A method and system for fault management in virtual computing environments are provided. The system includes: a monitor of fault events from virtual machines and host devices in a virtual computing environment and a monitor of situation events in the virtual computing environment wherein the situation events refer to a virtual machine name and a host device name. A universal faults component determines if a fault event affects both virtual machines and host devices and a correlating component correlates fault events relating to virtual machines and host devices as relating to the same problem. Host machine fault events correlated to a problem are marked as a root event and virtual machine fault events correlated to a problem are marked as symptoms with a link to the root event.