diff --git a/target/i386/meson.build b/target/i386/meson.build
index 80062d1d0d..b4fbf8a537 100644
--- a/target/i386/meson.build
+++ b/target/i386/meson.build
@@ -12,7 +12,7 @@ i386_ss.add(when: 'CONFIG_KVM', if_true: files('xsave_helper.c', 'host-cpu.c'))
 i386_ss.add(when: 'CONFIG_HVF', if_true: files('xsave_helper.c', 'host-cpu.c'))
 i386_ss.add(when: 'CONFIG_WHPX', if_true: files('xsave_helper.c', 'host-cpu.c'))
 i386_ss.add(when: 'CONFIG_NVMM', if_true: files('host-cpu.c'))
-i386_ss.add(when: 'CONFIG_MSHV', if_true: files('host-cpu.c'))
+i386_ss.add(when: 'CONFIG_MSHV', if_true: files('xsave_helper.c', 'host-cpu.c'))
 
 i386_system_ss = ss.source_set()
 i386_system_ss.add(files(
diff --git a/target/i386/mshv/mshv-cpu.c b/target/i386/mshv/mshv-cpu.c
index 9f513a0e43..bbf874f641 100644
--- a/target/i386/mshv/mshv-cpu.c
+++ b/target/i386/mshv/mshv-cpu.c
@@ -112,6 +112,78 @@ static enum hv_register_name FPU_REGISTER_NAMES[26] = {
 
 static int set_special_regs(const CPUState *cpu);
 
+static int get_xsave_state(CPUState *cpu)
+{
+    X86CPU *x86cpu = X86_CPU(cpu);
+    CPUX86State *env = &x86cpu->env;
+    int cpu_fd = mshv_vcpufd(cpu);
+    int ret;
+    void *xsavec_buf;
+    const size_t page = HV_HYP_PAGE_SIZE;
+    size_t xsavec_buf_len = page;
+
+    /* TODO: should properly determine xsavec size based on CPUID */
+    xsavec_buf = qemu_memalign(page, xsavec_buf_len);
+    memset(xsavec_buf, 0, xsavec_buf_len);
+
+    struct mshv_get_set_vp_state args = {
+        .type = MSHV_VP_STATE_XSAVE,
+        .buf_sz = xsavec_buf_len,
+        .buf_ptr = (uintptr_t)xsavec_buf,
+    };
+
+    ret = ioctl(cpu_fd, MSHV_GET_VP_STATE, &args);
+    if (ret < 0) {
+        error_report("failed to get xsave state: %s", strerror(errno));
+        return -errno;
+    }
+
+    ret = decompact_xsave_area(xsavec_buf, xsavec_buf_len, env);
+    g_free(xsavec_buf);
+    if (ret < 0) {
+        error_report("failed to decompact xsave area");
+        return ret;
+    }
+    x86_cpu_xrstor_all_areas(x86cpu, env->xsave_buf, env->xsave_buf_len);
+
+    return 0;
+}
+
+static int set_xsave_state(const CPUState *cpu)
+{
+    X86CPU *x86cpu = X86_CPU(cpu);
+    CPUX86State *env = &x86cpu->env;
+    int cpu_fd = mshv_vcpufd(cpu);
+    int ret;
+    void *xsavec_buf;
+    size_t page = HV_HYP_PAGE_SIZE, xsavec_buf_len;
+
+    /* allocate and populate compacted buffer */
+    xsavec_buf = qemu_memalign(page, page);
+    xsavec_buf_len = page;
+
+    /* save registers to standard format buffer */
+    x86_cpu_xsave_all_areas(x86cpu, env->xsave_buf, env->xsave_buf_len);
+
+    /* store compacted version of xsave area in xsavec_buf */
+    compact_xsave_area(env, xsavec_buf, xsavec_buf_len);
+
+    struct mshv_get_set_vp_state args = {
+        .type = MSHV_VP_STATE_XSAVE,
+        .buf_sz = xsavec_buf_len,
+        .buf_ptr = (uintptr_t)xsavec_buf,
+    };
+
+    ret = ioctl(cpu_fd, MSHV_SET_VP_STATE, &args);
+    g_free(xsavec_buf);
+    if (ret < 0) {
+        error_report("failed to set xsave state: %s", strerror(errno));
+        return -errno;
+    }
+
+    return 0;
+}
+
 static void populate_fpu(const hv_register_assoc *assocs, X86CPU *x86cpu)
 {
     union hv_register_value value;
@@ -717,6 +789,11 @@ int mshv_arch_load_vcpu_state(CPUState *cpu)
         return ret;
     }
 
+    ret = get_xsave_state(cpu);
+    if (ret < 0) {
+        return ret;
+    }
+
     ret = get_vcpu_events(cpu);
     if (ret < 0) {
         return ret;
@@ -1263,6 +1340,11 @@ int mshv_arch_store_vcpu_state(const CPUState *cpu)
         return ret;
     }
 
+    ret = set_xsave_state(cpu);
+    if (ret < 0) {
+        return ret;
+    }
+
     ret = set_vcpu_events(cpu);
     if (ret < 0) {
         return ret;
@@ -1817,9 +1899,10 @@ void mshv_arch_init_vcpu(CPUState *cpu)
     X86CPU *x86_cpu = X86_CPU(cpu);
     CPUX86State *env = &x86_cpu->env;
     AccelCPUState *state = cpu->accel;
-    size_t page = HV_HYP_PAGE_SIZE;
+    size_t page = HV_HYP_PAGE_SIZE, xsave_len;
     void *mem = qemu_memalign(page, 2 * page);
     int ret;
+    X86XSaveHeader *header;
 
     /* sanity check, to make sure we don't overflow the page */
     QEMU_BUILD_BUG_ON((MAX_REGISTER_COUNT
@@ -1833,6 +1916,17 @@ void mshv_arch_init_vcpu(CPUState *cpu)
 
     env->emu_mmio_buf = g_new(char, 4096);
 
+    /* Initialize XSAVE buffer page-aligned */
+    /* TODO: pick proper size based on CPUID */
+    xsave_len = page;
+    env->xsave_buf = qemu_memalign(page, xsave_len);
+    env->xsave_buf_len = xsave_len;
+    memset(env->xsave_buf, 0, env->xsave_buf_len);
+
+    /* we need to set the compacted format bit in xsave header for mshv */
+    header = (X86XSaveHeader *)(env->xsave_buf + sizeof(X86LegacyXSaveArea));
+    header->xcomp_bv = header->xstate_bv | (1ULL << 63);
+
     /*
      * TODO: populate topology info:
      * X86CPUTopoInfo *topo_info = &env->topo_info;
@@ -1857,6 +1951,10 @@ void mshv_arch_destroy_vcpu(CPUState *cpu)
     g_free(state->hvcall_args.base);
     state->hvcall_args = (MshvHvCallArgs){0};
     g_clear_pointer(&env->emu_mmio_buf, g_free);
+
+    qemu_vfree(env->xsave_buf);
+    env->xsave_buf = NULL;
+    env->xsave_buf_len = 0;
 }
 
 uint32_t mshv_get_supported_cpuid(uint32_t func, uint32_t idx, int reg)