diff --git a/drivers/net/ethernet/marvell/pxa168_eth.c b/drivers/net/ethernet/marvell/pxa168_eth.c
index 332700144d81..a406a91812c5 100644
--- a/drivers/net/ethernet/marvell/pxa168_eth.c
+++ b/drivers/net/ethernet/marvell/pxa168_eth.c
@@ -106,6 +106,7 @@
 #define SDMA_CMD_ERD		(1 << 7)
 
 /* Bit definitions of the Port Config Reg */
+#define PCR_DUPLEX_FULL		(1 << 15)
 #define PCR_HS			(1 << 12)
 #define PCR_EN			(1 << 7)
 #define PCR_PM			(1 << 0)
@@ -113,11 +114,17 @@
 /* Bit definitions of the Port Config Extend Reg */
 #define PCXR_2BSM		(1 << 28)
 #define PCXR_DSCP_EN		(1 << 21)
+#define PCXR_RMII_EN		(1 << 20)
+#define PCXR_AN_SPEED_DIS	(1 << 19)
+#define PCXR_SPEED_100		(1 << 18)
 #define PCXR_MFL_1518		(0 << 14)
 #define PCXR_MFL_1536		(1 << 14)
 #define PCXR_MFL_2048		(2 << 14)
 #define PCXR_MFL_64K		(3 << 14)
+#define PCXR_FLOWCTL_DIS	(1 << 12)
 #define PCXR_FLP		(1 << 11)
+#define PCXR_AN_FLOWCTL_DIS	(1 << 10)
+#define PCXR_AN_DUPLEX_DIS	(1 << 9)
 #define PCXR_PRIO_TX_OFF	3
 #define PCXR_TX_HIGH_PRI	(7 << PCXR_PRIO_TX_OFF)
 
@@ -272,6 +279,7 @@ enum hash_table_entry {
 static int pxa168_get_settings(struct net_device *dev, struct ethtool_cmd *cmd);
 static int pxa168_set_settings(struct net_device *dev, struct ethtool_cmd *cmd);
 static int pxa168_init_hw(struct pxa168_eth_private *pep);
+static int pxa168_init_phy(struct net_device *dev);
 static void eth_port_reset(struct net_device *dev);
 static void eth_port_start(struct net_device *dev);
 static int pxa168_eth_open(struct net_device *dev);
@@ -658,14 +666,7 @@ static void eth_port_start(struct net_device *dev)
 	struct pxa168_eth_private *pep = netdev_priv(dev);
 	int tx_curr_desc, rx_curr_desc;
 
-	/* Perform PHY reset, if there is a PHY. */
-	if (pep->phy != NULL) {
-		struct ethtool_cmd cmd;
-
-		pxa168_get_settings(pep->dev, &cmd);
-		phy_init_hw(pep->phy);
-		pxa168_set_settings(pep->dev, &cmd);
-	}
+	phy_start(pep->phy);
 
 	/* Assignment of Tx CTRP of given queue */
 	tx_curr_desc = pep->tx_curr_desc_q;
@@ -720,6 +721,8 @@ static void eth_port_reset(struct net_device *dev)
 	val = rdl(pep, PORT_CONFIG);
 	val &= ~PCR_EN;
 	wrl(pep, PORT_CONFIG, val);
+
+	phy_stop(pep->phy);
 }
 
 /*
@@ -981,8 +984,11 @@ static int set_port_config_ext(struct pxa168_eth_private *pep)
 		skb_size = PCXR_MFL_64K;
 
 	/* Extended Port Configuration */
-	wrl(pep,
-	    PORT_CONFIG_EXT, PCXR_2BSM | /* Two byte prefix aligns IP hdr */
+	wrl(pep, PORT_CONFIG_EXT,
+	    PCXR_AN_SPEED_DIS |		 /* Disable HW AN */
+	    PCXR_AN_DUPLEX_DIS |
+	    PCXR_AN_FLOWCTL_DIS |
+	    PCXR_2BSM |			 /* Two byte prefix aligns IP hdr */
 	    PCXR_DSCP_EN |		 /* Enable DSCP in IP */
 	    skb_size | PCXR_FLP |	 /* do not force link pass */
 	    PCXR_TX_HIGH_PRI);		 /* Transmit - high priority queue */
@@ -990,6 +996,63 @@ static int set_port_config_ext(struct pxa168_eth_private *pep)
 	return 0;
 }
 
+static void pxa168_eth_adjust_link(struct net_device *dev)
+{
+	struct pxa168_eth_private *pep = netdev_priv(dev);
+	struct phy_device *phy = pep->phy;
+	u32 cfg = rdl(pep, PORT_CONFIG);
+	u32 cfgext = rdl(pep, PORT_CONFIG_EXT);
+
+	cfg &= ~PCR_DUPLEX_FULL;
+	cfgext &= ~(PCXR_SPEED_100 | PCXR_FLOWCTL_DIS | PCXR_RMII_EN);
+
+	if (phy->interface == PHY_INTERFACE_MODE_RMII)
+		cfgext |= PCXR_RMII_EN;
+	if (phy->speed == SPEED_100)
+		cfgext |= PCXR_SPEED_100;
+	if (phy->duplex)
+		cfg |= PCR_DUPLEX_FULL;
+	if (!phy->pause)
+		cfgext |= PCXR_FLOWCTL_DIS;
+
+	wrl(pep, PORT_CONFIG, cfg);
+	wrl(pep, PORT_CONFIG_EXT, cfgext);
+}
+
+static int pxa168_init_phy(struct net_device *dev)
+{
+	struct pxa168_eth_private *pep = netdev_priv(dev);
+	struct ethtool_cmd cmd;
+	int err;
+
+	if (pep->phy)
+		return 0;
+
+	pep->phy = mdiobus_scan(pep->smi_bus, pep->phy_addr);
+	if (!pep->phy)
+		return -ENODEV;
+
+	err = phy_connect_direct(dev, pep->phy, pxa168_eth_adjust_link,
+				 pep->phy_intf);
+	if (err)
+		return err;
+
+	err = pxa168_get_settings(dev, &cmd);
+	if (err)
+		return err;
+
+	cmd.phy_address = pep->phy_addr;
+	cmd.speed = pep->phy_speed;
+	cmd.duplex = pep->phy_duplex;
+	cmd.advertising = PHY_BASIC_FEATURES;
+	cmd.autoneg = AUTONEG_ENABLE;
+
+	if (cmd.speed != 0)
+		cmd.autoneg = AUTONEG_DISABLE;
+
+	return pxa168_set_settings(dev, &cmd);
+}
+
 static int pxa168_init_hw(struct pxa168_eth_private *pep)
 {
 	int err = 0;
@@ -1136,6 +1199,10 @@ static int pxa168_eth_open(struct net_device *dev)
 	struct pxa168_eth_private *pep = netdev_priv(dev);
 	int err;
 
+	err = pxa168_init_phy(dev);
+	if (err)
+		return err;
+
 	err = request_irq(dev->irq, pxa168_eth_int_handler, 0, dev->name, dev);
 	if (err) {
 		dev_err(&dev->dev, "can't assign irq\n");
@@ -1596,9 +1663,6 @@ static int pxa168_eth_probe(struct platform_device *pdev)
 		goto err_free_mdio;
 
 	pxa168_init_hw(pep);
-	err = ethernet_phy_setup(dev);
-	if (err)
-		goto err_mdiobus;
 	SET_NETDEV_DEV(dev, &pdev->dev);
 	err = register_netdev(dev);
 	if (err)
@@ -1629,13 +1693,13 @@ static int pxa168_eth_remove(struct platform_device *pdev)
 				  pep->htpr, pep->htpr_dma);
 		pep->htpr = NULL;
 	}
+	if (pep->phy)
+		phy_disconnect(pep->phy);
 	if (pep->clk) {
 		clk_disable(pep->clk);
 		clk_put(pep->clk);
 		pep->clk = NULL;
 	}
-	if (pep->phy != NULL)
-		phy_detach(pep->phy);
 
 	iounmap(pep->base);
 	pep->base = NULL;
