diff --git a/android/virtmgr/src/aidl.rs b/android/virtmgr/src/aidl.rs
index 9a733b6..55de0af 100644
--- a/android/virtmgr/src/aidl.rs
+++ b/android/virtmgr/src/aidl.rs
@@ -445,20 +445,25 @@
         let context = EarlyVmContext::new(cid, temp_dir.clone())
             .context(format!("Can't create early vm contexts for {cid}"))
             .or_service_specific_exception(-1)?;
-        let service = VirtualMachineService::new_binder(self.state.clone(), cid).as_binder();
 
-        // Start VM service listening for connections from the new CID on port=CID.
-        let port = cid;
-        let (vm_server, _) = RpcServer::new_vsock(service, cid, port)
-            .context(format!("Could not start RpcServer on port {port}"))
-            .or_service_specific_exception(-1)?;
-        vm_server.start();
-        Ok((VmContext::new(Strong::new(Box::new(context)), vm_server), cid, temp_dir))
+        if requires_vm_service(config) {
+            // Start VM service listening for connections from the new CID on port=CID.
+            let service = VirtualMachineService::new_binder(self.state.clone(), cid).as_binder();
+            let port = cid;
+            let (vm_server, _) = RpcServer::new_vsock(service, cid, port)
+                .context(format!("Could not start RpcServer on port {port}"))
+                .or_service_specific_exception(-1)?;
+            vm_server.start();
+            Ok((VmContext::new(Strong::new(Box::new(context)), Some(vm_server)), cid, temp_dir))
+        } else {
+            Ok((VmContext::new(Strong::new(Box::new(context)), None), cid, temp_dir))
+        }
     }
 
     fn create_vm_context(
         &self,
         requester_debug_pid: pid_t,
+        config: &VirtualMachineConfig,
     ) -> binder::Result<(VmContext, Cid, PathBuf)> {
         const NUM_ATTEMPTS: usize = 5;
 
@@ -466,6 +471,12 @@
             let vm_context = GLOBAL_SERVICE.allocateGlobalVmContext(requester_debug_pid)?;
             let cid = vm_context.getCid()? as Cid;
             let temp_dir: PathBuf = vm_context.getTemporaryDirectory()?.into();
+
+            // We don't need to start the VM service for custom VMs.
+            if !requires_vm_service(config) {
+                return Ok((VmContext::new(vm_context, None), cid, temp_dir));
+            }
+
             let service = VirtualMachineService::new_binder(self.state.clone(), cid).as_binder();
 
             // Start VM service listening for connections from the new CID on port=CID.
@@ -473,7 +484,7 @@
             match RpcServer::new_vsock(service, cid, port) {
                 Ok((vm_server, _)) => {
                     vm_server.start();
-                    return Ok((VmContext::new(vm_context, vm_server), cid, temp_dir));
+                    return Ok((VmContext::new(vm_context, Some(vm_server)), cid, temp_dir));
                 }
                 Err(err) => {
                     warn!("Could not start RpcServer on port {}: {}", port, err);
@@ -509,7 +520,7 @@
         let (vm_context, cid, temporary_directory) = if cfg!(early) {
             self.create_early_vm_context(config)?
         } else {
-            self.create_vm_context(requester_debug_pid)?
+            self.create_vm_context(requester_debug_pid, config)?
         };
 
         if is_custom_config(config) {
@@ -820,6 +831,17 @@
     }
 }
 
+/// Returns whether a VM config requires VirtualMachineService running on the host. Only Microdroid
+/// VM (i.e. AppConfig) requires it. However, a few Microdroid tests use RawConfig for Microdroid
+/// VM. To handle the exceptional case, we use name as a second criteria; if the name is
+/// "microdroid" we run VirtualMachineService
+fn requires_vm_service(config: &VirtualMachineConfig) -> bool {
+    match config {
+        VirtualMachineConfig::AppConfig(_) => true,
+        VirtualMachineConfig::RawConfig(config) => config.name == "microdroid",
+    }
+}
+
 fn extract_vendor_hashtree_digest(config: &VirtualMachineConfig) -> Result<Option<Vec<u8>>> {
     let VirtualMachineConfig::AppConfig(config) = config else {
         return Ok(None);
diff --git a/android/virtmgr/src/crosvm.rs b/android/virtmgr/src/crosvm.rs
index 46f4e80..1ccabec 100644
--- a/android/virtmgr/src/crosvm.rs
+++ b/android/virtmgr/src/crosvm.rs
@@ -360,12 +360,15 @@
     #[allow(dead_code)] // Keeps the global context alive
     pub(crate) global_context: Strong<dyn IGlobalVmContext>,
     #[allow(dead_code)] // Keeps the server alive
-    vm_server: RpcServer,
+    vm_server: Option<RpcServer>,
 }
 
 impl VmContext {
     /// Construct new VmContext.
-    pub fn new(global_context: Strong<dyn IGlobalVmContext>, vm_server: RpcServer) -> VmContext {
+    pub fn new(
+        global_context: Strong<dyn IGlobalVmContext>,
+        vm_server: Option<RpcServer>,
+    ) -> VmContext {
         VmContext { global_context, vm_server }
     }
 }
@@ -655,7 +658,9 @@
 
         // Now that the VM has been killed, shut down the VirtualMachineService
         // server to eagerly free up the server threads.
-        self.vm_context.vm_server.shutdown()?;
+        if let Some(vm_server) = &self.vm_context.vm_server {
+            vm_server.shutdown()?;
+        }
 
         Ok(())
     }