diff --git a/api/src/com/cloud/agent/api/to/VirtualMachineTO.java b/api/src/com/cloud/agent/api/to/VirtualMachineTO.java
index 4b36df5827f..3e508eea315 100644
--- a/api/src/com/cloud/agent/api/to/VirtualMachineTO.java
+++ b/api/src/com/cloud/agent/api/to/VirtualMachineTO.java
@@ -61,6 +61,7 @@ public class VirtualMachineTO {
     DiskTO[] disks;
     NicTO[] nics;
     GPUDeviceTO gpuDevice;
+    Integer vcpuMaxLimit;
 
     public VirtualMachineTO(long id, String instanceName, VirtualMachine.Type type, int cpus, Integer speed, long minRam, long maxRam, BootloaderType bootloader,
             String os, boolean enableHA, boolean limitCpuUse, String vncPassword) {
@@ -283,4 +284,12 @@ public class VirtualMachineTO {
         this.platformEmulator = platformEmulator;
     }
 
+    public Integer getVcpuMaxLimit() {
+        return vcpuMaxLimit;
+    }
+
+    public void setVcpuMaxLimit(Integer vcpuMaxLimit) {
+        this.vcpuMaxLimit = vcpuMaxLimit;
+    }
+
 }
diff --git a/plugins/hypervisors/xenserver/src/com/cloud/hypervisor/XenServerGuru.java b/plugins/hypervisors/xenserver/src/com/cloud/hypervisor/XenServerGuru.java
index 89c204638b6..b17048b435c 100644
--- a/plugins/hypervisors/xenserver/src/com/cloud/hypervisor/XenServerGuru.java
+++ b/plugins/hypervisors/xenserver/src/com/cloud/hypervisor/XenServerGuru.java
@@ -26,12 +26,14 @@ import org.apache.cloudstack.engine.subsystem.api.storage.EndPoint;
 import org.apache.cloudstack.engine.subsystem.api.storage.EndPointSelector;
 import org.apache.cloudstack.engine.subsystem.api.storage.VolumeDataFactory;
 import org.apache.cloudstack.engine.subsystem.api.storage.ZoneScope;
+import org.apache.cloudstack.framework.config.Configurable;
 import org.apache.cloudstack.hypervisor.xenserver.XenserverConfigs;
 import org.apache.cloudstack.storage.command.CopyCommand;
 import org.apache.cloudstack.storage.command.DettachCommand;
 import org.apache.cloudstack.storage.command.StorageSubSystemCommand;
 import org.apache.cloudstack.storage.datastore.db.PrimaryDataStoreDao;
 import org.apache.cloudstack.storage.datastore.db.StoragePoolVO;
+import org.apache.cloudstack.framework.config.ConfigKey;
 
 import com.cloud.agent.api.Command;
 import com.cloud.agent.api.to.DataObjectType;
@@ -51,11 +53,13 @@ import com.cloud.storage.dao.GuestOSHypervisorDao;
 import com.cloud.storage.dao.VolumeDao;
 import com.cloud.template.VirtualMachineTemplate.BootloaderType;
 import com.cloud.utils.Pair;
+import com.cloud.vm.UserVmVO;
 import com.cloud.vm.VirtualMachine;
 import com.cloud.vm.VirtualMachineProfile;
+import com.cloud.vm.dao.UserVmDao;
 
 @Local(value = HypervisorGuru.class)
-public class XenServerGuru extends HypervisorGuruBase implements HypervisorGuru {
+public class XenServerGuru extends HypervisorGuruBase implements HypervisorGuru, Configurable {
     @Inject
     GuestOSDao _guestOsDao;
     @Inject
@@ -70,6 +74,11 @@ public class XenServerGuru extends HypervisorGuruBase implements HypervisorGuru
     PrimaryDataStoreDao _storagePoolDao;
     @Inject
     VolumeDataFactory _volFactory;
+    @Inject
+    UserVmDao _userVmDao;
+
+    static final ConfigKey<Integer> MaxNumberOfVCPUSPerVM = new ConfigKey<Integer>("Advanced", Integer.class, "xen.vm.vcpu.max", "16",
+            "Maximum number of VCPUs that VM can get in XenServer.", true, ConfigKey.Scope.Cluster);
 
     protected XenServerGuru() {
         super();
@@ -87,6 +96,14 @@ public class XenServerGuru extends HypervisorGuruBase implements HypervisorGuru
             bt = vm.getBootLoaderType();
         }
         VirtualMachineTO to = toVirtualMachineTO(vm);
+        UserVmVO userVmVO = _userVmDao.findById(vm.getId());
+        if (userVmVO != null) {
+            HostVO host = hostDao.findById(userVmVO.getHostId());
+            if (host != null) {
+                to.setVcpuMaxLimit(MaxNumberOfVCPUSPerVM.valueIn(host.getClusterId()));
+            }
+        }
+
         to.setBootloader(bt);
 
         // Determine the VM's OS description
@@ -176,4 +193,14 @@ public class XenServerGuru extends HypervisorGuruBase implements HypervisorGuru
         }
         return new Pair<Boolean, Long>(Boolean.FALSE, new Long(hostId));
     }
+
+    @Override
+    public String getConfigComponentName() {
+        return XenServerGuru.class.getSimpleName();
+    }
+
+    @Override
+    public ConfigKey<?>[] getConfigKeys() {
+        return new ConfigKey<?>[] {MaxNumberOfVCPUSPerVM};
+    }
 }
diff --git a/plugins/hypervisors/xenserver/src/com/cloud/hypervisor/xenserver/resource/CitrixResourceBase.java b/plugins/hypervisors/xenserver/src/com/cloud/hypervisor/xenserver/resource/CitrixResourceBase.java
index a090b1106ac..b4e5cbc2467 100644
--- a/plugins/hypervisors/xenserver/src/com/cloud/hypervisor/xenserver/resource/CitrixResourceBase.java
+++ b/plugins/hypervisors/xenserver/src/com/cloud/hypervisor/xenserver/resource/CitrixResourceBase.java
@@ -1326,6 +1326,8 @@ public abstract class CitrixResourceBase implements ServerResource, HypervisorRe
         vmr.actionsAfterCrash = Types.OnCrashBehaviour.DESTROY;
         vmr.actionsAfterShutdown = Types.OnNormalExit.DESTROY;
         vmr.otherConfig.put("vm_uuid", vmSpec.getUuid());
+        vmr.VCPUsMax = (long) vmSpec.getCpus(); // FIX ME: In case of dynamic scaling this VCPU max should be the minumum of
+                                                // recommended value for that template and capacity remaining on host
 
         if (isDmcEnabled(conn, host) && vmSpec.isEnableDynamicallyScaleVm()) {
             //scaling is allowed
@@ -1334,13 +1336,10 @@ public abstract class CitrixResourceBase implements ServerResource, HypervisorRe
             vmr.memoryDynamicMin = vmSpec.getMinRam();
             vmr.memoryDynamicMax = vmSpec.getMaxRam();
             if (guestOsTypeName.toLowerCase().contains("windows")) {
-                vmr.VCPUsMax = (long)vmSpec.getCpus();
+                vmr.VCPUsMax = (long) vmSpec.getCpus();
             } else {
-                // XenServer has a documented limit of 16 vcpus per vm
-                vmr.VCPUsMax = 2L * vmSpec.getCpus();
-                if (vmr.VCPUsMax > 16)
-                {
-                    vmr.VCPUsMax = 16L;
+                if (vmSpec.getVcpuMaxLimit() != null) {
+                    vmr.VCPUsMax = (long) vmSpec.getVcpuMaxLimit();
                 }
             }
         } else {
@@ -1352,11 +1351,11 @@ public abstract class CitrixResourceBase implements ServerResource, HypervisorRe
             vmr.memoryStaticMax = vmSpec.getMaxRam();
             vmr.memoryDynamicMin = vmSpec.getMaxRam();;
             vmr.memoryDynamicMax = vmSpec.getMaxRam();
-            vmr.VCPUsMax = (long)vmSpec.getCpus();
+
+            vmr.VCPUsMax = (long) vmSpec.getCpus();
         }
 
-
-        vmr.VCPUsAtStartup = (long)vmSpec.getCpus();
+        vmr.VCPUsAtStartup = (long) vmSpec.getCpus();
         vmr.consoles.clear();
 
         VM vm = VM.create(conn, vmr);