System and method for supporting host-based firmware upgrade of input/output (I/O) devices in a middleware machine environment

A system and method can support controlled and secure firmware upgrade in a middleware machine environment. The system can provide a boot image of an operating system (OS) in a host node, wherein the host node connects to a shared resource, such as a network fabric, via an input/out (I/O) device. The boot image can receive at least one of a firmware image and a firmware update from the host node, and upgrade firmware in the I/O device associated with the host node. Furthermore, the host-based firmware upgrade can be based on a special boot image that is prevented from accessing local information on the host node, or a normal boot image that is prevented from controlling the I/O device.