Quick answer
What this guide helps you do
A clean one-node Proxmox setup for small homelabs: simple layout, backups, test VMs, and low-power defaults.
Difficulty
Beginner to intermediate
Focus
Small home lab virtualisation
Best used for
Practical setup, fixes, and checks
Goal
Set up a single Proxmox node that can:
- run a few useful services
- stay simple and low-power
- keep the Proxmox host clean
- back up and restore VMs or containers
- give you a safe place to experiment
The aim is not to build a miniature data centre. The aim is one reliable box that makes your homelab easier to manage.
The default recommendation
Start with one Proxmox node.
Do not build a cluster first. Do not split every tiny service into its own complicated pattern. Do not install lots of apps directly on the Proxmox host.
A good starter layout is:
Proxmox host
├─ core-services VM
├─ test VM or container
└─ backup storage
Keep the host boring. Put the interesting work inside VMs or containers.
What you’ll need
Minimum sensible hardware:
- x86_64 Intel or AMD machine
- 8GB RAM minimum
- 16GB RAM or more if you want multiple VMs
- SSD or NVMe boot drive
- wired Ethernet
- another computer with a browser
Nice to have:
- second disk for backups or VM storage
- UPS if power cuts are common
- a low-power mini PC if this will run all day
For hardware guidance, see Mini PCs Under £200: Picking a Tiny Box That Can Actually Homelab.
Step 1: Install Proxmox VE
Download the Proxmox VE ISO from the Proxmox website.
Write it to a USB stick using a tool such as Rufus, Ventoy, or BalenaEtcher.
Then:
- Boot the server from the USB stick.
- Choose Install Proxmox VE.
- Accept the licence.
- Choose the install disk.
- Set country, time zone, and keyboard.
- Set a strong root password.
- Set the management network details.
A static IP is ideal if your network allows it.
After installation, the server will reboot and show a management URL similar to:
https://192.168.1.50:8006
Use your own Proxmox IP, not the example address.
Step 2: Log in and update Proxmox
From another computer on the same network, open:
https://YOUR-PROXMOX-IP:8006
You may see a browser certificate warning. That is normal for a new Proxmox install using its default certificate.
Log in with:
User: root
Password: the password you set during install
Realm: Linux PAM standard authentication
Update the host from the shell.
ssh root@YOUR-PROXMOX-IP
apt update
apt full-upgrade -y
reboot
After the reboot, log back into the web interface.
Step 3: Keep the host lean
Treat Proxmox as the foundation, not the app server.
The host should mainly:
- manage VMs and containers
- handle storage
- handle networking
- run Proxmox backups
Avoid installing everyday services directly on the Proxmox host.
For example, avoid putting Jellyfin, Home Assistant, Docker apps, and monitoring tools directly on the host. Put them inside a VM or container instead.
This makes upgrades, snapshots, backups, and restores easier to reason about.
Step 4: Understand the storage layout
A basic Proxmox install usually creates storage entries such as:
local ISO images, container templates, backups if enabled
local-lvm VM and container disks
Some installs use ZFS instead of LVM, depending on what you selected during installation.
For a simple starter setup, this is fine:
System SSD/NVMe: Proxmox and VM disks
Second disk: backups or extra VM storage
External/NAS: optional backup target
In the Proxmox web UI:
- Select your node.
- Open Disks.
- Confirm the disks look correct.
- Open Datacenter → Storage.
- Check which storage locations allow VM disks, ISO images, and backups.
Do not redesign storage on day one unless you have a clear reason.
Step 5: Create a core services VM
A core services VM is a simple place to run the apps you actually use.
Examples:
- Jellyfin
- Docker Compose apps
- Home Assistant
- AdGuard Home or Pi-hole
- Syncthing
- small monitoring tools
Upload an Ubuntu Server ISO
In the Proxmox web UI:
- Select your node.
- Open local → ISO Images.
- Click Upload.
- Upload the Ubuntu Server ISO.
Create the VM
Click Create VM and use sensible starter settings:
Name: core-services
CPU: 2 to 4 cores
Memory: 4GB to 8GB
Disk: 40GB to 80GB
Network: default bridge, usually vmbr0
Install Ubuntu Server inside the VM as normal.
Once installed, give the VM a predictable IP address, either through your router’s DHCP reservation feature or inside the VM.
Step 6: Set up the VM basics
SSH into the VM:
ssh user@CORE-VM-IP
Update packages:
sudo apt update
sudo apt upgrade -y
sudo apt install -y curl git htop
From here, this VM can become your main service box.
If you are starting with Jellyfin, use Jellyfin on Ubuntu: Low-Power Setup and Folder Permissions.
If you want private remote access, see Remote Jellyfin with Tailscale: Private Access Setup.
Step 7: Use containers when they make sense
Proxmox can run both VMs and LXC containers.
A simple rule:
| Option | Good for | Trade-off |
|---|---|---|
| VM | Strong isolation, full OS, Docker hosts | Uses more RAM and disk |
| LXC container | Lightweight Linux services | Slightly more host-coupled |
For beginners, a VM is often easier to understand.
Once you are comfortable, LXC containers are useful for small services such as DNS, monitoring, or lightweight web tools.
Do not worry about the perfect choice. A working service in a VM is better than a theoretical perfect design that never gets finished.
Step 8: Add backups early
Backups are where Proxmox becomes genuinely useful.
You can back up entire VMs and containers from the web interface.
Choose a backup target, such as:
- a second local disk
- a NAS share
- an external disk
- Proxmox Backup Server later, if you want to level up
In the web UI:
- Go to Datacenter → Storage → Add.
- Choose Directory, NFS, or another suitable type.
- Point it at the backup path or share.
- Make sure VZDump backup file is enabled for that storage.
Then create a backup job:
- Go to Datacenter → Backup.
- Click Add.
- Select the backup storage.
- Pick a schedule, such as daily at 03:00.
- Include your important VMs and containers.
- Use
zstdcompression as a sensible default.
For a wider backup strategy, see Backups That Don’t Lie: 3-2-1 for Home Servers.
Step 9: Test a restore
A backup is only useful if you can restore it.
Test with a small VM or container first.
In the Proxmox web UI:
- Go to Datacenter → Backup.
- Select a backup.
- Click Restore.
- Restore to a different VM ID so you do not overwrite the original.
- Boot the restored copy.
- Confirm the service works.
If the restored VM boots and the service works, your backup process is real.
Step 10: Use snapshots before risky changes
Snapshots are useful before changes such as:
- package upgrades
- application upgrades
- config changes
- storage changes
- network changes
Create a VM snapshot from the command line:
qm snapshot 100 pre-upgrade-2026-06-27
Create a container snapshot:
pct snapshot 101 pre-upgrade-2026-06-27
Snapshots are not backups. They are short-term rollback points.
For the full comparison, see Proxmox Snapshots vs Backups: What Beginners Get Wrong.
For a fuller experiment workflow, see Safe Experiments: Snapshots and Test Environments for Your Homelab.
Common mistakes
Installing everything on the Proxmox host
This makes future upgrades and restores harder.
Keep apps inside VMs or containers.
Skipping backups until later
Later usually means after something has already gone wrong.
Create a backup job early, even if it is not perfect.
Building a cluster too soon
A single reliable node is enough for most home setups.
Learn backup and restore before clustering.
Keeping old snapshots forever
Snapshots can consume storage and complicate disk usage.
Keep them short-term and remove stale ones.
Next steps
Useful related guides:
- Mini PCs Under £200: Picking a Tiny Box That Can Actually Homelab
- Backups That Don’t Lie: 3-2-1 for Home Servers
- Proxmox Snapshots vs Backups: What Beginners Get Wrong
- Safe Experiments: Snapshots and Test Environments for Your Homelab
- Jellyfin on Ubuntu: Low-Power Setup and Folder Permissions
- How to Measure Homelab Power Usage Properly
Recap
A good first Proxmox setup is simple:
One node
One core services VM
A clean host
Automated backups
Tested restores
Snapshots before risky changes
That gives you a practical homelab foundation without turning the setup into a maintenance project.