diff --git a/arch/powerpc/kvm/book3s_hv.c b/arch/powerpc/kvm/book3s_hv.c
index 6d1f0bca27aa4c..4dc6a928073f15 100644
--- a/arch/powerpc/kvm/book3s_hv.c
+++ b/arch/powerpc/kvm/book3s_hv.c
@@ -4738,13 +4738,19 @@ int kvmhv_run_single_vcpu(struct kvm_vcpu *vcpu, u64 time_limit,
 
 	if (!nested) {
 		kvmppc_core_prepare_to_enter(vcpu);
-		if (__kvmppc_get_msr_hv(vcpu) & MSR_EE) {
-			if (xive_interrupt_pending(vcpu))
+		if (test_bit(BOOK3S_IRQPRIO_EXTERNAL,
+			     &vcpu->arch.pending_exceptions) ||
+		    xive_interrupt_pending(vcpu)) {
+			/*
+			 * For nested HV, don't synthesize but always pass MER,
+			 * the L0 will be able to optimise that more
+			 * effectively than manipulating registers directly.
+			 */
+			if (!kvmhv_on_pseries() && (__kvmppc_get_msr_hv(vcpu) & MSR_EE))
 				kvmppc_inject_interrupt_hv(vcpu,
-						BOOK3S_INTERRUPT_EXTERNAL, 0);
-		} else if (test_bit(BOOK3S_IRQPRIO_EXTERNAL,
-			     &vcpu->arch.pending_exceptions)) {
-			lpcr |= LPCR_MER;
+							   BOOK3S_INTERRUPT_EXTERNAL, 0);
+			else
+				lpcr |= LPCR_MER;
 		}
 	} else if (vcpu->arch.pending_exceptions ||
 		   vcpu->arch.doorbell_request ||