High performance space efficient distributed storage is disclosed. For example, a distributed storage volume (DSV) is deployed on a plurality of hosts, with a first host storing a local cache, and a storage controller executing on a processor of the first host receives a request to store a first file. The first file is stored to the local cache. The DSV is queried to determine whether a second file that is a copy of the first file is stored in the DSV. In response to determining that the DSV lacks the second file, the first file is transferred from the local cache to the DSV and then replicated to a second host of the plurality of hosts. In response to determining that the second file resides in the DSV, a reference to the second file is stored in the DSV and then replicated to the second host.