Failover Clustering is the underlying technology that enables highly available virtual machines in Hyper-V. A virtual machine that is made highly available or created with that feature becomes a cluster role that is visible in Failover Cluster Manager.
There are 3 steps that need to be performed:
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Installation of the feature and management tools
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Cluster validation must be passed.
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Creating the Failover Cluster
Installation
Failover Clustering can be installed without any management tools, such as when all management is handled elsewhere and on Windows Server Core.
Install-WindowsFeature Failover-Clustering
GUI and PowerShell management tools can also be installed.
Install-WindowsFeature RSAT-Clustering-Mgmt
Install-WindowsFeature RSAT-Clustering-PowerShell
You can also install the feature and the management tools with the -IncludeManagementTools parameter.
Validation
The test-cluster cmdlet can be used to validate the cluster.
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In Failover Cluster Manager, click Validate Configuration in the Actions pane, add the potential cluster members.
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Run all the tests and follow up on any settings that are flagged.
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If the validation passes, check the box to create the cluster and select finish.
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This will launch the Create Cluster Wizard and include all of the nodes that passed validation. A cluster name and IP address is required because a computer object will be created in Active Directory.
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In Windows Server 2025 there is a new default cluster role, the User Manager Group, which enables Windows Admin Center management from accounts in Entra ID (Azure AD).
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Virtual Machines are not part of a cluster when using Hyper-V Manager. Those machines can be converted into cluster roles with Configure Role in Failover Cluster Manager, or with the following command in PowerShell:
Add-ClusterVirtualMachineRole -VirtualMachine VM1 -
When creating a new VM, Failover Cluster Manager will combine the VM creation with making it highly available.