diff --git a/lib/cinder b/lib/cinder
index 0eabf400de..c572db49d2 100644
--- a/lib/cinder
+++ b/lib/cinder
@@ -69,10 +69,12 @@ CINDER_PERIODIC_INTERVAL=${CINDER_PERIODIC_INTERVAL:-60}
 # Name of the lvm volume groups to use/create for iscsi volumes
 VOLUME_GROUP=${VOLUME_GROUP:-stack-volumes}
 VOLUME_BACKING_FILE=${VOLUME_BACKING_FILE:-$DATA_DIR/${VOLUME_GROUP}-backing-file}
+VOLUME_BACKING_DEVICE=${VOLUME_BACKING_DEVICE:-}
 
 # VOLUME_GROUP2 is used only if CINDER_MULTI_LVM_BACKEND = True
 VOLUME_GROUP2=${VOLUME_GROUP2:-stack-volumes2}
 VOLUME_BACKING_FILE2=${VOLUME_BACKING_FILE2:-$DATA_DIR/${VOLUME_GROUP2}-backing-file}
+VOLUME_BACKING_DEVICE2=${VOLUME_BACKING_DEVICE2:-}
 
 VOLUME_NAME_PREFIX=${VOLUME_NAME_PREFIX:-volume-}
 
@@ -335,28 +337,35 @@ create_cinder_volume_group() {
     # ``/opt/stack/data``.
 
     if ! sudo vgs $VOLUME_GROUP; then
-        # Only create if the file doesn't already exists
-        [[ -f $VOLUME_BACKING_FILE ]] || truncate -s $VOLUME_BACKING_FILE_SIZE $VOLUME_BACKING_FILE
+        if [ -z "$VOLUME_BACKING_DEVICE" ]; then
+            # Only create if the file doesn't already exists
+            [[ -f $VOLUME_BACKING_FILE ]] || truncate -s $VOLUME_BACKING_FILE_SIZE $VOLUME_BACKING_FILE
+            DEV=`sudo losetup -f --show $VOLUME_BACKING_FILE`
 
-        DEV=`sudo losetup -f --show $VOLUME_BACKING_FILE`
-
-        # Only create if the loopback device doesn't contain $VOLUME_GROUP
-        if ! sudo vgs $VOLUME_GROUP; then
-            sudo vgcreate $VOLUME_GROUP $DEV
+            # Only create if the loopback device doesn't contain $VOLUME_GROUP
+            if ! sudo vgs $VOLUME_GROUP; then
+                sudo vgcreate $VOLUME_GROUP $DEV
+            fi
+        else
+            sudo vgcreate $VOLUME_GROUP $VOLUME_BACKING_DEVICE
         fi
     fi
     if [ "$CINDER_MULTI_LVM_BACKEND" = "True" ]; then
         #set up the second volume if CINDER_MULTI_LVM_BACKEND is enabled
 
         if ! sudo vgs $VOLUME_GROUP2; then
-            # Only create if the file doesn't already exists
-            [[ -f $VOLUME_BACKING_FILE2 ]] || truncate -s $VOLUME_BACKING_FILE_SIZE $VOLUME_BACKING_FILE2
+            if [ -z "$VOLUME_BACKING_DEVICE2" ]; then
+                # Only create if the file doesn't already exists
+                [[ -f $VOLUME_BACKING_FILE2 ]] || truncate -s $VOLUME_BACKING_FILE_SIZE $VOLUME_BACKING_FILE2
 
-            DEV=`sudo losetup -f --show $VOLUME_BACKING_FILE2`
+                DEV=`sudo losetup -f --show $VOLUME_BACKING_FILE2`
 
-            # Only create if the loopback device doesn't contain $VOLUME_GROUP
-            if ! sudo vgs $VOLUME_GROUP2; then
-                sudo vgcreate $VOLUME_GROUP2 $DEV
+                # Only create if the loopback device doesn't contain $VOLUME_GROUP
+                if ! sudo vgs $VOLUME_GROUP2; then
+                    sudo vgcreate $VOLUME_GROUP2 $DEV
+                fi
+            else
+                sudo vgcreate $VOLUME_GROUP2 $VOLUME_BACKING_DEVICE2
             fi
         fi
     fi
diff --git a/tools/xen/install_os_domU.sh b/tools/xen/install_os_domU.sh
index a744869288..be3b540d4b 100755
--- a/tools/xen/install_os_domU.sh
+++ b/tools/xen/install_os_domU.sh
@@ -259,6 +259,19 @@ fi
 FLAT_NETWORK_BRIDGE=$(bridge_for "$VM_BRIDGE_OR_NET_NAME")
 append_kernel_cmdline "$GUEST_NAME" "flat_network_bridge=${FLAT_NETWORK_BRIDGE}"
 
+# Add a separate xvdb, if it was requested
+if [[ "0" != "$XEN_XVDB_SIZE_GB" ]]; then
+    vm=$(xe vm-list name-label="$GUEST_NAME" --minimal)
+
+    # Add a new disk
+    localsr=$(get_local_sr)
+    extra_vdi=$(xe vdi-create \
+        name-label=xvdb-added-by-devstack \
+        virtual-size="${XEN_XVDB_SIZE_GB}GiB" \
+        sr-uuid=$localsr type=user)
+    xe vbd-create vm-uuid=$vm vdi-uuid=$extra_vdi device=1
+fi
+
 # create a snapshot before the first boot
 # to allow a quick re-run with the same settings
 xe vm-snapshot vm="$GUEST_NAME" new-name-label="$SNAME_FIRST_BOOT"
diff --git a/tools/xen/xenrc b/tools/xen/xenrc
index 0ed3a6a7e5..3e2396438a 100644
--- a/tools/xen/xenrc
+++ b/tools/xen/xenrc
@@ -76,4 +76,14 @@ UBUNTU_INST_NAMESERVERS=""
 UBUNTU_INST_NETMASK=""
 UBUNTU_INST_GATEWAY=""
 
+# Create a separate xvdb. Tis could be used as a backing device for cinder
+# volumes. Specify
+#   XEN_XVDB_SIZE_GB=10
+#   VOLUME_BACKING_DEVICE=/dev/xvdb
+# in your localrc to avoid kernel lockups:
+#   https://bugs.launchpad.net/cinder/+bug/1023755
+#
+# Set the size to 0 to avoid creation of additional disk.
+XEN_XVDB_SIZE_GB=0
+
 source ../../stackrc