diff --git a/drivers/scsi/qla2xxx/qla_def.h b/drivers/scsi/qla2xxx/qla_def.h
index 51b262b236b4..ddf93efe3986 100644
--- a/drivers/scsi/qla2xxx/qla_def.h
+++ b/drivers/scsi/qla2xxx/qla_def.h
@@ -286,7 +286,7 @@ struct name_list_extended {
 #define RESPONSE_ENTRY_CNT_MQ		128	/* Number of response entries.*/
 #define ATIO_ENTRY_CNT_24XX		4096	/* Number of ATIO entries. */
 #define RESPONSE_ENTRY_CNT_FX00		256     /* Number of response entries.*/
-#define EXTENDED_EXCH_ENTRY_CNT		32768   /* Entries for offload case */
+#define FW_DEF_EXCHANGES_CNT 2048
 
 struct req_que;
 struct qla_tgt_sess;
@@ -3593,6 +3593,10 @@ struct qla_hw_data {
 #define IS_SHADOW_REG_CAPABLE(ha)  (IS_QLA27XX(ha))
 #define IS_DPORT_CAPABLE(ha)  (IS_QLA83XX(ha) || IS_QLA27XX(ha))
 #define IS_FAWWN_CAPABLE(ha)	(IS_QLA83XX(ha) || IS_QLA27XX(ha))
+#define IS_EXCHG_OFFLD_CAPABLE(ha) \
+	(IS_QLA81XX(ha) || IS_QLA83XX(ha) || IS_QLA27XX(ha))
+#define IS_EXLOGIN_OFFLD_CAPABLE(ha) \
+	(IS_QLA25XX(ha) || IS_QLA81XX(ha) || IS_QLA83XX(ha) || IS_QLA27XX(ha))
 
 	/* HBA serial number */
 	uint8_t		serial0;
diff --git a/drivers/scsi/qla2xxx/qla_gbl.h b/drivers/scsi/qla2xxx/qla_gbl.h
index 5b2451745e9f..f8540f5c9e5d 100644
--- a/drivers/scsi/qla2xxx/qla_gbl.h
+++ b/drivers/scsi/qla2xxx/qla_gbl.h
@@ -137,6 +137,7 @@ extern int ql2xmdcapmask;
 extern int ql2xmdenable;
 extern int ql2xexlogins;
 extern int ql2xexchoffld;
+extern int ql2xiniexchg;
 extern int ql2xfwholdabts;
 extern int ql2xmvasynctoatio;
 
@@ -839,7 +840,7 @@ extern int qla_get_exlogin_status(scsi_qla_host_t *, uint16_t *,
 	uint16_t *);
 extern int qla_set_exlogin_mem_cfg(scsi_qla_host_t *vha, dma_addr_t phys_addr);
 extern int qla_get_exchoffld_status(scsi_qla_host_t *, uint16_t *, uint16_t *);
-extern int qla_set_exchoffld_mem_cfg(scsi_qla_host_t *, dma_addr_t);
+extern int qla_set_exchoffld_mem_cfg(scsi_qla_host_t *);
 extern void qlt_handle_abts_recv(struct scsi_qla_host *, response_t *);
 
 int qla24xx_async_notify_ack(scsi_qla_host_t *, fc_port_t *,
diff --git a/drivers/scsi/qla2xxx/qla_init.c b/drivers/scsi/qla2xxx/qla_init.c
index f92e74639bb1..08000aebe8d4 100644
--- a/drivers/scsi/qla2xxx/qla_init.c
+++ b/drivers/scsi/qla2xxx/qla_init.c
@@ -2723,7 +2723,7 @@ qla2x00_setup_chip(scsi_qla_host_t *vha)
 			if (ql2xexlogins)
 				ha->flags.exlogins_enabled = 1;
 
-			if (ql2xexchoffld)
+			if (qla_is_exch_offld_enabled(vha))
 				ha->flags.exchoffld_enabled = 1;
 
 			rval = qla2x00_execute_fw(vha, srisc_address);
diff --git a/drivers/scsi/qla2xxx/qla_inline.h b/drivers/scsi/qla2xxx/qla_inline.h
index c61a6a871c8e..9996ec0daab1 100644
--- a/drivers/scsi/qla2xxx/qla_inline.h
+++ b/drivers/scsi/qla2xxx/qla_inline.h
@@ -307,3 +307,19 @@ qla2x00_set_retry_delay_timestamp(fc_port_t *fcport, uint16_t retry_delay)
 		fcport->retry_delay_timestamp = jiffies +
 		    (retry_delay * HZ / 10);
 }
+
+static inline bool
+qla_is_exch_offld_enabled(struct scsi_qla_host *vha)
+{
+	if (qla_ini_mode_enabled(vha) &&
+	    (ql2xiniexchg > FW_DEF_EXCHANGES_CNT))
+		return true;
+	else if (qla_tgt_mode_enabled(vha) &&
+	    (ql2xexchoffld > FW_DEF_EXCHANGES_CNT))
+		return true;
+	else if (qla_dual_mode_enabled(vha) &&
+	    ((ql2xiniexchg + ql2xexchoffld) > FW_DEF_EXCHANGES_CNT))
+		return true;
+	else
+		return false;
+}
diff --git a/drivers/scsi/qla2xxx/qla_mbx.c b/drivers/scsi/qla2xxx/qla_mbx.c
index 5e74600b99c2..bebac42d9e9e 100644
--- a/drivers/scsi/qla2xxx/qla_mbx.c
+++ b/drivers/scsi/qla2xxx/qla_mbx.c
@@ -821,7 +821,7 @@ qla_get_exchoffld_status(scsi_qla_host_t *vha, uint16_t *buf_sz,
  */
 #define CONFIG_XCHOFFLD_MEM	0x3
 int
-qla_set_exchoffld_mem_cfg(scsi_qla_host_t *vha, dma_addr_t phys_addr)
+qla_set_exchoffld_mem_cfg(scsi_qla_host_t *vha)
 {
 	int		rval;
 	mbx_cmd_t	mc;
@@ -834,12 +834,12 @@ qla_set_exchoffld_mem_cfg(scsi_qla_host_t *vha, dma_addr_t phys_addr)
 	memset(mcp->mb, 0 , sizeof(mcp->mb));
 	mcp->mb[0] = MBC_GET_MEM_OFFLOAD_CNTRL_STAT;
 	mcp->mb[1] = CONFIG_XCHOFFLD_MEM;
-	mcp->mb[2] = MSW(phys_addr);
-	mcp->mb[3] = LSW(phys_addr);
-	mcp->mb[6] = MSW(MSD(phys_addr));
-	mcp->mb[7] = LSW(MSD(phys_addr));
-	mcp->mb[8] = MSW(ha->exlogin_size);
-	mcp->mb[9] = LSW(ha->exlogin_size);
+	mcp->mb[2] = MSW(ha->exchoffld_buf_dma);
+	mcp->mb[3] = LSW(ha->exchoffld_buf_dma);
+	mcp->mb[6] = MSW(MSD(ha->exchoffld_buf_dma));
+	mcp->mb[7] = LSW(MSD(ha->exchoffld_buf_dma));
+	mcp->mb[8] = MSW(ha->exchoffld_size);
+	mcp->mb[9] = LSW(ha->exchoffld_size);
 	mcp->out_mb = MBX_9|MBX_8|MBX_7|MBX_6|MBX_3|MBX_2|MBX_1|MBX_0;
 	mcp->in_mb = MBX_11|MBX_0;
 	mcp->tov = MBX_TOV_SECONDS;
diff --git a/drivers/scsi/qla2xxx/qla_os.c b/drivers/scsi/qla2xxx/qla_os.c
index cca6acaed087..dcf50aa61e9d 100644
--- a/drivers/scsi/qla2xxx/qla_os.c
+++ b/drivers/scsi/qla2xxx/qla_os.c
@@ -224,11 +224,15 @@ MODULE_PARM_DESC(ql2xexlogins,
 		 "Number of extended Logins. "
 		 "0 (Default)- Disabled.");
 
-int ql2xexchoffld = 0;
-module_param(ql2xexchoffld, uint, S_IRUGO|S_IWUSR);
+int ql2xexchoffld = 1024;
+module_param(ql2xexchoffld, uint, 0644);
 MODULE_PARM_DESC(ql2xexchoffld,
-		 "Number of exchanges to offload. "
-		 "0 (Default)- Disabled.");
+	"Number of target exchanges.");
+
+int ql2xiniexchg = 1024;
+module_param(ql2xiniexchg, uint, 0644);
+MODULE_PARM_DESC(ql2xiniexchg,
+	"Number of initiator exchanges.");
 
 int ql2xfwholdabts = 0;
 module_param(ql2xfwholdabts, int, S_IRUGO);
@@ -3986,6 +3990,9 @@ qla2x00_set_exlogins_buffer(scsi_qla_host_t *vha)
 	if (!ql2xexlogins)
 		return QLA_SUCCESS;
 
+	if (!IS_EXLOGIN_OFFLD_CAPABLE(ha))
+		return QLA_SUCCESS;
+
 	ql_log(ql_log_info, vha, 0xd021, "EXLOGIN count: %d.\n", ql2xexlogins);
 	max_cnt = 0;
 	rval = qla_get_exlogin_status(vha, &size, &max_cnt);
@@ -3996,21 +4003,27 @@ qla2x00_set_exlogins_buffer(scsi_qla_host_t *vha)
 	}
 
 	temp = (ql2xexlogins > max_cnt) ? max_cnt : ql2xexlogins;
-	ha->exlogin_size = (size * temp);
-	ql_log(ql_log_info, vha, 0xd024,
-		"EXLOGIN: max_logins=%d, portdb=0x%x, total=%d.\n",
-		max_cnt, size, temp);
+	temp *= size;
 
-	ql_log(ql_log_info, vha, 0xd025, "EXLOGIN: requested size=0x%x\n",
-		ha->exlogin_size);
+	if (temp != ha->exlogin_size) {
+		qla2x00_free_exlogin_buffer(ha);
+		ha->exlogin_size = temp;
 
-	/* Get consistent memory for extended logins */
-	ha->exlogin_buf = dma_alloc_coherent(&ha->pdev->dev,
-	    ha->exlogin_size, &ha->exlogin_buf_dma, GFP_KERNEL);
-	if (!ha->exlogin_buf) {
-		ql_log_pci(ql_log_fatal, ha->pdev, 0xd02a,
+		ql_log(ql_log_info, vha, 0xd024,
+		    "EXLOGIN: max_logins=%d, portdb=0x%x, total=%d.\n",
+		    max_cnt, size, temp);
+
+		ql_log(ql_log_info, vha, 0xd025,
+		    "EXLOGIN: requested size=0x%x\n", ha->exlogin_size);
+
+		/* Get consistent memory for extended logins */
+		ha->exlogin_buf = dma_alloc_coherent(&ha->pdev->dev,
+			ha->exlogin_size, &ha->exlogin_buf_dma, GFP_KERNEL);
+		if (!ha->exlogin_buf) {
+			ql_log_pci(ql_log_fatal, ha->pdev, 0xd02a,
 		    "Failed to allocate memory for exlogin_buf_dma.\n");
-		return -ENOMEM;
+			return -ENOMEM;
+		}
 	}
 
 	/* Now configure the dma buffer */
@@ -4041,15 +4054,49 @@ qla2x00_free_exlogin_buffer(struct qla_hw_data *ha)
 	}
 }
 
+static void
+qla2x00_number_of_exch(scsi_qla_host_t *vha, u32 *ret_cnt, u16 max_cnt)
+{
+	u32 temp;
+	*ret_cnt = FW_DEF_EXCHANGES_CNT;
+
+	if (qla_ini_mode_enabled(vha)) {
+		if (ql2xiniexchg > max_cnt)
+			ql2xiniexchg = max_cnt;
+
+		if (ql2xiniexchg > FW_DEF_EXCHANGES_CNT)
+			*ret_cnt = ql2xiniexchg;
+	} else if (qla_tgt_mode_enabled(vha)) {
+		if (ql2xexchoffld > max_cnt)
+			ql2xexchoffld = max_cnt;
+
+		if (ql2xexchoffld > FW_DEF_EXCHANGES_CNT)
+			*ret_cnt = ql2xexchoffld;
+	} else if (qla_dual_mode_enabled(vha)) {
+		temp = ql2xiniexchg + ql2xexchoffld;
+		if (temp > max_cnt) {
+			ql2xiniexchg -= (temp - max_cnt)/2;
+			ql2xexchoffld -= (((temp - max_cnt)/2) + 1);
+			temp = max_cnt;
+		}
+
+		if (temp > FW_DEF_EXCHANGES_CNT)
+			*ret_cnt = temp;
+	}
+}
+
 int
 qla2x00_set_exchoffld_buffer(scsi_qla_host_t *vha)
 {
 	int rval;
-	uint16_t	size, max_cnt, temp;
+	u16 size, max_cnt;
+	u32 temp;
 	struct qla_hw_data *ha = vha->hw;
 
-	/* Return if we don't need to alloacate any extended logins */
-	if (!ql2xexchoffld)
+	if (!ha->flags.exchoffld_enabled)
+		return QLA_SUCCESS;
+
+	if (!IS_EXCHG_OFFLD_CAPABLE(ha))
 		return QLA_SUCCESS;
 
 	ql_log(ql_log_info, vha, 0xd014,
@@ -4063,30 +4110,45 @@ qla2x00_set_exchoffld_buffer(scsi_qla_host_t *vha)
 		return rval;
 	}
 
-	temp = (ql2xexchoffld > max_cnt) ? max_cnt : ql2xexchoffld;
-	ha->exchoffld_size = (size * temp);
-	ql_log(ql_log_info, vha, 0xd016,
-		"Exchange offload: max_count=%d, buffers=0x%x, total=%d.\n",
-		max_cnt, size, temp);
+	qla2x00_number_of_exch(vha, &temp, max_cnt);
+	temp *= size;
 
-	ql_log(ql_log_info, vha, 0xd017,
-	    "Exchange Buffers requested size = 0x%x\n", ha->exchoffld_size);
+	if (temp != ha->exchoffld_size) {
+		qla2x00_free_exchoffld_buffer(ha);
+		ha->exchoffld_size = temp;
 
-	/* Get consistent memory for extended logins */
-	ha->exchoffld_buf = dma_alloc_coherent(&ha->pdev->dev,
-	    ha->exchoffld_size, &ha->exchoffld_buf_dma, GFP_KERNEL);
-	if (!ha->exchoffld_buf) {
-		ql_log_pci(ql_log_fatal, ha->pdev, 0xd013,
-		    "Failed to allocate memory for exchoffld_buf_dma.\n");
-		return -ENOMEM;
+		ql_log(ql_log_info, vha, 0xd016,
+		    "Exchange offload: max_count=%d, buffers=0x%x, total=%d.\n",
+		    max_cnt, size, temp);
+
+		ql_log(ql_log_info, vha, 0xd017,
+		    "Exchange Buffers requested size = 0x%x\n",
+		    ha->exchoffld_size);
+
+		/* Get consistent memory for extended logins */
+		ha->exchoffld_buf = dma_alloc_coherent(&ha->pdev->dev,
+			ha->exchoffld_size, &ha->exchoffld_buf_dma, GFP_KERNEL);
+		if (!ha->exchoffld_buf) {
+			ql_log_pci(ql_log_fatal, ha->pdev, 0xd013,
+			"Failed to allocate memory for exchoffld_buf_dma.\n");
+			return -ENOMEM;
+		}
 	}
 
 	/* Now configure the dma buffer */
-	rval = qla_set_exchoffld_mem_cfg(vha, ha->exchoffld_buf_dma);
+	rval = qla_set_exchoffld_mem_cfg(vha);
 	if (rval) {
 		ql_log(ql_log_fatal, vha, 0xd02e,
 		    "Setup exchange offload buffer ****FAILED****.\n");
 		qla2x00_free_exchoffld_buffer(ha);
+	} else {
+		/* re-adjust number of target exchange */
+		struct init_cb_81xx *icb = (struct init_cb_81xx *)ha->init_cb;
+
+		if (qla_ini_mode_enabled(vha))
+			icb->exchange_count = 0;
+		else
+			icb->exchange_count = cpu_to_le16(ql2xexchoffld);
 	}
 
 	return rval;
diff --git a/drivers/scsi/qla2xxx/qla_target.c b/drivers/scsi/qla2xxx/qla_target.c
index 3cdffdd90279..324048476d9e 100644
--- a/drivers/scsi/qla2xxx/qla_target.c
+++ b/drivers/scsi/qla2xxx/qla_target.c
@@ -59,7 +59,7 @@ MODULE_PARM_DESC(qlini_mode,
 	"when ready "
 	"\"enabled\" (default) - initiator mode will always stay enabled.");
 
-static int ql_dm_tgt_ex_pct = 50;
+static int ql_dm_tgt_ex_pct = 0;
 module_param(ql_dm_tgt_ex_pct, int, S_IRUGO|S_IWUSR);
 MODULE_PARM_DESC(ql_dm_tgt_ex_pct,
 	"For Dual Mode (qlini_mode=dual), this parameter determines "
@@ -6438,8 +6438,9 @@ void
 qlt_24xx_config_nvram_stage1(struct scsi_qla_host *vha, struct nvram_24xx *nv)
 {
 	struct qla_hw_data *ha = vha->hw;
-	u32 tmp;
-	u16 t;
+
+	if (!QLA_TGT_MODE_ENABLED())
+		return;
 
 	if (qla_tgt_mode_enabled(vha) || qla_dual_mode_enabled(vha)) {
 		if (!ha->tgt.saved_set) {
@@ -6454,24 +6455,10 @@ qlt_24xx_config_nvram_stage1(struct scsi_qla_host *vha, struct nvram_24xx *nv)
 			ha->tgt.saved_set = 1;
 		}
 
-		if (qla_tgt_mode_enabled(vha)) {
+		if (qla_tgt_mode_enabled(vha))
 			nv->exchange_count = cpu_to_le16(0xFFFF);
-		} else {			/* dual */
-			if (ql_dm_tgt_ex_pct > 100) {
-				ql_dm_tgt_ex_pct = 50;
-			} else if (ql_dm_tgt_ex_pct == 100) {
-				/* leave some for FW */
-				ql_dm_tgt_ex_pct = 95;
-			}
-
-			tmp = ha->orig_fw_xcb_count * ql_dm_tgt_ex_pct;
-			tmp = tmp/100;
-			if (tmp > 0xffff)
-				tmp = 0xffff;
-
-			t = tmp & 0xffff;
-			nv->exchange_count = cpu_to_le16(t);
-		}
+		else			/* dual */
+			nv->exchange_count = cpu_to_le16(ql2xexchoffld);
 
 		/* Enable target mode */
 		nv->firmware_options_1 |= cpu_to_le32(BIT_4);
@@ -6556,8 +6543,6 @@ void
 qlt_81xx_config_nvram_stage1(struct scsi_qla_host *vha, struct nvram_81xx *nv)
 {
 	struct qla_hw_data *ha = vha->hw;
-	u32 tmp;
-	u16 t;
 
 	if (!QLA_TGT_MODE_ENABLED())
 		return;
@@ -6575,23 +6560,10 @@ qlt_81xx_config_nvram_stage1(struct scsi_qla_host *vha, struct nvram_81xx *nv)
 			ha->tgt.saved_set = 1;
 		}
 
-		if (qla_tgt_mode_enabled(vha)) {
+		if (qla_tgt_mode_enabled(vha))
 			nv->exchange_count = cpu_to_le16(0xFFFF);
-		} else {			/* dual */
-			if (ql_dm_tgt_ex_pct > 100) {
-				ql_dm_tgt_ex_pct = 50;
-			} else if (ql_dm_tgt_ex_pct == 100) {
-				/* leave some for FW */
-				ql_dm_tgt_ex_pct = 95;
-			}
-
-			tmp = ha->orig_fw_xcb_count * ql_dm_tgt_ex_pct;
-			tmp = tmp/100;
-			if (tmp > 0xffff)
-				tmp = 0xffff;
-			t = tmp & 0xffff;
-			nv->exchange_count = cpu_to_le16(t);
-		}
+		else			/* dual */
+			nv->exchange_count = cpu_to_le16(ql2xexchoffld);
 
 		/* Enable target mode */
 		nv->firmware_options_1 |= cpu_to_le32(BIT_4);