diff --git a/arch/arm64/kvm/hyp/nvhe/pkvm.c b/arch/arm64/kvm/hyp/nvhe/pkvm.c
index 453d3fa4a420..bb3e0dc0676e 100644
--- a/arch/arm64/kvm/hyp/nvhe/pkvm.c
+++ b/arch/arm64/kvm/hyp/nvhe/pkvm.c
@@ -360,7 +360,7 @@ static void pkvm_init_features_from_host(struct pkvm_hyp_vm *hyp_vm, const struc
 		if (test_bit(KVM_ARCH_FLAG_WRITABLE_IMP_ID_REGS, &host_arch_flags))
 			hyp_vm->kvm.arch.midr_el1 = host_kvm->arch.midr_el1;
 
-		return;
+		goto out;
 	}
 
 	if (kvm_pkvm_ext_allowed(kvm, KVM_CAP_ARM_MTE))
@@ -379,13 +379,14 @@ static void pkvm_init_features_from_host(struct pkvm_hyp_vm *hyp_vm, const struc
 	if (kvm_pkvm_ext_allowed(kvm, KVM_CAP_ARM_PTRAUTH_GENERIC))
 		set_bit(KVM_ARM_VCPU_PTRAUTH_GENERIC, allowed_features);
 
-	if (kvm_pkvm_ext_allowed(kvm, KVM_CAP_ARM_SVE)) {
+	if (kvm_pkvm_ext_allowed(kvm, KVM_CAP_ARM_SVE))
 		set_bit(KVM_ARM_VCPU_SVE, allowed_features);
-		kvm->arch.flags |= host_arch_flags & BIT(KVM_ARCH_FLAG_GUEST_HAS_SVE);
-	}
 
 	bitmap_and(kvm->arch.vcpu_features, host_kvm->arch.vcpu_features,
 		   allowed_features, KVM_VCPU_MAX_FEATURES);
+out:
+	__assign_bit(KVM_ARCH_FLAG_GUEST_HAS_SVE, &kvm->arch.flags,
+		     kvm_vcpu_has_feature(kvm, KVM_ARM_VCPU_SVE));
 }
 
 static void unpin_host_vcpu(struct kvm_vcpu *host_vcpu)