Summary
In this Knowledge Base article you will learn how to install Windows OS into a Virtual Machine using Parallels Desktop for Mac.
This article contains two sections:
- Creating a new virtual machine;
- Installing Windows inside that virtual machine
The first stage of installation is outlined below.
The second stage of installation is similar to the Windows installation process on a real PC
NOTE: This article was written for Parallels Desktop 7 for Mac, however it is applicable to other versions with minimal changes.
Instructions
How to obtain Windows Installation files
- You may purchase Windows installation files on a CD/DVD disk from most retail stores:
In case you have any issues with installing Windows from CD/DVD disk, please follow the steps in the following Knowledge Base article 4917 "How to create .iso image of Windows installation CD?".
- You may purchase Windows installation files from the Microsoft website or directly from Parallels Convenience Store in .iso format.
NOTE: .exe Windows installation files will not work for operating system installation. Please use .iso format as described above.
1. Launch Parallels Desktop (in the Applications folder) and select File > New in the menu.
2. Select Convenience Store in the bottom-left corner of the dialog window:

3. When in Convenience Store go to the Operating Systems tab and select a version of Windows. You can choose the Home Premium, Professional, or Ultimate edition:

4. Once the download has completed you will find an Activation key and Windows.DMG file (e.g. Windows 7 Home Premium.dmg) in the Downloads folder and the following 4 files inside DMG file : DLMx86.exe 64.exe, DLM 64.iso, DLM X86.iso (example).
5. Based on the version of Windows you want to install (32 bit or 64 bit) double-click one of the following files: DLM 64.iso, DLM X86.iso(example), the download process of the Windows installation .iso file will then begin. (it may take some time).
6. After the download has completed please follow the steps below to install Windows to a Virtual Machine:
Install Windows to Virtual Machine
1. Launch Parallels Desktop (in the Applications folder) and select File → New in the menu.

2. Select the source of installation by clicking on “Install Windows from DVD or image file”

Depending on what option you chose, you may:
2.1. Install Windows from a physical disk (from DVD):
- Insert the Windows installation disk into the Mac’s DVD-ROM drive.
- Select Install Windows from DVD or image file.
- Select the Windows installation disc from the Install from menu:

2.2. Install Windows from an image file:
- Select ‘choose an image file” in the drop-down list and provide the path to the image file.
3. Click Continue. In the Windows Product Key window, be sure to leave Express installation selected:

NOTE: If you deselect Express installation, you will need to manually install Parallels Tools.after the installation to allow the most seamless operation between Windows and Mac OS X.
It is also recommended that you use the 64-bit version of Windows, but if you want to use the 32-bit version, deselect 64-bit Windows version. When ready, click Continue.
4. Select how you want to use Windows:
- Like a Mac: Windows programs appear on the Mac desktop, just like Mac applications. Documents and media from Mac OS X and Windows are kept together on your Mac.
- Like a PC: The Windows desktop and programs appear in a single window, separate from Mac applications. You can drag and drop objects between Windows and the Mac.

5. By default, Parallels Desktop stores your Windows virtual machine in your Documents > Parallels folder. To allow all users of your computer to have access to this installation of Windows, select Share with other users of this Mac.

6. If you want to preset things like how much RAM Windows uses or whether it starts automatically when you open Parallels Desktop, select Customize settings before installation. You can also adjust these settings whenever you want after the operating system is installed.
7. Click Create. The Parallels Wizard will start the installation of Windows. You should expect this operation to take an hour or more, and your virtual machine may restart several times during this operation.
If the installation process fails with an error, please check this article for a possible solution: kb.parallels.com/112940
NOTE: The first time you start Windows, Parallels Tools will be installed to allow seamless operation between Windows and Mac OS X. Once Parallels Tools are installed, you're prompted to restart Windows.
If you didn't select Express installation on step 5 above, you must install Parallels Tools manually from the virtual machine menu (Virtual Machine → Install Parallels Tools).
Tips
- If you have a MacBook or MacBook Pro and trying to install Windows 2000/XP/2003 inside the virtual machine, press F8 + Fn keys instead of F8 in order to accept Windows License Agreement (EULA).
- To capture the mouse and keyboard input in your virtual machine, move your pointer over the Parallels Desktop window and click anywhere inside the window. You can release the mouse and the keyboard input later by pressing the Ctrl+Alt keys by default.