diff --git a/hw/ppc/spapr.c b/hw/ppc/spapr.c
index 0ac636890c..8862d188f1 100644
--- a/hw/ppc/spapr.c
+++ b/hw/ppc/spapr.c
@@ -1643,9 +1643,7 @@ static void spapr_cpu_init(sPAPRMachineState *spapr, PowerPCCPU *cpu)
     }
 
     if (cpu->max_compat) {
-        if (ppc_set_compat(cpu, cpu->max_compat) < 0) {
-            exit(1);
-        }
+        ppc_set_compat(cpu, cpu->max_compat, &error_fatal);
     }
 
     xics_cpu_setup(spapr->icp, cpu);
diff --git a/hw/ppc/spapr_hcall.c b/hw/ppc/spapr_hcall.c
index fdd7feaf70..655c4338b2 100644
--- a/hw/ppc/spapr_hcall.c
+++ b/hw/ppc/spapr_hcall.c
@@ -838,7 +838,7 @@ static target_ulong cas_get_option_vector(int vector, target_ulong table)
 typedef struct {
     PowerPCCPU *cpu;
     uint32_t cpu_version;
-    int ret;
+    Error *err;
 } SetCompatState;
 
 static void do_set_compat(void *arg)
@@ -846,7 +846,7 @@ static void do_set_compat(void *arg)
     SetCompatState *s = arg;
 
     cpu_synchronize_state(CPU(s->cpu));
-    s->ret = ppc_set_compat(s->cpu, s->cpu_version);
+    ppc_set_compat(s->cpu, s->cpu_version, &s->err);
 }
 
 #define get_compat_level(cpuver) ( \
@@ -931,13 +931,13 @@ static target_ulong h_client_architecture_support(PowerPCCPU *cpu_,
             SetCompatState s = {
                 .cpu = POWERPC_CPU(cs),
                 .cpu_version = cpu_version,
-                .ret = 0
+                .err = NULL,
             };
 
             run_on_cpu(cs, do_set_compat, &s);
 
-            if (s.ret < 0) {
-                fprintf(stderr, "Unable to set compatibility mode\n");
+            if (s.err) {
+                error_report_err(s.err);
                 return H_HARDWARE;
             }
         }
diff --git a/target-ppc/cpu.h b/target-ppc/cpu.h
index 9706000f8b..b3b89e6a59 100644
--- a/target-ppc/cpu.h
+++ b/target-ppc/cpu.h
@@ -1210,7 +1210,7 @@ void ppc_store_msr (CPUPPCState *env, target_ulong value);
 
 void ppc_cpu_list (FILE *f, fprintf_function cpu_fprintf);
 int ppc_get_compat_smt_threads(PowerPCCPU *cpu);
-int ppc_set_compat(PowerPCCPU *cpu, uint32_t cpu_version);
+void ppc_set_compat(PowerPCCPU *cpu, uint32_t cpu_version, Error **errp);
 
 /* Time-base and decrementer management */
 #ifndef NO_CPU_IO_DEFS
diff --git a/target-ppc/translate_init.c b/target-ppc/translate_init.c
index 76d5da1733..78c2811988 100644
--- a/target-ppc/translate_init.c
+++ b/target-ppc/translate_init.c
@@ -9185,7 +9185,7 @@ int ppc_get_compat_smt_threads(PowerPCCPU *cpu)
     return ret;
 }
 
-int ppc_set_compat(PowerPCCPU *cpu, uint32_t cpu_version)
+void ppc_set_compat(PowerPCCPU *cpu, uint32_t cpu_version, Error **errp)
 {
     int ret = 0;
     CPUPPCState *env = &cpu->env;
@@ -9207,12 +9207,13 @@ int ppc_set_compat(PowerPCCPU *cpu, uint32_t cpu_version)
         break;
     }
 
-    if (kvm_enabled() && kvmppc_set_compat(cpu, cpu->cpu_version) < 0) {
-        error_report("Unable to set compatibility mode in KVM");
-        ret = -1;
+    if (kvm_enabled()) {
+        ret = kvmppc_set_compat(cpu, cpu->cpu_version);
+        if (ret < 0) {
+            error_setg_errno(errp, -ret,
+                             "Unable to set CPU compatibility mode in KVM");
+        }
     }
-
-    return ret;
 }
 
 static gint ppc_cpu_compare_class_pvr(gconstpointer a, gconstpointer b)