diff --git a/libxl-remove-cdrom-cachemode.patch b/libxl-remove-cdrom-cachemode.patch
new file mode 100644
index 0000000..23f258d
--- /dev/null
+++ b/libxl-remove-cdrom-cachemode.patch
@@ -0,0 +1,37 @@
+commit 3feb9059c31a5c08ec2c2ef81de439b6dec4f101
+Author: Jim Fehlig <jfehlig@suse.com>
+Date:   Thu Apr 28 11:30:19 2016 -0600
+
+    libxl: don't add cache mode for qdisk cdrom drives
+    
+    qemu commit 91a097e7 forbids specifying cache mode for empty
+    drives. Attempting to create a domain with an empty qdisk cdrom
+    drive results in
+    
+    qemu-system-x86_64: -drive if=ide,index=1,readonly=on,media=cdrom,
+       cache=writeback,id=ide-832: Must specify either driver or file
+    
+    libxl only allows an empty 'target=' for cdroms. By default, cdroms
+    are readonly (see the 'access' parameter in xl-disk-configuration.txt)
+    and forced to readonly by any tools (e.g. xl) using libxlutil's
+    xlu_disk_parse() function. With cdroms always marked readonly,
+    explicitly specifying the cache mode for cdrom drives can be dropped.
+    The drive's 'readonly=on' option can also be set unconditionally.
+    
+    Signed-off-by: Jim Fehlig <jfehlig@suse.com>
+
+Index: xen-4.7.0-testing/tools/libxl/libxl_dm.c
+===================================================================
+--- xen-4.7.0-testing.orig/tools/libxl/libxl_dm.c
++++ xen-4.7.0-testing/tools/libxl/libxl_dm.c
+@@ -1368,8 +1368,8 @@ static int libxl__build_device_model_arg
+ 
+             if (disks[i].is_cdrom) {
+                 drive = libxl__sprintf(gc,
+-                         "if=ide,index=%d,readonly=%s,media=cdrom,cache=writeback,id=ide-%i",
+-                         disk, disks[i].readwrite ? "off" : "on", dev_number);
++                         "if=ide,index=%d,readonly=on,media=cdrom,id=ide-%i",
++                         disk, dev_number);
+ 
+                 if (target_path)
+                     drive = libxl__sprintf(gc, "%s,file=%s,format=%s",
diff --git a/xen.changes b/xen.changes
index d9a0c4a..1ce547c 100644
--- a/xen.changes
+++ b/xen.changes
@@ -1,3 +1,9 @@
+-------------------------------------------------------------------
+Tue May  3 17:25:08 UTC 2016 - jfehlig@suse.com
+
+- bsc#977329 - Xen: Cannot boot HVM guests with empty cdrom
+  libxl-remove-cdrom-cachemode.patch
+
 -------------------------------------------------------------------
 Tue May  3 08:25:27 MDT 2016 - carnold@suse.com
 
diff --git a/xen.spec b/xen.spec
index 7be2327..e7b1a3c 100644
--- a/xen.spec
+++ b/xen.spec
@@ -160,7 +160,7 @@ BuildRequires:  xorg-x11-util-devel
 %endif
 %endif
 
-Version:        4.7.0_01
+Version:        4.7.0_02
 Release:        0
 Summary:        Xen Virtualization: Hypervisor (aka VMM aka Microkernel)
 License:        GPL-2.0
@@ -262,6 +262,7 @@ Patch403:       xl-conf-default-bridge.patch
 Patch420:       suspend_evtchn_lock.patch
 Patch421:       xenpaging.doc.patch
 Patch422:       stubdom-have-iovec.patch
+Patch423:       libxl-remove-cdrom-cachemode.patch
 # Other bug fixes or features
 Patch451:       xenconsole-no-multiple-connections.patch
 Patch452:       hibernate.patch
@@ -578,6 +579,7 @@ Authors:
 %patch420 -p1
 %patch421 -p1
 %patch422 -p1
+%patch423 -p1
 # Other bug fixes or features
 %patch451 -p1
 %patch452 -p1