Proxmox Virtual Environment (Proxmox VE) is a powerful open source virtualisation platform built on Debian Linux. It lets you run full virtual machines (KVM) and lightweight containers (LXC) side by side, all managed through a polished web interface. Whether you're building a home lab or a small business server, Proxmox gives you enterprise-grade virtualisation for free.

What You'll Need

Popular home lab hardware: old desktop PCs, HP EliteDesk mini PCs, Dell OptiPlex, or dedicated servers like the Minisforum MS-01.

Step 1: Download Proxmox VE

Download the latest Proxmox VE ISO from the official website. At the time of writing, the current release is Proxmox VE 8.x based on Debian 12 Bookworm.

# The ISO will be named something like:
proxmox-ve_8.x-1.iso

Step 2: Flash the Installer to USB

Use balenaEtcher to flash the ISO to your USB drive. On Linux you can also use dd:

sudo dd if=proxmox-ve_8.x-1.iso of=/dev/sdX bs=4M status=progress
sync

Replace /dev/sdX with your USB device. Verify with lsblk before running.

Step 3: Install Proxmox VE

Boot from the USB drive and work through the graphical installer:

  1. Select Install Proxmox VE (Graphical)
  2. Accept the EULA
  3. Select your target hard drive — click Options to choose the filesystem. ext4 is safe and simple; ZFS gives you snapshots and built-in RAID at the cost of more RAM
  4. Set your country, timezone, and keyboard layout
  5. Set a strong root password and an email address for alerts
  6. Configure the network — set a static IP address (e.g. 192.168.1.10), your gateway, and DNS server
  7. Review the summary and click Install

Installation takes about 5 minutes. The system will reboot automatically — remove the USB drive when prompted.

Step 4: Access the Web Interface

After reboot, Proxmox runs a web management interface on port 8006. From any browser on your network:

https://192.168.1.10:8006

You'll see a certificate warning — this is expected for the self-signed cert. Accept it and log in as root with the password you set during installation.

You'll also see a "No valid subscription" notice. Proxmox VE is fully functional without a subscription — click OK to dismiss it.

Step 5: Remove the Subscription Repository (Recommended)

By default Proxmox points to its enterprise repository, which requires a paid subscription. Switch to the free community repo so you receive updates:

# Disable the enterprise repo
echo "# disabled" > /etc/apt/sources.list.d/pve-enterprise.list

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

apt update && apt dist-upgrade -y

Run these commands in the Proxmox shell — either via SSH or through the built-in Shell tab in the web UI (select your node → Shell).

Step 6: Upload an ISO Image

Before creating a VM, you need an OS ISO stored on Proxmox. In the web UI:

  1. Go to Datacenter → your node → local → ISO Images
  2. Click Download from URL and paste the direct link to an ISO (e.g. Ubuntu Server 24.04)
  3. Or click Upload to upload a file from your computer

Step 7: Create Your First Virtual Machine

Click Create VM in the top right and work through the wizard:

Click Finish, select the VM in the left panel, and click Start. Open the Console tab to complete the OS installation.

Step 8: Create Your First LXC Container

LXC containers are far more lightweight than VMs — they share the host kernel and start in seconds. They're ideal for running services like Nginx, Pi-hole, or Nextcloud.

First, download a container template:

  1. Go to local → CT Templates → Templates
  2. Search for ubuntu-22.04-standard and click Download

Then click Create CT:

Start the container and connect via the Console or SSH. It's ready to use in seconds.

Step 9: Configure Storage

Proxmox supports many storage backends. To add a directory or a second disk:

# List available disks
lsblk

# Format and mount a second drive for VM storage
fdisk /dev/sdb   # create a partition
mkfs.ext4 /dev/sdb1
mkdir /mnt/storage
echo "/dev/sdb1 /mnt/storage ext4 defaults 0 2" >> /etc/fstab
mount -a

Then add it in the web UI: Datacenter → Storage → Add → Directory. Set the path to /mnt/storage and enable it for VM images, ISO images, and container templates.

Step 10: Set Up Automated Backups

Proxmox has built-in VM and container backup scheduling. Go to Datacenter → Backup → Add:

Backups are stored as .vma.zst files and can be restored with a single click from the Backup tab of any VM.

What's Next?

The Proxmox VE Wiki is the definitive reference, and the Proxmox forums are very active for home lab questions.