diff --git a/drivers/scsi/qla4xxx/ql4_def.h b/drivers/scsi/qla4xxx/ql4_def.h
index c71a371..8f41937 100644
--- a/drivers/scsi/qla4xxx/ql4_def.h
+++ b/drivers/scsi/qla4xxx/ql4_def.h
@@ -501,6 +501,7 @@
 #define AF_INTERRUPTS_ON		6 /* 0x00000040 */
 #define AF_GET_CRASH_RECORD		7 /* 0x00000080 */
 #define AF_LINK_UP			8 /* 0x00000100 */
+#define AF_LOOPBACK			9 /* 0x00000200 */
 #define AF_IRQ_ATTACHED			10 /* 0x00000400 */
 #define AF_DISABLE_ACB_COMPLETE		11 /* 0x00000800 */
 #define AF_HA_REMOVAL			12 /* 0x00001000 */
@@ -840,7 +841,8 @@
 static inline int adapter_up(struct scsi_qla_host *ha)
 {
 	return (test_bit(AF_ONLINE, &ha->flags) != 0) &&
-		(test_bit(AF_LINK_UP, &ha->flags) != 0);
+	       (test_bit(AF_LINK_UP, &ha->flags) != 0) &&
+	       (!test_bit(AF_LOOPBACK, &ha->flags));
 }
 
 static inline struct scsi_qla_host* to_qla_host(struct Scsi_Host *shost)
diff --git a/drivers/scsi/qla4xxx/ql4_fw.h b/drivers/scsi/qla4xxx/ql4_fw.h
index 6ee18a9..ad9d2e2 100644
--- a/drivers/scsi/qla4xxx/ql4_fw.h
+++ b/drivers/scsi/qla4xxx/ql4_fw.h
@@ -522,6 +522,10 @@
 #define FLASH_OPT_COMMIT	2
 #define FLASH_OPT_RMW_COMMIT	3
 
+/* Loopback type */
+#define ENABLE_INTERNAL_LOOPBACK	0x04
+#define ENABLE_EXTERNAL_LOOPBACK	0x08
+
 /*************************************************************************/
 
 /* Host Adapter Initialization Control Block (from host) */
diff --git a/drivers/scsi/qla4xxx/ql4_isr.c b/drivers/scsi/qla4xxx/ql4_isr.c
index 81909d9..1b83dc2 100644
--- a/drivers/scsi/qla4xxx/ql4_isr.c
+++ b/drivers/scsi/qla4xxx/ql4_isr.c
@@ -582,6 +582,33 @@
 }
 
 /**
+ * qla4_83xx_loopback_in_progress: Is loopback in progress?
+ * @ha: Pointer to host adapter structure.
+ * @ret: 1 = loopback in progress, 0 = loopback not in progress
+ **/
+static int qla4_83xx_loopback_in_progress(struct scsi_qla_host *ha)
+{
+	int rval = 1;
+
+	if (is_qla8032(ha)) {
+		if ((ha->idc_info.info2 & ENABLE_INTERNAL_LOOPBACK) ||
+		    (ha->idc_info.info2 & ENABLE_EXTERNAL_LOOPBACK)) {
+			DEBUG2(ql4_printk(KERN_INFO, ha,
+					  "%s: Loopback diagnostics in progress\n",
+					  __func__));
+			rval = 1;
+		} else {
+			DEBUG2(ql4_printk(KERN_INFO, ha,
+					  "%s: Loopback diagnostics not in progress\n",
+					  __func__));
+			rval = 0;
+		}
+	}
+
+	return rval;
+}
+
+/**
  * qla4xxx_isr_decode_mailbox - decodes mailbox status
  * @ha: Pointer to host adapter structure.
  * @mailbox_status: Mailbox status.
@@ -676,8 +703,10 @@
 
 		case MBOX_ASTS_LINK_DOWN:
 			clear_bit(AF_LINK_UP, &ha->flags);
-			if (test_bit(AF_INIT_DONE, &ha->flags))
+			if (test_bit(AF_INIT_DONE, &ha->flags)) {
 				set_bit(DPC_LINK_CHANGED, &ha->dpc_flags);
+				qla4xxx_wake_dpc(ha);
+			}
 
 			ql4_printk(KERN_INFO, ha, "%s: LINK DOWN\n", __func__);
 			qla4xxx_post_aen_work(ha, ISCSI_EVENT_LINKDOWN,
@@ -840,6 +869,11 @@
 				DEBUG2(ql4_printk(KERN_INFO, ha,
 						  "scsi:%ld: AEN %04x IDC Complete notification\n",
 						  ha->host_no, mbox_sts[0]));
+
+				if (qla4_83xx_loopback_in_progress(ha))
+					set_bit(AF_LOOPBACK, &ha->flags);
+				else
+					clear_bit(AF_LOOPBACK, &ha->flags);
 			}
 			break;
 
diff --git a/drivers/scsi/qla4xxx/ql4_os.c b/drivers/scsi/qla4xxx/ql4_os.c
index 60526bb..1df1387 100644
--- a/drivers/scsi/qla4xxx/ql4_os.c
+++ b/drivers/scsi/qla4xxx/ql4_os.c
@@ -2242,6 +2242,7 @@
 	    test_bit(DPC_HA_NEED_QUIESCENT, &ha->dpc_flags) ||
 	    !test_bit(AF_ONLINE, &ha->flags) ||
 	    !test_bit(AF_LINK_UP, &ha->flags) ||
+	    test_bit(AF_LOOPBACK, &ha->flags) ||
 	    test_bit(DPC_RESET_HA_FW_CONTEXT, &ha->dpc_flags))
 		goto qc_host_busy;
 
@@ -3480,7 +3481,8 @@
 	}
 
 	/* ---- link change? --- */
-	if (test_and_clear_bit(DPC_LINK_CHANGED, &ha->dpc_flags)) {
+	if (!test_bit(AF_LOOPBACK, &ha->flags) &&
+	    test_and_clear_bit(DPC_LINK_CHANGED, &ha->dpc_flags)) {
 		if (!test_bit(AF_LINK_UP, &ha->flags)) {
 			/* ---- link down? --- */
 			qla4xxx_mark_all_devices_missing(ha);