Cloud Computing is a newly emerged technology. It is a solution for next generation of IT enterprise which enables ubiquitous, on demand and convenient access to pool of configurable resources. Along with reduced cost & complexity of applications or resources, cloud enables flexibility and scalability making it one of the exciting technologies. Virtualization is the major paradigm of cloud technology making it robust and flexible. It creates virtual versions of device or resource known as virtual machines which are shared amongst the available users. In virtual machines, hypervisor is a key element that is more prone to attacks. So, to protect these hypervisors and virtual machines a technique known as Intrusion Detection System (IDS) is used on large scale. IDS defend the attacks mostly occurring on virtual machines. Hence Virtual Machine Hypervisor based Intrusion Detection System (VMHIDS) is developed that can protect both hypervisors as well as virtual machines. This helps in early detection of attacks and can take preventive measures as soon as possible. In IDS, Hybrid IDS is chosen which can detect known and unknown class of attacks. It leads to better performance and efficiency of the system.