Docker on Proxmox LXC: What Actually Works (and Why Unprivileged Doesn't)

The Setup

I run a Proxmox 9 homelab (pve-manager/9.0.5, kernel 6.14.8-2-pve) and I needed to run Docker inside an LXC container — not a VM — to test a customer-style "bring-your-own-VPS" deployment path for a PaaS I'm building. The container had to act like a standard Ubuntu cloud VM: Docker, systemd, the works.

LXC over a full VM gets me near-bare-metal performance, a fraction of the RAM overhead, and instant boots. The catch: the "Docker on LXC" recipes you'll find on most blog posts and Proxmox forum threads are out of date. They assume kernel 5.x and runc 1.1.x. On a modern Proxmox (kernel 6.14 + runc 1.2+ shipped with Docker 29) those recipes fail in two new and confusing ways before you even reach the workarounds we used to know about.

This article walks through exactly what fails, why it fails, and the config that actually works in 2026 — plus an honest look at the security tradeoffs, because spoiler: the working config is privileged, and that matters.

The Goal