diff --git a/arch/arm/mach-shmobile/board-lager.c b/arch/arm/mach-shmobile/board-lager.c
index ffb6f0ac7606..5930af8d434f 100644
--- a/arch/arm/mach-shmobile/board-lager.c
+++ b/arch/arm/mach-shmobile/board-lager.c
@@ -29,6 +29,7 @@
 #include <linux/pinctrl/machine.h>
 #include <linux/platform_data/gpio-rcar.h>
 #include <linux/platform_device.h>
+#include <linux/phy.h>
 #include <linux/regulator/fixed.h>
 #include <linux/regulator/machine.h>
 #include <linux/sh_eth.h>
@@ -155,6 +156,30 @@ static void __init lager_add_standard_devices(void)
 					  &ether_pdata, sizeof(ether_pdata));
 }
 
+/*
+ * Ether LEDs on the Lager board are named LINK and ACTIVE which corresponds
+ * to non-default 01 setting of the Micrel KSZ8041 PHY control register 1 bits
+ * 14-15. We have to set them back to 01 from the default 00 value each time
+ * the PHY is reset. It's also important because the PHY's LED0 signal is
+ * connected to SoC's ETH_LINK signal and in the PHY's default mode it will
+ * bounce on and off after each packet, which we apparently want to avoid.
+ */
+static int lager_ksz8041_fixup(struct phy_device *phydev)
+{
+	u16 phyctrl1 = phy_read(phydev, 0x1e);
+
+	phyctrl1 &= ~0xc000;
+	phyctrl1 |= 0x4000;
+	return phy_write(phydev, 0x1e, phyctrl1);
+}
+
+static void __init lager_init(void)
+{
+	lager_add_standard_devices();
+
+	phy_register_fixup_for_id("r8a7790-ether-ff:01", lager_ksz8041_fixup);
+}
+
 static const char *lager_boards_compat_dt[] __initdata = {
 	"renesas,lager",
 	NULL,
@@ -163,6 +188,6 @@ static const char *lager_boards_compat_dt[] __initdata = {
 DT_MACHINE_START(LAGER_DT, "lager")
 	.init_early	= r8a7790_init_delay,
 	.init_time	= r8a7790_timer_init,
-	.init_machine	= lager_add_standard_devices,
+	.init_machine	= lager_init,
 	.dt_compat	= lager_boards_compat_dt,
 MACHINE_END