diff --git a/fuel_agent/tests/test_lvm_utils.py b/fuel_agent/tests/test_lvm_utils.py
index d33a7be..b1b16b7 100644
--- a/fuel_agent/tests/test_lvm_utils.py
+++ b/fuel_agent/tests/test_lvm_utils.py
@@ -335,10 +335,24 @@ class TestLvmUtils(test_base.BaseTestCase):
                                         mock_vgdisplay):
         mock_vgdisplay.return_value = [{'name': 'vgname', 'free': 2000},
                                        {'name': 'some'}]
-        mock_lvdisplay.return_value = [{'name': 'lvname'}]
+        mock_lvdisplay.return_value = [{'name': 'lvname', 'vg': 'vgname'}]
         self.assertRaises(errors.LVAlreadyExistsError, lu.lvcreate, 'vgname',
                           'lvname', 1000)
 
+    @mock.patch.object(lu, 'vgdisplay')
+    @mock.patch.object(lu, 'lvdisplay')
+    @mock.patch.object(utils, 'execute')
+    def test_lvcreate_lv_name_collision(self, mock_exec, mock_lvdisplay,
+                                        mock_vgdisplay):
+        # lv lvname already exists in another pv
+        mock_vgdisplay.return_value = [{'name': 'vgname', 'free': 2000},
+                                       {'name': 'some', 'free': 2000}]
+        mock_lvdisplay.return_value = [{'name': 'lvname', 'vg': 'some'}]
+        lu.lvcreate('vgname', 'lvname', 1000)
+        mock_exec.assert_called_once_with('lvcreate', '-L', '1000m', '-n',
+                                          'lvname', 'vgname',
+                                          check_exit_code=[0])
+
     @mock.patch.object(utils, 'execute')
     def test_lvdisplay(self, mock_exec):
         mock_exec.return_value = [
diff --git a/fuel_agent/utils/lvm_utils.py b/fuel_agent/utils/lvm_utils.py
index 6d1633e..8dc2a29 100644
--- a/fuel_agent/utils/lvm_utils.py
+++ b/fuel_agent/utils/lvm_utils.py
@@ -208,7 +208,8 @@ def lvcreate(vgname, lvname, size):
             'Error while creating lv: vg %s has only %s m of free space, '
             'but at least %s m is needed' % (vgname, vg[0]['free'], size))
     # check if lv already exists
-    if filter(lambda x: x['name'] == lvname, lvdisplay()):
+    if filter(lambda x: x['name'] == lvname and x['vg'] == vgname,
+              lvdisplay()):
         raise errors.LVAlreadyExistsError(
             'Error while creating lv: lv %s already exists' % lvname)
     utils.execute('lvcreate', '-L', '%sm' % size, '-n', lvname,