diff --git a/Core/HLE/sceKernelModule.cpp b/Core/HLE/sceKernelModule.cpp
index 1d37b3c80278..431870fc4566 100644
--- a/Core/HLE/sceKernelModule.cpp
+++ b/Core/HLE/sceKernelModule.cpp
@@ -66,7 +66,8 @@
 #include "GPU/GPUState.h"
 
 enum {
-	PSP_THREAD_ATTR_USER = 0x80000000
+	PSP_THREAD_ATTR_KERNEL = 0x00001000,
+	PSP_THREAD_ATTR_USER = 0x80000000,
 };
 
 enum {
@@ -1608,6 +1609,16 @@ u32 __KernelGetModuleGP(SceUID uid) {
 	}
 }
 
+bool KernelModuleIsKernelMode(SceUID uid) {
+	u32 error;
+	PSPModule *module = kernelObjects.Get<PSPModule>(uid, error);
+	if (module) {
+		return (module->nm.attribute & 0x1000) != 0;
+	} else {
+		return false;
+	}
+}
+
 void __KernelLoadReset() {
 	// Wipe kernel here, loadexec should reset the entire system
 	if (__KernelIsRunning()) {
diff --git a/Core/HLE/sceKernelModule.h b/Core/HLE/sceKernelModule.h
index 232c71d23f11..e6fabd9829d3 100644
--- a/Core/HLE/sceKernelModule.h
+++ b/Core/HLE/sceKernelModule.h
@@ -39,6 +39,7 @@ void __KernelModuleDoState(PointerWrap &p);
 void __KernelModuleShutdown();
 
 u32 __KernelGetModuleGP(SceUID module);
+bool KernelModuleIsKernelMode(SceUID module);
 bool __KernelLoadGEDump(const std::string &base_filename, std::string *error_string);
 bool __KernelLoadExec(const char *filename, u32 paramPtr, std::string *error_string);
 void __KernelGPUReplay();
diff --git a/Core/HLE/sceKernelThread.cpp b/Core/HLE/sceKernelThread.cpp
index 698b80c44b12..a1518f248e0c 100644
--- a/Core/HLE/sceKernelThread.cpp
+++ b/Core/HLE/sceKernelThread.cpp
@@ -1959,9 +1959,13 @@ int __KernelCreateThread(const char *threadName, SceUID moduleID, u32 entry, u32
 	// Some are USB/VSH specific, probably removes when they are from the wrong module?
 	attr &= ~PSP_THREAD_ATTR_USER_ERASE;
 
-	// We're assuming all threads created are user threads.
-	if ((attr & PSP_THREAD_ATTR_KERNEL) == 0)
-		attr |= PSP_THREAD_ATTR_USER;
+	if ((attr & PSP_THREAD_ATTR_KERNEL) == 0) {
+		if (allowKernel && (attr & PSP_THREAD_ATTR_USER) == 0) {
+			attr |= PSP_THREAD_ATTR_KERNEL;
+		} else {			
+			attr |= PSP_THREAD_ATTR_USER;
+		}
+	}
 
 	SceUID id = __KernelCreateThreadInternal(threadName, moduleID, entry, prio, stacksize, attr);
 	if ((u32)id == SCE_KERNEL_ERROR_NO_MEMORY)
@@ -1986,8 +1990,9 @@ int __KernelCreateThread(const char *threadName, SceUID moduleID, u32 entry, u32
 
 int sceKernelCreateThread(const char *threadName, u32 entry, u32 prio, int stacksize, u32 attr, u32 optionAddr) {
 	PSPThread *cur = __GetCurrentThread();
-	bool allowKernel = cur ? (cur->nt.attr & PSP_THREAD_ATTR_KERNEL) != 0 : false;
-	return __KernelCreateThread(threadName, __KernelGetCurThreadModuleId(), entry, prio, stacksize, attr, optionAddr, allowKernel);
+	SceUID module = __KernelGetCurThreadModuleId();
+	bool allowKernel = KernelModuleIsKernelMode(module) || hleIsKernelMode() || (cur ? (cur->nt.attr & PSP_THREAD_ATTR_KERNEL) != 0 : false);
+	return __KernelCreateThread(threadName, module, entry, prio, stacksize, attr, optionAddr, allowKernel);
 }
 
 int __KernelStartThread(SceUID threadToStartID, int argSize, u32 argBlockPtr, bool forceArgs) {