diff --git a/arch/arm64/core/fatal.c b/arch/arm64/core/fatal.c
index d02bbde2378..8be35d6b52d 100644
--- a/arch/arm64/core/fatal.c
+++ b/arch/arm64/core/fatal.c
@@ -226,6 +226,8 @@ void z_arm64_fatal_error(unsigned int reason, z_arch_esf_t *esf)
 
 			if (dump_far)
 				LOG_ERR("FAR_ELn: 0x%016llx", far);
+
+			LOG_ERR("TPIDRRO: 0x%016llx", read_tpidrro_el0());
 #endif /* CONFIG_EXCEPTION_DEBUG */
 
 			if (is_recoverable(esf, esr, far, elr))
diff --git a/arch/arm64/core/offsets/offsets.c b/arch/arm64/core/offsets/offsets.c
index cf7c40aae0a..fe31dbc0723 100644
--- a/arch/arm64/core/offsets/offsets.c
+++ b/arch/arm64/core/offsets/offsets.c
@@ -30,6 +30,8 @@
 #include <kernel_arch_data.h>
 #include <kernel_offsets.h>
 
+GEN_OFFSET_SYM(_thread_arch_t, exception_depth);
+
 GEN_NAMED_OFFSET_SYM(_callee_saved_t, x19, x19_x20);
 GEN_NAMED_OFFSET_SYM(_callee_saved_t, x21, x21_x22);
 GEN_NAMED_OFFSET_SYM(_callee_saved_t, x23, x23_x24);
diff --git a/arch/arm64/core/switch.S b/arch/arm64/core/switch.S
index 6aa9ef13efd..772e1b4f137 100644
--- a/arch/arm64/core/switch.S
+++ b/arch/arm64/core/switch.S
@@ -47,7 +47,18 @@ SECTION_FUNC(TEXT, z_arm64_context_switch)
 
 	/* Save the current SP_ELx */
 	mov	x4, sp
-	stp	x4, xzr,  [x2, ___callee_saved_t_sp_elx_OFFSET]
+	str	x4, [x2, ___callee_saved_t_sp_elx_OFFSET]
+
+	/* save current thread's exception depth */
+	mrs	x4, tpidrro_el0
+	lsr	x2, x4, #TPIDRROEL0_EXC_SHIFT
+	strb	w2, [x1, #_thread_offset_to_exception_depth]
+
+	/* retrieve next thread's exception depth */
+	ldrb	w2, [x0, #_thread_offset_to_exception_depth]
+	bic	x4, x4, #TPIDRROEL0_EXC_DEPTH
+	orr	x4, x4, x2, lsl #TPIDRROEL0_EXC_SHIFT
+	msr	tpidrro_el0, x4
 
 #ifdef CONFIG_SMP
 	/* save old thread into switch handle which is required by
@@ -82,7 +93,7 @@ SECTION_FUNC(TEXT, z_arm64_context_switch)
 	msr	sp_el0, x1
 
 	/* Restore SP_EL1 */
-	ldp	x1, xzr, [x2, ___callee_saved_t_sp_elx_OFFSET]
+	ldr	x1, [x2, ___callee_saved_t_sp_elx_OFFSET]
 	mov	sp, x1
 
 #ifdef CONFIG_USERSPACE
diff --git a/arch/arm64/core/thread.c b/arch/arm64/core/thread.c
index 09916c81ffc..850973cc19e 100644
--- a/arch/arm64/core/thread.c
+++ b/arch/arm64/core/thread.c
@@ -108,6 +108,9 @@ void arch_new_thread(struct k_thread *thread, k_thread_stack_t *stack,
 	/* Keep using SP_EL1 */
 	pInitCtx->spsr = SPSR_MODE_EL1H | DAIF_FIQ_BIT;
 
+	/* thread birth happens through the exception return path */
+	thread->arch.exception_depth = 1;
+
 	/*
 	 * We are saving SP_EL1 to pop out entry and parameters when going
 	 * through z_arm64_exit_exc(). For user threads the definitive location
diff --git a/arch/arm64/core/userspace.S b/arch/arm64/core/userspace.S
index 1dbe381b03f..1c60ebb76bf 100644
--- a/arch/arm64/core/userspace.S
+++ b/arch/arm64/core/userspace.S
@@ -131,11 +131,14 @@ valid_syscall_id:
  *
  * We leverage z_arm64_exit_exc() to pop out the entry function and parameters
  * from ESF and fake a return from exception to move from EL1 to EL0. The fake
- * ESF is built in arch_user_mode_enter() before jumping here
+ * ESF is built in arch_user_mode_enter() before jumping here.
  */
 
 GTEXT(z_arm64_userspace_enter)
 SECTION_FUNC(TEXT, z_arm64_userspace_enter)
+
+	msr	DAIFSET, #DAIFSET_IRQ_BIT
+
 	/*
 	 * When a kernel thread is moved to user mode it doesn't have any
 	 * SP_EL0 set yet. We set it here for the first time pointing to the
@@ -150,4 +153,12 @@ SECTION_FUNC(TEXT, z_arm64_userspace_enter)
 	 * location for when the next exception will come.
 	 */
 	mov	sp, x0
+
+	/* we have to fake our exception depth count too */
+	mrs	x0, tpidrro_el0
+	mov	x1, #TPIDRROEL0_EXC_UNIT
+	bic	x0, x0, #TPIDRROEL0_EXC_DEPTH
+	add	x0, x0, x1
+	msr	tpidrro_el0, x0
+
 	b	z_arm64_exit_exc
diff --git a/arch/arm64/core/vector_table.S b/arch/arm64/core/vector_table.S
index 78c940b73f8..e7a8bc38754 100644
--- a/arch/arm64/core/vector_table.S
+++ b/arch/arm64/core/vector_table.S
@@ -51,12 +51,12 @@ _ASM_FILE_PROLOGUE
 	mrs	\xreg1, elr_el1
 	stp	\xreg0, \xreg1, [sp, ___esf_t_spsr_elr_OFFSET]
 
-#ifdef CONFIG_USERSPACE
-	/* Clear usermode flag */
+	/* Clear usermode flag and increment exception depth */
 	mrs	\xreg0, tpidrro_el0
+	mov	\xreg1, #TPIDRROEL0_EXC_UNIT
 	bic	\xreg0, \xreg0, #TPIDRROEL0_IN_EL0
+	add	\xreg0, \xreg0, \xreg1
 	msr	tpidrro_el0, \xreg0
-#endif
 
 .endm
 
@@ -213,15 +213,14 @@ SECTION_FUNC(TEXT, z_arm64_exit_exc)
 	msr	spsr_el1, x0
 	msr	elr_el1, x1
 
-#ifdef CONFIG_USERSPACE
-	/* Restore the kernel/user mode flag */
+	/* Restore the kernel/user mode flag and decrement exception depth */
 	tst	x0, #SPSR_MODE_MASK	/* EL0 == 0 */
-	bne	1f
 	mrs	x0, tpidrro_el0
-	orr	x0, x0, #TPIDRROEL0_IN_EL0
+	mov	x1, #TPIDRROEL0_EXC_UNIT
+	orr	x2, x0, #TPIDRROEL0_IN_EL0
+	csel	x0, x2, x0, eq
+	sub	x0, x0, x1
 	msr	tpidrro_el0, x0
-1:
-#endif
 
 	ldp	x0, x1, [sp, ___esf_t_x0_x1_OFFSET]
 	ldp	x2, x3, [sp, ___esf_t_x2_x3_OFFSET]
diff --git a/arch/arm64/include/offsets_short_arch.h b/arch/arm64/include/offsets_short_arch.h
index 7df7bf004d2..b37d01d6df7 100644
--- a/arch/arm64/include/offsets_short_arch.h
+++ b/arch/arm64/include/offsets_short_arch.h
@@ -9,4 +9,7 @@
 
 #include <offsets.h>
 
+#define _thread_offset_to_exception_depth \
+	(___thread_t_arch_OFFSET + ___thread_arch_t_exception_depth_OFFSET)
+
 #endif /* ZEPHYR_ARCH_ARM64_INCLUDE_OFFSETS_SHORT_ARCH_H_ */
diff --git a/include/arch/arm64/arch_inlines.h b/include/arch/arm64/arch_inlines.h
index f17059e47eb..c003b9a65e9 100644
--- a/include/arch/arm64/arch_inlines.h
+++ b/include/arch/arm64/arch_inlines.h
@@ -18,5 +18,10 @@ static ALWAYS_INLINE _cpu_t *arch_curr_cpu(void)
 	return (_cpu_t *)(read_tpidrro_el0() & TPIDRROEL0_CURR_CPU);
 }
 
+static ALWAYS_INLINE int arch_exception_depth(void)
+{
+	return (read_tpidrro_el0() & TPIDRROEL0_EXC_DEPTH) / TPIDRROEL0_EXC_UNIT;
+}
+
 #endif /* !_ASMLANGUAGE */
 #endif /* ZEPHYR_INCLUDE_ARCH_ARM64_ARCH_INLINES_H */
diff --git a/include/arch/arm64/thread.h b/include/arch/arm64/thread.h
index 6b20665f70d..f8156246f72 100644
--- a/include/arch/arm64/thread.h
+++ b/include/arch/arm64/thread.h
@@ -36,7 +36,6 @@ struct _callee_saved {
 	uint64_t x29;
 	uint64_t sp_el0;
 	uint64_t sp_elx;
-	uint64_t xzr;
 };
 
 typedef struct _callee_saved _callee_saved_t;
@@ -45,6 +44,7 @@ struct _thread_arch {
 #ifdef CONFIG_USERSPACE
 	struct arm_mmu_ptables *ptables;
 #endif
+	uint8_t exception_depth;
 };
 
 typedef struct _thread_arch _thread_arch_t;
diff --git a/include/arch/arm64/tpidrro_el0.h b/include/arch/arm64/tpidrro_el0.h
index 7d8740f679f..797640c89cd 100644
--- a/include/arch/arm64/tpidrro_el0.h
+++ b/include/arch/arm64/tpidrro_el0.h
@@ -21,4 +21,8 @@
 
 #define TPIDRROEL0_CURR_CPU	0x0000fffffffffff8
 
+#define TPIDRROEL0_EXC_DEPTH	0xff00000000000000
+#define TPIDRROEL0_EXC_UNIT	0x0100000000000000
+#define TPIDRROEL0_EXC_SHIFT	56
+
 #endif /* ZEPHYR_INCLUDE_ARCH_ARM64_TPIDRRO_EL0_H_ */