diff --git a/hypervisor/src/lib.rs b/hypervisor/src/lib.rs
index 1899d282b..77e1f9a43 100644
--- a/hypervisor/src/lib.rs
+++ b/hypervisor/src/lib.rs
@@ -170,6 +170,7 @@ pub struct HypervisorVmConfig {
     pub sev_snp_enabled: bool,
     #[cfg(feature = "sev_snp")]
     pub mem_size: u64,
+    pub nested: bool,
 }
 
 #[derive(Copy, Clone)]
diff --git a/hypervisor/src/mshv/mod.rs b/hypervisor/src/mshv/mod.rs
index fd2ddd127..90173d011 100644
--- a/hypervisor/src/mshv/mod.rs
+++ b/hypervisor/src/mshv/mod.rs
@@ -14,7 +14,10 @@ use log::{debug, warn};
 use mshv_bindings::*;
 #[cfg(target_arch = "x86_64")]
 use mshv_ioctls::InterruptRequest;
-use mshv_ioctls::{Mshv, NoDatamatch, VcpuFd, VmFd, VmType, set_registers_64};
+use mshv_ioctls::{
+    Mshv, NoDatamatch, VcpuFd, VmFd, VmType, make_default_partition_create_arg,
+    make_default_synthetic_features_mask, set_registers_64,
+};
 use vfio_ioctls::VfioDeviceFd;
 use vm::DataMatch;
 #[cfg(feature = "sev_snp")]
@@ -292,10 +295,37 @@ impl hypervisor::Hypervisor for MshvHypervisor {
                 VmType::Normal
             };
         }
-
+        let mut create_args = make_default_partition_create_arg(mshv_vm_type);
+        let mut disable_proc_features = hv_partition_processor_features::default();
+        // SAFETY: Accessing a union element from bindgen generated bindings.
+        unsafe {
+            for i in 0..create_args.pt_num_cpu_fbanks {
+                disable_proc_features.as_uint64[i as usize] = create_args.pt_cpu_fbanks[i as usize];
+            }
+            #[cfg(target_arch = "x86_64")]
+            {
+                // Modify create_args based on user configuration
+                // For now we only handle nested virtualization, but more features can be added here
+                if _config.nested {
+                    create_args.pt_flags |= 1 << MSHV_PT_BIT_NESTED_VIRTUALIZATION;
+                    disable_proc_features
+                        .__bindgen_anon_1
+                        .set_nested_virt_support(0u64);
+                } else {
+                    disable_proc_features
+                        .__bindgen_anon_1
+                        .set_nested_virt_support(1u64);
+                }
+            }
+            // Modified feature bit fields are written back to create_args
+            for i in 0..create_args.pt_num_cpu_fbanks {
+                create_args.pt_cpu_fbanks[i as usize] = disable_proc_features.as_uint64[i as usize];
+            }
+        }
+        let synthetic_features_mask = make_default_synthetic_features_mask();
         let fd: VmFd;
         loop {
-            match self.mshv.create_vm_with_type(mshv_vm_type) {
+            match self.mshv.create_vm_with_args(&create_args) {
                 Ok(res) => fd = res,
                 Err(e) => {
                     if e.errno() == libc::EINTR {
@@ -309,7 +339,11 @@ impl hypervisor::Hypervisor for MshvHypervisor {
             }
             break;
         }
-
+        fd.set_partition_property(
+            hv_partition_property_code_HV_PARTITION_PROPERTY_SYNTHETIC_PROC_FEATURES,
+            synthetic_features_mask,
+        )
+        .map_err(|e| hypervisor::HypervisorError::SetPartitionProperty(e.into()))?;
         let vm_fd = Arc::new(fd);
 
         #[cfg(target_arch = "x86_64")]
diff --git a/vmm/src/lib.rs b/vmm/src/lib.rs
index f4b46dc4b..0298efc06 100644
--- a/vmm/src/lib.rs
+++ b/vmm/src/lib.rs
@@ -220,6 +220,7 @@ impl From<&VmConfig> for hypervisor::HypervisorVmConfig {
             sev_snp_enabled: _value.is_sev_snp_enabled(),
             #[cfg(feature = "sev_snp")]
             mem_size: _value.memory.total_size(),
+            nested: _value.cpus.nested,
         }
     }
 }