diff --git a/core/src/com/cloud/hypervisor/xen/resource/CitrixResourceBase.java b/core/src/com/cloud/hypervisor/xen/resource/CitrixResourceBase.java
index 37e0bf5efd1..b1b93c8ac16 100644
--- a/core/src/com/cloud/hypervisor/xen/resource/CitrixResourceBase.java
+++ b/core/src/com/cloud/hypervisor/xen/resource/CitrixResourceBase.java
@@ -4176,7 +4176,7 @@ public abstract class CitrixResourceBase implements StoragePoolResource, ServerR
                 }
             }
             // assume the memory Virtualization overhead is 1/64
-            ram = (ram - dom0Ram) * 63/64;
+            ram = (ram - dom0Ram - (128 * 1024 * 1024)) * 63/64;
             cmd.setMemory(ram);
             cmd.setDom0MinMemory(dom0Ram);