diff --git a/src/basic/virt.c b/src/basic/virt.c
index c9c4416ef7..745a855779 100644
--- a/src/basic/virt.c
+++ b/src/basic/virt.c
@@ -276,19 +276,6 @@ static int detect_vm_dmi(void) {
 #endif
 }
 
-static int detect_vm_xen(void) {
-
-        /* Check for Dom0 will be executed later in detect_vm_xen_dom0
-           The presence of /proc/xen indicates some form of a Xen domain */
-        if (access("/proc/xen", F_OK) < 0) {
-                log_debug("Virtualization XEN not found, /proc/xen does not exist");
-                return VIRTUALIZATION_NONE;
-        }
-
-        log_debug("Virtualization XEN found (/proc/xen exists)");
-        return VIRTUALIZATION_XEN;
-}
-
 #define XENFEAT_dom0 11 /* xen/include/public/features.h */
 #define PATH_FEATURES "/sys/hypervisor/properties/features"
 /* Returns -errno, or 0 for domU, or 1 for dom0 */
@@ -342,6 +329,26 @@ static int detect_vm_xen_dom0(void) {
         }
 }
 
+static int detect_vm_xen(void) {
+        int r;
+
+        /* The presence of /proc/xen indicates some form of a Xen domain */
+        if (access("/proc/xen", F_OK) < 0) {
+                log_debug("Virtualization XEN not found, /proc/xen does not exist");
+                return VIRTUALIZATION_NONE;
+        }
+        log_debug("Virtualization XEN found (/proc/xen exists)");
+
+        /* Ignore the Xen hypervisor if we are in Dom0 */
+        r = detect_vm_xen_dom0();
+        if (r < 0)
+                return r;
+        if (r > 0)
+                return VIRTUALIZATION_NONE;
+
+        return VIRTUALIZATION_XEN;
+}
+
 static int detect_vm_hypervisor(void) {
         _cleanup_free_ char *hvtype = NULL;
         int r;
@@ -435,7 +442,8 @@ int detect_vm(void) {
          *
          * → First, try to detect Oracle Virtualbox and Amazon EC2 Nitro, even if they use KVM, as well as Xen even if
          *   it cloaks as Microsoft Hyper-V. Attempt to detect uml at this stage also since it runs as a user-process
-         *   nested inside other VMs.
+         *   nested inside other VMs. Also check for Xen now, because Xen PV mode does not override CPUID when nested
+         *   inside another hypervisor.
          *
          * → Second, try to detect from CPUID, this will report KVM for whatever software is used even if info in DMI is
          *   overwritten.
@@ -457,6 +465,15 @@ int detect_vm(void) {
         else if (r != VIRTUALIZATION_NONE)
                 goto finish;
 
+        /* Detect Xen */
+        r = detect_vm_xen();
+        if (r < 0)
+                return r;
+        if (r == VIRTUALIZATION_VM_OTHER)
+                other = true;
+        else if (r != VIRTUALIZATION_NONE)
+                goto finish;
+
         /* Detect from CPUID */
         r = detect_vm_cpuid();
         if (r < 0)
@@ -476,20 +493,7 @@ int detect_vm(void) {
                 goto finish;
         }
 
-        /* x86 xen will most likely be detected by cpuid. If not (most likely
-         * because we're not an x86 guest), then we should try the /proc/xen
-         * directory next. If that's not found, then we check for the high-level
-         * hypervisor sysfs file.
-         */
-
-        r = detect_vm_xen();
-        if (r < 0)
-                return r;
-        if (r == VIRTUALIZATION_VM_OTHER)
-                other = true;
-        else if (r != VIRTUALIZATION_NONE)
-                goto finish;
-
+        /* Check high-level hypervisor sysfs file */
         r = detect_vm_hypervisor();
         if (r < 0)
                 return r;
@@ -511,18 +515,7 @@ int detect_vm(void) {
                 return r;
 
 finish:
-        /* x86 xen Dom0 is detected as XEN in hypervisor and maybe others.
-         * In order to detect the Dom0 as not virtualization we need to
-         * double-check it */
-        if (r == VIRTUALIZATION_XEN) {
-                int dom0;
-
-                dom0 = detect_vm_xen_dom0();
-                if (dom0 < 0)
-                        return dom0;
-                if (dom0 > 0)
-                        r = VIRTUALIZATION_NONE;
-        } else if (r == VIRTUALIZATION_NONE && other)
+        if (r == VIRTUALIZATION_NONE && other)
                 r = VIRTUALIZATION_VM_OTHER;
 
         cached_found = r;