diff --git a/drivers/hv/ring_buffer.c b/drivers/hv/ring_buffer.c
index cd49cb17eb7f..308dbda700eb 100644
--- a/drivers/hv/ring_buffer.c
+++ b/drivers/hv/ring_buffer.c
@@ -383,6 +383,7 @@ int hv_ringbuffer_read(struct vmbus_channel *channel,
 		return ret;
 	}
 
+	init_cached_read_index(channel);
 	next_read_location = hv_get_next_read_location(inring_info);
 	next_read_location = hv_copyfrom_ringbuffer(inring_info, &desc,
 						    sizeof(desc),
diff --git a/drivers/net/hyperv/netvsc.c b/drivers/net/hyperv/netvsc.c
index 720b5fa9e625..c2ac39a940f7 100644
--- a/drivers/net/hyperv/netvsc.c
+++ b/drivers/net/hyperv/netvsc.c
@@ -1288,6 +1288,9 @@ void netvsc_channel_cb(void *context)
 	ndev = hv_get_drvdata(device);
 	buffer = get_per_channel_state(channel);
 
+	/* commit_rd_index() -> hv_signal_on_read() needs this. */
+	init_cached_read_index(channel);
+
 	do {
 		desc = get_next_pkt_raw(channel);
 		if (desc != NULL) {
@@ -1340,6 +1343,9 @@ void netvsc_channel_cb(void *context)
 
 			bufferlen = bytes_recvd;
 		}
+
+		init_cached_read_index(channel);
+
 	} while (1);
 
 	if (bufferlen > NETVSC_PACKET_SIZE)
diff --git a/include/linux/hyperv.h b/include/linux/hyperv.h
index 33719c515f1a..c92a083bcf16 100644
--- a/include/linux/hyperv.h
+++ b/include/linux/hyperv.h
@@ -128,6 +128,7 @@ struct hv_ring_buffer_info {
 	u32 ring_data_startoffset;
 	u32 priv_write_index;
 	u32 priv_read_index;
+	u32 cached_read_index;
 };
 
 /*
@@ -180,6 +181,19 @@ static inline u32 hv_get_bytes_to_write(struct hv_ring_buffer_info *rbi)
 	return write;
 }
 
+static inline u32 hv_get_cached_bytes_to_write(
+	const struct hv_ring_buffer_info *rbi)
+{
+	u32 read_loc, write_loc, dsize, write;
+
+	dsize = rbi->ring_datasize;
+	read_loc = rbi->cached_read_index;
+	write_loc = rbi->ring_buffer->write_index;
+
+	write = write_loc >= read_loc ? dsize - (write_loc - read_loc) :
+		read_loc - write_loc;
+	return write;
+}
 /*
  * VMBUS version is 32 bit entity broken up into
  * two 16 bit quantities: major_number. minor_number.
@@ -1482,7 +1496,7 @@ hv_get_ring_buffer(struct hv_ring_buffer_info *ring_info)
 
 static inline  void hv_signal_on_read(struct vmbus_channel *channel)
 {
-	u32 cur_write_sz;
+	u32 cur_write_sz, cached_write_sz;
 	u32 pending_sz;
 	struct hv_ring_buffer_info *rbi = &channel->inbound;
 
@@ -1506,12 +1520,24 @@ static inline  void hv_signal_on_read(struct vmbus_channel *channel)
 
 	cur_write_sz = hv_get_bytes_to_write(rbi);
 
-	if (cur_write_sz >= pending_sz)
+	if (cur_write_sz < pending_sz)
+		return;
+
+	cached_write_sz = hv_get_cached_bytes_to_write(rbi);
+	if (cached_write_sz < pending_sz)
 		vmbus_setevent(channel);
 
 	return;
 }
 
+static inline void
+init_cached_read_index(struct vmbus_channel *channel)
+{
+	struct hv_ring_buffer_info *rbi = &channel->inbound;
+
+	rbi->cached_read_index = rbi->ring_buffer->read_index;
+}
+
 /*
  * An API to support in-place processing of incoming VMBUS packets.
  */
@@ -1573,6 +1599,8 @@ static inline void put_pkt_raw(struct vmbus_channel *channel,
  * This call commits the read index and potentially signals the host.
  * Here is the pattern for using the "in-place" consumption APIs:
  *
+ * init_cached_read_index();
+ *
  * while (get_next_pkt_raw() {
  *	process the packet "in-place";
  *	put_pkt_raw();