diff --git a/devstack/lib/ironic b/devstack/lib/ironic
index df728640fb..484102c1f8 100644
--- a/devstack/lib/ironic
+++ b/devstack/lib/ironic
@@ -670,7 +670,10 @@ function setup_virtualbmc {
         git_clone_by_name "virtualbmc"
         setup_dev_lib "virtualbmc"
     else
-        pip_install_gr "virtualbmc"
+        # pyghmi is still not compatible with python3
+        # hence we need to install virtualbmc in python2
+        # environment else IPMI calls will fail at the gate.
+        USE_PYTHON3=False pip_install_gr "virtualbmc"
     fi
 
     if [[ ! -d $(dirname $IRONIC_VBMC_CONFIG_FILE) ]]; then