diff --git a/hw/remote/vfio-user-obj.c b/hw/remote/vfio-user-obj.c
index 84cd16c4ad..496e6c8038 100644
--- a/hw/remote/vfio-user-obj.c
+++ b/hw/remote/vfio-user-obj.c
@@ -41,6 +41,9 @@
 #include "hw/remote/machine.h"
 #include "qapi/error.h"
 #include "qapi/qapi-visit-sockets.h"
+#include "qemu/notify.h"
+#include "sysemu/sysemu.h"
+#include "libvfio-user.h"
 
 #define TYPE_VFU_OBJECT "x-vfio-user-server"
 OBJECT_DECLARE_TYPE(VfuObject, VfuObjectClass, VFU_OBJECT)
@@ -82,13 +85,24 @@ struct VfuObject {
     char *device;
 
     Error *err;
+
+    Notifier machine_done;
+
+    vfu_ctx_t *vfu_ctx;
 };
 
+static void vfu_object_init_ctx(VfuObject *o, Error **errp);
+
 static void vfu_object_set_socket(Object *obj, Visitor *v, const char *name,
                                   void *opaque, Error **errp)
 {
     VfuObject *o = VFU_OBJECT(obj);
 
+    if (o->vfu_ctx) {
+        error_setg(errp, "vfu: Unable to set socket property - server busy");
+        return;
+    }
+
     qapi_free_SocketAddress(o->socket);
 
     o->socket = NULL;
@@ -104,17 +118,69 @@ static void vfu_object_set_socket(Object *obj, Visitor *v, const char *name,
     }
 
     trace_vfu_prop("socket", o->socket->u.q_unix.path);
+
+    vfu_object_init_ctx(o, errp);
 }
 
 static void vfu_object_set_device(Object *obj, const char *str, Error **errp)
 {
     VfuObject *o = VFU_OBJECT(obj);
 
+    if (o->vfu_ctx) {
+        error_setg(errp, "vfu: Unable to set device property - server busy");
+        return;
+    }
+
     g_free(o->device);
 
     o->device = g_strdup(str);
 
     trace_vfu_prop("device", str);
+
+    vfu_object_init_ctx(o, errp);
+}
+
+/*
+ * TYPE_VFU_OBJECT depends on the availability of the 'socket' and 'device'
+ * properties. It also depends on devices instantiated in QEMU. These
+ * dependencies are not available during the instance_init phase of this
+ * object's life-cycle. As such, the server is initialized after the
+ * machine is setup. machine_init_done_notifier notifies TYPE_VFU_OBJECT
+ * when the machine is setup, and the dependencies are available.
+ */
+static void vfu_object_machine_done(Notifier *notifier, void *data)
+{
+    VfuObject *o = container_of(notifier, VfuObject, machine_done);
+    Error *err = NULL;
+
+    vfu_object_init_ctx(o, &err);
+
+    if (err) {
+        error_propagate(&error_abort, err);
+    }
+}
+
+static void vfu_object_init_ctx(VfuObject *o, Error **errp)
+{
+    ERRP_GUARD();
+
+    if (o->vfu_ctx || !o->socket || !o->device ||
+            !phase_check(PHASE_MACHINE_READY)) {
+        return;
+    }
+
+    if (o->err) {
+        error_propagate(errp, o->err);
+        o->err = NULL;
+        return;
+    }
+
+    o->vfu_ctx = vfu_create_ctx(VFU_TRANS_SOCK, o->socket->u.q_unix.path, 0,
+                                o, VFU_DEV_TYPE_PCI);
+    if (o->vfu_ctx == NULL) {
+        error_setg(errp, "vfu: Failed to create context - %s", strerror(errno));
+        return;
+    }
 }
 
 static void vfu_object_init(Object *obj)
@@ -124,6 +190,11 @@ static void vfu_object_init(Object *obj)
 
     k->nr_devs++;
 
+    if (!phase_check(PHASE_MACHINE_READY)) {
+        o->machine_done.notify = vfu_object_machine_done;
+        qemu_add_machine_init_done_notifier(&o->machine_done);
+    }
+
     if (!object_dynamic_cast(OBJECT(current_machine), TYPE_REMOTE_MACHINE)) {
         error_setg(&o->err, "vfu: %s only compatible with %s machine",
                    TYPE_VFU_OBJECT, TYPE_REMOTE_MACHINE);
@@ -142,6 +213,10 @@ static void vfu_object_finalize(Object *obj)
 
     o->socket = NULL;
 
+    if (o->vfu_ctx) {
+        vfu_destroy_ctx(o->vfu_ctx);
+    }
+
     g_free(o->device);
 
     o->device = NULL;
@@ -149,6 +224,11 @@ static void vfu_object_finalize(Object *obj)
     if (!k->nr_devs && k->auto_shutdown) {
         qemu_system_shutdown_request(SHUTDOWN_CAUSE_GUEST_SHUTDOWN);
     }
+
+    if (o->machine_done.notify) {
+        qemu_remove_machine_init_done_notifier(&o->machine_done);
+        o->machine_done.notify = NULL;
+    }
 }
 
 static void vfu_object_class_init(ObjectClass *klass, void *data)
