diff --git a/hw/ppc/Makefile.objs b/hw/ppc/Makefile.objs
index 7efc686748..1faff853b7 100644
--- a/hw/ppc/Makefile.objs
+++ b/hw/ppc/Makefile.objs
@@ -1,7 +1,7 @@
 # shared objects
 obj-y += ppc.o ppc_booke.o fdt.o
 # IBM pSeries (sPAPR)
-obj-$(CONFIG_PSERIES) += spapr.o spapr_vio.o spapr_events.o
+obj-$(CONFIG_PSERIES) += spapr.o spapr_caps.o spapr_vio.o spapr_events.o
 obj-$(CONFIG_PSERIES) += spapr_hcall.o spapr_iommu.o spapr_rtas.o
 obj-$(CONFIG_PSERIES) += spapr_pci.o spapr_rtc.o spapr_drc.o spapr_rng.o
 obj-$(CONFIG_PSERIES) += spapr_cpu_core.o spapr_ovec.o
diff --git a/hw/ppc/spapr.c b/hw/ppc/spapr.c
index bedc39a2e5..958d894add 100644
--- a/hw/ppc/spapr.c
+++ b/hw/ppc/spapr.c
@@ -1440,6 +1440,8 @@ static void ppc_spapr_reset(void)
     /* Check for unknown sysbus devices */
     foreach_dynamic_sysbus_device(find_unknown_sysbus_device, NULL);
 
+    spapr_caps_reset(spapr);
+
     first_ppc_cpu = POWERPC_CPU(first_cpu);
     if (kvm_enabled() && kvmppc_has_cap_mmu_radix() &&
         ppc_check_compat(first_ppc_cpu, CPU_POWERPC_LOGICAL_3_00, 0,
@@ -2285,6 +2287,8 @@ static void ppc_spapr_init(MachineState *machine)
     char *filename;
     Error *resize_hpt_err = NULL;
 
+    spapr_caps_validate(spapr, &error_fatal);
+
     msi_nonbroken = true;
 
     QLIST_INIT(&spapr->phbs);
@@ -3665,6 +3669,9 @@ static void spapr_machine_class_init(ObjectClass *oc, void *data)
      * in which LMBs are represented and hot-added
      */
     mc->numa_mem_align_shift = 28;
+
+    smc->default_caps = spapr_caps(0);
+    spapr_caps_add_properties(smc, &error_abort);
 }
 
 static const TypeInfo spapr_machine_info = {
diff --git a/hw/ppc/spapr_caps.c b/hw/ppc/spapr_caps.c
new file mode 100644
index 0000000000..968ba7b857
--- /dev/null
+++ b/hw/ppc/spapr_caps.c
@@ -0,0 +1,181 @@
+/*
+ * QEMU PowerPC pSeries Logical Partition capabilities handling
+ *
+ * Copyright (c) 2017 David Gibson, Red Hat Inc.
+ *
+ * Permission is hereby granted, free of charge, to any person obtaining a copy
+ * of this software and associated documentation files (the "Software"), to deal
+ * in the Software without restriction, including without limitation the rights
+ * to use, copy, modify, merge, publish, distribute, sublicense, and/or sell
+ * copies of the Software, and to permit persons to whom the Software is
+ * furnished to do so, subject to the following conditions:
+ *
+ * The above copyright notice and this permission notice shall be included in
+ * all copies or substantial portions of the Software.
+ *
+ * THE SOFTWARE IS PROVIDED "AS IS", WITHOUT WARRANTY OF ANY KIND, EXPRESS OR
+ * IMPLIED, INCLUDING BUT NOT LIMITED TO THE WARRANTIES OF MERCHANTABILITY,
+ * FITNESS FOR A PARTICULAR PURPOSE AND NONINFRINGEMENT. IN NO EVENT SHALL
+ * THE AUTHORS OR COPYRIGHT HOLDERS BE LIABLE FOR ANY CLAIM, DAMAGES OR OTHER
+ * LIABILITY, WHETHER IN AN ACTION OF CONTRACT, TORT OR OTHERWISE, ARISING FROM,
+ * OUT OF OR IN CONNECTION WITH THE SOFTWARE OR THE USE OR OTHER DEALINGS IN
+ * THE SOFTWARE.
+ */
+#include "qemu/osdep.h"
+#include "qapi/error.h"
+#include "qapi/visitor.h"
+
+#include "hw/ppc/spapr.h"
+
+typedef struct sPAPRCapabilityInfo {
+    const char *name;
+    const char *description;
+    uint64_t flag;
+
+    /* Make sure the virtual hardware can support this capability */
+    void (*allow)(sPAPRMachineState *spapr, Error **errp);
+
+    /* If possible, tell the virtual hardware not to allow the cap to
+     * be used at all */
+    void (*disallow)(sPAPRMachineState *spapr, Error **errp);
+} sPAPRCapabilityInfo;
+
+static sPAPRCapabilityInfo capability_table[] = {
+};
+
+static sPAPRCapabilities default_caps_with_cpu(sPAPRMachineState *spapr,
+                                               CPUState *cs)
+{
+    sPAPRMachineClass *smc = SPAPR_MACHINE_GET_CLASS(spapr);
+    sPAPRCapabilities caps;
+
+    caps = smc->default_caps;
+
+    /* TODO: clamp according to cpu model */
+
+    return caps;
+}
+
+void spapr_caps_reset(sPAPRMachineState *spapr)
+{
+    Error *local_err = NULL;
+    sPAPRCapabilities caps;
+    int i;
+
+    /* First compute the actual set of caps we're running with.. */
+    caps = default_caps_with_cpu(spapr, first_cpu);
+
+    caps.mask |= spapr->forced_caps.mask;
+    caps.mask &= ~spapr->forbidden_caps.mask;
+
+    spapr->effective_caps = caps;
+
+    /* .. then apply those caps to the virtual hardware */
+
+    for (i = 0; i < ARRAY_SIZE(capability_table); i++) {
+        sPAPRCapabilityInfo *info = &capability_table[i];
+
+        if (spapr->effective_caps.mask & info->flag) {
+            /* Failure to allow a cap is fatal - if the guest doesn't
+             * have it, we'll be supplying an incorrect environment */
+            if (info->allow) {
+                info->allow(spapr, &error_fatal);
+            }
+        } else {
+            /* Failure to enforce a cap is only a warning.  The guest
+             * shouldn't be using it, since it's not advertised, so it
+             * doesn't get to complain about weird behaviour if it
+             * goes ahead anyway */
+            if (info->disallow) {
+                info->disallow(spapr, &local_err);
+            }
+            if (local_err) {
+                warn_report_err(local_err);
+                local_err = NULL;
+            }
+        }
+    }
+}
+
+static void spapr_cap_get(Object *obj, Visitor *v, const char *name,
+                          void *opaque, Error **errp)
+{
+    sPAPRCapabilityInfo *cap = opaque;
+    sPAPRMachineState *spapr = SPAPR_MACHINE(obj);
+    bool value = spapr_has_cap(spapr, cap->flag);
+
+    /* TODO: Could this get called before effective_caps is finalized
+     * in spapr_caps_reset()? */
+
+    visit_type_bool(v, name, &value, errp);
+}
+
+static void spapr_cap_set(Object *obj, Visitor *v, const char *name,
+                          void *opaque, Error **errp)
+{
+    sPAPRCapabilityInfo *cap = opaque;
+    sPAPRMachineState *spapr = SPAPR_MACHINE(obj);
+    bool value;
+    Error *local_err = NULL;
+
+    visit_type_bool(v, name, &value, &local_err);
+    if (local_err) {
+        error_propagate(errp, local_err);
+        return;
+    }
+
+    if (value) {
+        spapr->forced_caps.mask |= cap->flag;
+    } else {
+        spapr->forbidden_caps.mask |= cap->flag;
+    }
+}
+
+void spapr_caps_validate(sPAPRMachineState *spapr, Error **errp)
+{
+    uint64_t allcaps = 0;
+    int i;
+
+    for (i = 0; i < ARRAY_SIZE(capability_table); i++) {
+        g_assert((allcaps & capability_table[i].flag) == 0);
+        allcaps |= capability_table[i].flag;
+    }
+
+    g_assert((spapr->forced_caps.mask & ~allcaps) == 0);
+    g_assert((spapr->forbidden_caps.mask & ~allcaps) == 0);
+
+    if (spapr->forced_caps.mask & spapr->forbidden_caps.mask) {
+        error_setg(errp, "Some sPAPR capabilities set both on and off");
+        return;
+    }
+
+    /* Check for any caps incompatible with other caps.  Nothing to do
+     * yet */
+}
+
+void spapr_caps_add_properties(sPAPRMachineClass *smc, Error **errp)
+{
+    Error *local_err = NULL;
+    ObjectClass *klass = OBJECT_CLASS(smc);
+    int i;
+
+    for (i = 0; i < ARRAY_SIZE(capability_table); i++) {
+        sPAPRCapabilityInfo *cap = &capability_table[i];
+        const char *name = g_strdup_printf("cap-%s", cap->name);
+
+        object_class_property_add(klass, name, "bool",
+                                  spapr_cap_get, spapr_cap_set, NULL,
+                                  cap, &local_err);
+        if (local_err) {
+            error_propagate(errp, local_err);
+            return;
+        }
+
+        object_class_property_set_description(klass, name, cap->description,
+                                              &local_err);
+        if (local_err) {
+            error_propagate(errp, local_err);
+            return;
+        }
+    }
+}
diff --git a/include/hw/ppc/spapr.h b/include/hw/ppc/spapr.h
index 9d21ca9bde..c8852dfbba 100644
--- a/include/hw/ppc/spapr.h
+++ b/include/hw/ppc/spapr.h
@@ -51,6 +51,15 @@ typedef enum {
 } sPAPRResizeHPT;
 
 /**
+ * Capabilities
+ */
+
+typedef struct sPAPRCapabilities sPAPRCapabilities;
+struct sPAPRCapabilities {
+    uint64_t mask;
+};
+
+/**
  * sPAPRMachineClass:
  */
 struct sPAPRMachineClass {
@@ -66,6 +75,7 @@ struct sPAPRMachineClass {
                           hwaddr *mmio32, hwaddr *mmio64,
                           unsigned n_dma, uint32_t *liobns, Error **errp);
     sPAPRResizeHPT resize_hpt_default;
+    sPAPRCapabilities default_caps;
 };
 
 /**
@@ -127,6 +137,9 @@ struct sPAPRMachineState {
     MemoryHotplugState hotplug_memory;
 
     const char *icp_type;
+
+    sPAPRCapabilities forced_caps, forbidden_caps;
+    sPAPRCapabilities effective_caps;
 };
 
 #define H_SUCCESS         0
@@ -707,4 +720,22 @@ void spapr_do_system_reset_on_cpu(CPUState *cs, run_on_cpu_data arg);
 int spapr_vcpu_id(PowerPCCPU *cpu);
 PowerPCCPU *spapr_find_cpu(int vcpu_id);
 
+/*
+ * Handling of optional capabilities
+ */
+static inline sPAPRCapabilities spapr_caps(uint64_t mask)
+{
+    sPAPRCapabilities caps = { mask };
+    return caps;
+}
+
+static inline bool spapr_has_cap(sPAPRMachineState *spapr, uint64_t cap)
+{
+    return !!(spapr->effective_caps.mask & cap);
+}
+
+void spapr_caps_reset(sPAPRMachineState *spapr);
+void spapr_caps_validate(sPAPRMachineState *spapr, Error **errp);
+void spapr_caps_add_properties(sPAPRMachineClass *smc, Error **errp);
+
 #endif /* HW_SPAPR_H */
