Hello @nikhil satpute
Thank you for posting your question on the Microsoft Q&A platform.
The MARS agent is a file-and-folder-level backup solution. It does not natively support VM-level backup or restore so there is no direct way to restore a complete Hyper-V VM with its configuration, checkpoints, and networking using MARS alone.
MARS agent supports these restore scenarios only:
- Restore individual files and folders (Instant Restore up to ~6 MBps, suited for total size under 80 GB)
- Restore all backed-up files in a volume (up to ~40 MBps, suited for larger data)
- Restore Windows Server System State
- Cross Region Restore (if enabled)

Reference: About restore using the MARS agent.
The approach you've described using Windows Server Backup (WSB) to create VHD/VHDX files locally, backing those files to Azure via the MARS agent, then restoring and manually importing them into Hyper-V can technically work as a file-level workaround, but please be aware of the following limitations:
- MARS treats VHD/VHDX files as regular files: There is no application-consistent VM snapshot integration at the MARS level. Consistency depends entirely on whether WSB completed a clean VSS-based backup before MARS picked up the files. [learn.microsoft.com]
- VM configuration is not preserved: Only the virtual hard disk files are backed up. You would need to manually recreate the VM settings (vCPU, memory, network adapters, etc.) in Hyper-V Manager after restore.
- Not supported for clustered Hyper-V: Since you mentioned a single-node cluster, be aware that this file-level approach is designed for standalone Hyper-V hosts only.
- Schedule coordination is critical: The WSB backup must fully complete before the MARS scheduled backup runs, to avoid backing up an incomplete or in-progress VHD file.
This is not an officially supported VM restore workflow , It is a manual workaround with inherent risks around consistency and completeness.
So, please have a look into below recommended Alternatives:
For proper VM-level protection of your on-premises Hyper-V environment, I'd recommend evaluating one of these two Microsoft-supported solutions:
1. Microsoft Azure Backup Server (MABS): Best fit if your goal is VM-level backup and restore back to Hyper-V.
MABS provides true host-level VM backup with the following capabilities:
- Backs up entire VMs (including VHD/VHDX + configuration) at the host level using VSS-aware snapshots
- Supports full VM restore to the original or an alternate Hyper-V host
- Supports item-level recovery (ILR) extract individual files from a VM backup without restoring the entire VM
- Supports Hyper-V clusters with CSV storage
- Uses the MARS agent under the hood to replicate backup data to an Azure Recovery Services Vault for offsite protection.
Reference:
Back up Hyper-V virtual machines with MABS
MABS protection matrix
2. Azure Site Recovery (ASR): Best fit if your goal is to failover VMs to Azure during an on-premises outage.
ASR continuously replicates your on-premises Hyper-V VMs to Azure and allows you to:
- Perform a failover to Azure: Azure VMs are automatically created from the replicated data
- Perform a failback to on-premises once your infrastructure is restored
- Works with both standalone Hyper-V hosts and VMM-managed environments
Reference:
Set up disaster recovery of on-premises Hyper-V VMs to Azure
Hyper-V to Azure disaster recovery architecture
Hope this helps, feel free to follow up if you have any questions about setting up either MABS or ASR.
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Thanks,
Suchitra.