Embodiments of systems and methods for a dynamic virtual workspace with contextual control of input/output (I/O) devices are described. A first Information Handling System (IHS) may include a processor and a memory coupled to the processor, the memory having program instructions stored thereon that, upon execution by the processor, cause the first IHS to: transmit a virtual workspace initiation request to a backend IHS, wherein the request comprises an identification of a second IHS collocated with respect to the first IHS; receive, from the backend IHS, data associated with the second IHS; determine a position of the second IHS; and initiate the virtual workspace across a first screen of the first IHS and a second screen of the second IHS based upon the data and the position.