diff --git a/arch/x86/kvm/svm/sev.c b/arch/x86/kvm/svm/sev.c
index d8ed00f76aa3..30792adcfc8e 100644
--- a/arch/x86/kvm/svm/sev.c
+++ b/arch/x86/kvm/svm/sev.c
@@ -4028,9 +4028,6 @@ static void sev_snp_reload_vmsa(struct kvm_vcpu *vcpu, gpa_t gpa)
 	svm->sev_es.snp_guest_vmsa_gpa = gpa;
 	svm->vmcb->control.vmsa_pa = pfn_to_hpa(pfn);
 
-	/* Mark the vCPU as runnable */
-	kvm_set_mp_state(vcpu, KVM_MP_STATE_RUNNABLE);
-
 	/*
 	 * gmem pages aren't currently migratable, but if this ever changes
 	 * then care should be taken to ensure svm->sev_es.vmsa is pinned
@@ -4062,6 +4059,15 @@ static void sev_snp_init_protected_guest_state(struct kvm_vcpu *vcpu)
 	svm->sev_es.snp_pending_vmsa_gpa = INVALID_PAGE;
 
 	sev_snp_reload_vmsa(vcpu, gpa);
+
+	/*
+	 * Mark the vCPU as runnable for CREATE requests, indicated by a valid
+	 * VMSA GPA, even if installing the VMSA failed, so that KVM_RUN will
+	 * fail instead of blocking indefinitely and hanging the vCPU, e.g. if
+	 * the backing guest_memfd page is unavailable.
+	 */
+	if (VALID_PAGE(gpa))
+		kvm_set_mp_state(vcpu, KVM_MP_STATE_RUNNABLE);
 }
 
 static int sev_snp_ap_creation(struct vcpu_svm *svm)