Index: virt-manager-1.0.1/virtinst/guest.py
===================================================================
--- virt-manager-1.0.1.orig/virtinst/guest.py
+++ virt-manager-1.0.1/virtinst/guest.py
@@ -331,7 +331,16 @@ class Guest(XMLBuilder):
                           this.)
         @type disk_boot: C{bool}
         """
-        osblob_install = install and not disk_boot
+        boot_pvgrub2 = False
+        if install == False and self.os.is_xenpv():
+            os_ver = self._get_os_variant()
+            if os_ver == "sles12" or os_ver == "sled12":
+                boot_pvgrub2 = True
+                self.installer._install_kernel = "/usr/lib/grub2/x86_64-xen/grub.xen"
+                self.installer._install_initrd = None
+                self.installer.extraargs = None
+                logging.info("Using grub.xen to boot guest")
+        osblob_install = (install or boot_pvgrub2) and not disk_boot
         if osblob_install and not self.installer.has_install_phase():
             return None
 
@@ -348,7 +357,8 @@ class Guest(XMLBuilder):
         if (not install and
             self.os.is_xenpv() and
             not self.os.kernel):
-            self.bootloader = "/usr/bin/pygrub"
+            if boot_pvgrub2 is False:
+                self.bootloader = "/usr/bin/pygrub"
             self.os.clear()
 
         return self.get_xml_config()