A mechanism is provided in a virtual machine monitor for fine grained cache allocation in a shared cache. The mechanism partitions a cache tag into a most significant bit (MSB) portion and a least significant bit (LSB) portion. The MSB portion of the tags is shared among the cache lines in a set. The LSB portion of the tags is private, one per cache line. The mechanism allows software to set the MSB portion of tags in a cache to allocate sets of cache lines. The cache controller determines whether a cache line is locked based on the MSB portion of the tag.