diff --git a/arch/sparc/kernel/setup.c b/arch/sparc/kernel/setup.c
index 8531a8e15832..2cbf282f0d00 100644
--- a/arch/sparc/kernel/setup.c
+++ b/arch/sparc/kernel/setup.c
@@ -349,6 +349,8 @@ void __init setup_arch(char **cmdline_p)
 	init_mm.context = (unsigned long) NO_CONTEXT;
 	init_task.thread.kregs = &fake_swapper_regs;
 
+	smp_setup_cpu_possible_map();
+
 	paging_init();
 }
 
diff --git a/arch/sparc/kernel/smp.c b/arch/sparc/kernel/smp.c
index 40b42c88e6a7..d0ccb8ad1d54 100644
--- a/arch/sparc/kernel/smp.c
+++ b/arch/sparc/kernel/smp.c
@@ -267,22 +267,18 @@ int setup_profiling_timer(unsigned int multiplier)
 void __init smp_prepare_cpus(unsigned int max_cpus)
 {
 	extern void smp4m_boot_cpus(void);
-	int i, cpuid, ncpus, extra;
+	int i, cpuid, extra;
 
 	BUG_ON(sparc_cpu_model != sun4m);
 	printk("Entering SMP Mode...\n");
 
-	ncpus = 1;
 	extra = 0;
 	for (i = 0; !cpu_find_by_instance(i, NULL, &cpuid); i++) {
-		if (cpuid == boot_cpu_id)
-			continue;
-		if (cpuid < NR_CPUS && ncpus++ < max_cpus)
-			cpu_set(cpuid, phys_cpu_present_map);
-		else
+		if (cpuid >= NR_CPUS)
 			extra++;
 	}
-	if (max_cpus >= NR_CPUS && extra)
+	/* i = number of cpus */
+	if (extra && max_cpus > i - extra)
 		printk("Warning: NR_CPUS is too low to start all cpus\n");
 
 	smp_store_cpu_info(boot_cpu_id);
@@ -290,6 +286,24 @@ void __init smp_prepare_cpus(unsigned int max_cpus)
 	smp4m_boot_cpus();
 }
 
+/* Set this up early so that things like the scheduler can init
+ * properly.  We use the same cpu mask for both the present and
+ * possible cpu map.
+ */
+void __init smp_setup_cpu_possible_map(void)
+{
+	int instance, mid;
+
+	instance = 0;
+	while (!cpu_find_by_instance(instance, NULL, &mid)) {
+		if (mid < NR_CPUS) {
+			cpu_set(mid, phys_cpu_present_map);
+			cpu_set(mid, cpu_present_map);
+		}
+		instance++;
+	}
+}
+
 void __devinit smp_prepare_boot_cpu(void)
 {
 	int cpuid = hard_smp_processor_id();
diff --git a/include/asm-sparc/smp.h b/include/asm-sparc/smp.h
index 98c46e3fbe8a..c1a289327a79 100644
--- a/include/asm-sparc/smp.h
+++ b/include/asm-sparc/smp.h
@@ -146,6 +146,8 @@ static inline int hard_smp_processor_id(void)
 #define prof_multiplier(__cpu)		cpu_data(__cpu).multiplier
 #define prof_counter(__cpu)		cpu_data(__cpu).counter
 
+void smp_setup_cpu_possible_map(void);
+
 #endif /* !(__ASSEMBLY__) */
 
 /* Sparc specific messages. */
@@ -162,7 +164,11 @@ static inline int hard_smp_processor_id(void)
 #define MBOX_IDLECPU2         0xFD
 #define MBOX_STOPCPU2         0xFE
 
-#endif /* SMP */
+#else /* SMP */
+
+#define smp_setup_cpu_possible_map() do { } while (0)
+
+#endif /* !(SMP) */
 
 #define NO_PROC_ID            0xFF