diff --git a/arch/x86/kvm/svm/avic.c b/arch/x86/kvm/svm/avic.c
index 35c5fb831c28..cb6317fcaddf 100644
--- a/arch/x86/kvm/svm/avic.c
+++ b/arch/x86/kvm/svm/avic.c
@@ -781,21 +781,17 @@ int avic_pi_update_irte(struct kvm_kernel_irqfd *irqfd, struct kvm *kvm,
 	 */
 	svm_ir_list_del(irqfd);
 
-	/**
-	 * Here, we setup with legacy mode in the following cases:
-	 * 1. When cannot target interrupt to a specific vcpu.
-	 * 2. Unsetting posted interrupt.
-	 * 3. APIC virtualization is disabled for the vcpu.
-	 * 4. IRQ has incompatible delivery mode (SMI, INIT, etc)
-	 */
-	if (vcpu && kvm_vcpu_apicv_active(vcpu)) {
+	if (vcpu) {
 		/*
-		 * Try to enable guest_mode in IRTE.
+		 * Try to enable guest_mode in IRTE, unless AVIC is inhibited,
+		 * in which case configure the IRTE for legacy mode, but track
+		 * the IRTE metadata so that it can be converted to guest mode
+		 * if AVIC is enabled/uninhibited in the future.
 		 */
 		struct amd_iommu_pi_data pi_data = {
 			.ga_tag = AVIC_GATAG(to_kvm_svm(kvm)->avic_vm_id,
 					     vcpu->vcpu_id),
-			.is_guest_mode = true,
+			.is_guest_mode = kvm_vcpu_apicv_active(vcpu),
 			.vapic_addr = avic_get_backing_page_address(to_svm(vcpu)),
 			.vector = vector,
 		};
diff --git a/drivers/iommu/amd/iommu.c b/drivers/iommu/amd/iommu.c
index 6352930ad011..6149aece0eac 100644
--- a/drivers/iommu/amd/iommu.c
+++ b/drivers/iommu/amd/iommu.c
@@ -3939,7 +3939,10 @@ static int amd_ir_set_vcpu_affinity(struct irq_data *data, void *info)
 		ir_data->ga_root_ptr = (pi_data->vapic_addr >> 12);
 		ir_data->ga_vector = pi_data->vector;
 		ir_data->ga_tag = pi_data->ga_tag;
-		ret = amd_iommu_activate_guest_mode(ir_data, pi_data->cpu);
+		if (pi_data->is_guest_mode)
+			ret = amd_iommu_activate_guest_mode(ir_data, pi_data->cpu);
+		else
+			ret = amd_iommu_deactivate_guest_mode(ir_data);
 	} else {
 		ret = amd_iommu_deactivate_guest_mode(ir_data);
 	}