diff --git a/arch/x86/kvm/vmx/nested.c b/arch/x86/kvm/vmx/nested.c
index bc9c9cc228ea..b89c78e952b7 100644
--- a/arch/x86/kvm/vmx/nested.c
+++ b/arch/x86/kvm/vmx/nested.c
@@ -2583,8 +2583,13 @@ static int prepare_vmcs02(struct kvm_vcpu *vcpu, struct vmcs12 *vmcs12,
 	 * Guest state is invalid and unrestricted guest is disabled,
 	 * which means L1 attempted VMEntry to L2 with invalid state.
 	 * Fail the VMEntry.
+	 *
+	 * However when force loading the guest state (SMM exit or
+	 * loading nested state after migration, it is possible to
+	 * have invalid guest state now, which will be later fixed by
+	 * restoring L2 register state
 	 */
-	if (CC(!vmx_guest_state_valid(vcpu))) {
+	if (CC(from_vmentry && !vmx_guest_state_valid(vcpu))) {
 		*entry_failure_code = ENTRY_FAIL_DEFAULT;
 		return -EINVAL;
 	}
diff --git a/arch/x86/kvm/vmx/vmx.c b/arch/x86/kvm/vmx/vmx.c
index 1c2296fa7f2b..7df6f4b8931f 100644
--- a/arch/x86/kvm/vmx/vmx.c
+++ b/arch/x86/kvm/vmx/vmx.c
@@ -6628,7 +6628,10 @@ static fastpath_t vmx_vcpu_run(struct kvm_vcpu *vcpu)
 	 * consistency check VM-Exit due to invalid guest state and bail.
 	 */
 	if (unlikely(vmx->emulation_required)) {
-		vmx->fail = 0;
+
+		/* We don't emulate invalid state of a nested guest */
+		vmx->fail = is_guest_mode(vcpu);
+
 		vmx->exit_reason.full = EXIT_REASON_INVALID_STATE;
 		vmx->exit_reason.failed_vmentry = 1;
 		kvm_register_mark_available(vcpu, VCPU_EXREG_EXIT_INFO_1);