Techniques for parallel data collection and recovery for a failing virtual processing system are disclosed. According to aspects of the present disclosure, an example method includes: detecting that the virtual processing system experiences an irreparable error; saving, by each of a plurality of processors of the physical processing system, a corresponding context and data stored in an allocated portion of a memory of the physical processing system to a data store; selecting one of the plurality of processors as a recovery processor; initializing, by the recovery processor, a pre-determined reserved portion of the memory; initiating, by the recovery processor, a new instance of the virtual processing system on the reserved portion of the memory while each remaining processor of the plurality of processors continues the saving; and dynamically adding each remaining processor of the plurality of processors to the new instance of the virtual processing system.