diff --git a/arch/powerpc/include/asm/kvm_host.h b/arch/powerpc/include/asm/kvm_host.h
index bfd0c9912da5..66c75cddaec6 100644
--- a/arch/powerpc/include/asm/kvm_host.h
+++ b/arch/powerpc/include/asm/kvm_host.h
@@ -330,7 +330,7 @@ struct kvm_vcpu_arch {
 	u32 tbl;
 	u32 tbu;
 	u32 tcr;
-	u32 tsr;
+	ulong tsr; /* we need to perform set/clr_bits() which requires ulong */
 	u32 ivor[64];
 	ulong ivpr;
 	u32 pvr;
diff --git a/arch/powerpc/include/asm/kvm_ppc.h b/arch/powerpc/include/asm/kvm_ppc.h
index c089927f64cc..5192c2e70583 100644
--- a/arch/powerpc/include/asm/kvm_ppc.h
+++ b/arch/powerpc/include/asm/kvm_ppc.h
@@ -66,6 +66,7 @@ extern int kvmppc_emulate_instruction(struct kvm_run *run,
 extern int kvmppc_emulate_mmio(struct kvm_run *run, struct kvm_vcpu *vcpu);
 extern void kvmppc_emulate_dec(struct kvm_vcpu *vcpu);
 extern u32 kvmppc_get_dec(struct kvm_vcpu *vcpu, u64 tb);
+extern void kvmppc_decrementer_func(unsigned long data);
 extern int kvmppc_sanity_check(struct kvm_vcpu *vcpu);
 
 /* Core-specific hooks */
diff --git a/arch/powerpc/kvm/book3s.c b/arch/powerpc/kvm/book3s.c
index 5398744cd773..6bf7e0582c5a 100644
--- a/arch/powerpc/kvm/book3s.c
+++ b/arch/powerpc/kvm/book3s.c
@@ -515,3 +515,11 @@ out:
 	mutex_unlock(&kvm->slots_lock);
 	return r;
 }
+
+void kvmppc_decrementer_func(unsigned long data)
+{
+	struct kvm_vcpu *vcpu = (struct kvm_vcpu *)data;
+
+	kvmppc_core_queue_dec(vcpu);
+	kvm_vcpu_kick(vcpu);
+}
diff --git a/arch/powerpc/kvm/booke.c b/arch/powerpc/kvm/booke.c
index 50803dd0b8f2..9e41f45d07ed 100644
--- a/arch/powerpc/kvm/booke.c
+++ b/arch/powerpc/kvm/booke.c
@@ -252,9 +252,11 @@ static int kvmppc_booke_irqprio_deliver(struct kvm_vcpu *vcpu,
 		allowed = vcpu->arch.shared->msr & MSR_ME;
 		msr_mask = 0;
 		break;
-	case BOOKE_IRQPRIO_EXTERNAL:
 	case BOOKE_IRQPRIO_DECREMENTER:
 	case BOOKE_IRQPRIO_FIT:
+		keep_irq = true;
+		/* fall through */
+	case BOOKE_IRQPRIO_EXTERNAL:
 		allowed = vcpu->arch.shared->msr & MSR_EE;
 		allowed = allowed && !crit;
 		msr_mask = MSR_CE|MSR_ME|MSR_DE;
@@ -282,11 +284,26 @@ static int kvmppc_booke_irqprio_deliver(struct kvm_vcpu *vcpu,
 	return allowed;
 }
 
+static void update_timer_ints(struct kvm_vcpu *vcpu)
+{
+	if ((vcpu->arch.tcr & TCR_DIE) && (vcpu->arch.tsr & TSR_DIS))
+		kvmppc_core_queue_dec(vcpu);
+	else
+		kvmppc_core_dequeue_dec(vcpu);
+}
+
 static void kvmppc_core_check_exceptions(struct kvm_vcpu *vcpu)
 {
 	unsigned long *pending = &vcpu->arch.pending_exceptions;
 	unsigned int priority;
 
+	if (vcpu->requests) {
+		if (kvm_check_request(KVM_REQ_PENDING_TIMER, vcpu)) {
+			smp_mb();
+			update_timer_ints(vcpu);
+		}
+	}
+
 	priority = __ffs(*pending);
 	while (priority <= BOOKE_IRQPRIO_MAX) {
 		if (kvmppc_booke_irqprio_deliver(vcpu, priority))
@@ -749,25 +766,16 @@ static int set_sregs_base(struct kvm_vcpu *vcpu,
 	vcpu->arch.shared->esr = sregs->u.e.esr;
 	vcpu->arch.shared->dar = sregs->u.e.dear;
 	vcpu->arch.vrsave = sregs->u.e.vrsave;
-	vcpu->arch.tcr = sregs->u.e.tcr;
+	kvmppc_set_tcr(vcpu, sregs->u.e.tcr);
 
-	if (sregs->u.e.update_special & KVM_SREGS_E_UPDATE_DEC)
+	if (sregs->u.e.update_special & KVM_SREGS_E_UPDATE_DEC) {
 		vcpu->arch.dec = sregs->u.e.dec;
-
-	kvmppc_emulate_dec(vcpu);
+		kvmppc_emulate_dec(vcpu);
+	}
 
 	if (sregs->u.e.update_special & KVM_SREGS_E_UPDATE_TSR) {
-		/*
-		 * FIXME: existing KVM timer handling is incomplete.
-		 * TSR cannot be read by the guest, and its value in
-		 * vcpu->arch is always zero.  For now, just handle
-		 * the case where the caller is trying to inject a
-		 * decrementer interrupt.
-		 */
-
-		if ((sregs->u.e.tsr & TSR_DIS) &&
-		    (vcpu->arch.tcr & TCR_DIE))
-			kvmppc_core_queue_dec(vcpu);
+		vcpu->arch.tsr = sregs->u.e.tsr;
+		update_timer_ints(vcpu);
 	}
 
 	return 0;
@@ -923,6 +931,33 @@ void kvmppc_core_destroy_vm(struct kvm *kvm)
 {
 }
 
+void kvmppc_set_tcr(struct kvm_vcpu *vcpu, u32 new_tcr)
+{
+	vcpu->arch.tcr = new_tcr;
+	update_timer_ints(vcpu);
+}
+
+void kvmppc_set_tsr_bits(struct kvm_vcpu *vcpu, u32 tsr_bits)
+{
+	set_bits(tsr_bits, &vcpu->arch.tsr);
+	smp_wmb();
+	kvm_make_request(KVM_REQ_PENDING_TIMER, vcpu);
+	kvm_vcpu_kick(vcpu);
+}
+
+void kvmppc_clr_tsr_bits(struct kvm_vcpu *vcpu, u32 tsr_bits)
+{
+	clear_bits(tsr_bits, &vcpu->arch.tsr);
+	update_timer_ints(vcpu);
+}
+
+void kvmppc_decrementer_func(unsigned long data)
+{
+	struct kvm_vcpu *vcpu = (struct kvm_vcpu *)data;
+
+	kvmppc_set_tsr_bits(vcpu, TSR_DIS);
+}
+
 int __init kvmppc_booke_init(void)
 {
 	unsigned long ivor[16];
diff --git a/arch/powerpc/kvm/booke.h b/arch/powerpc/kvm/booke.h
index 8e1fe33d64e5..2fe202705a3f 100644
--- a/arch/powerpc/kvm/booke.h
+++ b/arch/powerpc/kvm/booke.h
@@ -55,6 +55,10 @@ extern unsigned long kvmppc_booke_handlers;
 void kvmppc_set_msr(struct kvm_vcpu *vcpu, u32 new_msr);
 void kvmppc_mmu_msr_notify(struct kvm_vcpu *vcpu, u32 old_msr);
 
+void kvmppc_set_tcr(struct kvm_vcpu *vcpu, u32 new_tcr);
+void kvmppc_set_tsr_bits(struct kvm_vcpu *vcpu, u32 tsr_bits);
+void kvmppc_clr_tsr_bits(struct kvm_vcpu *vcpu, u32 tsr_bits);
+
 int kvmppc_booke_emulate_op(struct kvm_run *run, struct kvm_vcpu *vcpu,
                             unsigned int inst, int *advance);
 int kvmppc_booke_emulate_mfspr(struct kvm_vcpu *vcpu, int sprn, int rt);
diff --git a/arch/powerpc/kvm/booke_emulate.c b/arch/powerpc/kvm/booke_emulate.c
index bae9288ac1e1..3e652da36534 100644
--- a/arch/powerpc/kvm/booke_emulate.c
+++ b/arch/powerpc/kvm/booke_emulate.c
@@ -13,6 +13,7 @@
  * Foundation, 51 Franklin Street, Fifth Floor, Boston, MA  02110-1301, USA.
  *
  * Copyright IBM Corp. 2008
+ * Copyright 2011 Freescale Semiconductor, Inc.
  *
  * Authors: Hollis Blanchard <hollisb@us.ibm.com>
  */
@@ -115,10 +116,10 @@ int kvmppc_booke_emulate_mtspr(struct kvm_vcpu *vcpu, int sprn, int rs)
 	case SPRN_DBSR:
 		vcpu->arch.dbsr &= ~spr_val; break;
 	case SPRN_TSR:
-		vcpu->arch.tsr &= ~spr_val; break;
+		kvmppc_clr_tsr_bits(vcpu, spr_val);
+		break;
 	case SPRN_TCR:
-		vcpu->arch.tcr = spr_val;
-		kvmppc_emulate_dec(vcpu);
+		kvmppc_set_tcr(vcpu, spr_val);
 		break;
 
 	/* Note: SPRG4-7 are user-readable. These values are
@@ -209,6 +210,10 @@ int kvmppc_booke_emulate_mfspr(struct kvm_vcpu *vcpu, int sprn, int rt)
 		kvmppc_set_gpr(vcpu, rt, vcpu->arch.dbcr1); break;
 	case SPRN_DBSR:
 		kvmppc_set_gpr(vcpu, rt, vcpu->arch.dbsr); break;
+	case SPRN_TSR:
+		kvmppc_set_gpr(vcpu, rt, vcpu->arch.tsr); break;
+	case SPRN_TCR:
+		kvmppc_set_gpr(vcpu, rt, vcpu->arch.tcr); break;
 
 	case SPRN_IVOR0:
 		kvmppc_set_gpr(vcpu, rt, vcpu->arch.ivor[BOOKE_IRQPRIO_CRITICAL]);
diff --git a/arch/powerpc/kvm/emulate.c b/arch/powerpc/kvm/emulate.c
index bda052e2264b..968f40101883 100644
--- a/arch/powerpc/kvm/emulate.c
+++ b/arch/powerpc/kvm/emulate.c
@@ -13,6 +13,7 @@
  * Foundation, 51 Franklin Street, Fifth Floor, Boston, MA  02110-1301, USA.
  *
  * Copyright IBM Corp. 2007
+ * Copyright 2011 Freescale Semiconductor, Inc.
  *
  * Authors: Hollis Blanchard <hollisb@us.ibm.com>
  */
@@ -69,57 +70,55 @@
 #define OP_STH  44
 #define OP_STHU 45
 
-#ifdef CONFIG_PPC_BOOK3S
-static int kvmppc_dec_enabled(struct kvm_vcpu *vcpu)
-{
-	return 1;
-}
-#else
-static int kvmppc_dec_enabled(struct kvm_vcpu *vcpu)
-{
-	/* On BOOKE, DEC = 0 is as good as decrementer not enabled */
-	return (vcpu->arch.tcr & TCR_DIE) && vcpu->arch.dec;
-}
-#endif
-
 void kvmppc_emulate_dec(struct kvm_vcpu *vcpu)
 {
 	unsigned long dec_nsec;
 	unsigned long long dec_time;
 
 	pr_debug("mtDEC: %x\n", vcpu->arch.dec);
+	hrtimer_try_to_cancel(&vcpu->arch.dec_timer);
+
 #ifdef CONFIG_PPC_BOOK3S
 	/* mtdec lowers the interrupt line when positive. */
 	kvmppc_core_dequeue_dec(vcpu);
 
 	/* POWER4+ triggers a dec interrupt if the value is < 0 */
 	if (vcpu->arch.dec & 0x80000000) {
-		hrtimer_try_to_cancel(&vcpu->arch.dec_timer);
 		kvmppc_core_queue_dec(vcpu);
 		return;
 	}
 #endif
-	if (kvmppc_dec_enabled(vcpu)) {
-		/* The decrementer ticks at the same rate as the timebase, so
-		 * that's how we convert the guest DEC value to the number of
-		 * host ticks. */
 
-		hrtimer_try_to_cancel(&vcpu->arch.dec_timer);
-		dec_time = vcpu->arch.dec;
-		dec_time *= 1000;
-		do_div(dec_time, tb_ticks_per_usec);
-		dec_nsec = do_div(dec_time, NSEC_PER_SEC);
-		hrtimer_start(&vcpu->arch.dec_timer,
-			ktime_set(dec_time, dec_nsec), HRTIMER_MODE_REL);
-		vcpu->arch.dec_jiffies = get_tb();
-	} else {
-		hrtimer_try_to_cancel(&vcpu->arch.dec_timer);
-	}
+#ifdef CONFIG_BOOKE
+	/* On BOOKE, DEC = 0 is as good as decrementer not enabled */
+	if (vcpu->arch.dec == 0)
+		return;
+#endif
+
+	/*
+	 * The decrementer ticks at the same rate as the timebase, so
+	 * that's how we convert the guest DEC value to the number of
+	 * host ticks.
+	 */
+
+	dec_time = vcpu->arch.dec;
+	dec_time *= 1000;
+	do_div(dec_time, tb_ticks_per_usec);
+	dec_nsec = do_div(dec_time, NSEC_PER_SEC);
+	hrtimer_start(&vcpu->arch.dec_timer,
+		ktime_set(dec_time, dec_nsec), HRTIMER_MODE_REL);
+	vcpu->arch.dec_jiffies = get_tb();
 }
 
 u32 kvmppc_get_dec(struct kvm_vcpu *vcpu, u64 tb)
 {
 	u64 jd = tb - vcpu->arch.dec_jiffies;
+
+#ifdef CONFIG_BOOKE
+	if (vcpu->arch.dec < jd)
+		return 0;
+#endif
+
 	return vcpu->arch.dec - jd;
 }
 
diff --git a/arch/powerpc/kvm/powerpc.c b/arch/powerpc/kvm/powerpc.c
index d02e4c84e213..fd8d3b16eaf3 100644
--- a/arch/powerpc/kvm/powerpc.c
+++ b/arch/powerpc/kvm/powerpc.c
@@ -39,7 +39,8 @@
 int kvm_arch_vcpu_runnable(struct kvm_vcpu *v)
 {
 	return !(v->arch.shared->msr & MSR_WE) ||
-	       !!(v->arch.pending_exceptions);
+	       !!(v->arch.pending_exceptions) ||
+	       v->requests;
 }
 
 int kvmppc_kvm_pv(struct kvm_vcpu *vcpu)
@@ -311,18 +312,6 @@ int kvm_cpu_has_pending_timer(struct kvm_vcpu *vcpu)
 	return kvmppc_core_pending_dec(vcpu);
 }
 
-static void kvmppc_decrementer_func(unsigned long data)
-{
-	struct kvm_vcpu *vcpu = (struct kvm_vcpu *)data;
-
-	kvmppc_core_queue_dec(vcpu);
-
-	if (waitqueue_active(vcpu->arch.wqp)) {
-		wake_up_interruptible(vcpu->arch.wqp);
-		vcpu->stat.halt_wakeup++;
-	}
-}
-
 /*
  * low level hrtimer wake routine. Because this runs in hardirq context
  * we schedule a tasklet to do the real work.
@@ -567,6 +556,16 @@ int kvm_arch_vcpu_ioctl_run(struct kvm_vcpu *vcpu, struct kvm_run *run)
 	return r;
 }
 
+void kvm_vcpu_kick(struct kvm_vcpu *vcpu)
+{
+	if (waitqueue_active(&vcpu->wq)) {
+		wake_up_interruptible(vcpu->arch.wqp);
+		vcpu->stat.halt_wakeup++;
+	} else if (vcpu->cpu != -1) {
+		smp_send_reschedule(vcpu->cpu);
+	}
+}
+
 int kvm_vcpu_ioctl_interrupt(struct kvm_vcpu *vcpu, struct kvm_interrupt *irq)
 {
 	if (irq->irq == KVM_INTERRUPT_UNSET) {
@@ -575,13 +574,7 @@ int kvm_vcpu_ioctl_interrupt(struct kvm_vcpu *vcpu, struct kvm_interrupt *irq)
 	}
 
 	kvmppc_core_queue_external(vcpu, irq);
-
-	if (waitqueue_active(vcpu->arch.wqp)) {
-		wake_up_interruptible(vcpu->arch.wqp);
-		vcpu->stat.halt_wakeup++;
-	} else if (vcpu->cpu != -1) {
-		smp_send_reschedule(vcpu->cpu);
-	}
+	kvm_vcpu_kick(vcpu);
 
 	return 0;
 }