A system and method for hot cloning in a distributed network is disclosed. In one embodiment, a method for cloning a virtual machine from a source system to a target system includes freezing writes to a storage file having storage blocks such that subsequent writes create new storage blocks for the original virtual machine. The method further including freezing writes to a memory content such that subsequent writes store in buffers. The method further including copying the memory content onto the target system wherein the copied memory content creates a clone. The method further including unfreezing the memory content by merging the writes stored in the buffers and unfreezing the writes to the storage file such that subsequent writes take place normally. The method further including configuring the clone based on the target system. The method further including creating a new storage block for any writes to the storage file whereby the new storage block is not shared.