diff --git a/hw/mips_mipssim.c b/hw/mips_mipssim.c
index a747de5..cd6c2be 100644
--- a/hw/mips_mipssim.c
+++ b/hw/mips_mipssim.c
@@ -106,7 +106,9 @@ static void main_cpu_reset(void *opaque)
     CPUState *env = s->env;
 
     cpu_reset(env);
-    env->active_tc.PC = s->vector;
+    env->active_tc.PC = s->vector & ~(target_ulong)1;
+    if (s->vector & 1)
+        env->hflags |= MIPS_HFLAG_M16;
 }
 
 static void