diff --git a/changelogs/fragments/6981-proxmox-fix-vm-creation-when-only-name-provided.yml b/changelogs/fragments/6981-proxmox-fix-vm-creation-when-only-name-provided.yml
new file mode 100644
index 0000000000..0dbd617734
--- /dev/null
+++ b/changelogs/fragments/6981-proxmox-fix-vm-creation-when-only-name-provided.yml
@@ -0,0 +1,2 @@
+bugfixes:
+  - proxmox_kvm - when ``name`` option is provided without ``vmid`` and VM with that name already exists then no new VM will be created (https://github.com/ansible-collections/community.general/issues/6911, https://github.com/ansible-collections/community.general/pull/6981).
diff --git a/plugins/modules/proxmox_kvm.py b/plugins/modules/proxmox_kvm.py
index 73ebd8ba0d..817fb8f410 100644
--- a/plugins/modules/proxmox_kvm.py
+++ b/plugins/modules/proxmox_kvm.py
@@ -281,8 +281,9 @@ options:
     type: int
   name:
     description:
-      - Specifies the VM name. Only used on the configuration web interface.
-      - Required only for C(state=present).
+      - Specifies the VM name. Name could be non-unique across the cluster.
+      - Required only for I(state=present).
+      - With I(state=present) if I(vmid) not provided and VM with name exists in the cluster then no changes will be made.
     type: str
   nameservers:
     description:
@@ -1210,10 +1211,14 @@ def main():
     # the cloned vm name or retrieve the next free VM id from ProxmoxAPI.
     if not vmid:
         if state == 'present' and not update and not clone and not delete and not revert:
-            try:
-                vmid = proxmox.get_nextvmid()
-            except Exception:
-                module.fail_json(msg="Can't get the next vmid for VM {0} automatically. Ensure your cluster state is good".format(name))
+            existing_vmid = proxmox.get_vmid(name, ignore_missing=True)
+            if existing_vmid:
+                vmid = existing_vmid
+            else:
+                try:
+                    vmid = proxmox.get_nextvmid()
+                except Exception:
+                    module.fail_json(msg="Can't get the next vmid for VM {0} automatically. Ensure your cluster state is good".format(name))
         else:
             clone_target = clone or name
             vmid = proxmox.get_vmid(clone_target, ignore_missing=True)