diff --git a/hypervisor/arch/x86/guest/vcpuid.c b/hypervisor/arch/x86/guest/vcpuid.c
index 0a9590135..6c3caa84c 100644
--- a/hypervisor/arch/x86/guest/vcpuid.c
+++ b/hypervisor/arch/x86/guest/vcpuid.c
@@ -172,6 +172,20 @@ static void init_vcpuid_entry(uint32_t leaf, uint32_t subleaf,
 		break;
 	}
 
+	/*
+	 * Leaf 0x40000001 - ACRN extended information.
+	 * This leaf returns the extended information of ACRN hypervisor.
+	 *
+	 * EAX: Guest capability flags
+	 * EBX, ECX, EDX: RESERVED (reserved fields are set to zero).
+	 */
+	case 0x40000001U:
+		entry->eax = 0U;
+		entry->ebx = 0U;
+		entry->ecx = 0U;
+		entry->edx = 0U;
+		break;
+
 	/*
 	 * Leaf 0x40000010 - Timing Information.
 	 * This leaf returns the current TSC frequency and
@@ -243,6 +257,15 @@ static int32_t set_vcpuid_extended_function(struct acrn_vm *vm)
 
 	init_vcpuid_entry(0x40000000U, 0U, 0U, &entry);
 	result = set_vcpuid_entry(vm, &entry);
+	if (result == 0) {
+		init_vcpuid_entry(0x40000001U, 0U, 0U, &entry);
+		/* EAX: Guest capability flags (e.g. whether it is a privilege VM) */
+		if (is_sos_vm(vm)) {
+			entry.eax |= GUEST_CAPS_PRIVILEGE_VM;
+		}
+		result = set_vcpuid_entry(vm, &entry);
+	}
+
 	if (result == 0) {
 		init_vcpuid_entry(0x40000010U, 0U, 0U, &entry);
 		result = set_vcpuid_entry(vm, &entry);
diff --git a/hypervisor/include/arch/x86/guest/vcpuid.h b/hypervisor/include/arch/x86/guest/vcpuid.h
index 6de1b89b1..2c93a7e16 100644
--- a/hypervisor/include/arch/x86/guest/vcpuid.h
+++ b/hypervisor/include/arch/x86/guest/vcpuid.h
@@ -9,6 +9,10 @@
 
 #define CPUID_CHECK_SUBLEAF	(1U << 0U)
 #define MAX_VM_VCPUID_ENTRIES	64U
+
+/* Guest capability flags reported by CPUID */
+#define GUEST_CAPS_PRIVILEGE_VM	(1U << 0U)
+
 struct vcpuid_entry {
 	uint32_t eax;
 	uint32_t ebx;