++ b/app/models/service_retire_task.rb
@@ -32,7 +32,11 @@ def after_request_task_create
 
   def create_retire_subtasks(parent_service, parent_task)
     parent_service.service_resources.collect do |svc_rsc|
-      next unless svc_rsc.resource.try(:retireable?)
+      next unless svc_rsc.resource.present? && svc_rsc.resource.try(:retireable?)
+      next if svc_rsc.resource_type == "ServiceTemplate" &&
+              !self.class.include_service_template?(self,
+                                                    svc_rsc.resource.id,
+                                                    parent_service)
       # TODO: the next line deals with the filtering for provisioning
       # (https://github.com/ManageIQ/manageiq/blob/3921e87915b5a69937b9d4a70bb24ab71b97c165/app/models/service_template/filter.rb#L5)
       # which should be extended to retirement as part of later work
diff --git a/spec/models/service_retire_task_spec.rb b/spec/models/service_retire_task_spec.rb
index b760f49ad98d..692585dc7caa 100644
--- a/spec/models/service_retire_task_spec.rb
+++ b/spec/models/service_retire_task_spec.rb
@@ -85,6 +85,7 @@
         service.service_resources << FactoryGirl.create(:service_resource, :resource_type => "VmOrTemplate", :service_id => service_c1.id, :resource_id => vm.id)
         service.service_resources << FactoryGirl.create(:service_resource, :resource_type => "VmOrTemplate", :service_id => service_c1.id, :resource_id => vm1.id)
         service.service_resources << FactoryGirl.create(:service_resource, :resource_type => "Service", :service_id => service_c1.id, :resource_id => service_c1.id)
+        service.service_resources << FactoryGirl.create(:service_resource, :resource_type => "ServiceTemplate", :service_id => service_c1.id, :resource_id => service_c1.id)
 
         @service_retire_task.after_request_task_create
         expect(VmRetireTask.count).to eq(2)
@@ -92,6 +93,24 @@
         expect(ServiceRetireTask.count).to eq(1)
         expect(ServiceRetireRequest.count).to eq(1)
       end
+
+       it "doesn't creates subtask for ServiceTemplates" do
+        @service_retire_task = FactoryGirl.create(:service_retire_task, :source => service, :miq_request_task_id => nil, :miq_request_id => @miq_request.id, :options => {:src_ids => [service.id] })
+        service.service_resources << FactoryGirl.create(:service_resource, :resource_type => "ServiceTemplate", :service_id => service_c1.id, :resource_id => service_c1.id)
+
+        @service_retire_task.after_request_task_create
+        expect(ServiceRetireTask.count).to eq(1)
+        expect(ServiceRetireRequest.count).to eq(1)
+      end
+
+      it "doesn't creates subtask for service resources whose resources are nil" do
+        @service_retire_task = FactoryGirl.create(:service_retire_task, :source => service, :miq_request_task_id => nil, :miq_request_id => @miq_request.id, :options => {:src_ids => [service.id] })
+        service.service_resources << FactoryGirl.create(:service_resource, :resource_type => "ServiceTemplate", :service_id => service_c1.id, :resource => nil)
+
+        @service_retire_task.after_request_task_create
+        expect(ServiceRetireTask.count).to eq(1)
+        expect(ServiceRetireRequest.count).to eq(1)
+      end
     end
   end