diff --git a/target/i386/cpu.c b/target/i386/cpu.c
index 197201087e65..a026e49f5c0d 100644
--- a/target/i386/cpu.c
+++ b/target/i386/cpu.c
@@ -4774,7 +4774,11 @@ static void x86_cpu_reset(CPUState *s)
     memset(env->mtrr_fixed, 0, sizeof(env->mtrr_fixed));
 
     env->interrupt_injected = -1;
-    env->exception_injected = -1;
+    env->exception_nr = -1;
+    env->exception_pending = 0;
+    env->exception_injected = 0;
+    env->exception_has_payload = false;
+    env->exception_payload = 0;
     env->nmi_injected = false;
 #if !defined(CONFIG_USER_ONLY)
     /* We hard-wire the BSP to the first CPU. */
diff --git a/target/i386/cpu.h b/target/i386/cpu.h
index c1a42aa8851a..24543dc188f8 100644
--- a/target/i386/cpu.h
+++ b/target/i386/cpu.h
@@ -1338,10 +1338,14 @@ typedef struct CPUX86State {
 
     /* For KVM */
     uint32_t mp_state;
-    int32_t exception_injected;
+    int32_t exception_nr;
     int32_t interrupt_injected;
     uint8_t soft_interrupt;
+    uint8_t exception_pending;
+    uint8_t exception_injected;
     uint8_t has_error_code;
+    uint8_t exception_has_payload;
+    uint64_t exception_payload;
     uint32_t ins_len;
     uint32_t sipi_vector;
     bool tsc_valid;
diff --git a/target/i386/hvf/hvf.c b/target/i386/hvf/hvf.c
index 2751c8125ca2..dc4bb63536c8 100644
--- a/target/i386/hvf/hvf.c
+++ b/target/i386/hvf/hvf.c
@@ -605,7 +605,9 @@ static void hvf_store_events(CPUState *cpu, uint32_t ins_len, uint64_t idtvec_in
     X86CPU *x86_cpu = X86_CPU(cpu);
     CPUX86State *env = &x86_cpu->env;
 
-    env->exception_injected = -1;
+    env->exception_nr = -1;
+    env->exception_pending = 0;
+    env->exception_injected = 0;
     env->interrupt_injected = -1;
     env->nmi_injected = false;
     if (idtvec_info & VMCS_IDT_VEC_VALID) {
@@ -619,7 +621,8 @@ static void hvf_store_events(CPUState *cpu, uint32_t ins_len, uint64_t idtvec_in
             break;
         case VMCS_IDT_VEC_HWEXCEPTION:
         case VMCS_IDT_VEC_SWEXCEPTION:
-            env->exception_injected = idtvec_info & VMCS_IDT_VEC_VECNUM;
+            env->exception_nr = idtvec_info & VMCS_IDT_VEC_VECNUM;
+            env->exception_injected = 1;
             break;
         case VMCS_IDT_VEC_PRIV_SWEXCEPTION:
         default:
@@ -912,7 +915,8 @@ int hvf_vcpu_exec(CPUState *cpu)
             macvm_set_rip(cpu, rip + ins_len);
             break;
         case VMX_REASON_VMCALL:
-            env->exception_injected = EXCP0D_GPF;
+            env->exception_nr = EXCP0D_GPF;
+            env->exception_injected = 1;
             env->has_error_code = true;
             env->error_code = 0;
             break;
diff --git a/target/i386/hvf/x86hvf.c b/target/i386/hvf/x86hvf.c
index df8e946fbcde..e0ea02d631e6 100644
--- a/target/i386/hvf/x86hvf.c
+++ b/target/i386/hvf/x86hvf.c
@@ -362,8 +362,8 @@ bool hvf_inject_interrupts(CPUState *cpu_state)
     if (env->interrupt_injected != -1) {
         vector = env->interrupt_injected;
         intr_type = VMCS_INTR_T_SWINTR;
-    } else if (env->exception_injected != -1) {
-        vector = env->exception_injected;
+    } else if (env->exception_nr != -1) {
+        vector = env->exception_nr;
         if (vector == EXCP03_INT3 || vector == EXCP04_INTO) {
             intr_type = VMCS_INTR_T_SWEXCEPTION;
         } else {
diff --git a/target/i386/kvm.c b/target/i386/kvm.c
index 8ae7598aac3d..99480a52ad33 100644
--- a/target/i386/kvm.c
+++ b/target/i386/kvm.c
@@ -104,6 +104,7 @@ static uint32_t num_architectural_pmu_fixed_counters;
 static int has_xsave;
 static int has_xcrs;
 static int has_pit_state2;
+static int has_exception_payload;
 
 static bool has_msr_mcg_ext_ctl;
 
@@ -584,15 +585,56 @@ void kvm_arch_on_sigbus_vcpu(CPUState *c, int code, void *addr)
     /* Hope we are lucky for AO MCE */
 }
 
+static void kvm_reset_exception(CPUX86State *env)
+{
+	env->exception_nr = -1;
+	env->exception_pending = 0;
+	env->exception_injected = 0;
+	env->exception_has_payload = false;
+	env->exception_payload = 0;
+}
+
+static void kvm_queue_exception(CPUX86State *env,
+                                int32_t exception_nr,
+                                uint8_t exception_has_payload,
+                                uint64_t exception_payload)
+{
+    assert(env->exception_nr == -1);
+    assert(!env->exception_pending);
+    assert(!env->exception_injected);
+    assert(!env->exception_has_payload);
+
+    env->exception_nr = exception_nr;
+
+    if (has_exception_payload) {
+        env->exception_pending = 1;
+
+        env->exception_has_payload = exception_has_payload;
+        env->exception_payload = exception_payload;
+    } else {
+        env->exception_injected = 1;
+
+        if (exception_nr == EXCP01_DB) {
+            assert(exception_has_payload);
+            env->dr[6] = exception_payload;
+        } else if (exception_nr == EXCP0E_PAGE) {
+            assert(exception_has_payload);
+            env->cr[2] = exception_payload;
+        } else {
+            assert(!exception_has_payload);
+        }
+    }
+}
+
 static int kvm_inject_mce_oldstyle(X86CPU *cpu)
 {
     CPUX86State *env = &cpu->env;
 
-    if (!kvm_has_vcpu_events() && env->exception_injected == EXCP12_MCHK) {
+    if (!kvm_has_vcpu_events() && env->exception_nr == EXCP12_MCHK) {
         unsigned int bank, bank_num = env->mcg_cap & 0xff;
         struct kvm_x86_mce mce;
 
-        env->exception_injected = -1;
+        kvm_reset_exception(env);
 
         /*
          * There must be at least one bank in use if an MCE is pending.
@@ -1613,6 +1655,16 @@ int kvm_arch_init(MachineState *ms, KVMState *s)
 
     hv_vpindex_settable = kvm_check_extension(s, KVM_CAP_HYPERV_VP_INDEX);
 
+    has_exception_payload = kvm_check_extension(s, KVM_CAP_EXCEPTION_PAYLOAD);
+    if (has_exception_payload) {
+        ret = kvm_vm_enable_cap(s, KVM_CAP_EXCEPTION_PAYLOAD, 0, true);
+        if (ret < 0) {
+            error_report("kvm: Failed to enable exception payload cap: %s",
+                         strerror(-ret));
+            return ret;
+        }
+    }
+
     ret = kvm_get_supported_msrs(s);
     if (ret < 0) {
         return ret;
@@ -2917,8 +2969,16 @@ static int kvm_put_vcpu_events(X86CPU *cpu, int level)
         return 0;
     }
 
-    events.exception.injected = (env->exception_injected >= 0);
-    events.exception.nr = env->exception_injected;
+    events.flags = 0;
+
+    if (has_exception_payload) {
+        events.flags |= KVM_VCPUEVENT_VALID_PAYLOAD;
+        events.exception.pending = env->exception_pending;
+        events.exception_has_payload = env->exception_has_payload;
+        events.exception_payload = env->exception_payload;
+    }
+    events.exception.nr = env->exception_nr;
+    events.exception.injected = env->exception_injected;
     events.exception.has_error_code = env->has_error_code;
     events.exception.error_code = env->error_code;
 
@@ -2931,7 +2991,6 @@ static int kvm_put_vcpu_events(X86CPU *cpu, int level)
     events.nmi.masked = !!(env->hflags2 & HF2_NMI_MASK);
 
     events.sipi_vector = env->sipi_vector;
-    events.flags = 0;
 
     if (has_msr_smbase) {
         events.smi.smm = !!(env->hflags & HF_SMM_MASK);
@@ -2981,8 +3040,19 @@ static int kvm_get_vcpu_events(X86CPU *cpu)
     if (ret < 0) {
        return ret;
     }
-    env->exception_injected =
-       events.exception.injected ? events.exception.nr : -1;
+
+    if (events.flags & KVM_VCPUEVENT_VALID_PAYLOAD) {
+        env->exception_pending = events.exception.pending;
+        env->exception_has_payload = events.exception_has_payload;
+        env->exception_payload = events.exception_payload;
+    } else {
+        env->exception_pending = 0;
+        env->exception_has_payload = false;
+    }
+    env->exception_injected = events.exception.injected;
+    env->exception_nr =
+        (env->exception_pending || env->exception_injected) ?
+        events.exception.nr : -1;
     env->has_error_code = events.exception.has_error_code;
     env->error_code = events.exception.error_code;
 
@@ -3034,12 +3104,12 @@ static int kvm_guest_debug_workarounds(X86CPU *cpu)
     unsigned long reinject_trap = 0;
 
     if (!kvm_has_vcpu_events()) {
-        if (env->exception_injected == EXCP01_DB) {
+        if (env->exception_nr == EXCP01_DB) {
             reinject_trap = KVM_GUESTDBG_INJECT_DB;
         } else if (env->exception_injected == EXCP03_INT3) {
             reinject_trap = KVM_GUESTDBG_INJECT_BP;
         }
-        env->exception_injected = -1;
+        kvm_reset_exception(env);
     }
 
     /*
@@ -3415,13 +3485,13 @@ int kvm_arch_process_async_events(CPUState *cs)
 
         kvm_cpu_synchronize_state(cs);
 
-        if (env->exception_injected == EXCP08_DBLE) {
+        if (env->exception_nr == EXCP08_DBLE) {
             /* this means triple fault */
             qemu_system_reset_request(SHUTDOWN_CAUSE_GUEST_RESET);
             cs->exit_request = 1;
             return 0;
         }
-        env->exception_injected = EXCP12_MCHK;
+        kvm_queue_exception(env, EXCP12_MCHK, 0, 0);
         env->has_error_code = 0;
 
         cs->halted = 0;
@@ -3636,14 +3706,13 @@ static int kvm_handle_debug(X86CPU *cpu,
     }
     if (ret == 0) {
         cpu_synchronize_state(cs);
-        assert(env->exception_injected == -1);
+        assert(env->exception_nr == -1);
 
         /* pass to guest */
-        env->exception_injected = arch_info->exception;
+        kvm_queue_exception(env, arch_info->exception,
+                            arch_info->exception == EXCP01_DB,
+                            arch_info->dr6);
         env->has_error_code = 0;
-        if (arch_info->exception == EXCP01_DB) {
-            env->dr[6] = arch_info->dr6;
-        }
     }
 
     return ret;
diff --git a/target/i386/machine.c b/target/i386/machine.c
index e27115fdb756..4f292f0660ca 100644
--- a/target/i386/machine.c
+++ b/target/i386/machine.c
@@ -240,6 +240,41 @@ static int cpu_pre_save(void *opaque)
     }
 #endif
 
+    /*
+     * When vCPU is running L2 and exception is still pending,
+     * it can potentially be intercepted by L1 hypervisor.
+     * In contrast to an injected exception which cannot be
+     * intercepted anymore.
+     *
+     * Furthermore, when a L2 exception is intercepted by L1
+     * hypervisor, it's exception payload (CR2/DR6 on #PF/#DB)
+     * should not be set yet in the respective vCPU register.
+     * Thus, in case an exception is pending, it is
+     * important to save the exception payload seperately.
+     *
+     * Therefore, if an exception is not in a pending state
+     * or vCPU is not in guest-mode, it is not important to
+     * distinguish between a pending and injected exception
+     * and we don't need to store seperately the exception payload.
+     *
+     * In order to preserve better backwards-compatabile migration,
+     * convert a pending exception to an injected exception in
+     * case it is not important to distingiush between them
+     * as described above.
+     */
+    if (env->exception_pending && !(env->hflags & HF_GUEST_MASK)) {
+        env->exception_pending = 0;
+        env->exception_injected = 1;
+
+        if (env->exception_has_payload) {
+            if (env->exception_nr == EXCP01_DB) {
+                env->dr[6] = env->exception_payload;
+            } else if (env->exception_nr == EXCP0E_PAGE) {
+                env->cr[2] = env->exception_payload;
+            }
+        }
+    }
+
     return 0;
 }
 
@@ -297,6 +332,23 @@ static int cpu_post_load(void *opaque, int version_id)
     }
 #endif
 
+    /*
+     * There are cases that we can get valid exception_nr with both
+     * exception_pending and exception_injected being cleared.
+     * This can happen in one of the following scenarios:
+     * 1) Source is older QEMU without KVM_CAP_EXCEPTION_PAYLOAD support.
+     * 2) Source is running on kernel without KVM_CAP_EXCEPTION_PAYLOAD support.
+     * 3) "cpu/exception_info" subsection not sent because there is no exception
+     *	  pending or guest wasn't running L2 (See comment in cpu_pre_save()).
+     *
+     * In those cases, we can just deduce that a valid exception_nr means
+     * we can treat the exception as already injected.
+     */
+    if ((env->exception_nr != -1) &&
+        !env->exception_pending && !env->exception_injected) {
+        env->exception_injected = 1;
+    }
+
     env->fpstt = (env->fpus_vmstate >> 11) & 7;
     env->fpus = env->fpus_vmstate & ~0x3800;
     env->fptag_vmstate ^= 0xff;
@@ -342,6 +394,35 @@ static bool steal_time_msr_needed(void *opaque)
     return cpu->env.steal_time_msr != 0;
 }
 
+static bool exception_info_needed(void *opaque)
+{
+    X86CPU *cpu = opaque;
+    CPUX86State *env = &cpu->env;
+
+    /*
+     * It is important to save exception-info only in case
+     * we need to distingiush between a pending and injected
+     * exception. Which is only required in case there is a
+     * pending exception and vCPU is running L2.
+     * For more info, refer to comment in cpu_pre_save().
+     */
+    return (env->exception_pending && (env->hflags & HF_GUEST_MASK));
+}
+
+static const VMStateDescription vmstate_exception_info = {
+    .name = "cpu/exception_info",
+    .version_id = 1,
+    .minimum_version_id = 1,
+    .needed = exception_info_needed,
+    .fields = (VMStateField[]) {
+        VMSTATE_UINT8(env.exception_pending, X86CPU),
+        VMSTATE_UINT8(env.exception_injected, X86CPU),
+        VMSTATE_UINT8(env.exception_has_payload, X86CPU),
+        VMSTATE_UINT64(env.exception_payload, X86CPU),
+        VMSTATE_END_OF_LIST()
+    }
+};
+
 static const VMStateDescription vmstate_steal_time_msr = {
     .name = "cpu/steal_time_msr",
     .version_id = 1,
@@ -1230,7 +1311,7 @@ VMStateDescription vmstate_x86_cpu = {
         VMSTATE_INT32(env.interrupt_injected, X86CPU),
         VMSTATE_UINT32(env.mp_state, X86CPU),
         VMSTATE_UINT64(env.tsc, X86CPU),
-        VMSTATE_INT32(env.exception_injected, X86CPU),
+        VMSTATE_INT32(env.exception_nr, X86CPU),
         VMSTATE_UINT8(env.soft_interrupt, X86CPU),
         VMSTATE_UINT8(env.nmi_injected, X86CPU),
         VMSTATE_UINT8(env.nmi_pending, X86CPU),
@@ -1254,6 +1335,7 @@ VMStateDescription vmstate_x86_cpu = {
         /* The above list is not sorted /wrt version numbers, watch out! */
     },
     .subsections = (const VMStateDescription*[]) {
+        &vmstate_exception_info,
         &vmstate_async_pf_msr,
         &vmstate_pv_eoi_msr,
         &vmstate_steal_time_msr,
