How to Install Proxmox VE (Beginner’s Guide 2026)

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Why Proxmox Is the Homelab Standard

I run a three-node Proxmox cluster in my homelab. Between those three machines, I have around 15 virtual machines and a handful of LXC containers running everything from Nextcloud and Gitea to n8n and Ollama. Proxmox is the foundation that makes all of it possible, and it has been rock solid in a way I did not expect from free software.

From the homelab: I have been running Proxmox as my primary hypervisor for years. It replaced a VMware setup that was costing me in licensing what I now spend on nothing. Everything in my homelab — Docker hosts, development VMs, network services — runs on Proxmox.

Proxmox VE (Virtual Environment) is a Debian-based virtualisation platform that combines KVM for full virtual machines and LXC for lightweight Linux containers, all managed through a web interface. It competes with VMware ESXi and Microsoft Hyper-V, except it is open source, free to use, and runs on hardware those enterprise products would refuse to touch. That old desktop gathering dust in the corner? It is probably a capable Proxmox host.

This guide takes you from bare metal to your first running VM and container. No prior virtualisation experience required. I will cover the things most beginner guides skip: hardware considerations that actually matter, the storage decisions you will regret if you get them wrong early, and the subscription nag screen that confuses every new user.

Proxmox VE web interface showing a node with running virtual machines and containers

Prerequisites

What you actually need:

  • A 64-bit x86 machine with at least 4 GB of RAM (8 GB recommended, 16+ GB ideal)
  • A 64 GB+ disk for the Proxmox OS (SSD strongly recommended)
  • A USB drive (at least 2 GB) for the installer
  • A wired ethernet connection (Wi-Fi is not supported for the host)
  • A monitor and keyboard for initial installation (not needed after setup)

What hardware actually works well

Proxmox will install on almost anything, but some choices are significantly better than others.

Mini PCs (recommended for beginners): Intel NUCs, Beelink, MinisForum, and similar. Quiet, low power draw (15-30W), small footprint. A second-hand NUC with 16 GB RAM and a 256 GB NVMe goes for around 100 to 150 quid on eBay and makes an excellent first Proxmox host. This is what two of my three nodes are.

Old desktops: That PC from 2018 sitting in the loft is probably fine. Check it has VT-x/VT-d (Intel) or AMD-V/IOMMU (AMD) enabled in BIOS. These are the hardware virtualisation extensions Proxmox needs. Most machines from the last decade have them.

Enterprise servers: Dell PowerEdge, HP ProLiant on eBay. Powerful but loud, power-hungry, and heavy. Great value but your family will hear them. I have a friend who keeps his R720 in the garage for exactly this reason.

RAM is the resource you will run out of first, not CPU, not disk. Every VM needs its own allocation, and it adds up fast. A Ubuntu Server VM wants 2 GB minimum. Running five VMs means 10 GB just for the guests, plus Proxmox’s own overhead. If you can only upgrade one thing on your hardware, add more RAM.

Step 1: Download the Proxmox ISO

Download the latest Proxmox VE ISO from proxmox.com/downloads. At the time of writing, the current version is Proxmox VE 8.x. Always download the latest stable release.

Step 2: Create a Bootable USB

On Linux or macOS, use dd:

# Find your USB drive (be VERY careful to identify the right device)
lsblk

# Write the ISO (replace sdX with your USB device)
sudo dd bs=1M conv=fdatasync if=proxmox-ve_8.x.iso of=/dev/sdX status=progress

On Windows, use balenaEtcher or Rufus (use DD mode in Rufus, not ISO mode).

Double-check the target device before running dd. There is no confirmation prompt, no undo. If you write to the wrong device, you will overwrite that disk entirely. lsblk will show you all attached drives with their sizes, which helps you identify the USB drive versus your system disk.

Step 3: Boot from USB and Install

Insert the USB drive, power on the machine, and boot from USB. You may need to press F2, F12, Del, or Esc during boot to access the boot menu or BIOS — the exact key varies by manufacturer.

The Proxmox installer is straightforward:

  1. Welcome screen: Select “Install Proxmox VE (Graphical)”
  2. Licence agreement: Accept the AGPL licence
  3. Target disk: Select the disk where Proxmox will be installed. If you have multiple disks, choose the SSD. The installer will use the entire disk.
  4. Location and timezone: Set your country and timezone. This affects the system clock, which matters for certificates and logs.
  5. Admin password and email: Set a strong root password. The email is for system notifications (optional but useful).
  6. Network configuration: This is the important one.
    • Management interface: Select your ethernet adapter
    • Hostname: Use a FQDN format, e.g., proxmox.homelab.local
    • IP address: Set a static IP on your local network (e.g., 192.168.1.100)
    • Gateway: Your router’s IP (usually 192.168.1.1)
    • DNS: Your router’s IP or a public DNS server
  7. Summary: Review and click Install

Installation takes about five minutes. When it finishes, remove the USB drive and let the machine reboot.

Use a static IP address, not DHCP. Proxmox is infrastructure, and infrastructure needs a predictable address. If the DHCP lease changes, you lose access to the web UI, and any VMs configured to reach services on that IP will break. Set the static IP during installation and reserve it in your router’s DHCP settings to avoid conflicts.

Step 4: Access the Web Interface

After reboot, the console will display the Proxmox URL. From any machine on your network, open a browser and navigate to:

https://192.168.1.100:8006

You will see a certificate warning — this is expected. Proxmox uses a self-signed certificate by default. Accept the warning and proceed.

Log in with:

  • Username: root
  • Password: The password you set during installation
  • Realm: Linux PAM standard authentication

You are now in the Proxmox web interface. This is where you will manage everything from now on. You do not need a monitor connected to the Proxmox host anymore.

The subscription nag

On your first login (and every subsequent login), you will see a popup saying “You do not have a valid subscription for this server.” This is the single most-asked question from new Proxmox users, so let me be clear: Proxmox VE is fully functional without a subscription.

The subscription provides access to the enterprise repository (more thoroughly tested package updates) and commercial support. For a homelab, you do not need it. Dismiss the popup.

To stop it appearing on every login and switch to the free (no-subscription) repository:

# SSH into your Proxmox host or use the Shell in the web UI

# Disable the enterprise repository (requires subscription)
sed -i 's/^deb/# deb/' /etc/apt/sources.list.d/pve-enterprise.list

# Add the no-subscription repository
echo "deb http://download.proxmox.com/debian/pve bookworm pve-no-subscription" > /etc/apt/sources.list.d/pve-no-subscription.list

# Update package lists
apt update && apt dist-upgrade -y

The no-subscription repository contains packages that have had less testing than the enterprise repo. In practice, I have never had a problem with it in three years of homelab use, and neither have most homelabbers. But be aware that it exists for a reason. Run updates during a maintenance window, not on a Friday evening when you need your services running.

Step 5: Create Your First Virtual Machine

Download an ISO for the guest OS you want to run. Ubuntu Server 24.04 is a good starting point:

  1. In the Proxmox web UI, click your node name in the left panel
  2. Click local (storage) > ISO Images > Upload
  3. Upload the Ubuntu Server ISO

Now create the VM:

  1. Click Create VM in the top right
  2. General: Give it a name (e.g., docker-host) and a VM ID
  3. OS: Select the uploaded ISO image
  4. System: Leave defaults (OVMF/UEFI is fine for modern OSes, SeaBIOS for older ones). Tick “Qemu Agent” if you plan to install it later.
  5. Disks: Set the disk size. 32 GB minimum for Ubuntu Server, more if running Docker containers (50+ GB recommended)
  6. CPU: 2 cores minimum, 4 for a Docker host
  7. Memory: 2048 MB minimum, 4096 for a Docker host
  8. Network: Leave the default bridge (vmbr0)
  9. Confirm: Review and click Finish

Select the new VM in the left panel, click Start, then click Console to see the installation screen. Install your guest OS as you normally would.

After installing the guest OS, install the QEMU Guest Agent (sudo apt install qemu-guest-agent on Ubuntu/Debian). This lets Proxmox communicate with the guest for proper shutdown, IP address reporting, and filesystem freeze during backups. It is a small package that makes a significant difference in manageability.

Step 6: Create Your First LXC Container

LXC containers are the feature that makes Proxmox special for homelabbers. They are Linux containers that share the host’s kernel, which means they use a fraction of the resources a full VM would need. An LXC container running a web server might use 64 MB of RAM. A VM running the same workload would use 512 MB or more.

First, download a container template:

  1. Click your node > local (storage) > CT Templates > Templates
  2. Search for ubuntu-24.04-standard and click Download

Now create the container:

  1. Click Create CT in the top right
  2. General: Set a hostname and root password. Tick “Unprivileged container” (more secure).
  3. Template: Select the Ubuntu template you downloaded
  4. Disks: 8 GB is fine for lightweight services, more for anything storing data
  5. CPU: 1 core is enough for most services
  6. Memory: 512 MB is a good starting point
  7. Network: DHCP or a static IP
  8. DNS: Leave as host defaults or set your own
  9. Confirm: Review and click Finish

Start the container and open its console. You now have a running Linux environment that boots in seconds and uses minimal resources.

When to use VMs versus LXC containers

This is a question every beginner asks, and the answer is simpler than most guides make it:

  • Use LXC when you need a lightweight Linux environment for a single service: Pi-hole, a web server, a database, file sharing. They are fast, efficient, and easy to back up.
  • Use a VM when you need a full operating system, when you need to run Docker (Docker inside an unprivileged LXC is possible but finicky), when you need a non-Linux OS (Windows), or when the application needs kernel-level access.

In my setup, I run Docker hosts as VMs (because Docker needs its own kernel features) and standalone services as LXC containers. This gives me the best balance of resource efficiency and compatibility.

Step 7: Storage Configuration Basics

Proxmox storage configuration is where most beginners get confused, and where bad decisions early on create headaches later. Here is the simplified version.

During installation, Proxmox creates a storage layout on your disk. If you used a single disk, you will see:

  • local — stores ISOs, container templates, and backups (directory storage)
  • local-lvm — stores VM disks and container volumes (LVM-thin storage)

This default setup works fine for getting started. As you add more VMs and containers, you might want to add additional storage:

  • Second SSD/NVMe: Add it as a new LVM-thin pool for VM disks, keeping your boot disk for the OS only
  • HDD or NAS: Add as directory or NFS storage for backups and ISOs. Backups should live on different physical media from the VMs they are backing up.

To add a new disk, go to Node > Disks in the web UI. You can initialise disks and create storage pools from here without touching the command line.

Do not store backups on the same disk as your VMs. This defeats the entire purpose. When that disk fails (and disks do fail), you lose both the VMs and the backups. Even a cheap USB hard drive as a backup target is better than same-disk backups.

Step 8: Network Bridge Basics

Proxmox creates a network bridge (vmbr0) during installation. This bridge connects your VMs and containers to your physical network. By default, everything on vmbr0 gets an IP from your router’s DHCP server, just like any other device on your network.

For most homelabs, this default setup is all you need. Your VMs appear on your network as if they were separate physical machines. You can access them by IP from any device on the network.

If you need isolated networks (e.g., a separate network for testing that cannot reach your production services), you can create additional bridges without a physical interface attached. But that is an advanced topic for another day.

Proxmox uses the same KVM hypervisor technology that underpins Google Cloud, AWS (partially), and DigitalOcean. Understanding Proxmox means understanding virtualisation concepts that apply directly to enterprise hypervisors like VMware vSphere and Microsoft Hyper-V. If you are aiming for infrastructure, systems administration, or cloud engineering roles, running a Proxmox homelab gives you hands-on experience with VM lifecycle management, resource allocation, networking, and storage that you can speak to directly in interviews.

Troubleshooting

Cannot access the web UI after installation

Verify you are using HTTPS (not HTTP) and port 8006. Try https://IP:8006 from another machine on the same network. If it does not respond, connect a monitor to the Proxmox host and check the network configuration: ip addr show vmbr0. If the bridge has no IP, the network configuration during installation was incorrect. Edit /etc/network/interfaces and restart networking.

VM has no network connectivity

Check that the VM’s network device is connected to vmbr0 (or your intended bridge). Verify the VM has a firewall rule allowing traffic, or temporarily disable the Proxmox firewall for that VM to test. Inside the VM, check that the network interface is up and has an IP address.

ISO upload fails or is very slow

The web UI upload has a size limit and can be unreliable for large files. Instead, use scp or wget directly on the Proxmox host:

# Download an ISO directly on the Proxmox host
wget -P /var/lib/vz/template/iso/ https://releases.ubuntu.com/24.04/ubuntu-24.04-live-server-amd64.iso

“TASK ERROR: KVM virtualisation configured, but not available”

Hardware virtualisation (VT-x/AMD-V) is not enabled in BIOS. Reboot, enter BIOS, find the virtualisation setting (usually under CPU or Advanced), enable it, save, and reboot. The exact location varies by manufacturer but it is there on virtually every machine made in the last decade.

What to Do Next

You now have a virtualisation platform. The next step is deciding what to run on it. Here is a practical starting path:

Proxmox turns one physical machine into as many as you need. A single mini PC running Proxmox can comfortably host a Docker server, a Pi-hole DNS server, a development environment, and a VPN gateway simultaneously. That is the power of virtualisation, and it is why every homelab starts here.

Practitioner tip: Before you install, check your BIOS settings. VT-x or AMD-V and IOMMU need to be enabled. I have seen people waste hours troubleshooting performance issues that came down to virtualisation extensions being switched off.

Key Takeaways

  • Proxmox VE is free, open source, and fully functional without a subscription. The subscription popup is informational, not a limitation.
  • RAM is the resource you will run out of first. Prioritise RAM over CPU when choosing or upgrading hardware.
  • Always set a static IP during installation. Proxmox is infrastructure and needs a predictable address.
  • Use LXC containers for lightweight Linux services and VMs for Docker hosts, Windows, or anything needing full OS isolation.
  • Switch to the no-subscription repository after installation to get free package updates. The enterprise repo requires a paid subscription.
  • Store backups on different physical media from your VMs. Same-disk backups protect against software failures but not hardware failures.
  • Enable VT-x/AMD-V in BIOS before installation. Without hardware virtualisation, Proxmox cannot run VMs (only containers).
  • Install the QEMU Guest Agent in every VM for proper shutdown handling, IP reporting, and consistent backups.

Related Guides

If you found this useful, these guides continue the journey:

The RTM Essential Stack - Gear I Actually Use

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