diff --git a/crypto/jitterentropy-kcapi.c b/crypto/jitterentropy-kcapi.c
index 2d115bec15ae..08addc63475b 100644
--- a/crypto/jitterentropy-kcapi.c
+++ b/crypto/jitterentropy-kcapi.c
@@ -37,6 +37,7 @@
  * DAMAGE.
  */
 
+#include <linux/fips.h>
 #include <linux/kernel.h>
 #include <linux/module.h>
 #include <linux/slab.h>
@@ -102,7 +103,6 @@ void jent_get_nstime(__u64 *out)
 struct jitterentropy {
 	spinlock_t jent_lock;
 	struct rand_data *entropy_collector;
-	unsigned int reset_cnt;
 };
 
 static int jent_kcapi_init(struct crypto_tfm *tfm)
@@ -138,29 +138,28 @@ static int jent_kcapi_random(struct crypto_rng *tfm,
 
 	spin_lock(&rng->jent_lock);
 
-	/* Return a permanent error in case we had too many resets in a row. */
-	if (rng->reset_cnt > (1<<10)) {
-		ret = -EFAULT;
-		goto out;
-	}
-
 	ret = jent_read_entropy(rng->entropy_collector, rdata, dlen);
 
-	/* Reset RNG in case of health failures */
-	if (ret < -1) {
-		pr_warn_ratelimited("Reset Jitter RNG due to health test failure: %s failure\n",
-				    (ret == -2) ? "Repetition Count Test" :
-						  "Adaptive Proportion Test");
-
-		rng->reset_cnt++;
-
+	if (ret == -3) {
+		/* Handle permanent health test error */
+		/*
+		 * If the kernel was booted with fips=2, it implies that
+		 * the entire kernel acts as a FIPS 140 module. In this case
+		 * an SP800-90B permanent health test error is treated as
+		 * a FIPS module error.
+		 */
+		if (fips_enabled)
+			panic("Jitter RNG permanent health test failure\n");
+
+		pr_err("Jitter RNG permanent health test failure\n");
+		ret = -EFAULT;
+	} else if (ret == -2) {
+		/* Handle intermittent health test error */
+		pr_warn_ratelimited("Reset Jitter RNG due to intermittent health test failure\n");
 		ret = -EAGAIN;
-	} else {
-		rng->reset_cnt = 0;
-
-		/* Convert the Jitter RNG error into a usable error code */
-		if (ret == -1)
-			ret = -EINVAL;
+	} else if (ret == -1) {
+		/* Handle other errors */
+		ret = -EINVAL;
 	}
 
 out:
@@ -197,6 +196,10 @@ static int __init jent_mod_init(void)
 
 	ret = jent_entropy_init();
 	if (ret) {
+		/* Handle permanent health test error */
+		if (fips_enabled)
+			panic("jitterentropy: Initialization failed with host not compliant with requirements: %d\n", ret);
+
 		pr_info("jitterentropy: Initialization failed with host not compliant with requirements: %d\n", ret);
 		return -EFAULT;
 	}
diff --git a/crypto/jitterentropy.c b/crypto/jitterentropy.c
index 93bff3213823..22f48bf4c6f5 100644
--- a/crypto/jitterentropy.c
+++ b/crypto/jitterentropy.c
@@ -85,10 +85,14 @@ struct rand_data {
 				      * bit generation */
 
 	/* Repetition Count Test */
-	int rct_count;			/* Number of stuck values */
+	unsigned int rct_count;			/* Number of stuck values */
 
-	/* Adaptive Proportion Test for a significance level of 2^-30 */
+	/* Intermittent health test failure threshold of 2^-30 */
+#define JENT_RCT_CUTOFF		30	/* Taken from SP800-90B sec 4.4.1 */
 #define JENT_APT_CUTOFF		325	/* Taken from SP800-90B sec 4.4.2 */
+	/* Permanent health test failure threshold of 2^-60 */
+#define JENT_RCT_CUTOFF_PERMANENT	60
+#define JENT_APT_CUTOFF_PERMANENT	355
 #define JENT_APT_WINDOW_SIZE	512	/* Data window size */
 	/* LSB of time stamp to process */
 #define JENT_APT_LSB		16
@@ -97,8 +101,6 @@ struct rand_data {
 	unsigned int apt_count;		/* APT counter */
 	unsigned int apt_base;		/* APT base reference */
 	unsigned int apt_base_set:1;	/* APT base reference set? */
-
-	unsigned int health_failure:1;	/* Permanent health failure */
 };
 
 /* Flags that can be used to initialize the RNG */
@@ -169,19 +171,26 @@ static void jent_apt_insert(struct rand_data *ec, unsigned int delta_masked)
 		return;
 	}
 
-	if (delta_masked == ec->apt_base) {
+	if (delta_masked == ec->apt_base)
 		ec->apt_count++;
 
-		if (ec->apt_count >= JENT_APT_CUTOFF)
-			ec->health_failure = 1;
-	}
-
 	ec->apt_observations++;
 
 	if (ec->apt_observations >= JENT_APT_WINDOW_SIZE)
 		jent_apt_reset(ec, delta_masked);
 }
 
+/* APT health test failure detection */
+static int jent_apt_permanent_failure(struct rand_data *ec)
+{
+	return (ec->apt_count >= JENT_APT_CUTOFF_PERMANENT) ? 1 : 0;
+}
+
+static int jent_apt_failure(struct rand_data *ec)
+{
+	return (ec->apt_count >= JENT_APT_CUTOFF) ? 1 : 0;
+}
+
 /***************************************************************************
  * Stuck Test and its use as Repetition Count Test
  *
@@ -206,55 +215,14 @@ static void jent_apt_insert(struct rand_data *ec, unsigned int delta_masked)
  */
 static void jent_rct_insert(struct rand_data *ec, int stuck)
 {
-	/*
-	 * If we have a count less than zero, a previous RCT round identified
-	 * a failure. We will not overwrite it.
-	 */
-	if (ec->rct_count < 0)
-		return;
-
 	if (stuck) {
 		ec->rct_count++;
-
-		/*
-		 * The cutoff value is based on the following consideration:
-		 * alpha = 2^-30 as recommended in FIPS 140-2 IG 9.8.
-		 * In addition, we require an entropy value H of 1/OSR as this
-		 * is the minimum entropy required to provide full entropy.
-		 * Note, we collect 64 * OSR deltas for inserting them into
-		 * the entropy pool which should then have (close to) 64 bits
-		 * of entropy.
-		 *
-		 * Note, ec->rct_count (which equals to value B in the pseudo
-		 * code of SP800-90B section 4.4.1) starts with zero. Hence
-		 * we need to subtract one from the cutoff value as calculated
-		 * following SP800-90B.
-		 */
-		if ((unsigned int)ec->rct_count >= (31 * ec->osr)) {
-			ec->rct_count = -1;
-			ec->health_failure = 1;
-		}
 	} else {
+		/* Reset RCT */
 		ec->rct_count = 0;
 	}
 }
 
-/*
- * Is there an RCT health test failure?
- *
- * @ec [in] Reference to entropy collector
- *
- * @return
- * 	0 No health test failure
- * 	1 Permanent health test failure
- */
-static int jent_rct_failure(struct rand_data *ec)
-{
-	if (ec->rct_count < 0)
-		return 1;
-	return 0;
-}
-
 static inline __u64 jent_delta(__u64 prev, __u64 next)
 {
 #define JENT_UINT64_MAX		(__u64)(~((__u64) 0))
@@ -303,18 +271,26 @@ static int jent_stuck(struct rand_data *ec, __u64 current_delta)
 	return 0;
 }
 
-/*
- * Report any health test failures
- *
- * @ec [in] Reference to entropy collector
- *
- * @return
- * 	0 No health test failure
- * 	1 Permanent health test failure
- */
+/* RCT health test failure detection */
+static int jent_rct_permanent_failure(struct rand_data *ec)
+{
+	return (ec->rct_count >= JENT_RCT_CUTOFF_PERMANENT) ? 1 : 0;
+}
+
+static int jent_rct_failure(struct rand_data *ec)
+{
+	return (ec->rct_count >= JENT_RCT_CUTOFF) ? 1 : 0;
+}
+
+/* Report of health test failures */
 static int jent_health_failure(struct rand_data *ec)
 {
-	return ec->health_failure;
+	return jent_rct_failure(ec) | jent_apt_failure(ec);
+}
+
+static int jent_permanent_health_failure(struct rand_data *ec)
+{
+	return jent_rct_permanent_failure(ec) | jent_apt_permanent_failure(ec);
 }
 
 /***************************************************************************
@@ -600,8 +576,8 @@ static void jent_gen_entropy(struct rand_data *ec)
  *
  * The following error codes can occur:
  *	-1	entropy_collector is NULL
- *	-2	RCT failed
- *	-3	APT test failed
+ *	-2	Intermittent health failure
+ *	-3	Permanent health failure
  */
 int jent_read_entropy(struct rand_data *ec, unsigned char *data,
 		      unsigned int len)
@@ -616,39 +592,23 @@ int jent_read_entropy(struct rand_data *ec, unsigned char *data,
 
 		jent_gen_entropy(ec);
 
-		if (jent_health_failure(ec)) {
-			int ret;
-
-			if (jent_rct_failure(ec))
-				ret = -2;
-			else
-				ret = -3;
-
+		if (jent_permanent_health_failure(ec)) {
 			/*
-			 * Re-initialize the noise source
-			 *
-			 * If the health test fails, the Jitter RNG remains
-			 * in failure state and will return a health failure
-			 * during next invocation.
+			 * At this point, the Jitter RNG instance is considered
+			 * as a failed instance. There is no rerun of the
+			 * startup test any more, because the caller
+			 * is assumed to not further use this instance.
 			 */
-			if (jent_entropy_init())
-				return ret;
-
-			/* Set APT to initial state */
-			jent_apt_reset(ec, 0);
-			ec->apt_base_set = 0;
-
-			/* Set RCT to initial state */
-			ec->rct_count = 0;
-
-			/* Re-enable Jitter RNG */
-			ec->health_failure = 0;
-
+			return -3;
+		} else if (jent_health_failure(ec)) {
 			/*
-			 * Return the health test failure status to the
-			 * caller as the generated value is not appropriate.
+			 * Perform startup health tests and return permanent
+			 * error if it fails.
 			 */
-			return ret;
+			if (jent_entropy_init())
+				return -3;
+
+			return -2;
 		}
 
 		if ((DATA_SIZE_BITS / 8) < len)
