diff --git a/arch/arc/include/asm/entry-compact.h b/arch/arc/include/asm/entry-compact.h
index 415443c2a8c4..1aff3be91075 100644
--- a/arch/arc/include/asm/entry-compact.h
+++ b/arch/arc/include/asm/entry-compact.h
@@ -110,13 +110,12 @@
 
 .macro FAKE_RET_FROM_EXCPN
 
-	ld  r9, [sp, PT_status32]
-	bic r9, r9, (STATUS_U_MASK|STATUS_DE_MASK)
-	bset  r9, r9, STATUS_L_BIT
-	sr  r9, [erstatus]
-	mov r9, 55f
-	sr  r9, [eret]
-
+	lr	r9, [status32]
+	bclr	r9, r9, STATUS_AE_BIT
+	or	r9, r9, (STATUS_E1_MASK|STATUS_E2_MASK)
+	sr	r9, [erstatus]
+	mov	r9, 55f
+	sr	r9, [eret]
 	rtie
 55:
 .endm
diff --git a/arch/arc/include/asm/irqflags-compact.h b/arch/arc/include/asm/irqflags-compact.h
index a9490841c801..d8c608174617 100644
--- a/arch/arc/include/asm/irqflags-compact.h
+++ b/arch/arc/include/asm/irqflags-compact.h
@@ -23,11 +23,13 @@
 #define STATUS_E2_BIT		2	/* Int 2 enable */
 #define STATUS_A1_BIT		3	/* Int 1 active */
 #define STATUS_A2_BIT		4	/* Int 2 active */
+#define STATUS_AE_BIT		5	/* Exception active */
 
 #define STATUS_E1_MASK		(1<<STATUS_E1_BIT)
 #define STATUS_E2_MASK		(1<<STATUS_E2_BIT)
 #define STATUS_A1_MASK		(1<<STATUS_A1_BIT)
 #define STATUS_A2_MASK		(1<<STATUS_A2_BIT)
+#define STATUS_AE_MASK		(1<<STATUS_AE_BIT)
 #define STATUS_IE_MASK		(STATUS_E1_MASK | STATUS_E2_MASK)
 
 /* Other Interrupt Handling related Aux regs */