A system and method for network image propagation without a predefined network advantageously allows customers to automatically perform several system BOS installation or mksysb restoration over a virtual network with no predefined network and minimal installer configuration overhead. A method for network image propagation comprises: identifying a plurality of logical partitions residing in the logically partitioned terminal; configuring a temporary virtual network to connect said plurality of logical partitions to each other, wherein each one of the logical partitions is assigned at least one of a virtual Internet Protocol (IP) address and a virtual Media Access Control (MAC) address; installing an application image on at least one of the logical partitions via the temporary virtual network; deconfiguring the temporary virtual network; and assigning at least one of a physical IP address and a physical MAC address to said at least one logical partition on which the application has been installed.