diff --git a/arch/x86/kvm/x86.c b/arch/x86/kvm/x86.c
index ff8812f3a129..d5cf9a7ff8c5 100644
--- a/arch/x86/kvm/x86.c
+++ b/arch/x86/kvm/x86.c
@@ -11596,7 +11596,15 @@ static inline int vcpu_block(struct kvm_vcpu *vcpu)
        if (is_guest_mode(vcpu)) {
                int r = kvm_check_nested_events(vcpu);
 
-               WARN_ON_ONCE(r == -EBUSY);
+               /*
+                * -EBUSY indicates a nested event is pending but cannot be
+                * injected immediately (e.g., event delivery is temporarily
+                * blocked). Return to the vCPU run loop to retry guest entry
+                * instead of blocking, which would lose the pending event.
+                */
+               if (r == -EBUSY)
+                       return 1;
+
                if (r < 0)
                        return 0;
        }