diff --git a/src/arch/aarch64/hypervisor/psci_handler.c b/src/arch/aarch64/hypervisor/psci_handler.c
index 4702301..5f571ce 100644
--- a/src/arch/aarch64/hypervisor/psci_handler.c
+++ b/src/arch/aarch64/hypervisor/psci_handler.c
@@ -169,7 +169,7 @@
 
 		vcpu_target = vm_get_vcpu(vcpu->vm, cpu_index(c));
 		vcpu_locked = vcpu_lock(vcpu_target);
-		vcpu_on(vcpu_locked, ipa_init(arg1), arg2);
+		vcpu_prepare(vcpu_locked, ipa_init(arg1), arg2);
 		vcpu_unlock(&vcpu_locked);
 
 		/*
diff --git a/src/load.c b/src/load.c
index d782904..219c99b 100644
--- a/src/load.c
+++ b/src/load.c
@@ -417,7 +417,7 @@
 	vm_update_boot(vm);
 
 	vcpu_locked = vcpu_lock(vm_get_vcpu(vm, 0));
-	vcpu_on(vcpu_locked, primary_entry, params->kernel_arg);
+	vcpu_prepare(vcpu_locked, primary_entry, params->kernel_arg);
 	vcpu_unlock(&vcpu_locked);
 	ret = true;
 
diff --git a/src/vcpu.c b/src/vcpu.c
index 522973d..ba52d3b 100644
--- a/src/vcpu.c
+++ b/src/vcpu.c
@@ -79,12 +79,12 @@
 
 /**
  * Initialise the registers for the given vCPU and set the state to
- * VCPU_STATE_WAITING. The caller must hold the vCPU lock while calling this.
+ * VCPU_STATE_CREATED. The caller must hold the vCPU lock while calling this.
  */
-void vcpu_on(struct vcpu_locked vcpu, ipaddr_t entry, uintreg_t arg)
+void vcpu_prepare(struct vcpu_locked vcpu, ipaddr_t entry, uintreg_t arg)
 {
 	arch_regs_set_pc_arg(&vcpu.vcpu->regs, entry, arg);
-	vcpu.vcpu->state = VCPU_STATE_WAITING;
+	vcpu.vcpu->state = VCPU_STATE_CREATED;
 }
 
 ffa_vcpu_index_t vcpu_index(const struct vcpu *vcpu)
@@ -101,10 +101,14 @@
  * purposes of PSCI, because according to the PSCI specification (section
  * 5.7.1) a core is only considered to be off if it has been turned off
  * with a CPU_OFF call or hasn't yet been turned on with a CPU_ON call.
+ * Note that vCPU is considered to be off until it makes the transition
+ * to STARTING state.
  */
 bool vcpu_is_off(struct vcpu_locked vcpu)
 {
-	return (vcpu.vcpu->state == VCPU_STATE_OFF);
+	return (vcpu.vcpu->state == VCPU_STATE_OFF ||
+		vcpu.vcpu->state == VCPU_STATE_CREATED ||
+		vcpu.vcpu->state == VCPU_STATE_NULL);
 }
 
 /**
@@ -130,7 +134,7 @@
 		 * pCPU it is running on.
 		 */
 		arch_regs_reset(vcpu_locked.vcpu);
-		vcpu_on(vcpu_locked, entry, arg);
+		vcpu_prepare(vcpu_locked, entry, arg);
 	}
 
 	return vcpu_was_off;