A method is provided for managing errors in a virtualized information handling system that includes an error detection system and a hypervisor allowing multiple virtual machines to run on the information handling system. The hypervisor may assign at least one memory region to each of multiple virtual machines. The error detection system may detect an error, determine a physical memory address associated with the error, and report that address to the hypervisor. Additionally, the hypervisor may determine whether the memory region assigned to each virtual machine includes the physical memory address associated with the error. The hypervisor may shut down each virtual machine for which a memory region assigned to that virtual machine includes the physical memory address associated with the error, and not shut down each virtual machine for which the memory regions assigned to that virtual machine do not include the physical memory address associated with the error.