diff --git a/api/http/handler/customtemplates/customtemplate_create.go b/api/http/handler/customtemplates/customtemplate_create.go
index f79aac9e9..c4e375b43 100644
--- a/api/http/handler/customtemplates/customtemplate_create.go
+++ b/api/http/handler/customtemplates/customtemplate_create.go
@@ -2,6 +2,7 @@ package customtemplates
 
 import (
 	"errors"
+	"log"
 	"net/http"
 	"regexp"
 	"strconv"
@@ -270,6 +271,23 @@ func (handler *Handler) createCustomTemplateFromGitRepository(r *http.Request) (
 		return nil, err
 	}
 
+	entryPath := filesystem.JoinPaths(projectPath, customTemplate.EntryPoint)
+
+	exists, err := handler.FileService.FileExists(entryPath)
+	if err != nil || !exists {
+		if err := handler.FileService.RemoveDirectory(projectPath); err != nil {
+			log.Printf("[WARN] [http,customtemplate,git] [error: %s] [message: unable to remove git repository directory]", err)
+		}
+	}
+
+	if err != nil {
+		return nil, err
+	}
+
+	if !exists {
+		return nil, errors.New("Invalid Compose file, ensure that the Compose file path is correct")
+	}
+
 	return customTemplate, nil
 }