diff --git a/hypervisor/arch/x86/guest/nested.c b/hypervisor/arch/x86/guest/nested.c
index bfc587b5f..d14eed7fd 100644
--- a/hypervisor/arch/x86/guest/nested.c
+++ b/hypervisor/arch/x86/guest/nested.c
@@ -984,6 +984,77 @@ int32_t vmptrld_vmexit_handler(struct acrn_vcpu *vcpu)
 	return 0;
 }
 
+/*
+ * @pre vcpu != NULL
+ */
+int32_t vmclear_vmexit_handler(struct acrn_vcpu *vcpu)
+{
+	struct acrn_nested *nested = &vcpu->arch.nested;
+	uint64_t vmcs12_gpa;
+
+	if (check_vmx_permission(vcpu)) {
+		vmcs12_gpa = get_vmptr_gpa(vcpu);
+
+		if (!validate_vmptr_gpa(vmcs12_gpa)) {
+			nested_vmx_result(VMfailValid, VMXERR_VMPTRLD_INVALID_ADDRESS);
+		} else if (vmcs12_gpa == nested->vmxon_ptr) {
+			nested_vmx_result(VMfailValid, VMXERR_VMCLEAR_VMXON_POINTER);
+		} else {
+			if (vcpu->arch.nested.current_vmcs12_ptr == vmcs12_gpa) {
+				/*
+				 * The target VMCS12 is active and current.
+				 * VMCS02 is active and being used as a shadow VMCS.
+				 */
+
+				nested->vmcs12.launch_state = VMCS12_LAUNCH_STATE_CLEAR;
+
+				/*
+				 * Disable VMCS shadowing to avoid VMCS02 will be loaded by VMPTRLD
+				 * and referenced by VMCS01 as a shadow VMCS simultaneously.
+				 *
+				 * After this VMCLEAR, there is no active VMCS12 on this vCPU, so the
+				 * "VMCS shadowing" VM-execution control must be 0.
+				 */
+				disable_vmcs_shadowing();
+
+				/* Flush shadow VMCS to memory */
+				clear_va_vmcs(nested->vmcs02);
+
+				/*
+				 * upon VMCLEAR vmcs12, need to sync the cache VMCS12 back to guest memory.
+				 * VMPTRLD the shadow VMCS so that we are able to sync it to VMCS12.
+				 */
+				load_va_vmcs(nested->vmcs02);
+
+				/* Sync shadow VMCS to cache VMCS12, and copy cache VMCS12 to L1 guest */
+				flush_current_vmcs12(vcpu);
+
+				/* VMCLEAR VMCS02 */
+				clear_va_vmcs(nested->vmcs02);
+
+				/* Switch back to vmcs01 (no VMCS shadowing) */
+				load_va_vmcs(vcpu->arch.vmcs);
+
+				/* no current VMCS12 */
+				nested->current_vmcs12_ptr = INVALID_GPA;
+			} else {
+				 /*
+				  * we need to update the VMCS12 launch state in L1 memory in these two cases:
+				  * - L1 hypervisor VMCLEAR a VMCS12 that is already flushed by ACRN to L1 guest
+				  * - L1 hypervisor VMCLEAR a never VMPTRLDed VMCS12.
+				  */
+				uint32_t launch_state = VMCS12_LAUNCH_STATE_CLEAR;
+				(void)copy_to_gpa(vcpu->vm, &launch_state, vmcs12_gpa +
+					offsetof(struct acrn_vmcs12, launch_state), sizeof(launch_state));
+			}
+
+			nested_vmx_result(VMsucceed, 0);
+		}
+	}
+
+	return 0;
+}
+
 void init_nested_vmx(__unused struct acrn_vm *vm)
 {
 	static bool initialized = false;
diff --git a/hypervisor/arch/x86/guest/vmexit.c b/hypervisor/arch/x86/guest/vmexit.c
index fc01838ad..7d2413118 100644
--- a/hypervisor/arch/x86/guest/vmexit.c
+++ b/hypervisor/arch/x86/guest/vmexit.c
@@ -78,8 +78,6 @@ static const struct vm_exit_dispatch dispatch_table[NR_VMX_EXIT_REASONS] = {
 		.handler = unhandled_vmexit_handler},
 	[VMX_EXIT_REASON_VMCALL] = {
 		.handler = vmcall_vmexit_handler},
-	[VMX_EXIT_REASON_VMCLEAR] = {
-		.handler = undefined_vmexit_handler},
 	[VMX_EXIT_REASON_VMLAUNCH] = {
 		.handler = undefined_vmexit_handler},
 	[VMX_EXIT_REASON_VMPTRST] = {
@@ -91,6 +89,8 @@ static const struct vm_exit_dispatch dispatch_table[NR_VMX_EXIT_REASONS] = {
 	[VMX_EXIT_REASON_VMWRITE] = {
 		.handler = undefined_vmexit_handler},
 #ifndef CONFIG_NVMX_ENABLED
+	[VMX_EXIT_REASON_VMCLEAR] = {
+		.handler = undefined_vmexit_handler},
 	[VMX_EXIT_REASON_VMPTRLD] = {
 		.handler = undefined_vmexit_handler},
 	[VMX_EXIT_REASON_VMXOFF] = {
@@ -98,6 +98,9 @@ static const struct vm_exit_dispatch dispatch_table[NR_VMX_EXIT_REASONS] = {
 	[VMX_EXIT_REASON_VMXON] = {
 		.handler = undefined_vmexit_handler},
 #else
+	[VMX_EXIT_REASON_VMCLEAR] = {
+		.handler = vmclear_vmexit_handler,
+		.need_exit_qualification = 1},
 	[VMX_EXIT_REASON_VMPTRLD] = {
 		.handler = vmptrld_vmexit_handler,
 		.need_exit_qualification = 1},
diff --git a/hypervisor/include/arch/x86/asm/guest/nested.h b/hypervisor/include/arch/x86/asm/guest/nested.h
index 973853574..d8a7e9b5a 100644
--- a/hypervisor/include/arch/x86/asm/guest/nested.h
+++ b/hypervisor/include/arch/x86/asm/guest/nested.h
@@ -83,6 +83,7 @@ union value_64 {
 #define VMCS_SHADOW_BIT_INDICATOR		(1U << 31U)
 
 /* refer to ISDM: Table 30-1. VM-Instruction Error Numbers */
+#define VMXERR_VMCLEAR_VMXON_POINTER		(3)
 #define VMXERR_VMPTRLD_INVALID_ADDRESS		(9)
 #define VMXERR_VMPTRLD_INCORRECT_VMCS_REVISION_ID (10)
 #define VMXERR_VMPTRLD_VMXON_POINTER		(11)
@@ -94,6 +95,9 @@ union value_64 {
  */
 #define VMCS12_REVISION_ID		0x15407E12U
 
+#define VMCS12_LAUNCH_STATE_CLEAR		(0U)
+#define VMCS12_LAUNCH_STATE_LAUNCHED		(1U)
+
 /*
  * struct acrn_vmcs12 describes the emulated VMCS for the nested guest (L2).
  */
@@ -308,6 +312,7 @@ void nested_vmx_result(enum VMXResult, int error_number);
 int32_t vmxon_vmexit_handler(struct acrn_vcpu *vcpu);
 int32_t vmxoff_vmexit_handler(struct acrn_vcpu *vcpu);
 int32_t vmptrld_vmexit_handler(struct acrn_vcpu *vcpu);
+int32_t vmclear_vmexit_handler(struct acrn_vcpu *vcpu);
 
 #ifdef CONFIG_NVMX_ENABLED
 struct acrn_nested {