diff --git a/arch/powerpc/kvm/Kconfig b/arch/powerpc/kvm/Kconfig
index ff581d70f20cf..6a58532300c50 100644
--- a/arch/powerpc/kvm/Kconfig
+++ b/arch/powerpc/kvm/Kconfig
@@ -130,6 +130,21 @@ config KVM_BOOK3S_HV_EXIT_TIMING
 
 	  If unsure, say N.
 
+config KVM_BOOK3S_HV_NESTED_PMU_WORKAROUND
+	bool "Nested L0 host workaround for L1 KVM host PMU handling bug" if EXPERT
+	depends on KVM_BOOK3S_HV_POSSIBLE
+	default !EXPERT
+	help
+	  Old nested HV capable Linux guests have a bug where they don't
+	  reflect the PMU in-use status of their L2 guest to the L0 host
+	  while the L2 PMU registers are live. This can result in loss
+          of L2 PMU register state, causing perf to not work correctly in
+	  L2 guests.
+
+	  Selecting this option for the L0 host implements a workaround for
+	  those buggy L1s which saves the L2 state, at the cost of performance
+	  in all nested-capable guest entry/exit.
+
 config KVM_BOOKE_HV
 	bool
 
diff --git a/arch/powerpc/kvm/book3s_hv.c b/arch/powerpc/kvm/book3s_hv.c
index a683ee5f420ab..6e760f48bbafd 100644
--- a/arch/powerpc/kvm/book3s_hv.c
+++ b/arch/powerpc/kvm/book3s_hv.c
@@ -4047,8 +4047,14 @@ static int kvmhv_p9_guest_entry(struct kvm_vcpu *vcpu, u64 time_limit,
 		vcpu->arch.vpa.dirty = 1;
 		save_pmu = lp->pmcregs_in_use;
 	}
-	/* Must save pmu if this guest is capable of running nested guests */
-	save_pmu |= nesting_enabled(vcpu->kvm);
+	if (IS_ENABLED(CONFIG_KVM_BOOK3S_HV_NESTED_PMU_WORKAROUND)) {
+		/*
+		 * Save pmu if this guest is capable of running nested guests.
+		 * This is option is for old L1s that do not set their
+		 * lppaca->pmcregs_in_use properly when entering their L2.
+		 */
+		save_pmu |= nesting_enabled(vcpu->kvm);
+	}
 
 	kvmhv_save_guest_pmu(vcpu, save_pmu);
 #ifdef CONFIG_PPC_PSERIES