In accordance with the present disclosure, a system and method are herein disclosed for providing a virtualization aware server maintenance mode. In one embodiment, an event is triggered in when a system action request is received by an information handling system. The event is processed and the hypervisor is placed in maintenance mode. The virtualization manager is notified that the mode of the hypervisor has changed and the virtualization manager stores the information associated with the mode status change. The virtualization manager may also notify other remote access consoles or virtualization managers of the mode status change of the hypervisor. A maintenance mode lock may be acquired when the hypervisor is placed in maintenance mode and released after the system action has been processed.