diff --git a/arch/x86/kernel/e820.c b/arch/x86/kernel/e820.c
index 9920122018a0..c3acbd26408b 100644
--- a/arch/x86/kernel/e820.c
+++ b/arch/x86/kernel/e820.c
@@ -1299,6 +1299,24 @@ void __init e820__memblock_setup(void)
 		memblock_add(entry->addr, entry->size);
 	}
 
+	/*
+	 * At this point memblock is only allowed to allocate from memory
+	 * below 1M (aka ISA_END_ADDRESS) up until direct map is completely set
+	 * up in init_mem_mapping().
+	 *
+	 * KHO kernels are special and use only scratch memory for memblock
+	 * allocations, but memory below 1M is ignored by kernel after early
+	 * boot and cannot be naturally marked as scratch.
+	 *
+	 * To allow allocation of the real-mode trampoline and a few (if any)
+	 * other very early allocations from below 1M forcibly mark the memory
+	 * below 1M as scratch.
+	 *
+	 * After real mode trampoline is allocated, we clear that scratch
+	 * marking.
+	 */
+	memblock_mark_kho_scratch(0, SZ_1M);
+
 	/*
 	 * 32-bit systems are limited to 4BG of memory even with HIGHMEM and
 	 * to even less without it.
diff --git a/arch/x86/realmode/init.c b/arch/x86/realmode/init.c
index f9bc444a3064..9b9f4534086d 100644
--- a/arch/x86/realmode/init.c
+++ b/arch/x86/realmode/init.c
@@ -65,6 +65,8 @@ void __init reserve_real_mode(void)
 	 * setup_arch().
 	 */
 	memblock_reserve(0, SZ_1M);
+
+	memblock_clear_kho_scratch(0, SZ_1M);
 }
 
 static void __init sme_sev_setup_real_mode(struct trampoline_header *th)