diff --git a/arch/arm64/include/asm/kvm_host.h b/arch/arm64/include/asm/kvm_host.h
index 064f3a951c64..c2d483a3350b 100644
--- a/arch/arm64/include/asm/kvm_host.h
+++ b/arch/arm64/include/asm/kvm_host.h
@@ -973,6 +973,8 @@ struct kvm_vcpu_arch {
 #define VCPU_INITIALIZED	__vcpu_single_flag(cflags, BIT(0))
 /* SVE config completed */
 #define VCPU_SVE_FINALIZED	__vcpu_single_flag(cflags, BIT(1))
+/* pKVM VCPU setup completed */
+#define VCPU_PKVM_FINALIZED	__vcpu_single_flag(cflags, BIT(2))
 
 /* Exception pending */
 #define PENDING_EXCEPTION	__vcpu_single_flag(iflags, BIT(0))
diff --git a/arch/arm64/include/asm/kvm_pkvm.h b/arch/arm64/include/asm/kvm_pkvm.h
index b1ba85e304d8..bfb94caf7bd0 100644
--- a/arch/arm64/include/asm/kvm_pkvm.h
+++ b/arch/arm64/include/asm/kvm_pkvm.h
@@ -24,6 +24,7 @@ int pkvm_init_host_vm(struct kvm *kvm, unsigned long type);
 int pkvm_create_hyp_vm(struct kvm *kvm);
 void pkvm_destroy_hyp_vm(struct kvm *kvm);
 bool pkvm_is_hyp_created(struct kvm *kvm);
+int pkvm_create_hyp_vcpu(struct kvm_vcpu *vcpu);
 void pkvm_host_reclaim_page(struct kvm *host_kvm, phys_addr_t ipa);
 
 /*
diff --git a/arch/arm64/kvm/arm.c b/arch/arm64/kvm/arm.c
index 8354e2511467..41a9f05b08f5 100644
--- a/arch/arm64/kvm/arm.c
+++ b/arch/arm64/kvm/arm.c
@@ -871,9 +871,14 @@ int kvm_arch_vcpu_run_pid_change(struct kvm_vcpu *vcpu)
 		/* Start with the vcpu in a dirty state */
 		if (!kvm_vm_is_protected(vcpu->kvm))
 			vcpu_set_flag(vcpu, PKVM_HOST_STATE_DIRTY);
+
 		ret = pkvm_create_hyp_vm(kvm);
 		if (ret)
 			return ret;
+
+		ret = pkvm_create_hyp_vcpu(vcpu);
+		if (ret)
+			return ret;
 	}
 
 	mutex_lock(&kvm->arch.config_lock);
diff --git a/arch/arm64/kvm/hyp/include/nvhe/pkvm.h b/arch/arm64/kvm/hyp/include/nvhe/pkvm.h
index f03dc558c811..fea6d1815614 100644
--- a/arch/arm64/kvm/hyp/include/nvhe/pkvm.h
+++ b/arch/arm64/kvm/hyp/include/nvhe/pkvm.h
@@ -61,10 +61,6 @@ struct pkvm_hyp_vm {
 
 	unsigned short refcount;
 
-	/*
-	 * The number of vcpus initialized and ready to run.
-	 */
-	unsigned int nr_vcpus;
 	hyp_spinlock_t vcpus_lock;
 
 	/*
diff --git a/arch/arm64/kvm/hyp/nvhe/pkvm.c b/arch/arm64/kvm/hyp/nvhe/pkvm.c
index d7d1aecfbe50..1ff4677ca07a 100644
--- a/arch/arm64/kvm/hyp/nvhe/pkvm.c
+++ b/arch/arm64/kvm/hyp/nvhe/pkvm.c
@@ -386,10 +386,12 @@ struct pkvm_hyp_vcpu *pkvm_load_hyp_vcpu(pkvm_handle_t handle,
 
 	hyp_read_lock(&vm_table_lock);
 	hyp_vm = get_vm_by_handle(handle);
-	if (!hyp_vm || hyp_vm->is_dying || READ_ONCE(hyp_vm->nr_vcpus) <= vcpu_idx)
+	if (!hyp_vm || hyp_vm->is_dying || hyp_vm->kvm.created_vcpus <= vcpu_idx)
 		goto unlock;
 
 	hyp_vcpu = hyp_vm->vcpus[vcpu_idx];
+	if (!hyp_vcpu)
+		goto unlock;
 
 	/* Ensure vcpu isn't loaded on more than one cpu simultaneously. */
 	if (unlikely(cmpxchg_relaxed(&hyp_vcpu->loaded_hyp_vcpu, NULL,
@@ -553,6 +555,9 @@ static void unpin_host_vcpus(struct pkvm_hyp_vcpu *hyp_vcpus[],
 	for (i = 0; i < nr_vcpus; i++) {
 		struct pkvm_hyp_vcpu *hyp_vcpu = hyp_vcpus[i];
 
+		if (!hyp_vcpu)
+			continue;
+
 		unpin_host_vcpu(hyp_vcpu);
 
 		if (!pkvm_hyp_vcpu_is_protected(hyp_vcpu))
@@ -631,8 +636,7 @@ static int pkvm_vcpu_init_sve(struct pkvm_hyp_vcpu *hyp_vcpu, struct kvm_vcpu *h
 
 static int init_pkvm_hyp_vcpu(struct pkvm_hyp_vcpu *hyp_vcpu,
 			      struct pkvm_hyp_vm *hyp_vm,
-			      struct kvm_vcpu *host_vcpu,
-			      unsigned int vcpu_idx)
+			      struct kvm_vcpu *host_vcpu)
 {
 	int ret = 0;
 	u32 mp_state;
@@ -647,11 +651,6 @@ static int init_pkvm_hyp_vcpu(struct pkvm_hyp_vcpu *hyp_vcpu,
 		return -EBUSY;
 	}
 
-	if (host_vcpu->vcpu_idx != vcpu_idx) {
-		ret = -EINVAL;
-		goto done;
-	}
-
 	mp_state = READ_ONCE(host_vcpu->arch.mp_state.mp_state);
 	if (mp_state != KVM_MP_STATE_RUNNABLE && mp_state != KVM_MP_STATE_STOPPED) {
 		ret = -EINVAL;
@@ -662,7 +661,7 @@ static int init_pkvm_hyp_vcpu(struct pkvm_hyp_vcpu *hyp_vcpu,
 
 	hyp_vcpu->vcpu.kvm = &hyp_vm->kvm;
 	hyp_vcpu->vcpu.vcpu_id = READ_ONCE(host_vcpu->vcpu_id);
-	hyp_vcpu->vcpu.vcpu_idx = vcpu_idx;
+	hyp_vcpu->vcpu.vcpu_idx = READ_ONCE(host_vcpu->vcpu_idx);
 
 	hyp_vcpu->vcpu.arch.hw_mmu = &hyp_vm->kvm.arch.mmu;
 	hyp_vcpu->vcpu.arch.cflags = READ_ONCE(host_vcpu->arch.cflags);
@@ -867,18 +866,22 @@ int __pkvm_init_vcpu(pkvm_handle_t handle, struct kvm_vcpu *host_vcpu)
 	}
 
 	hyp_spin_lock(&hyp_vm->vcpus_lock);
-	idx = hyp_vm->nr_vcpus;
+	ret = init_pkvm_hyp_vcpu(hyp_vcpu, hyp_vm, host_vcpu);
+	if (ret)
+		goto unlock_vcpus;
+
+	idx = hyp_vcpu->vcpu.vcpu_idx;
 	if (idx >= hyp_vm->kvm.created_vcpus) {
 		ret = -EINVAL;
 		goto unlock_vcpus;
 	}
 
-	ret = init_pkvm_hyp_vcpu(hyp_vcpu, hyp_vm, host_vcpu, idx);
-	if (ret)
+	if (hyp_vm->vcpus[idx]) {
+		ret = -EINVAL;
 		goto unlock_vcpus;
+	}
 
 	hyp_vm->vcpus[idx] = hyp_vcpu;
-	hyp_vm->nr_vcpus++;
 
 unlock_vcpus:
 	hyp_spin_unlock(&hyp_vm->vcpus_lock);
@@ -954,14 +957,17 @@ int __pkvm_finalize_teardown_vm(pkvm_handle_t handle)
 	mc = &host_kvm->arch.pkvm.stage2_teardown_mc;
 	destroy_hyp_vm_pgt(hyp_vm);
 	drain_hyp_pool(hyp_vm, mc);
-	unpin_host_vcpus(hyp_vm->vcpus, hyp_vm->nr_vcpus);
+	unpin_host_vcpus(hyp_vm->vcpus, hyp_vm->kvm.created_vcpus);
 
 	/* Push the metadata pages to the teardown memcache */
-	for (idx = 0; idx < hyp_vm->nr_vcpus; ++idx) {
+	for (idx = 0; idx < hyp_vm->kvm.created_vcpus; ++idx) {
 		struct pkvm_hyp_vcpu *hyp_vcpu = hyp_vm->vcpus[idx];
 		struct kvm_hyp_memcache *vcpu_mc;
 		void *addr;
 
+		if (!hyp_vcpu)
+			continue;
+
 		vcpu_mc = &hyp_vcpu->vcpu.arch.stage2_mc;
 		while (vcpu_mc->nr_pages) {
 			unsigned long order;
@@ -1120,8 +1126,10 @@ struct pkvm_hyp_vcpu *pkvm_mpidr_to_hyp_vcpu(struct pkvm_hyp_vm *hyp_vm,
 	mpidr &= MPIDR_HWID_BITMASK;
 
 	hyp_spin_lock(&hyp_vm->vcpus_lock);
-	for (i = 0; i < hyp_vm->nr_vcpus; i++) {
+	for (i = 0; i < hyp_vm->kvm.created_vcpus; i++) {
 		hyp_vcpu = hyp_vm->vcpus[i];
+		if (!hyp_vcpu)
+			continue;
 
 		if (mpidr == kvm_vcpu_get_mpidr_aff(&hyp_vcpu->vcpu))
 			goto unlock;
@@ -1229,9 +1237,12 @@ static bool pvm_psci_vcpu_affinity_info(struct pkvm_hyp_vcpu *hyp_vcpu)
 	 * Otherwise, return OFF.
 	 */
 	hyp_spin_lock(&hyp_vm->vcpus_lock);
-	for (i = 0; i < hyp_vm->nr_vcpus; i++) {
+	for (i = 0; i < hyp_vm->kvm.created_vcpus; i++) {
 		struct pkvm_hyp_vcpu *target = hyp_vm->vcpus[i];
 
+		if (!target)
+			continue;
+
 		mpidr = kvm_vcpu_get_mpidr_aff(&target->vcpu);
 
 		if ((mpidr & target_affinity_mask) == target_affinity) {
diff --git a/arch/arm64/kvm/pkvm.c b/arch/arm64/kvm/pkvm.c
index 091ed259905c..ab74515ca6fa 100644
--- a/arch/arm64/kvm/pkvm.c
+++ b/arch/arm64/kvm/pkvm.c
@@ -244,6 +244,15 @@ void __init kvm_hyp_reserve(void)
 		 hyp_mem_base);
 }
 
+
+static void __pkvm_vcpu_hyp_created(struct kvm_vcpu *vcpu)
+{
+	if (kvm_vm_is_protected(vcpu->kvm))
+		vcpu->arch.sve_state = NULL;
+
+	vcpu_set_flag(vcpu, VCPU_PKVM_FINALIZED);
+}
+
 static int __pkvm_create_hyp_vcpu(struct kvm_vcpu *host_vcpu)
 {
 	pkvm_handle_t handle = host_vcpu->kvm->arch.pkvm.handle;
@@ -262,8 +271,10 @@ static int __pkvm_create_hyp_vcpu(struct kvm_vcpu *host_vcpu)
 	host_vcpu->arch.hyp_reqs = hyp_reqs;
 
 	ret = kvm_call_refill_hyp_nvhe(__pkvm_init_vcpu, handle, host_vcpu);
-	if (!ret)
+	if (!ret) {
+		__pkvm_vcpu_hyp_created(host_vcpu);
 		return 0;
+	}
 
 	kvm_unshare_hyp(hyp_reqs, hyp_reqs + 1);
 err_free_reqs:
@@ -400,12 +411,6 @@ out_free:
 	}
 }
 
-static void __pkvm_vcpu_hyp_created(struct kvm_vcpu *vcpu)
-{
-	if (kvm_vm_is_protected(vcpu->kvm))
-		vcpu->arch.sve_state = NULL;
-}
-
 /*
  * Allocates and donates memory for hypervisor VM structs at EL2.
  *
@@ -418,8 +423,6 @@ static void __pkvm_vcpu_hyp_created(struct kvm_vcpu *vcpu)
  */
 static int __pkvm_create_hyp_vm(struct kvm *host_kvm)
 {
-	struct kvm_vcpu *host_vcpu;
-	unsigned long idx;
 	size_t pgd_sz;
 	void *pgd;
 	int ret;
@@ -448,21 +451,9 @@ static int __pkvm_create_hyp_vm(struct kvm *host_kvm)
 
 	WRITE_ONCE(host_kvm->arch.pkvm.handle, ret);
 
-	/* Donate memory for the vcpus at hyp and initialize it. */
-	kvm_for_each_vcpu(idx, host_vcpu, host_kvm) {
-		ret = __pkvm_create_hyp_vcpu(host_vcpu);
-		if (ret)
-			goto destroy_vm;
-		__pkvm_vcpu_hyp_created(host_vcpu);
-	}
-
 	kvm_account_pgtable_pages(pgd, pgd_sz >> PAGE_SHIFT);
 
 	return 0;
-
-destroy_vm:
-	__pkvm_destroy_hyp_vm(host_kvm);
-	return ret;
 free_pgd:
 	free_pages_exact(pgd, pgd_sz);
 	atomic64_sub(pgd_sz, &host_kvm->stat.protected_hyp_mem);
@@ -487,6 +478,18 @@ int pkvm_create_hyp_vm(struct kvm *host_kvm)
 	return ret;
 }
 
+int pkvm_create_hyp_vcpu(struct kvm_vcpu *vcpu)
+{
+	int ret = 0;
+
+	mutex_lock(&vcpu->kvm->arch.config_lock);
+	if (!vcpu_get_flag(vcpu, VCPU_PKVM_FINALIZED))
+		ret = __pkvm_create_hyp_vcpu(vcpu);
+	mutex_unlock(&vcpu->kvm->arch.config_lock);
+
+	return ret;
+}
+
 void pkvm_destroy_hyp_vm(struct kvm *host_kvm)
 {
 	mutex_lock(&host_kvm->arch.config_lock);