A mechanism for dynamic placement of virtual machines (VMs) during live migration based on memory is disclosed. A method of embodiments of the invention includes determining candidate target host machines capable of receiving a VM to be migrated, obtaining a hash value for memory pages of the VM to be migrated, obtaining for each candidate target host machine hash values for shared memory pages utilized by one or more VMs hosted by the candidate target host machine, comparing for each candidate target host machine the hash values for the memory pages of the VM to be migrated with the hash values for the shared memory pages, and adjusting a score in a general selection algorithm for the candidate target host machine with the most identical matches of the hash values for the shared memory pages with the hash values for the memory pages of the VM to be migrated.