diff --git a/drivers/scsi/ibmvscsi/ibmvfc.c b/drivers/scsi/ibmvscsi/ibmvfc.c
index ca36c882a7e6..7d9d8ac3555e 100644
--- a/drivers/scsi/ibmvscsi/ibmvfc.c
+++ b/drivers/scsi/ibmvscsi/ibmvfc.c
@@ -4627,15 +4627,35 @@ static void ibmvfc_discover_targets(struct ibmvfc_host *vhost)
 static void ibmvfc_channel_setup_done(struct ibmvfc_event *evt)
 {
 	struct ibmvfc_host *vhost = evt->vhost;
+	struct ibmvfc_channel_setup *setup = vhost->channel_setup_buf;
+	struct ibmvfc_scsi_channels *scrqs = &vhost->scsi_scrqs;
 	u32 mad_status = be16_to_cpu(evt->xfer_iu->channel_setup.common.status);
 	int level = IBMVFC_DEFAULT_LOG_LEVEL;
+	int flags, active_queues, i;
 
 	ibmvfc_free_event(evt);
 
 	switch (mad_status) {
 	case IBMVFC_MAD_SUCCESS:
 		ibmvfc_dbg(vhost, "Channel Setup succeded\n");
+		flags = be32_to_cpu(setup->flags);
 		vhost->do_enquiry = 0;
+		active_queues = be32_to_cpu(setup->num_scsi_subq_channels);
+		scrqs->active_queues = active_queues;
+
+		if (flags & IBMVFC_CHANNELS_CANCELED) {
+			ibmvfc_dbg(vhost, "Channels Canceled\n");
+			vhost->using_channels = 0;
+		} else {
+			if (active_queues)
+				vhost->using_channels = 1;
+			for (i = 0; i < active_queues; i++)
+				scrqs->scrqs[i].vios_cookie =
+					be64_to_cpu(setup->channel_handles[i]);
+
+			ibmvfc_dbg(vhost, "Using %u channels\n",
+				   vhost->scsi_scrqs.active_queues);
+		}
 		break;
 	case IBMVFC_MAD_FAILED:
 		level += ibmvfc_retry_host_init(vhost);
@@ -4659,9 +4679,19 @@ static void ibmvfc_channel_setup(struct ibmvfc_host *vhost)
 	struct ibmvfc_channel_setup_mad *mad;
 	struct ibmvfc_channel_setup *setup_buf = vhost->channel_setup_buf;
 	struct ibmvfc_event *evt = ibmvfc_get_event(&vhost->crq);
+	struct ibmvfc_scsi_channels *scrqs = &vhost->scsi_scrqs;
+	unsigned int num_channels =
+		min(vhost->client_scsi_channels, vhost->max_vios_scsi_channels);
+	int i;
 
 	memset(setup_buf, 0, sizeof(*setup_buf));
-	setup_buf->flags = cpu_to_be32(IBMVFC_CANCEL_CHANNELS);
+	if (num_channels == 0)
+		setup_buf->flags = cpu_to_be32(IBMVFC_CANCEL_CHANNELS);
+	else {
+		setup_buf->num_scsi_subq_channels = cpu_to_be32(num_channels);
+		for (i = 0; i < num_channels; i++)
+			setup_buf->channel_handles[i] = cpu_to_be64(scrqs->scrqs[i].cookie);
+	}
 
 	ibmvfc_init_event(evt, ibmvfc_channel_setup_done, IBMVFC_MAD_FORMAT);
 	mad = &evt->iu.channel_setup;