A method for performing automatic system recovery is implemented by a server including a control chipset and a baseboard management controller (BMC). In the method, when a current image file is corrupted, a recovery engine generates an indicator of a version of the current image file and transmits the indicator to the BMC. The BMC then transmits a request for a backup image file to an external electronic device. After the BMC receives file link information of a disk image file from the electronic device, the BMC accesses the electronic device to download the disk image file, and mounts the disk image file as a virtual disk on the BMC. Afterward, the recovery engine replaces the current image file with the disk image file from the virtual disk.