diff --git a/arch/x86/kvm/vmx/vmcs.h b/arch/x86/kvm/vmx/vmcs.h
index 6e5de2e2b0da..e325c290a816 100644
--- a/arch/x86/kvm/vmx/vmcs.h
+++ b/arch/x86/kvm/vmx/vmcs.h
@@ -129,6 +129,11 @@ static inline bool is_machine_check(u32 intr_info)
 	return is_exception_n(intr_info, MC_VECTOR);
 }
 
+static inline bool is_nm_fault(u32 intr_info)
+{
+	return is_exception_n(intr_info, NM_VECTOR);
+}
+
 /* Undocumented: icebp/int1 */
 static inline bool is_icebp(u32 intr_info)
 {
diff --git a/arch/x86/kvm/vmx/vmx.c b/arch/x86/kvm/vmx/vmx.c
index fe06b02994e6..939e6aad128c 100644
--- a/arch/x86/kvm/vmx/vmx.c
+++ b/arch/x86/kvm/vmx/vmx.c
@@ -36,6 +36,7 @@
 #include <asm/debugreg.h>
 #include <asm/desc.h>
 #include <asm/fpu/api.h>
+#include <asm/fpu/xstate.h>
 #include <asm/idtentry.h>
 #include <asm/io.h>
 #include <asm/irq_remapping.h>
@@ -761,6 +762,13 @@ void vmx_update_exception_bitmap(struct kvm_vcpu *vcpu)
 		vmcs_write32(PAGE_FAULT_ERROR_CODE_MATCH, match);
 	}
 
+	/*
+	 * Trap #NM if guest xfd contains a non-zero value so guest XFD_ERR
+	 * can be saved timely.
+	 */
+	if (vcpu->arch.guest_fpu.fpstate->xfd)
+		eb |= (1u << NM_VECTOR);
+
 	vmcs_write32(EXCEPTION_BITMAP, eb);
 }
 
@@ -1967,6 +1975,12 @@ static int vmx_set_msr(struct kvm_vcpu *vcpu, struct msr_data *msr_info)
 	case MSR_KERNEL_GS_BASE:
 		vmx_write_guest_kernel_gs_base(vmx, data);
 		break;
+	case MSR_IA32_XFD:
+		ret = kvm_set_msr_common(vcpu, msr_info);
+		/* Update #NM interception according to guest xfd */
+		if (!ret)
+			vmx_update_exception_bitmap(vcpu);
+		break;
 #endif
 	case MSR_IA32_SYSENTER_CS:
 		if (is_guest_mode(vcpu))
@@ -4798,6 +4812,17 @@ static int handle_exception_nmi(struct kvm_vcpu *vcpu)
 	if (is_machine_check(intr_info) || is_nmi(intr_info))
 		return 1; /* handled by handle_exception_nmi_irqoff() */
 
+	/*
+	 * Queue the exception here instead of in handle_nm_fault_irqoff().
+	 * This ensures the nested_vmx check is not skipped so vmexit can
+	 * be reflected to L1 (when it intercepts #NM) before reaching this
+	 * point.
+	 */
+	if (is_nm_fault(intr_info)) {
+		kvm_queue_exception(vcpu, NM_VECTOR);
+		return 1;
+	}
+
 	if (is_invalid_opcode(intr_info))
 		return handle_ud(vcpu);
 
@@ -6399,6 +6424,26 @@ static void handle_interrupt_nmi_irqoff(struct kvm_vcpu *vcpu,
 	kvm_after_interrupt(vcpu);
 }
 
+static void handle_nm_fault_irqoff(struct kvm_vcpu *vcpu)
+{
+	/*
+	 * Save xfd_err to guest_fpu before interrupt is enabled, so the
+	 * MSR value is not clobbered by the host activity before the guest
+	 * has chance to consume it.
+	 *
+	 * We should not blindly read xfd_err here, since this exception
+	 * might be caused by L1 interception on a platform which doesn't
+	 * support xfd at all.
+	 *
+	 * Do it conditionally upon guest_fpu::xfd. xfd_err matters
+	 * only when xfd contains a non-zero value.
+	 *
+	 * Queuing exception is done in vmx_handle_exit. See comment there.
+	 */
+	if (vcpu->arch.guest_fpu.fpstate->xfd)
+		rdmsrl(MSR_IA32_XFD_ERR, vcpu->arch.guest_fpu.xfd_err);
+}
+
 static void handle_exception_nmi_irqoff(struct vcpu_vmx *vmx)
 {
 	const unsigned long nmi_entry = (unsigned long)asm_exc_nmi_noist;
@@ -6407,6 +6452,9 @@ static void handle_exception_nmi_irqoff(struct vcpu_vmx *vmx)
 	/* if exit due to PF check for async PF */
 	if (is_page_fault(intr_info))
 		vmx->vcpu.arch.apf.host_apf_flags = kvm_read_and_reset_apf_flags();
+	/* if exit due to NM, handle before interrupts are enabled */
+	else if (is_nm_fault(intr_info))
+		handle_nm_fault_irqoff(&vmx->vcpu);
 	/* Handle machine checks before interrupts are enabled */
 	else if (is_machine_check(intr_info))
 		kvm_machine_check();
diff --git a/arch/x86/kvm/x86.c b/arch/x86/kvm/x86.c
index 21ce65220e38..2c988f8ca616 100644
--- a/arch/x86/kvm/x86.c
+++ b/arch/x86/kvm/x86.c
@@ -9953,6 +9953,9 @@ static int vcpu_enter_guest(struct kvm_vcpu *vcpu)
 	if (test_thread_flag(TIF_NEED_FPU_LOAD))
 		switch_fpu_return();
 
+	if (vcpu->arch.guest_fpu.xfd_err)
+		wrmsrl(MSR_IA32_XFD_ERR, vcpu->arch.guest_fpu.xfd_err);
+
 	if (unlikely(vcpu->arch.switch_db_regs)) {
 		set_debugreg(0, 7);
 		set_debugreg(vcpu->arch.eff_db[0], 0);
@@ -10016,6 +10019,9 @@ static int vcpu_enter_guest(struct kvm_vcpu *vcpu)
 
 	static_call(kvm_x86_handle_exit_irqoff)(vcpu);
 
+	if (vcpu->arch.guest_fpu.xfd_err)
+		wrmsrl(MSR_IA32_XFD_ERR, 0);
+
 	/*
 	 * Consume any pending interrupts, including the possible source of
 	 * VM-Exit on SVM and any ticks that occur between VM-Exit and now.
