diff --git a/arch/arm64/kvm/fpsimd.c b/arch/arm64/kvm/fpsimd.c
index f64724197958e..3cbb999419af7 100644
--- a/arch/arm64/kvm/fpsimd.c
+++ b/arch/arm64/kvm/fpsimd.c
@@ -136,36 +136,6 @@ void kvm_arch_vcpu_put_fp(struct kvm_vcpu *vcpu)
 	local_irq_save(flags);
 
 	if (guest_owns_fp_regs()) {
-		if (vcpu_has_sve(vcpu)) {
-			u64 zcr = read_sysreg_el1(SYS_ZCR);
-
-			/*
-			 * If the vCPU is in the hyp context then ZCR_EL1 is
-			 * loaded with its vEL2 counterpart.
-			 */
-			__vcpu_sys_reg(vcpu, vcpu_sve_zcr_elx(vcpu)) = zcr;
-
-			/*
-			 * Restore the VL that was saved when bound to the CPU,
-			 * which is the maximum VL for the guest. Because the
-			 * layout of the data when saving the sve state depends
-			 * on the VL, we need to use a consistent (i.e., the
-			 * maximum) VL.
-			 * Note that this means that at guest exit ZCR_EL1 is
-			 * not necessarily the same as on guest entry.
-			 *
-			 * ZCR_EL2 holds the guest hypervisor's VL when running
-			 * a nested guest, which could be smaller than the
-			 * max for the vCPU. Similar to above, we first need to
-			 * switch to a VL consistent with the layout of the
-			 * vCPU's SVE state. KVM support for NV implies VHE, so
-			 * using the ZCR_EL1 alias is safe.
-			 */
-			if (!has_vhe() || (vcpu_has_nv(vcpu) && !is_hyp_ctxt(vcpu)))
-				sve_cond_update_zcr_vq(vcpu_sve_max_vq(vcpu) - 1,
-						       SYS_ZCR_EL1);
-		}
-
 		/*
 		 * Flush (save and invalidate) the fpsimd/sve state so that if
 		 * the host tries to use fpsimd/sve, it's not using stale data
diff --git a/arch/arm64/kvm/hyp/include/hyp/switch.h b/arch/arm64/kvm/hyp/include/hyp/switch.h
index 163867f7f7c52..bbec7cd38da33 100644
--- a/arch/arm64/kvm/hyp/include/hyp/switch.h
+++ b/arch/arm64/kvm/hyp/include/hyp/switch.h
@@ -375,6 +375,57 @@ static inline void __hyp_sve_save_host(void)
 			 true);
 }
 
+static inline void fpsimd_lazy_switch_to_guest(struct kvm_vcpu *vcpu)
+{
+	u64 zcr_el1, zcr_el2;
+
+	if (!guest_owns_fp_regs())
+		return;
+
+	if (vcpu_has_sve(vcpu)) {
+		/* A guest hypervisor may restrict the effective max VL. */
+		if (vcpu_has_nv(vcpu) && !is_hyp_ctxt(vcpu))
+			zcr_el2 = __vcpu_sys_reg(vcpu, ZCR_EL2);
+		else
+			zcr_el2 = vcpu_sve_max_vq(vcpu) - 1;
+
+		write_sysreg_el2(zcr_el2, SYS_ZCR);
+
+		zcr_el1 = __vcpu_sys_reg(vcpu, vcpu_sve_zcr_elx(vcpu));
+		write_sysreg_el1(zcr_el1, SYS_ZCR);
+	}
+}
+
+static inline void fpsimd_lazy_switch_to_host(struct kvm_vcpu *vcpu)
+{
+	u64 zcr_el1, zcr_el2;
+
+	if (!guest_owns_fp_regs())
+		return;
+
+	if (vcpu_has_sve(vcpu)) {
+		zcr_el1 = read_sysreg_el1(SYS_ZCR);
+		__vcpu_sys_reg(vcpu, vcpu_sve_zcr_elx(vcpu)) = zcr_el1;
+
+		/*
+		 * The guest's state is always saved using the guest's max VL.
+		 * Ensure that the host has the guest's max VL active such that
+		 * the host can save the guest's state lazily, but don't
+		 * artificially restrict the host to the guest's max VL.
+		 */
+		if (has_vhe()) {
+			zcr_el2 = vcpu_sve_max_vq(vcpu) - 1;
+			write_sysreg_el2(zcr_el2, SYS_ZCR);
+		} else {
+			zcr_el2 = sve_vq_from_vl(kvm_host_sve_max_vl) - 1;
+			write_sysreg_el2(zcr_el2, SYS_ZCR);
+
+			zcr_el1 = vcpu_sve_max_vq(vcpu) - 1;
+			write_sysreg_el1(zcr_el1, SYS_ZCR);
+		}
+	}
+}
+
 static void kvm_hyp_save_fpsimd_host(struct kvm_vcpu *vcpu)
 {
 	/*
diff --git a/arch/arm64/kvm/hyp/nvhe/hyp-main.c b/arch/arm64/kvm/hyp/nvhe/hyp-main.c
index ad1abd5493862..0c745a578aa7e 100644
--- a/arch/arm64/kvm/hyp/nvhe/hyp-main.c
+++ b/arch/arm64/kvm/hyp/nvhe/hyp-main.c
@@ -5,6 +5,7 @@
  */
 
 #include <hyp/adjust_pc.h>
+#include <hyp/switch.h>
 
 #include <asm/pgtable-types.h>
 #include <asm/kvm_asm.h>
@@ -200,8 +201,12 @@ static void handle___kvm_vcpu_run(struct kvm_cpu_context *host_ctxt)
 
 		sync_hyp_vcpu(hyp_vcpu);
 	} else {
+		struct kvm_vcpu *vcpu = kern_hyp_va(host_vcpu);
+
 		/* The host is fully trusted, run its vCPU directly. */
-		ret = __kvm_vcpu_run(kern_hyp_va(host_vcpu));
+		fpsimd_lazy_switch_to_guest(vcpu);
+		ret = __kvm_vcpu_run(vcpu);
+		fpsimd_lazy_switch_to_host(vcpu);
 	}
 out:
 	cpu_reg(host_ctxt, 1) =  ret;
@@ -651,12 +656,6 @@ void handle_trap(struct kvm_cpu_context *host_ctxt)
 	case ESR_ELx_EC_SMC64:
 		handle_host_smc(host_ctxt);
 		break;
-	case ESR_ELx_EC_SVE:
-		cpacr_clear_set(0, CPACR_EL1_ZEN);
-		isb();
-		sve_cond_update_zcr_vq(sve_vq_from_vl(kvm_host_sve_max_vl) - 1,
-				       SYS_ZCR_EL2);
-		break;
 	case ESR_ELx_EC_IABT_LOW:
 	case ESR_ELx_EC_DABT_LOW:
 		handle_host_mem_abort(host_ctxt);
diff --git a/arch/arm64/kvm/hyp/nvhe/switch.c b/arch/arm64/kvm/hyp/nvhe/switch.c
index 324b62329c10b..eaeda9c8a1aa6 100644
--- a/arch/arm64/kvm/hyp/nvhe/switch.c
+++ b/arch/arm64/kvm/hyp/nvhe/switch.c
@@ -73,12 +73,10 @@ static void __activate_cptr_traps(struct kvm_vcpu *vcpu)
 
 static void __deactivate_cptr_traps(struct kvm_vcpu *vcpu)
 {
-	struct kvm *kvm = kern_hyp_va(vcpu->kvm);
-
 	if (has_hvhe()) {
 		u64 val = CPACR_EL1_FPEN;
 
-		if (!kvm_has_sve(kvm) || !guest_owns_fp_regs())
+		if (cpus_have_final_cap(ARM64_SVE))
 			val |= CPACR_EL1_ZEN;
 		if (cpus_have_final_cap(ARM64_SME))
 			val |= CPACR_EL1_SMEN;
@@ -87,7 +85,7 @@ static void __deactivate_cptr_traps(struct kvm_vcpu *vcpu)
 	} else {
 		u64 val = CPTR_NVHE_EL2_RES1;
 
-		if (kvm_has_sve(kvm) && guest_owns_fp_regs())
+		if (!cpus_have_final_cap(ARM64_SVE))
 			val |= CPTR_EL2_TZ;
 		if (!cpus_have_final_cap(ARM64_SME))
 			val |= CPTR_EL2_TSM;
diff --git a/arch/arm64/kvm/hyp/vhe/switch.c b/arch/arm64/kvm/hyp/vhe/switch.c
index c854d84458892..647737d6e8d0b 100644
--- a/arch/arm64/kvm/hyp/vhe/switch.c
+++ b/arch/arm64/kvm/hyp/vhe/switch.c
@@ -579,6 +579,8 @@ static int __kvm_vcpu_run_vhe(struct kvm_vcpu *vcpu)
 
 	sysreg_save_host_state_vhe(host_ctxt);
 
+	fpsimd_lazy_switch_to_guest(vcpu);
+
 	/*
 	 * Note that ARM erratum 1165522 requires us to configure both stage 1
 	 * and stage 2 translation for the guest context before we clear
@@ -603,6 +605,8 @@ static int __kvm_vcpu_run_vhe(struct kvm_vcpu *vcpu)
 
 	__deactivate_traps(vcpu);
 
+	fpsimd_lazy_switch_to_host(vcpu);
+
 	sysreg_restore_host_state_vhe(host_ctxt);
 
 	if (guest_owns_fp_regs())
