diff --git a/arch/powerpc/kvm/book3s_hv.c b/arch/powerpc/kvm/book3s_hv.c
index 085fb8ecbf68..9123b493c79e 100644
--- a/arch/powerpc/kvm/book3s_hv.c
+++ b/arch/powerpc/kvm/book3s_hv.c
@@ -1837,6 +1837,19 @@ static int kvmppc_handle_nested_exit(struct kvm_vcpu *vcpu)
 		r = RESUME_HOST;
 		break;
 	}
+	case BOOK3S_INTERRUPT_H_FAC_UNAVAIL:
+		/*
+		 * We might decide later to turn this interrupt into a
+		 * HEAI. Load the last instruction now that we can go
+		 * back into the guest to retry if needed.
+		 */
+		r = kvmppc_get_last_inst(vcpu, INST_GENERIC,
+					 &vcpu->arch.emul_inst);
+		if (r != EMULATE_DONE)
+			r = RESUME_GUEST;
+		else
+			r = RESUME_HOST;
+		break;
 	default:
 		r = RESUME_HOST;
 		break;
diff --git a/arch/powerpc/kvm/book3s_hv_nested.c b/arch/powerpc/kvm/book3s_hv_nested.c
index 1823674d46ef..1904697a3132 100644
--- a/arch/powerpc/kvm/book3s_hv_nested.c
+++ b/arch/powerpc/kvm/book3s_hv_nested.c
@@ -99,7 +99,7 @@ static void byteswap_hv_regs(struct hv_guest_state *hr)
 	hr->dawrx1 = swab64(hr->dawrx1);
 }
 
-static void save_hv_return_state(struct kvm_vcpu *vcpu, int trap,
+static void save_hv_return_state(struct kvm_vcpu *vcpu,
 				 struct hv_guest_state *hr)
 {
 	struct kvmppc_vcore *vc = vcpu->arch.vcore;
@@ -118,7 +118,7 @@ static void save_hv_return_state(struct kvm_vcpu *vcpu, int trap,
 	hr->pidr = vcpu->arch.pid;
 	hr->cfar = vcpu->arch.cfar;
 	hr->ppr = vcpu->arch.ppr;
-	switch (trap) {
+	switch (vcpu->arch.trap) {
 	case BOOK3S_INTERRUPT_H_DATA_STORAGE:
 		hr->hdar = vcpu->arch.fault_dar;
 		hr->hdsisr = vcpu->arch.fault_dsisr;
@@ -128,9 +128,26 @@ static void save_hv_return_state(struct kvm_vcpu *vcpu, int trap,
 		hr->asdr = vcpu->arch.fault_gpa;
 		break;
 	case BOOK3S_INTERRUPT_H_FAC_UNAVAIL:
-		hr->hfscr = ((~HFSCR_INTR_CAUSE & hr->hfscr) |
-			     (HFSCR_INTR_CAUSE & vcpu->arch.hfscr));
-		break;
+	{
+		u64 cause = vcpu->arch.hfscr >> 56;
+
+		WARN_ON_ONCE(cause >= BITS_PER_LONG);
+
+		if (!(hr->hfscr & (1UL << cause))) {
+			hr->hfscr = ((~HFSCR_INTR_CAUSE & hr->hfscr) |
+				     (HFSCR_INTR_CAUSE & vcpu->arch.hfscr));
+			break;
+		}
+
+		/*
+		 * We have disabled this facility, so it does not
+		 * exist from L1's perspective. Turn it into a
+		 * HEAI. The instruction was already loaded at
+		 * kvmppc_handle_nested_exit().
+		 */
+		vcpu->arch.trap = BOOK3S_INTERRUPT_H_EMUL_ASSIST;
+		fallthrough;
+	}
 	case BOOK3S_INTERRUPT_H_EMUL_ASSIST:
 		hr->heir = vcpu->arch.emul_inst;
 		break;
@@ -388,7 +405,7 @@ long kvmhv_enter_nested_guest(struct kvm_vcpu *vcpu)
 	delta_spurr = vcpu->arch.spurr - l2_hv.spurr;
 	delta_ic = vcpu->arch.ic - l2_hv.ic;
 	delta_vtb = vc->vtb - l2_hv.vtb;
-	save_hv_return_state(vcpu, vcpu->arch.trap, &l2_hv);
+	save_hv_return_state(vcpu, &l2_hv);
 
 	/* restore L1 state */
 	vcpu->arch.nested = NULL;