diff --git a/arch/powerpc/include/asm/kvm_booke.h b/arch/powerpc/include/asm/kvm_booke.h
index f7aa5cc..630134d 100644
--- a/arch/powerpc/include/asm/kvm_booke.h
+++ b/arch/powerpc/include/asm/kvm_booke.h
@@ -23,7 +23,10 @@
 #include <linux/types.h>
 #include <linux/kvm_host.h>
 
-/* LPIDs we support with this build -- runtime limit may be lower */
+/*
+ * Number of available lpids. Only the low-order 6 bits of LPID rgister are
+ * implemented on e500mc+ cores.
+ */
 #define KVMPPC_NR_LPIDS                        64
 
 #define KVMPPC_INST_EHPRIV		0x7c00021c
diff --git a/arch/powerpc/kvm/e500.h b/arch/powerpc/kvm/e500.h
index a326178..72920be 100644
--- a/arch/powerpc/kvm/e500.h
+++ b/arch/powerpc/kvm/e500.h
@@ -22,6 +22,7 @@
 #include <linux/kvm_host.h>
 #include <asm/mmu-book3e.h>
 #include <asm/tlb.h>
+#include <asm/cputhreads.h>
 
 enum vcpu_ftr {
 	VCPU_FTR_MMU_V2
@@ -289,6 +290,25 @@ void kvmppc_e500_tlbil_all(struct kvmppc_vcpu_e500 *vcpu_e500);
 #define kvmppc_e500_get_tlb_stid(vcpu, gtlbe)       get_tlb_tid(gtlbe)
 #define get_tlbmiss_tid(vcpu)           get_cur_pid(vcpu)
 #define get_tlb_sts(gtlbe)              (gtlbe->mas1 & MAS1_TS)
+
+/*
+ * These functions should be called with preemption disabled
+ * and the returned value is valid only in that context
+ */
+static inline int get_thread_specific_lpid(int vm_lpid)
+{
+	int vcpu_lpid = vm_lpid;
+
+	if (threads_per_core == 2)
+		vcpu_lpid |= smp_processor_id() & 1;
+
+	return vcpu_lpid;
+}
+
+static inline int get_lpid(struct kvm_vcpu *vcpu)
+{
+	return get_thread_specific_lpid(vcpu->kvm->arch.lpid);
+}
 #else
 unsigned int kvmppc_e500_get_tlb_stid(struct kvm_vcpu *vcpu,
 				      struct kvm_book3e_206_tlb_entry *gtlbe);
diff --git a/arch/powerpc/kvm/e500_mmu_host.c b/arch/powerpc/kvm/e500_mmu_host.c
index 08f14bb..c8795a6 100644
--- a/arch/powerpc/kvm/e500_mmu_host.c
+++ b/arch/powerpc/kvm/e500_mmu_host.c
@@ -69,7 +69,8 @@ static inline u32 e500_shadow_mas3_attrib(u32 mas3, int usermode)
  * writing shadow tlb entry to host TLB
  */
 static inline void __write_host_tlbe(struct kvm_book3e_206_tlb_entry *stlbe,
-				     uint32_t mas0)
+				     uint32_t mas0,
+				     uint32_t lpid)
 {
 	unsigned long flags;
 
@@ -80,7 +81,7 @@ static inline void __write_host_tlbe(struct kvm_book3e_206_tlb_entry *stlbe,
 	mtspr(SPRN_MAS3, (u32)stlbe->mas7_3);
 	mtspr(SPRN_MAS7, (u32)(stlbe->mas7_3 >> 32));
 #ifdef CONFIG_KVM_BOOKE_HV
-	mtspr(SPRN_MAS8, stlbe->mas8);
+	mtspr(SPRN_MAS8, MAS8_TGS | get_thread_specific_lpid(lpid));
 #endif
 	asm volatile("isync; tlbwe" : : : "memory");
 
@@ -129,11 +130,12 @@ static inline void write_host_tlbe(struct kvmppc_vcpu_e500 *vcpu_e500,
 
 	if (tlbsel == 0) {
 		mas0 = get_host_mas0(stlbe->mas2);
-		__write_host_tlbe(stlbe, mas0);
+		__write_host_tlbe(stlbe, mas0, vcpu_e500->vcpu.kvm->arch.lpid);
 	} else {
 		__write_host_tlbe(stlbe,
 				  MAS0_TLBSEL(1) |
-				  MAS0_ESEL(to_htlb1_esel(sesel)));
+				  MAS0_ESEL(to_htlb1_esel(sesel)),
+				  vcpu_e500->vcpu.kvm->arch.lpid);
 	}
 }
 
@@ -176,7 +178,7 @@ void kvmppc_map_magic(struct kvm_vcpu *vcpu)
 		       MAS3_SW | MAS3_SR | MAS3_UW | MAS3_UR;
 	magic.mas8 = 0;
 
-	__write_host_tlbe(&magic, MAS0_TLBSEL(1) | MAS0_ESEL(tlbcam_index));
+	__write_host_tlbe(&magic, MAS0_TLBSEL(1) | MAS0_ESEL(tlbcam_index), 0);
 	preempt_enable();
 }
 #endif
@@ -317,10 +319,6 @@ static void kvmppc_e500_setup_stlbe(
 	stlbe->mas2 = (gvaddr & MAS2_EPN) | (ref->flags & E500_TLB_MAS2_ATTR);
 	stlbe->mas7_3 = ((u64)pfn << PAGE_SHIFT) |
 			e500_shadow_mas3_attrib(gtlbe->mas7_3, pr);
-
-#ifdef CONFIG_KVM_BOOKE_HV
-	stlbe->mas8 = MAS8_TGS | vcpu->kvm->arch.lpid;
-#endif
 }
 
 static inline int kvmppc_e500_shadow_map(struct kvmppc_vcpu_e500 *vcpu_e500,
@@ -633,7 +631,7 @@ int kvmppc_load_last_inst(struct kvm_vcpu *vcpu, enum instruction_type type,
 
 	local_irq_save(flags);
 	mtspr(SPRN_MAS6, (vcpu->arch.pid << MAS6_SPID_SHIFT) | addr_space);
-	mtspr(SPRN_MAS5, MAS5_SGS | vcpu->kvm->arch.lpid);
+	mtspr(SPRN_MAS5, MAS5_SGS | get_lpid(vcpu));
 	asm volatile("tlbsx 0, %[geaddr]\n" : :
 		     [geaddr] "r" (geaddr));
 	mtspr(SPRN_MAS5, 0);
diff --git a/arch/powerpc/kvm/e500mc.c b/arch/powerpc/kvm/e500mc.c
index 4549349..bf8f99f 100644
--- a/arch/powerpc/kvm/e500mc.c
+++ b/arch/powerpc/kvm/e500mc.c
@@ -48,10 +48,11 @@ void kvmppc_set_pending_interrupt(struct kvm_vcpu *vcpu, enum int_class type)
 		return;
 	}
 
-
-	tag = PPC_DBELL_LPID(vcpu->kvm->arch.lpid) | vcpu->vcpu_id;
+	preempt_disable();
+	tag = PPC_DBELL_LPID(get_lpid(vcpu)) | vcpu->vcpu_id;
 	mb();
 	ppc_msgsnd(dbell_type, 0, tag);
+	preempt_enable();
 }
 
 /* gtlbe must not be mapped by more than one host tlb entry */
@@ -60,12 +61,11 @@ void kvmppc_e500_tlbil_one(struct kvmppc_vcpu_e500 *vcpu_e500,
 {
 	unsigned int tid, ts;
 	gva_t eaddr;
-	u32 val, lpid;
+	u32 val;
 	unsigned long flags;
 
 	ts = get_tlb_ts(gtlbe);
 	tid = get_tlb_tid(gtlbe);
-	lpid = vcpu_e500->vcpu.kvm->arch.lpid;
 
 	/* We search the host TLB to invalidate its shadow TLB entry */
 	val = (tid << 16) | ts;
@@ -74,7 +74,7 @@ void kvmppc_e500_tlbil_one(struct kvmppc_vcpu_e500 *vcpu_e500,
 	local_irq_save(flags);
 
 	mtspr(SPRN_MAS6, val);
-	mtspr(SPRN_MAS5, MAS5_SGS | lpid);
+	mtspr(SPRN_MAS5, MAS5_SGS | get_lpid(&vcpu_e500->vcpu));
 
 	asm volatile("tlbsx 0, %[eaddr]\n" : : [eaddr] "r" (eaddr));
 	val = mfspr(SPRN_MAS1);
@@ -95,7 +95,7 @@ void kvmppc_e500_tlbil_all(struct kvmppc_vcpu_e500 *vcpu_e500)
 	unsigned long flags;
 
 	local_irq_save(flags);
-	mtspr(SPRN_MAS5, MAS5_SGS | vcpu_e500->vcpu.kvm->arch.lpid);
+	mtspr(SPRN_MAS5, MAS5_SGS | get_lpid(&vcpu_e500->vcpu));
 	asm volatile("tlbilxlpid");
 	mtspr(SPRN_MAS5, 0);
 	local_irq_restore(flags);
@@ -110,6 +110,7 @@ void kvmppc_mmu_msr_notify(struct kvm_vcpu *vcpu, u32 old_msr)
 {
 }
 
+/* We use two lpids per VM */
 static DEFINE_PER_CPU(struct kvm_vcpu *[KVMPPC_NR_LPIDS], last_vcpu_of_lpid);
 
 static void kvmppc_core_vcpu_load_e500mc(struct kvm_vcpu *vcpu, int cpu)
@@ -118,10 +119,12 @@ static void kvmppc_core_vcpu_load_e500mc(struct kvm_vcpu *vcpu, int cpu)
 
 	kvmppc_booke_vcpu_load(vcpu, cpu);
 
-	mtspr(SPRN_LPID, vcpu->kvm->arch.lpid);
+	mtspr(SPRN_LPID, get_lpid(vcpu));
 	mtspr(SPRN_EPCR, vcpu->arch.shadow_epcr);
 	mtspr(SPRN_GPIR, vcpu->vcpu_id);
 	mtspr(SPRN_MSRP, vcpu->arch.shadow_msrp);
+	vcpu->arch.eplc = EPC_EGS | (get_lpid(vcpu) << EPC_ELPID_SHIFT);
+	vcpu->arch.epsc = vcpu->arch.eplc;
 	mtspr(SPRN_EPLC, vcpu->arch.eplc);
 	mtspr(SPRN_EPSC, vcpu->arch.epsc);
 
@@ -141,9 +144,9 @@ static void kvmppc_core_vcpu_load_e500mc(struct kvm_vcpu *vcpu, int cpu)
 	mtspr(SPRN_GESR, vcpu->arch.shared->esr);
 
 	if (vcpu->arch.oldpir != mfspr(SPRN_PIR) ||
-	    __get_cpu_var(last_vcpu_of_lpid)[vcpu->kvm->arch.lpid] != vcpu) {
+	    __get_cpu_var(last_vcpu_of_lpid)[get_lpid(vcpu)] != vcpu) {
 		kvmppc_e500_tlbil_all(vcpu_e500);
-		__get_cpu_var(last_vcpu_of_lpid)[vcpu->kvm->arch.lpid] = vcpu;
+		__get_cpu_var(last_vcpu_of_lpid)[get_lpid(vcpu)] = vcpu;
 	}
 }
 
@@ -193,8 +196,6 @@ int kvmppc_core_vcpu_setup(struct kvm_vcpu *vcpu)
 	vcpu->arch.shadow_epcr |= SPRN_EPCR_ICM;
 #endif
 	vcpu->arch.shadow_msrp = MSRP_UCLEP | MSRP_PMMP;
-	vcpu->arch.eplc = EPC_EGS | (vcpu->kvm->arch.lpid << EPC_ELPID_SHIFT);
-	vcpu->arch.epsc = vcpu->arch.eplc;
 
 	vcpu->arch.pvr = mfspr(SPRN_PVR);
 	vcpu_e500->svr = mfspr(SPRN_SVR);
@@ -354,13 +355,26 @@ static int kvmppc_core_init_vm_e500mc(struct kvm *kvm)
 	if (lpid < 0)
 		return lpid;
 
+	/*
+	 * Use two lpids per VM on cores with two threads like e6500. Use
+	 * even numbers to speedup vcpu lpid computation with consecutive lpids
+	 * per VM. vm1 will use lpids 2 and 3, vm2 lpids 4 and 5, and so on.
+	 */
+	if (threads_per_core == 2)
+		lpid <<= 1;
+
 	kvm->arch.lpid = lpid;
 	return 0;
 }
 
 static void kvmppc_core_destroy_vm_e500mc(struct kvm *kvm)
 {
-	kvmppc_free_lpid(kvm->arch.lpid);
+	int lpid = kvm->arch.lpid;
+
+	if (threads_per_core == 2)
+		lpid >>= 1;
+
+	kvmppc_free_lpid(lpid);
 }
 
 static struct kvmppc_ops kvm_ops_e500mc = {
@@ -388,7 +402,13 @@ static int __init kvmppc_e500mc_init(void)
 	if (r)
 		goto err_out;
 
-	kvmppc_init_lpid(64);
+	/*
+	 * Use two lpids per VM on dual threaded processors like e6500
+	 * to workarround the lack of tlb write conditional instruction.
+	 * Expose half the number of available hardware lpids to the lpid
+	 * allocator.
+	 */
+	kvmppc_init_lpid(KVMPPC_NR_LPIDS/threads_per_core);
 	kvmppc_claim_lpid(0); /* host */
 
 	r = kvm_init(NULL, sizeof(struct kvmppc_vcpu_e500), 0, THIS_MODULE);
