I was able to do this with Parallels 8. There was some conflicting information on the forums, and no clear answer, so I thought I would write it up. It’s easy to do, but not obvious from the Parallels interface or help:
Get a disk image of the OS X installer
With the new versions of OS X, you need to find the disk image inside the installer you download from the App Store.
- Download the installer from the App Store
- Right click the installer and select ‘Show Package Contents’:
- Inside ‘Contents’, go to ‘SharedSupport’ > ‘InstallESD.dmg’
This is the OS X Installer disk image. Copy it to some place you can find it easily.
Create a new VM in Parallels and select “Install Windows or another OS from DVD or image file”
- File > New
- Select ‘Install Windows or another OS from DVD or image file’
- Select the OS X installer disk image that you just found and press continue
Go through the regular OS X installation process select the ‘Macintosh OSX’ HD
The normal OS X installation process boots up in a new window.
- Select your language
- Select Reinstall OS X
- Press ‘Continue’, ‘Agree’, and ‘I agree’
- Select ‘Macintosh HD’ for the target install disk
This one scared me a little—it looks like it is going to force to overwrite your current Macintosh HD. In fact, it is on a virtual disk, so you can install there with no problem.