diff --git a/src/parallels/parallels_driver.c b/src/parallels/parallels_driver.c
index fd5275737f..b57ac9607a 100644
--- a/src/parallels/parallels_driver.c
+++ b/src/parallels/parallels_driver.c
@@ -1539,6 +1539,78 @@ parallelsApplyChanges(virDomainObjPtr dom, virDomainDefPtr new)
     return 0;
 }
 
+static int
+parallelsCreateVm(virConnectPtr conn, virDomainDefPtr def)
+{
+    parallelsConnPtr privconn = conn->privateData;
+    int i;
+    virStorageVolDefPtr privvol = NULL;
+    virStoragePoolObjPtr pool = NULL;
+    virStorageVolPtr vol = NULL;
+    char uuidstr[VIR_UUID_STRING_BUFLEN];
+
+    for (i = 0; i < def->ndisks; i++) {
+        if (def->disks[i]->device != VIR_DOMAIN_DISK_DEVICE_DISK)
+            continue;
+
+        vol = parallelsStorageVolumeLookupByPathLocked(conn, def->disks[i]->src);
+        if (!vol) {
+            virReportError(VIR_ERR_INVALID_ARG,
+                           _("Can't find volume with path '%s'"),
+                           def->disks[i]->src);
+            return -1;
+        }
+        break;
+    }
+
+    if (!vol) {
+        /* We determine path to VM directory from volume, so
+         * let's report error if no disk until better solution
+         * will be found */
+        virReportError(VIR_ERR_INVALID_ARG,
+                       _("Can't create VM '%s' without hard disks"),
+                       (def->name ? def->name : "no name"));
+        return -1;
+    }
+
+    pool = virStoragePoolObjFindByName(&privconn->pools, vol->pool);
+    if (!pool) {
+        virReportError(VIR_ERR_INVALID_ARG,
+                       _("Can't find storage pool with name '%s'"),
+                       vol->pool);
+        goto error;
+    }
+
+    privvol = virStorageVolDefFindByPath(pool, def->disks[i]->src);
+    if (!privvol) {
+        virReportError(VIR_ERR_INVALID_ARG,
+                       _("Can't find storage volume definition for path '%s'"),
+                       def->disks[i]->src);
+        goto error2;
+    }
+
+    virUUIDFormat(def->uuid, uuidstr);
+
+    if (parallelsCmdRun(PRLCTL, "create", def->name, "--dst",
+                        pool->def->target.path, "--no-hdd",
+                        "--uuid", uuidstr, NULL) < 0)
+        goto error2;
+
+    if (parallelsCmdRun(PRLCTL, "set", def->name, "--vnc-mode", "auto", NULL) < 0)
+        goto error2;
+
+    virStoragePoolObjUnlock(pool);
+    virUnrefStorageVol(vol);
+
+    return 0;
+
+  error2:
+    virStoragePoolObjUnlock(pool);
+  error:
+    virUnrefStorageVol(vol);
+    return -1;
+}
+
 static virDomainPtr
 parallelsDomainDefineXML(virConnectPtr conn, const char *xml)
 {
@@ -1579,9 +1651,17 @@ parallelsDomainDefineXML(virConnectPtr conn, const char *xml)
 
         def = NULL;
     } else {
-        virReportError(VIR_ERR_NO_SUPPORT, "%s",
-                       _("Not implemented yet"));
+        if (parallelsCreateVm(conn, def))
             goto cleanup;
+        if (parallelsLoadDomains(privconn, def->name))
+            goto cleanup;
+        dom = virDomainFindByName(&privconn->domains, def->name);
+        if (!dom) {
+            virReportError(VIR_ERR_INTERNAL_ERROR,
+                           _("Domain for '%s' is not defined after creation"),
+                           (def->name ? def->name : "no name"));
+            goto cleanup;
+        }
     }
 
     ret = virGetDomain(conn, dom->def->name, dom->def->uuid);
diff --git a/src/parallels/parallels_storage.c b/src/parallels/parallels_storage.c
index 0ffe1fb3bc..72aadceb51 100644
--- a/src/parallels/parallels_storage.c
+++ b/src/parallels/parallels_storage.c
@@ -43,9 +43,6 @@
 static virStorageVolDefPtr
 parallelsStorageVolumeDefine(virStoragePoolObjPtr pool, const char *xmldesc,
                              const char *xmlfile, bool is_new);
-static virStorageVolPtr
-parallelsStorageVolumeLookupByPathLocked(virConnectPtr conn, const char *path);
-
 static virStorageVolPtr
 parallelsStorageVolumeLookupByPath(virConnectPtr conn, const char *path);
 
@@ -874,7 +871,7 @@ parallelsStorageVolumeLookupByKey(virConnectPtr conn, const char *key)
     return ret;
 }
 
-static virStorageVolPtr
+virStorageVolPtr
 parallelsStorageVolumeLookupByPathLocked(virConnectPtr conn, const char *path)
 {
     parallelsConnPtr privconn = conn->privateData;
diff --git a/src/parallels/parallels_utils.h b/src/parallels/parallels_utils.h
index 7edf829b55..082ee75671 100644
--- a/src/parallels/parallels_utils.h
+++ b/src/parallels/parallels_utils.h
@@ -60,5 +60,7 @@ int parallelsCmdRun(const char *binary, ...)
 char * parallelsAddFileExt(const char *path, const char *ext);
 void parallelsDriverLock(parallelsConnPtr driver);
 void parallelsDriverUnlock(parallelsConnPtr driver);
+virStorageVolPtr parallelsStorageVolumeLookupByPathLocked(virConnectPtr conn,
+                                                          const char *path);
 
 #endif