diff --git a/NEWS b/NEWS
index 240c12e9cf..0c0212a2ec 100644
--- a/NEWS
+++ b/NEWS
@@ -603,6 +603,12 @@ CHANGES WITH 256-rc1:
           --ssh-key-type= to optionally set up transient SSH keys to pass to the
           invoked VMs in order to be able to SSH into them once booted.
 
+        * systemd-vmspawn will no enable various "HyperV enlightenments" and
+          the "VM Generation ID" on the VMs.
+
+        * A new environment variable $SYSTEMD_VMSPAWN_QEMU_EXTRA may carry
+          additional qemu command line options to pass to qemu.
+
         systemd-repart:
 
         * systemd-repart gained new options --generate-fstab= and
@@ -638,6 +644,10 @@ CHANGES WITH 256-rc1:
           sd_journal_stream_fd() but creates a log stream targeted at a
           specific log namespace.
 
+        * The sd-id128 API gained a new API call
+          sd_id128_get_invocation_app_specific() for acquiring an app-specific
+          ID that is derived from the service invocation ID.
+
         systemd-cryptsetup/systemd-cryptenroll:
 
         * systemd-cryptenroll can now enroll directly with a PKCS11 public key
diff --git a/TODO b/TODO
index 830d27a716..548a7c31fc 100644
--- a/TODO
+++ b/TODO
@@ -329,10 +329,7 @@ Features:
     PCRs.
 
 * vmspawn:
-  - enable hyperv extension by default (https://www.qemu.org/docs/master/system/i386/hyperv.html)
-  - register with machined
   - run in scope unit when invoked from command line, and machined registration is off
-  - support --directory= via virtiofs
   - sd_notify support
   - --ephemeral support
   - --read-only support
diff --git a/docs/ENVIRONMENT.md b/docs/ENVIRONMENT.md
index 961601c72e..8068d0d33c 100644
--- a/docs/ENVIRONMENT.md
+++ b/docs/ENVIRONMENT.md
@@ -191,6 +191,9 @@ All tools:
   expected format is six groups of two hexadecimal digits separated by colons,
   e.g. `SYSTEMD_VMSPAWN_NETWORK_MAC=12:34:56:78:90:AB`
 
+* `$SYSTEMD_VMSPAWN_QEMU_EXTRA=…` – may contain additional command line
+  arguments to append the qemu command line.
+
 `systemd-logind`:
 
 * `$SYSTEMD_BYPASS_HIBERNATION_MEMORY_CHECK=1` — if set, report that
diff --git a/man/sd_id128_get_machine.xml b/man/sd_id128_get_machine.xml
index 6904f2953c..59f3266e6f 100644
--- a/man/sd_id128_get_machine.xml
+++ b/man/sd_id128_get_machine.xml
@@ -63,6 +63,12 @@
         <paramdef>sd_id128_t *<parameter>ret</parameter></paramdef>
       </funcprototype>
 
+      <funcprototype>
+        <funcdef>int <function>sd_id128_get_invocation_app_specific</function></funcdef>
+        <paramdef>sd_id128_t <parameter>app_id</parameter></paramdef>
+        <paramdef>sd_id128_t *<parameter>ret</parameter></paramdef>
+      </funcprototype>
+
     </funcsynopsis>
   </refsynopsisdiv>
 
@@ -126,12 +132,16 @@
     for details. The ID is cached internally. In future a different mechanism to determine the invocation ID
     may be added.</para>
 
+    <para><function>sd_id128_get_invocation_app_specific()</function> derives an application-specific ID from
+    the invocation ID.</para>
+
     <para>Note that <function>sd_id128_get_machine_app_specific()</function>,
-    <function>sd_id128_get_boot()</function>, <function>sd_id128_get_boot_app_specific()</function>, and
-    <function>sd_id128_get_invocation()</function> always return UUID Variant 1 Version 4 compatible IDs.
-    <function>sd_id128_get_machine()</function> will also return a UUID Variant 1 Version 4 compatible ID on
-    new installations but might not on older. It is possible to convert the machine ID non-reversibly into a
-    UUID Variant 1 Version 4 compatible one. For more information, see
+    <function>sd_id128_get_boot()</function>, <function>sd_id128_get_boot_app_specific()</function>,
+    <function>sd_id128_get_invocation()</function> and
+    <function>sd_id128_get_invocation_app_specific</function> always return UUID Variant 1 Version 4
+    compatible IDs. <function>sd_id128_get_machine()</function> will also return a UUID Variant 1 Version 4
+    compatible ID on new installations but might not on older. It is possible to convert the machine ID
+    non-reversibly into a UUID Variant 1 Version 4 compatible one. For more information, see
     <citerefentry><refentrytitle>machine-id</refentrytitle><manvolnum>5</manvolnum></citerefentry>. It is
     hence guaranteed that these functions will never return the ID consisting of all zero or all one bits
     (<constant>SD_ID128_NULL</constant>, <constant>SD_ID128_ALLF</constant>) — with the possible exception of
@@ -262,6 +272,7 @@ As man:sd-id128(3) macro:
     <para><function>sd_id128_get_machine_app_specific()</function> was added in version 233.</para>
     <para><function>sd_id128_get_boot_app_specific()</function> was added in version 240.</para>
     <para><function>sd_id128_get_app_specific()</function> was added in version 255.</para>
+    <para><function>sd_id128_get_invocation_app_specific()</function> was added in version 256.</para>
   </refsect1>
 
   <refsect1>
diff --git a/src/basic/virt.c b/src/basic/virt.c
index 7e2c0781fe..09703506f9 100644
--- a/src/basic/virt.c
+++ b/src/basic/virt.c
@@ -447,7 +447,7 @@ static Virtualization detect_vm_zvm(void) {
 /* Returns a short identifier for the various VM implementations */
 Virtualization detect_vm(void) {
         static thread_local Virtualization cached_found = _VIRTUALIZATION_INVALID;
-        bool other = false;
+        bool other = false, hyperv = false;
         int xen_dom0 = 0;
         Virtualization v, dmi;
 
@@ -504,7 +504,12 @@ Virtualization detect_vm(void) {
         v = detect_vm_cpuid();
         if (v < 0)
                 return v;
-        if (v == VIRTUALIZATION_VM_OTHER)
+        if (v == VIRTUALIZATION_MICROSOFT)
+                /* QEMU sets the CPUID string to hyperv's, in case it provides hyperv enlightenments. Let's
+                 * hence not return Microsoft here but just use the other mechanisms first to make a better
+                 * decision. */
+                hyperv = true;
+        else if (v == VIRTUALIZATION_VM_OTHER)
                 other = true;
         else if (v != VIRTUALIZATION_NONE)
                 goto finish;
@@ -545,8 +550,15 @@ Virtualization detect_vm(void) {
                 return v;
 
 finish:
-        if (v == VIRTUALIZATION_NONE && other)
-                v = VIRTUALIZATION_VM_OTHER;
+        /* None of the checks above gave us a clear answer, hence let's now use fallback logic: if hyperv
+         * enlightenments are available but the VMM wasn't recognized as anything yet, it's probably
+         * Microsoft. */
+        if (v == VIRTUALIZATION_NONE) {
+                if (hyperv)
+                        v = VIRTUALIZATION_MICROSOFT;
+                else if (other)
+                        v = VIRTUALIZATION_VM_OTHER;
+        }
 
         cached_found = v;
         log_debug("Found VM virtualization %s", virtualization_to_string(v));
diff --git a/src/libsystemd/libsystemd.sym b/src/libsystemd/libsystemd.sym
index 89de4b37ca..78b4453462 100644
--- a/src/libsystemd/libsystemd.sym
+++ b/src/libsystemd/libsystemd.sym
@@ -839,6 +839,7 @@ LIBSYSTEMD_256 {
 global:
         sd_bus_creds_get_pidfd_dup;
         sd_bus_creds_new_from_pidfd;
+        sd_id128_get_invocation_app_specific;
         sd_journal_stream_fd_with_namespace;
         sd_event_source_get_inotify_path;
 } LIBSYSTEMD_255;
diff --git a/src/libsystemd/sd-id128/sd-id128.c b/src/libsystemd/sd-id128/sd-id128.c
index 4336d3f1b7..62b8aaa347 100644
--- a/src/libsystemd/sd-id128/sd-id128.c
+++ b/src/libsystemd/sd-id128/sd-id128.c
@@ -390,3 +390,16 @@ _public_ int sd_id128_get_boot_app_specific(sd_id128_t app_id, sd_id128_t *ret)
 
         return sd_id128_get_app_specific(id, app_id, ret);
 }
+
+_public_ int sd_id128_get_invocation_app_specific(sd_id128_t app_id, sd_id128_t *ret) {
+        sd_id128_t id;
+        int r;
+
+        assert_return(ret, -EINVAL);
+
+        r = sd_id128_get_invocation(&id);
+        if (r < 0)
+                return r;
+
+        return sd_id128_get_app_specific(id, app_id, ret);
+}
diff --git a/src/systemd/sd-id128.h b/src/systemd/sd-id128.h
index a984a9d85e..a9210526b6 100644
--- a/src/systemd/sd-id128.h
+++ b/src/systemd/sd-id128.h
@@ -53,6 +53,7 @@ int sd_id128_get_invocation(sd_id128_t *ret);
 int sd_id128_get_app_specific(sd_id128_t base, sd_id128_t app_id, sd_id128_t *ret);
 int sd_id128_get_machine_app_specific(sd_id128_t app_id, sd_id128_t *ret);
 int sd_id128_get_boot_app_specific(sd_id128_t app_id, sd_id128_t *ret);
+int sd_id128_get_invocation_app_specific(sd_id128_t app_id, sd_id128_t *ret);
 
 #define SD_ID128_ARRAY(v0, v1, v2, v3, v4, v5, v6, v7, v8, v9, v10, v11, v12, v13, v14, v15) \
         { .bytes = { 0x##v0, 0x##v1, 0x##v2, 0x##v3, 0x##v4, 0x##v5, 0x##v6, 0x##v7, \
diff --git a/src/test/test-id128.c b/src/test/test-id128.c
index 3ddbeec0fc..48fdbba6c7 100644
--- a/src/test/test-id128.c
+++ b/src/test/test-id128.c
@@ -199,7 +199,7 @@ TEST(id128) {
 }
 
 TEST(sd_id128_get_invocation) {
-        sd_id128_t id;
+        sd_id128_t id = SD_ID128_NULL;
         int r;
 
         /* Query the invocation ID */
@@ -208,6 +208,36 @@ TEST(sd_id128_get_invocation) {
                 log_warning_errno(r, "Failed to get invocation ID, ignoring: %m");
         else
                 log_info("Invocation ID: " SD_ID128_FORMAT_STR, SD_ID128_FORMAT_VAL(id));
+
+        sd_id128_t appid = SD_ID128_NULL;
+        r = sd_id128_get_invocation_app_specific(SD_ID128_MAKE(59,36,e9,92,fd,11,42,fe,87,c9,e9,b5,6c,9e,4f,04), &appid);
+        if (r < 0)
+                log_warning_errno(r, "Failed to get invocation ID, ignoring: %m");
+        else {
+                assert(!sd_id128_equal(id, appid));
+                log_info("Per-App Invocation ID: " SD_ID128_FORMAT_STR, SD_ID128_FORMAT_VAL(appid));
+        }
+
+        sd_id128_t appid2 = SD_ID128_NULL;
+        r = sd_id128_get_invocation_app_specific(SD_ID128_MAKE(59,36,e9,92,fd,11,42,fe,87,c9,e9,b5,6c,9e,4f,05), &appid2); /* slightly different appid */
+        if (r < 0)
+                log_warning_errno(r, "Failed to get invocation ID, ignoring: %m");
+        else {
+                assert(!sd_id128_equal(id, appid2));
+                assert(!sd_id128_equal(appid, appid2));
+                log_info("Per-App Invocation ID 2: " SD_ID128_FORMAT_STR, SD_ID128_FORMAT_VAL(appid2));
+        }
+
+        sd_id128_t appid3 = SD_ID128_NULL;
+        r = sd_id128_get_invocation_app_specific(SD_ID128_MAKE(59,36,e9,92,fd,11,42,fe,87,c9,e9,b5,6c,9e,4f,04), &appid3); /* same appid as before */
+        if (r < 0)
+                log_warning_errno(r, "Failed to get invocation ID, ignoring: %m");
+        else {
+                assert(!sd_id128_equal(id, appid3));
+                assert(sd_id128_equal(appid, appid3));
+                assert(!sd_id128_equal(appid2, appid3));
+                log_info("Per-App Invocation ID 3: " SD_ID128_FORMAT_STR, SD_ID128_FORMAT_VAL(appid3));
+        }
 }
 
 TEST(benchmark_sd_id128_get_machine_app_specific) {
diff --git a/src/vmspawn/vmspawn.c b/src/vmspawn/vmspawn.c
index d3d37fd5d3..9366ce111d 100644
--- a/src/vmspawn/vmspawn.c
+++ b/src/vmspawn/vmspawn.c
@@ -1294,6 +1294,24 @@ static int run_virtual_machine(int kvm_device_fd, int vhost_device_fd) {
                 if (strv_extend_many(&cmdline, "-uuid", SD_ID128_TO_UUID_STRING(arg_uuid)) < 0)
                         return log_oom();
 
+        /* Derive a vmgenid automatically from the invocation ID, in a deterministic way. */
+        sd_id128_t vmgenid;
+        r = sd_id128_get_invocation_app_specific(SD_ID128_MAKE(bd,84,6d,e3,e4,7d,4b,6c,a6,85,4a,87,0f,3c,a3,a0), &vmgenid);
+        if (r < 0) {
+                log_debug_errno(r, "Failed to get invocation ID, making up randomized vmgenid: %m");
+
+                r = sd_id128_randomize(&vmgenid);
+                if (r < 0)
+                        return log_error_errno(r, "Failed to make up randomized vmgenid: %m");
+        }
+
+        _cleanup_free_ char *vmgenid_device = NULL;
+        if (asprintf(&vmgenid_device, "vmgenid,guid=" SD_ID128_UUID_FORMAT_STR, SD_ID128_FORMAT_VAL(vmgenid)) < 0)
+                return log_oom();
+
+        if (strv_extend_many(&cmdline, "-device", vmgenid_device) < 0)
+                return log_oom();
+
         /* if we are going to be starting any units with state then create our runtime dir */
         if (arg_tpm != 0 || arg_directory || arg_runtime_mounts.n_mounts != 0) {
                 r = runtime_directory(&arg_runtime_directory, arg_privileged ? RUNTIME_SCOPE_SYSTEM : RUNTIME_SCOPE_USER, "systemd/vmspawn");
@@ -1421,7 +1439,13 @@ static int run_virtual_machine(int kvm_device_fd, int vhost_device_fd) {
                 pass_fds[n_pass_fds++] = device_fd;
         }
 
-        r = strv_extend_many(&cmdline, "-cpu", "max");
+        r = strv_extend_many(&cmdline, "-cpu",
+#ifdef __x86_64__
+                             "max,hv_relaxed,hv-vapic,hv-time"
+#else
+                             "max"
+#endif
+        );
         if (r < 0)
                 return log_oom();
 
@@ -1875,6 +1899,18 @@ static int run_virtual_machine(int kvm_device_fd, int vhost_device_fd) {
                         return log_error_errno(r, "Failed to call getsockname on VSOCK: %m");
         }
 
+        const char *e = secure_getenv("SYSTEMD_VMSPAWN_QEMU_EXTRA");
+        if (e) {
+                _cleanup_strv_free_ char **extra = NULL;
+
+                r = strv_split_full(&extra, e, /* separator= */ NULL, EXTRACT_CUNESCAPE|EXTRACT_UNQUOTE);
+                if (r < 0)
+                        return log_error_errno(r, "Failed to split $SYSTEMD_VMSPAWN_QEMU_EXTRA environment variable: %m");
+
+                if (strv_extend_strv(&cmdline, extra, /* filter_duplicates= */ false) < 0)
+                        return log_oom();
+        }
+
         if (DEBUG_LOGGING) {
                 _cleanup_free_ char *joined = quote_command_line(cmdline, SHELL_ESCAPE_EMPTY);
                 if (!joined)