A method, an apparatus, and a system for handling a virtual machine internal fault. The method includes: monitoring, by a virtual machine internal fault detecting apparatus, a state of a virtual machine operating system; when detecting that the virtual machine operating system encounters an exception, obtaining, by an exception catching module in the virtual machine internal fault detecting apparatus, exception information corresponding to the exception according to a context of the virtual machine operating system; and reporting, by the exception catching module, the exception information to a virtual machine monitoring apparatus, so that the virtual machine monitoring apparatus determines, according to the exception information, a policy for resolving the exception corresponding to the exception information, and resolves the exception corresponding to the exception information by using the policy. The present invention is applicable to a virtualized environment having a virtual machine.