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I think that the issue may be that virt-install is specifying the disk format incorrectly. Assuming that you are using qcow2 format, virt-install is incorrectly specifying the overlay file as 'raw': file=/VMs/Windows7DomainTest.ovl,if=none,id=drive- ide0-0-0,boot=on,format=raw This would stop the detection of the base disk image supporting the overlay which would make it look like the disk is not there. Please could you try using the --disk option instead of -f to specify the file to support the VM: --disk path=/VMs/Domainator.ovl,format=qcow2 Please could you also check which version of virtinst you are using - a specific change was made under bug 655392 to help resolve this issue. ** Changed in: libvirt (Ubuntu) Status: New => Incomplete -- You received this bug notification because you are a member of Ubuntu Bugs, which is subscribed to Ubuntu. https://bugs.launchpad.net/bugs/695697 Title: libvirt not working properly with overlays -- ubuntu-bugs mailing list ubuntu-bugs@lists.ubuntu.com https://lists.ubuntu.com/mailman/listinfo/ubuntu-bugs