Techniques for handling inheritance of disk state when forking virtual machines (VMs) are provided. In one embodiment, a computer system can receive a request to fork a child VM from a parent VM. In response, the computer system can take a disk snapshot of the parent VM, where the disk snapshot results in a child disk for the child VM, where the child disk is a delta disk that points to a parent disk of the parent VM, and where the parent disk serves as the parent VM's current running point. The computer system can then determine whether the parent disk is a delta disk. If so, the computer system can copy the content of the parent disk to the child disk, traverse a disk hierarchy associated with the parent disk to identify a base disk above the parent disk in the hierarchy, and cause the child disk to point directly to the base disk.