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What is the difference between Xen PV and HVM?

Both PV and HVM are Xen supported virtualization types.

Xen supports running two different types of guests. Xen guests are often called as domUs (unprivileged domains). Both guest types (PV, HVM) can be used at the same time on a single Xen system.

Xen Paravirtualization (PV)

Paravirtualization is an efficient and lightweight virtualization technique introduced by Xen, later adopted also by other virtualization solutions. Paravirtualization doesn't require virtualization extensions from the host CPU. However paravirtualized guests require special kernel that is ported to run natively on Xen, so the guests are aware of the hypervisor and can run efficiently without emulation or virtual emulated hardware. Xen PV guest kernels exist for Linux, NetBSD, FreeBSD, OpenSolaris and Novell Netware operating systems.

Xen Full virtualization (HVM)

Fully virtualized aka HVM (Hardware Virtual Machine) guests require CPU virtualization extensions from the host CPU (Intel VT, AMD-V). Xen uses modified version of Qemu to emulate full PC hardware, including BIOS, IDE disk controller, VGA graphic adapter, USB controller, network adapter etc for HVM guests. CPU virtualization extensions are used to boost performance of the emulation. Fully virtualized guests don't require special kernel, so for example Windows operating systems can be used as Xen HVM guest. Fully virtualized guests are usually slower than paravirtualized guests, because of the required emulation.

To boost performance fully virtualized HVM guests can use special paravirtual device drivers to bypass the emulation for disk and network IO.

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