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Engineer Builds Two-Level Nested Virtualization Lab Using Proxmox VE and Ubuntu

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A DEV Community author documented a two-level nested virtualization setup, with hypervisors running inside hypervisors on a single physical workstation. The architecture uses VMware Workstation as the host, with Proxmox VE and Ubuntu Server at the first level and additional Proxmox and Ubuntu nodes running as guest VMs beneath them. A shared network bridge gives all instances direct connectivity and IP assignment across layers. An ICMP ping test reported no packet loss between the host and every node, and web management was confirmed from multiple devices. The author notes that nested virtualization adds modest CPU and RAM overhead, and presents the setup as a low-cost sandbox for testing hypervisor clusters, cloud migration, and infrastructure-as-code pipelines.

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