diff --git a/hypervisor/arch/x86/guest/vm.c b/hypervisor/arch/x86/guest/vm.c
index 447144728..abea419e0 100644
--- a/hypervisor/arch/x86/guest/vm.c
+++ b/hypervisor/arch/x86/guest/vm.c
@@ -156,6 +156,22 @@ bool is_rt_vm(const struct acrn_vm *vm)
 	return ((vm_config->guest_flags & GUEST_FLAG_RT) != 0U);
 }
 
+/**
+ * @pre vm != NULL && vm_config != NULL && vm->vmid < CONFIG_MAX_VM_NUM
+ *
+ * Stateful VM refers to VM that has its own state (such as internal file cache),
+ * and will experience state loss (file system corruption) if force powered down.
+ */
+bool is_stateful_vm(const struct acrn_vm *vm)
+{
+	struct acrn_vm_config *vm_config = get_vm_config(vm->vm_id);
+
+	/* TEE VM doesn't has its own state. The TAs will do the content
+	 * flush by themselves, HV and OS doesn't need to care about the state.
+	 */
+	return ((vm_config->guest_flags & GUEST_FLAG_TEE) == 0U);
+}
+
 /**
  * @pre vm != NULL && vm_config != NULL && vm->vmid < CONFIG_MAX_VM_NUM
  */
@@ -751,7 +767,7 @@ static bool is_ready_for_system_shutdown(void)
 	for (vm_id = 0U; vm_id < CONFIG_MAX_VM_NUM; vm_id++) {
 		vm = get_vm_from_vmid(vm_id);
 		/* TODO: Update code to cover hybrid mode */
-		if (!is_poweroff_vm(vm)) {
+		if (!is_poweroff_vm(vm) && is_stateful_vm(vm)) {
 			ret = false;
 			break;
 		}
diff --git a/hypervisor/include/arch/x86/asm/guest/vm.h b/hypervisor/include/arch/x86/asm/guest/vm.h
index b01bfac8e..aa22fc783 100644
--- a/hypervisor/include/arch/x86/asm/guest/vm.h
+++ b/hypervisor/include/arch/x86/asm/guest/vm.h
@@ -256,6 +256,7 @@ void vrtc_init(struct acrn_vm *vm);
 
 bool is_lapic_pt_configured(const struct acrn_vm *vm);
 bool is_rt_vm(const struct acrn_vm *vm);
+bool is_stateful_vm(const struct acrn_vm *vm);
 bool is_nvmx_configured(const struct acrn_vm *vm);
 bool is_vcat_configured(const struct acrn_vm *vm);
 bool is_static_configured_vm(const struct acrn_vm *vm);