If you’ve been using Windows 10 or Windows 11 for a while, there’s a good chance you’ve explored features like Snap Layouts, File History, or Task Manager. But one gem that almost always remains unnoticed—even though it’s been available since Windows 8—is the Virtual Disk feature.
Most users never touch it. Some don’t even know it exists. And only a tiny group of advanced Windows users understand how powerful it actually is.
In reality, virtual disks are among the most underrated yet incredibly useful tools built right into Windows. You can use them to create backups, encrypt sensitive data, install an operating system without a USB drive, and even treat them like portable drives that you can move from one PC to another.
And once you realize what they can do, it almost feels like discovering an extra hidden drive inside your computer that works exactly like physical storage—but with more flexibility and more control.
So today, we’re diving deep into the world of virtual disks. From what they are to how you can use them, and finally to how to create and manage them in Windows using both old and modern methods—this article will walk you through everything step-by-step, all with a human, storytelling tone that keeps things easy to understand.
Let’s start with a simple question…
⭐ What Exactly Is a Virtual Disk?
Imagine you have the ability to create a fake hard drive inside your real hard drive. Not fake in the sense that it doesn’t work. Fake in the sense that your computer thinks it’s a real, physical disk—but it’s actually just a single file sitting somewhere on your storage.
That’s a virtual hard disk, also known as VHD or VHDX.
To put it in simple words:
A virtual disk is a drive inside a file.
You decide the size.
You decide the name.
You decide where to keep it.
And once created and mounted, Windows treats it like an actual drive. You can copy files to it, format it, encrypt it, share it, even create system backups inside it.
The best part is:
You can eject it and mount it anytime, just like plugging in or removing a USB drive.
This gives you a level of flexibility that normal partitions or external drives can’t match.
But why should you use it?
Let’s talk about the real value.
⭐ Four Powerful Real-World Reasons You Should Start Using Virtual Disks
Most tutorials introduce virtual disks in a very mechanical way, but let’s understand why this feature is genuinely useful. These are not theoretical reasons—they come from real-life situations where virtual disks become lifesavers.
⭐ 1. Take Full Windows Backup (System Image) Without Any External Drive
Imagine you want to take a full system image backup of your PC. Maybe your Windows installation is getting old. Maybe you’re about to upgrade. Maybe you want a recovery copy before trying something risky.
Normally, Windows requires an external hard disk or USB to store the backup.
But what if you don’t have one?
This is where a virtual disk becomes your best friend.
You simply create a VHDX large enough to store the backup, mount it, and Windows will accept it as a real disk during system image creation.
This means:
✔ You don’t need an external drive
✔ You can take a backup anytime
✔ You can restore it whenever you want
✔ Even if your Windows gets corrupted, the file is safe as long as the drive is fine
In short, virtual disks remove dependency on external storage devices for imaging.
⭐ 2. Create Bootable USB Without a USB Drive (Using Rufus + VHDX)
If there’s one thing people often struggle with, it’s creating bootable USB drives.
But what if you don’t have a USB drive? What if it’s broken? What if you’re traveling and left it at home?
No problem.
You can create a small 8GB or 16GB virtual disk, mount it, and open Rufus. Surprisingly, Rufus detects the virtual disk exactly like a real USB drive.
Yes—you can install Windows or any OS without ever touching a physical USB stick.
This is one of those things that feels like magic when you see it for the first time.
And once you’re done using it, you can delete the virtual disk or repurpose it for other tasks. This single use-case alone makes virtual disks a must-know feature for Windows power users.
⭐ 3. Create a Secure, Password-Protected Drive With BitLocker (No Third-Party Software)
Folder encryption is one of the biggest security needs today.
People store personal photos, office files, bank documents, financial records—things that they really don’t want others to access. And most users end up installing third-party tools that are either unsafe, outdated, or outright unreliable.
Instead, Windows has a built-in encryption system called BitLocker.
But BitLocker cannot encrypt normal folders.
It can only encrypt drives.
So what if you want to encrypt a folder?
You can’t.
Unless…
You create a virtual disk, mount it, and then encrypt that entire drive using BitLocker.
Suddenly you have:
✔ A password-protected encrypted container
✔ A private drive inside your PC
✔ A secure vault for your personal files
✔ Bank-level encryption without third-party tools
✔ A portable encrypted drive that you can copy anywhere
This is one of the best and safest ways to protect your sensitive data in Windows.
⭐ 4. Share the Entire Drive as a Single File
Let’s say you have a project folder with hundreds of files. Or maybe you want to share a full collection of photos. Or maybe you want to move an entire data set to another PC without messing up the folder structure.
That’s where virtual disks shine.
Your entire drive (with folders inside it) exists as one single .vhdx file. You can:
✔ Copy it to a pendrive
✔ Upload it to cloud storage
✔ Share it via LAN
✔ Move it from one PC to another
✔ Mount it anywhere
✔ Use it like a USB drive
Everything stays neatly contained in one file—no zipping required, no risk of missing files, no confusion.
This flexibility makes virtual disks perfect for photographers, IT professionals, students, and anyone who wants neat and portable storage.
⭐ Two Ways to Create a Virtual Disk in Windows (Old and New Methods)
Windows provides two different ways to create virtual disks:
- Disk Management (Old method)
- Windows Settings → Storage (New method)
Let’s explore both.
⭐ Method 1 — Create Virtual Disk Using Disk Management (Classic Method)
This method has existed for many years. It’s slightly technical but reliable.
- Right-click the Start button
- Select Disk Management
- From the menu bar, click Action
- Choose Create VHD
Windows will now ask for:
✔ Location
Where should the VHDX file be saved?
✔ Format
- VHD (older, up to 2TB)
- VHDX (newer, supports up to 64TB and more stable)
Choose VHDX.
✔ Disk Type
- Fixed Size → Occupies full space immediately
- Dynamically Expanding → Grows as needed
Choose Dynamically Expanding (recommended).
Once you fill out the details, click OK.
The virtual disk will appear as an unallocated drive. Simply:
- Right-click the unallocated area
- Click Initialize Disk (choose GPT)
- Create a new volume
- Assign drive letter
- Format as NTFS
Your new virtual disk is ready.
⭐ Method 2 — Using Windows 11’s Modern Storage Settings (Recommended)
The Disk Management method works, but Windows 11 gives you a far easier and cleaner approach.
Here’s how:
- Right-click the Start button
- Choose Settings
- Go to System → Storage
- Scroll down and open Advanced Storage Settings
- Click Disks & Volumes
- At the top, you’ll see Create a Virtual Hard Disk
Once you click it, Windows asks for:
✔ Name
Example:
- Crown Virtual
- Secure Files
- MyPortableDrive
✔ Location
Choose the drive where the VHDX file will be saved.
✔ Size
Enter the size you want.
If you pick E: and it has 700GB free, you might choose 300GB.
If you pick C: with only 150GB free, choose a smaller size.
✔ Format
Select VHDX.
✔ Type
Choose Dynamically Expanding.
Click Create.
Next you’ll be asked:
- MBR or GPT? Choose GPT.
- Enter volume label.
- Select drive letter.
- Keep file system as NTFS.
- Click Format.
A new virtual drive appears instantly in File Explorer.
⭐ Mounting, Ejecting, and Managing Your Virtual Disk
Now that your disk is ready, let’s see how to use it.
⭐ Mount
Just double-click the .vhdx file or right-click → Mount.
⭐ Eject
Right-click the drive in File Explorer → Eject.
⭐ Re-Mount
Go to the folder where you saved your VHDX → right-click → Mount.
This gives you full control over when the drive appears.
⭐ Using Virtual Disks for Windows Backup
Let’s try a real-world example.
Open:
Control Panel → Backup and Restore → Create a System Image
Windows normally expects a USB or an external HDD. But now, your virtual disk will appear as a valid backup target. Once selected, you can proceed with the backup without needing any physical device.
This is especially useful when:
- You don’t have an external drive
- Your pen drive is too small
- You need a temporary backup
- You’re preparing for a Windows upgrade
- You want to store recovery images internally
The only requirement is that your main drive must have enough free space.
⭐ Using Virtual Disks to Create a Bootable Drive (Without USB)
Let’s open Rufus, the most popular tool for creating bootable ISOs.
At the top where it asks for Device, your virtual disk will be listed.
This works because Windows exposes the virtual disk as a removable drive. So Rufus treats it the same way it treats a pendrive.
You can now:
- Select Windows 10/11 ISO
- Select your virtual disk
- Click Start
And boom—you have a bootable drive inside your computer without needing any physical pendrive.
This method is especially useful for:
- Installing Windows on another partition
- Dual-boot setups
- Testing ISO images
- Inside-VM installations
- Emergency OS repair
And once the installation is done, you can delete the virtual disk or reuse it however you like.
⭐ Using Virtual Disks With BitLocker Encryption
This part is extremely important for privacy-conscious users.
Once your virtual disk is mounted:
- Open File Explorer
- Right-click the virtual drive
- Select Turn On BitLocker
- Set a password
- Save the recovery key
Congratulations—your virtual disk is now a secure, encrypted vault.
Whenever you mount it:
- You must enter your password
- All files inside are encrypted
- Even if someone steals your PC, these files remain safe
This is much better than relying on random third-party folder lock software.
⭐ Sharing Your Virtual Disk With Others
Let’s say you’ve created a virtual disk named:
CrownVirtual.vhdx
Inside this disk, you stored:
- Documents
- Photos
- Videos
- Project files
- Work folders
Now suppose someone else needs all of these files.
You don’t need to share 100 folders individually.
Just share the .vhdx file.
The other person simply mounts it and sees everything exactly how you organized it.
This method is perfect for:
- Students sharing project submissions
- Office file transfers
- Photo/video collections
- Multi-GB archives
- System image sharing
It’s clean, organized, and always maintains the folder structure.
⭐ VHD vs VHDX — Which Should You Use?
Here’s a simple comparison to help you choose.
| Feature | VHD | VHDX |
|---|---|---|
| Max Size | 2TB | 64TB+ |
| Performance | Lower | Higher |
| Corruption Protection | Weak | Strong |
| Recommended For | Old systems | Windows 8/10/11 |
| Supports Larger Sector Sizes | No | Yes |
| Dynamic Expansion | Yes | Yes |
Always choose VHDX unless you need compatibility with very old versions of Windows.
⭐ MBR vs GPT — Which Should You Pick?
| Feature | MBR | GPT |
|---|---|---|
| Max Partition Size | 2TB | 18EB+ |
| Partitions Supported | 4 | 128 |
| Security | Basic | Higher (CRC protection) |
| Boot Support | Legacy BIOS | UEFI |
| Recommendation | Old PCs | All modern PCs |
Always choose GPT for virtual disks—unless you’re intentionally testing legacy boot modes.
⭐ FAQs About Virtual Disks
❓ Will a virtual disk slow down my PC?
No, unless you create extremely large fixed-size disks. Dynamically expanding VHDX files are very efficient.
❓ Can I install Windows directly inside a VHDX?
Yes, Windows supports Native VHD Boot for certain editions.
❓ Is my data safe inside a VHDX?
Yes. And if you encrypt it with BitLocker, it becomes even more secure.
❓ Can I use virtual disks for gaming?
Not recommended for heavy games. But great for storing documents and backups.
❓ What happens if I delete the VHDX file accidentally?
You lose everything inside it—always keep backups.
⭐ Disclaimer
Using virtual disks for system-level tasks like OS installation or system image backups requires care. Always ensure you have enough free space and don’t delete VHDX files accidentally. BitLocker-encrypted virtual disks should have recovery keys stored safely.
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