diff --git a/vmtp/cfg.default.yaml b/vmtp/cfg.default.yaml
index 4ac7043..68f1ec4 100644
--- a/vmtp/cfg.default.yaml
+++ b/vmtp/cfg.default.yaml
@@ -45,6 +45,9 @@ dns_nameservers: [ '8.8.8.8' ]
 #
 # A link to a Ubuntu Server 14.04 qcow2 image can be used here:
 # https://cloud-images.ubuntu.com/trusty/current/trusty-server-cloudimg-amd64-disk1.img
+#
+# To upload the image as a file, prepend it with file:// like below
+# file://<location of the image>
 vm_image_url: ''
 
 # -----------------------------------------------------------------------------
diff --git a/vmtp/compute.py b/vmtp/compute.py
index adf8c6a..5282508 100644
--- a/vmtp/compute.py
+++ b/vmtp/compute.py
@@ -42,10 +42,20 @@ class Compute(object):
         '''
         retry = 0
         try:
-            # Upload the image
-            img = glance_client.images.create(
-                name=str(final_image_name), disk_format="qcow2", container_format="bare",
-                is_public=True, copy_from=image_url)
+            # check image is file/url based.
+            file_prefix = "file://"
+            if image_url.startswith(file_prefix):
+                image_location = image_url.split(file_prefix)[1]
+                with open(image_location) as f_image:
+                    img = glance_client.images.create(
+                        name=str(final_image_name), disk_format="qcow2",
+                        container_format="bare", is_public=True, data=f_image)
+            else:
+                # Upload the image
+                img = glance_client.images.create(
+                    name=str(final_image_name), disk_format="qcow2",
+                    container_format="bare", is_public=True,
+                    copy_from=image_url)
 
             # Check for the image in glance
             while img.status in ['queued', 'saving'] and retry < retry_count:
@@ -61,11 +71,15 @@ class Compute(object):
             print "Cannot upload image without admin access. Please make sure the "\
                   "image is uploaded and is either public or owned by you."
             return False
+        except IOError:
+            # catch the exception for file based errors.
+            print "Failed while uploading the image. Please make sure the " \
+                  "image at the specified location %s is correct." % image_url
+            return False
         except Exception:
             print "Failed while uploading the image, please make sure the cloud "\
                   "under test has the access to URL: %s." % image_url
             return False
-
         return True
 
     def delete_image(self, glance_client, img_name):
diff --git a/vmtp/vmtp.py b/vmtp/vmtp.py
index 04f6375..bfe8ef2 100755
--- a/vmtp/vmtp.py
+++ b/vmtp/vmtp.py
@@ -822,7 +822,8 @@ def parse_opts_from_cli():
 
     parser.add_argument('--vm-image-url', dest='vm_image_url',
                         action='store',
-                        help='URL to a Linux image in qcow2 format that can be downloaded from',
+                        help='URL to a Linux image in qcow2 format that can be downloaded from'
+                             'or location of the image file with prefix file://',
                         metavar='<url_to_image>')
 
     parser.add_argument('--test-description', dest='test_description',