A system and method are provided for virtual machine management. The system comprises a virtual machine manager, a blade server management module, at least one blade server, and a virtual machine manager. The virtual machine manager comprises an abnormal event receiving module for receiving information about a blade server having a hardware problem directly from the blade server management module and additionally a virtual machine management module for sending a processing command to a virtual machine hypervisor on the blade server having the hardware problem. The virtual machine management module receives the information about the hardware problem from the abnormal event receiving module. The processing command is determined in accordance with the information about the hardware problem and strategies for handling predefined hardware problems.