A balloon memory fragmentation reduction system includes a memory, at least one processor in communication with the memory, a guest operating system (OS) including a device driver, and a hypervisor executing on the at least one processor. The hypervisor is configured to record an amount of memory allocated by the device driver of the guest OS, locate a contiguous region of guest memory addresses according to the amount of memory allocated by the device driver, reserve the contiguous region of guest memory addresses, and notify the guest OS that the contiguous region of guest memory addresses is reserved.