The present invention is a system and method that performs disk migration in a virtual machine environment. The present invention quickly and easily migrates a virtual machine from one host to another thus improving flexibility and efficiency in a virtual machine environment for "load balancing" systems, performing hardware or software upgrades, handling disaster recovery, and so on. Certain of the embodiments are specifically directed to providing a mechanism for migrating the disk state along with the device and memory states, where the disk data resides in a remotely located storage device that is common to multiple host computer systems in a virtual machine environment. The virtual machine migration process, which includes disk data migration, occurs without the user's awareness and, therefore, without the user's experiencing any noticeable interruption.