diff --git a/drivers/gpu/drm/xe/xe_exec.c b/drivers/gpu/drm/xe/xe_exec.c
index 83897950f0da..0dc27476832b 100644
--- a/drivers/gpu/drm/xe/xe_exec.c
+++ b/drivers/gpu/drm/xe/xe_exec.c
@@ -124,7 +124,7 @@ int xe_exec_ioctl(struct drm_device *dev, void *data, struct drm_file *file)
 	struct xe_validation_ctx ctx;
 	struct xe_sched_job *job;
 	struct xe_vm *vm;
-	bool write_locked, skip_retry = false;
+	bool write_locked;
 	int err = 0;
 	struct xe_hw_engine_group *group;
 	enum xe_hw_engine_group_execution_mode mode, previous_mode;
@@ -266,12 +266,6 @@ int xe_exec_ioctl(struct drm_device *dev, void *data, struct drm_file *file)
 		goto err_exec;
 	}
 
-	if (xe_exec_queue_is_lr(q) && xe_exec_queue_ring_full(q)) {
-		err = -EWOULDBLOCK;	/* Aliased to -EAGAIN */
-		skip_retry = true;
-		goto err_exec;
-	}
-
 	if (xe_exec_queue_uses_pxp(q)) {
 		err = xe_vm_validate_protected(q->vm);
 		if (err)
@@ -328,8 +322,6 @@ int xe_exec_ioctl(struct drm_device *dev, void *data, struct drm_file *file)
 		xe_sched_job_init_user_fence(job, &syncs[i]);
 	}
 
-	if (xe_exec_queue_is_lr(q))
-		q->ring_ops->emit_job(job);
 	if (!xe_vm_in_lr_mode(vm))
 		xe_exec_queue_last_fence_set(q, vm, &job->drm.s_fence->finished);
 	xe_sched_job_push(job);
@@ -355,7 +347,7 @@ int xe_exec_ioctl(struct drm_device *dev, void *data, struct drm_file *file)
 		xe_validation_ctx_fini(&ctx);
 err_unlock_list:
 	up_read(&vm->lock);
-	if (err == -EAGAIN && !skip_retry)
+	if (err == -EAGAIN)
 		goto retry;
 err_hw_exec_mode:
 	if (mode == EXEC_MODE_DMA_FENCE)
diff --git a/drivers/gpu/drm/xe/xe_exec_queue.c b/drivers/gpu/drm/xe/xe_exec_queue.c
index df82463b19f6..7621089a47fe 100644
--- a/drivers/gpu/drm/xe/xe_exec_queue.c
+++ b/drivers/gpu/drm/xe/xe_exec_queue.c
@@ -850,25 +850,6 @@ bool xe_exec_queue_is_lr(struct xe_exec_queue *q)
 		!(q->flags & EXEC_QUEUE_FLAG_VM);
 }
 
-static s32 xe_exec_queue_num_job_inflight(struct xe_exec_queue *q)
-{
-	return q->lrc[0]->fence_ctx.next_seqno - xe_lrc_seqno(q->lrc[0]) - 1;
-}
-
-/**
- * xe_exec_queue_ring_full() - Whether an exec_queue's ring is full
- * @q: The exec_queue
- *
- * Return: True if the exec_queue's ring is full, false otherwise.
- */
-bool xe_exec_queue_ring_full(struct xe_exec_queue *q)
-{
-	struct xe_lrc *lrc = q->lrc[0];
-	s32 max_job = lrc->ring.size / MAX_JOB_SIZE_BYTES;
-
-	return xe_exec_queue_num_job_inflight(q) >= max_job;
-}
-
 /**
  * xe_exec_queue_is_idle() - Whether an exec_queue is idle.
  * @q: The exec_queue
diff --git a/drivers/gpu/drm/xe/xe_exec_queue.h b/drivers/gpu/drm/xe/xe_exec_queue.h
index 8821ceb838d0..a4dfbe858bda 100644
--- a/drivers/gpu/drm/xe/xe_exec_queue.h
+++ b/drivers/gpu/drm/xe/xe_exec_queue.h
@@ -64,8 +64,6 @@ static inline bool xe_exec_queue_uses_pxp(struct xe_exec_queue *q)
 
 bool xe_exec_queue_is_lr(struct xe_exec_queue *q);
 
-bool xe_exec_queue_ring_full(struct xe_exec_queue *q);
-
 bool xe_exec_queue_is_idle(struct xe_exec_queue *q);
 
 void xe_exec_queue_kill(struct xe_exec_queue *q);
diff --git a/drivers/gpu/drm/xe/xe_guc_submit.c b/drivers/gpu/drm/xe/xe_guc_submit.c
index 13746f32b231..3a534d93505f 100644
--- a/drivers/gpu/drm/xe/xe_guc_submit.c
+++ b/drivers/gpu/drm/xe/xe_guc_submit.c
@@ -851,30 +851,31 @@ guc_exec_queue_run_job(struct drm_sched_job *drm_job)
 	struct xe_sched_job *job = to_xe_sched_job(drm_job);
 	struct xe_exec_queue *q = job->q;
 	struct xe_guc *guc = exec_queue_to_guc(q);
-	struct dma_fence *fence = NULL;
-	bool lr = xe_exec_queue_is_lr(q);
+	bool lr = xe_exec_queue_is_lr(q), killed_or_banned_or_wedged =
+		exec_queue_killed_or_banned_or_wedged(q);
 
 	xe_gt_assert(guc_to_gt(guc), !(exec_queue_destroyed(q) || exec_queue_pending_disable(q)) ||
 		     exec_queue_banned(q) || exec_queue_suspended(q));
 
 	trace_xe_sched_job_run(job);
 
-	if (!exec_queue_killed_or_banned_or_wedged(q) && !xe_sched_job_is_error(job)) {
+	if (!killed_or_banned_or_wedged && !xe_sched_job_is_error(job)) {
 		if (!exec_queue_registered(q))
 			register_exec_queue(q, GUC_CONTEXT_NORMAL);
-		if (!lr)	/* LR jobs are emitted in the exec IOCTL */
-			q->ring_ops->emit_job(job);
+		q->ring_ops->emit_job(job);
 		submit_exec_queue(q);
 	}
 
-	if (lr) {
-		xe_sched_job_set_error(job, -EOPNOTSUPP);
-		dma_fence_put(job->fence);	/* Drop ref from xe_sched_job_arm */
-	} else {
-		fence = job->fence;
-	}
+	/*
+	 * We don't care about job-fence ordering in LR VMs because these fences
+	 * are never exported; they are used solely to keep jobs on the pending
+	 * list. Once a queue enters an error state, there's no need to track
+	 * them.
+	 */
+	if (killed_or_banned_or_wedged && lr)
+		xe_sched_job_set_error(job, -ECANCELED);
 
-	return fence;
+	return job->fence;
 }
 
 static void guc_exec_queue_free_job(struct drm_sched_job *drm_job)
@@ -916,7 +917,8 @@ static void disable_scheduling_deregister(struct xe_guc *guc,
 		xe_gt_warn(q->gt, "Pending enable/disable failed to respond\n");
 		xe_sched_submission_start(sched);
 		xe_gt_reset_async(q->gt);
-		xe_sched_tdr_queue_imm(sched);
+		if (!xe_exec_queue_is_lr(q))
+			xe_sched_tdr_queue_imm(sched);
 		return;
 	}
 
@@ -1008,6 +1010,7 @@ static void xe_guc_exec_queue_lr_cleanup(struct work_struct *w)
 	struct xe_exec_queue *q = ge->q;
 	struct xe_guc *guc = exec_queue_to_guc(q);
 	struct xe_gpu_scheduler *sched = &ge->sched;
+	struct xe_sched_job *job;
 	bool wedged = false;
 
 	xe_gt_assert(guc_to_gt(guc), xe_exec_queue_is_lr(q));
@@ -1058,7 +1061,16 @@ static void xe_guc_exec_queue_lr_cleanup(struct work_struct *w)
 	if (!exec_queue_killed(q) && !xe_lrc_ring_is_idle(q->lrc[0]))
 		xe_devcoredump(q, NULL, "LR job cleanup, guc_id=%d", q->guc->id);
 
+	xe_hw_fence_irq_stop(q->fence_irq);
+
 	xe_sched_submission_start(sched);
+
+	spin_lock(&sched->base.job_list_lock);
+	list_for_each_entry(job, &sched->base.pending_list, drm.list)
+		xe_sched_job_set_error(job, -ECANCELED);
+	spin_unlock(&sched->base.job_list_lock);
+
+	xe_hw_fence_irq_start(q->fence_irq);
 }
 
 #define ADJUST_FIVE_PERCENT(__t)	mul_u64_u32_div(__t, 105, 100)
@@ -1129,7 +1141,8 @@ static void enable_scheduling(struct xe_exec_queue *q)
 		xe_gt_warn(guc_to_gt(guc), "Schedule enable failed to respond");
 		set_exec_queue_banned(q);
 		xe_gt_reset_async(q->gt);
-		xe_sched_tdr_queue_imm(&q->guc->sched);
+		if (!xe_exec_queue_is_lr(q))
+			xe_sched_tdr_queue_imm(&q->guc->sched);
 	}
 }
 
@@ -1187,6 +1200,8 @@ guc_exec_queue_timedout_job(struct drm_sched_job *drm_job)
 	int i = 0;
 	bool wedged = false, skip_timeout_check;
 
+	xe_gt_assert(guc_to_gt(guc), !xe_exec_queue_is_lr(q));
+
 	/*
 	 * TDR has fired before free job worker. Common if exec queue
 	 * immediately closed after last fence signaled. Add back to pending