diff --git a/arch/powerpc/kvm/book3s_hv.c b/arch/powerpc/kvm/book3s_hv.c
index 52427fc2a33f..0b921704da45 100644
--- a/arch/powerpc/kvm/book3s_hv.c
+++ b/arch/powerpc/kvm/book3s_hv.c
@@ -391,6 +391,24 @@ static void kvmppc_set_pvr_hv(struct kvm_vcpu *vcpu, u32 pvr)
 /* Dummy value used in computing PCR value below */
 #define PCR_ARCH_31    (PCR_ARCH_300 << 1)
 
+static inline unsigned long map_pcr_to_cap(unsigned long pcr)
+{
+	unsigned long cap = 0;
+
+	switch (pcr) {
+	case PCR_ARCH_300:
+		cap = H_GUEST_CAP_POWER9;
+		break;
+	case PCR_ARCH_31:
+		cap = H_GUEST_CAP_POWER10;
+		break;
+	default:
+		break;
+	}
+
+	return cap;
+}
+
 static int kvmppc_set_arch_compat(struct kvm_vcpu *vcpu, u32 arch_compat)
 {
 	unsigned long host_pcr_bit = 0, guest_pcr_bit = 0, cap = 0;
@@ -424,11 +442,9 @@ static int kvmppc_set_arch_compat(struct kvm_vcpu *vcpu, u32 arch_compat)
 			break;
 		case PVR_ARCH_300:
 			guest_pcr_bit = PCR_ARCH_300;
-			cap = H_GUEST_CAP_POWER9;
 			break;
 		case PVR_ARCH_31:
 			guest_pcr_bit = PCR_ARCH_31;
-			cap = H_GUEST_CAP_POWER10;
 			break;
 		default:
 			return -EINVAL;
@@ -440,6 +456,12 @@ static int kvmppc_set_arch_compat(struct kvm_vcpu *vcpu, u32 arch_compat)
 		return -EINVAL;
 
 	if (kvmhv_on_pseries() && kvmhv_is_nestedv2()) {
+		/*
+		 * 'arch_compat == 0' would mean the guest should default to
+		 * L1's compatibility. In this case, the guest would pick
+		 * host's PCR and evaluate the corresponding capabilities.
+		 */
+		cap = map_pcr_to_cap(guest_pcr_bit);
 		if (!(cap & nested_capabilities))
 			return -EINVAL;
 	}
diff --git a/arch/powerpc/kvm/book3s_hv_nestedv2.c b/arch/powerpc/kvm/book3s_hv_nestedv2.c
index 5378eb40b162..6042bdc70230 100644
--- a/arch/powerpc/kvm/book3s_hv_nestedv2.c
+++ b/arch/powerpc/kvm/book3s_hv_nestedv2.c
@@ -138,6 +138,7 @@ static int gs_msg_ops_vcpu_fill_info(struct kvmppc_gs_buff *gsb,
 	vector128 v;
 	int rc, i;
 	u16 iden;
+	u32 arch_compat = 0;
 
 	vcpu = gsm->data;
 
@@ -347,8 +348,26 @@ static int gs_msg_ops_vcpu_fill_info(struct kvmppc_gs_buff *gsb,
 			break;
 		}
 		case KVMPPC_GSID_LOGICAL_PVR:
-			rc = kvmppc_gse_put_u32(gsb, iden,
-						vcpu->arch.vcore->arch_compat);
+			/*
+			 * Though 'arch_compat == 0' would mean the default
+			 * compatibility, arch_compat, being a Guest Wide
+			 * Element, cannot be filled with a value of 0 in GSB
+			 * as this would result into a kernel trap.
+			 * Hence, when `arch_compat == 0`, arch_compat should
+			 * default to L1's PVR.
+			 *
+			 * Rework this when PowerVM supports a value of 0
+			 * for arch_compat for KVM API v2.
+			 */
+			if (!vcpu->arch.vcore->arch_compat) {
+				if (cpu_has_feature(CPU_FTR_ARCH_31))
+					arch_compat = PVR_ARCH_31;
+				else if (cpu_has_feature(CPU_FTR_ARCH_300))
+					arch_compat = PVR_ARCH_300;
+			} else {
+				arch_compat = vcpu->arch.vcore->arch_compat;
+			}
+			rc = kvmppc_gse_put_u32(gsb, iden, arch_compat);
 			break;
 		}