A method and an information handling system (IHS) provides a virtual alternating current (vAC) reset of the IHS. A vAC reset module (vACRM), in response to receiving a request for the vAC reset, sets a bit within an auxiliary (AUX) based register to invoke the vAC reset when a system restart command is issued. The vACRM changes/configures a vAC recovery policy to enable main rail power to be turned on and a system start-up procedure to be initiated when a restored vAC is detected. The vACRM uses a system restart command to shutdown the main rail power and to remove power from system components powered by the main rail. The vACRM switches off AUX power to AUX powered components, based on the previously set bit, and reapplies the AUX power, following a preset interval. The vACRM turns on main rail power and initiates a system start-up procedure, according to the vAC recovery policy.