diff --git a/drivers/cpuidle/cpuidle-pseries.c b/drivers/cpuidle/cpuidle-pseries.c
index e592280d8acf..bba449b77641 100644
--- a/drivers/cpuidle/cpuidle-pseries.c
+++ b/drivers/cpuidle/cpuidle-pseries.c
@@ -346,11 +346,9 @@ static int pseries_cpuidle_driver_init(void)
 static void __init fixup_cede0_latency(void)
 {
 	struct xcede_latency_payload *payload;
-	u64 min_latency_us;
+	u64 min_xcede_latency_us = UINT_MAX;
 	int i;
 
-	min_latency_us = dedicated_states[1].exit_latency; // CEDE latency
-
 	if (parse_cede_parameters())
 		return;
 
@@ -358,42 +356,45 @@ static void __init fixup_cede0_latency(void)
 		nr_xcede_records);
 
 	payload = &xcede_latency_parameter.payload;
+
+	/*
+	 * The CEDE idle state maps to CEDE(0). While the hypervisor
+	 * does not advertise CEDE(0) exit latency values, it does
+	 * advertise the latency values of the extended CEDE states.
+	 * We use the lowest advertised exit latency value as a proxy
+	 * for the exit latency of CEDE(0).
+	 */
 	for (i = 0; i < nr_xcede_records; i++) {
 		struct xcede_latency_record *record = &payload->records[i];
+		u8 hint = record->hint;
 		u64 latency_tb = be64_to_cpu(record->latency_ticks);
 		u64 latency_us = DIV_ROUND_UP_ULL(tb_to_ns(latency_tb), NSEC_PER_USEC);
 
-		if (latency_us == 0)
-			pr_warn("cpuidle: xcede record %d has an unrealistic latency of 0us.\n", i);
+		/*
+		 * We expect the exit latency of an extended CEDE
+		 * state to be non-zero, it to since it takes at least
+		 * a few nanoseconds to wakeup the idle CPU and
+		 * dispatch the virtual processor into the Linux
+		 * Guest.
+		 *
+		 * So we consider only non-zero value for performing
+		 * the fixup of CEDE(0) latency.
+		 */
+		if (latency_us == 0) {
+			pr_warn("cpuidle: Skipping xcede record %d [hint=%d]. Exit latency = 0us\n",
+				i, hint);
+			continue;
+		}
 
-		if (latency_us < min_latency_us)
-			min_latency_us = latency_us;
+		if (latency_us < min_xcede_latency_us)
+			min_xcede_latency_us = latency_us;
 	}
 
-	/*
-	 * By default, we assume that CEDE(0) has exit latency 10us,
-	 * since there is no way for us to query from the platform.
-	 *
-	 * However, if the wakeup latency of an Extended CEDE state is
-	 * smaller than 10us, then we can be sure that CEDE(0)
-	 * requires no more than that.
-	 *
-	 * Perform the fix-up.
-	 */
-	if (min_latency_us < dedicated_states[1].exit_latency) {
-		/*
-		 * We set a minimum of 1us wakeup latency for cede0 to
-		 * distinguish it from snooze
-		 */
-		u64 cede0_latency = 1;
-
-		if (min_latency_us > cede0_latency)
-			cede0_latency = min_latency_us - 1;
-
-		dedicated_states[1].exit_latency = cede0_latency;
-		dedicated_states[1].target_residency = 10 * (cede0_latency);
+	if (min_xcede_latency_us != UINT_MAX) {
+		dedicated_states[1].exit_latency = min_xcede_latency_us;
+		dedicated_states[1].target_residency = 10 * (min_xcede_latency_us);
 		pr_info("cpuidle: Fixed up CEDE exit latency to %llu us\n",
-			cede0_latency);
+			min_xcede_latency_us);
 	}
 
 }