diff --git a/cpu-exec.c b/cpu-exec.c
index 5c85c1e9d8..89bf8b85e1 100644
--- a/cpu-exec.c
+++ b/cpu-exec.c
@@ -265,11 +265,11 @@ int cpu_exec(CPUState *env1)
         }
     }
 #elif defined(TARGET_PPC)
-    if (env1->msr[MSR_POW]) {
+    if (env1->halted) {
         if (env1->msr[MSR_EE] && 
             (env1->interrupt_request & 
              (CPU_INTERRUPT_HARD | CPU_INTERRUPT_TIMER))) {
-            env1->msr[MSR_POW] = 0;
+            env1->halted = 0;
         } else {
             return EXCP_HALTED;
         }
diff --git a/monitor.c b/monitor.c
index 70b473ddbf..2f0e84d86e 100644
--- a/monitor.c
+++ b/monitor.c
@@ -257,7 +257,7 @@ static void do_info_cpus(void)
             term_printf(" (halted)");
 #elif defined(TARGET_PPC)
         term_printf(" nip=0x" TARGET_FMT_lx, env->nip);
-        if (msr_pow)
+        if (env->halted)
             term_printf(" (halted)");
 #endif
         term_printf("\n");
diff --git a/target-ppc/cpu.h b/target-ppc/cpu.h
index fa7f524e9d..88d91358e2 100644
--- a/target-ppc/cpu.h
+++ b/target-ppc/cpu.h
@@ -495,6 +495,8 @@ struct CPUPPCState {
 
     CPU_COMMON
 
+    int halted; /* TRUE if the CPU is in suspend state */
+
     int access_type; /* when a memory exception occurs, the access
                         type is stored here */
 
diff --git a/target-ppc/helper.c b/target-ppc/helper.c
index ff1355c541..3f7a708712 100644
--- a/target-ppc/helper.c
+++ b/target-ppc/helper.c
@@ -807,6 +807,8 @@ void do_compute_hflags (CPUPPCState *env)
 
 void do_store_msr (CPUPPCState *env, target_ulong value)
 {
+    int enter_pm;
+
     value &= env->msr_mask;
     if (((value >> MSR_IR) & 1) != msr_ir ||
         ((value >> MSR_DR) & 1) != msr_dr) {
@@ -846,8 +848,19 @@ void do_store_msr (CPUPPCState *env, target_ulong value)
     msr_ri  = (value >> MSR_RI)  & 1;
     msr_le  = (value >> MSR_LE)  & 1;
     do_compute_hflags(env);
-    if (msr_pow) {
+
+    enter_pm = 0;
+    switch (PPC_EXCP(env)) {
+    case PPC_FLAGS_EXCP_7x0:
+	if (msr_pow == 1 && (env->spr[SPR_HID0] & 0x00E00000) != 0)
+            enter_pm = 1;
+        break;
+    default:
+        break;
+    }
+    if (enter_pm) {
         /* power save: exit cpu loop */
+        env->halted = 1;
         env->exception_index = EXCP_HLT;
         cpu_loop_exit();
     }