diff --git a/arch/arm/mach-tegra/common.c b/arch/arm/mach-tegra/common.c
index 203a8b94863b..11a74db51e5d 100644
--- a/arch/arm/mach-tegra/common.c
+++ b/arch/arm/mach-tegra/common.c
@@ -36,6 +36,7 @@
 #include "pmc.h"
 #include "apbio.h"
 #include "sleep.h"
+#include "pm.h"
 
 /*
  * Storage for debug-macro.S's state.
@@ -117,6 +118,7 @@ static __initdata struct tegra_clk_init_table tegra30_clk_init_table[] = {
 static void __init tegra_init_cache(void)
 {
 #ifdef CONFIG_CACHE_L2X0
+	int ret;
 	void __iomem *p = IO_ADDRESS(TEGRA_ARM_PERIF_BASE) + 0x3000;
 	u32 aux_ctrl, cache_type;
 
@@ -124,7 +126,9 @@ static void __init tegra_init_cache(void)
 	aux_ctrl = (cache_type & 0x700) << (17-8);
 	aux_ctrl |= 0x7C400001;
 
-	l2x0_of_init(aux_ctrl, 0x8200c3fe);
+	ret = l2x0_of_init(aux_ctrl, 0x8200c3fe);
+	if (!ret)
+		l2x0_saved_regs_addr = virt_to_phys(&l2x0_saved_regs);
 #endif
 
 }
diff --git a/arch/arm/mach-tegra/headsmp.S b/arch/arm/mach-tegra/headsmp.S
index 82dc84b6b868..4a317fae6860 100644
--- a/arch/arm/mach-tegra/headsmp.S
+++ b/arch/arm/mach-tegra/headsmp.S
@@ -2,6 +2,8 @@
 #include <linux/init.h>
 
 #include <asm/cache.h>
+#include <asm/asm-offsets.h>
+#include <asm/hardware/cache-l2x0.h>
 
 #include "flowctrl.h"
 #include "iomap.h"
@@ -113,10 +115,19 @@ ENTRY(tegra_resume)
 	str	r1, [r0]
 #endif
 
+	/* L2 cache resume & re-enable */
+	l2_cache_resume r0, r1, r2, l2x0_saved_regs_addr
+
 	b	cpu_resume
 ENDPROC(tegra_resume)
 #endif
 
+#ifdef CONFIG_CACHE_L2X0
+	.globl	l2x0_saved_regs_addr
+l2x0_saved_regs_addr:
+	.long	0
+#endif
+
 	.align L1_CACHE_SHIFT
 ENTRY(__tegra_cpu_reset_handler_start)
 
diff --git a/arch/arm/mach-tegra/pm.c b/arch/arm/mach-tegra/pm.c
index 1460c3db8245..1b11707eaca0 100644
--- a/arch/arm/mach-tegra/pm.c
+++ b/arch/arm/mach-tegra/pm.c
@@ -207,11 +207,9 @@ void tegra_idle_lp2_last(u32 cpu_on_time, u32 cpu_off_time)
 
 	cpu_cluster_pm_enter();
 	suspend_cpu_complex();
-	outer_disable();
 
 	cpu_suspend(PHYS_OFFSET - PAGE_OFFSET, &tegra_sleep_cpu);
 
-	outer_resume();
 	restore_cpu_complex();
 	cpu_cluster_pm_exit();
 }
diff --git a/arch/arm/mach-tegra/pm.h b/arch/arm/mach-tegra/pm.h
index 512345c9eec3..787335cc964c 100644
--- a/arch/arm/mach-tegra/pm.h
+++ b/arch/arm/mach-tegra/pm.h
@@ -21,6 +21,8 @@
 #ifndef _MACH_TEGRA_PM_H_
 #define _MACH_TEGRA_PM_H_
 
+extern unsigned long l2x0_saved_regs_addr;
+
 void save_cpu_arch_register(void);
 void restore_cpu_arch_register(void);
 
diff --git a/arch/arm/mach-tegra/sleep.S b/arch/arm/mach-tegra/sleep.S
index 88f4de986a52..26afa7cbed11 100644
--- a/arch/arm/mach-tegra/sleep.S
+++ b/arch/arm/mach-tegra/sleep.S
@@ -27,6 +27,7 @@
 #include <asm/assembler.h>
 #include <asm/cache.h>
 #include <asm/cp15.h>
+#include <asm/hardware/cache-l2x0.h>
 
 #include "iomap.h"
 
@@ -98,6 +99,12 @@ ENTRY(tegra_shut_off_mmu)
 	dsb
 	mcr	p15, 0, r3, c1, c0, 0
 	isb
+#ifdef CONFIG_CACHE_L2X0
+	/* Disable L2 cache */
+	mov32	r4, TEGRA_ARM_PERIF_BASE + 0x3000
+	mov	r5, #0
+	str	r5, [r4, #L2X0_CTRL]
+#endif
 	mov	pc, r0
 ENDPROC(tegra_shut_off_mmu)
 	.popsection
diff --git a/arch/arm/mach-tegra/sleep.h b/arch/arm/mach-tegra/sleep.h
index 6e1b9490c1cf..9821ee725420 100644
--- a/arch/arm/mach-tegra/sleep.h
+++ b/arch/arm/mach-tegra/sleep.h
@@ -71,6 +71,38 @@
 	str	\tmp2, [\tmp1]			@ invalidate SCU tags for CPU
 	dsb
 .endm
+
+/* Macro to resume & re-enable L2 cache */
+#ifndef L2X0_CTRL_EN
+#define L2X0_CTRL_EN	1
+#endif
+
+#ifdef CONFIG_CACHE_L2X0
+.macro l2_cache_resume, tmp1, tmp2, tmp3, phys_l2x0_saved_regs
+	adr	\tmp1, \phys_l2x0_saved_regs
+	ldr	\tmp1, [\tmp1]
+	ldr	\tmp2, [\tmp1, #L2X0_R_PHY_BASE]
+	ldr	\tmp3, [\tmp2, #L2X0_CTRL]
+	tst	\tmp3, #L2X0_CTRL_EN
+	bne	exit_l2_resume
+	ldr	\tmp3, [\tmp1, #L2X0_R_TAG_LATENCY]
+	str	\tmp3, [\tmp2, #L2X0_TAG_LATENCY_CTRL]
+	ldr	\tmp3, [\tmp1, #L2X0_R_DATA_LATENCY]
+	str	\tmp3, [\tmp2, #L2X0_DATA_LATENCY_CTRL]
+	ldr	\tmp3, [\tmp1, #L2X0_R_PREFETCH_CTRL]
+	str	\tmp3, [\tmp2, #L2X0_PREFETCH_CTRL]
+	ldr	\tmp3, [\tmp1, #L2X0_R_PWR_CTRL]
+	str	\tmp3, [\tmp2, #L2X0_POWER_CTRL]
+	ldr	\tmp3, [\tmp1, #L2X0_R_AUX_CTRL]
+	str	\tmp3, [\tmp2, #L2X0_AUX_CTRL]
+	mov	\tmp3, #L2X0_CTRL_EN
+	str	\tmp3, [\tmp2, #L2X0_CTRL]
+exit_l2_resume:
+.endm
+#else /* CONFIG_CACHE_L2X0 */
+.macro l2_cache_resume, tmp1, tmp2, tmp3, phys_l2x0_saved_regs
+.endm
+#endif /* CONFIG_CACHE_L2X0 */
 #else
 void tegra_resume(void);
 int tegra_sleep_cpu_finish(unsigned long);