diff --git a/java/framework/src/android/system/virtualmachine/VirtualMachine.java b/java/framework/src/android/system/virtualmachine/VirtualMachine.java
index 9a38acf..a5c8062 100644
--- a/java/framework/src/android/system/virtualmachine/VirtualMachine.java
+++ b/java/framework/src/android/system/virtualmachine/VirtualMachine.java
@@ -852,11 +852,11 @@
                 VirtualMachineConfig vmConfig = getConfig();
                 VirtualMachineAppConfig appConfig =
                         vmConfig.toVsConfig(mContext.getPackageManager());
+                appConfig.instanceImage =
+                        ParcelFileDescriptor.open(mInstanceFilePath, MODE_READ_WRITE);
                 appConfig.name = mName;
                 if (mInstanceIdPath != null) {
                     appConfig.instanceId = Files.readAllBytes(mInstanceIdPath.toPath());
-                    appConfig.instanceImage =
-                            ParcelFileDescriptor.open(mInstanceFilePath, MODE_READ_WRITE);
                 } else {
                     // FEATURE_LLPVM_CHANGES is disabled, instance_id is not used.
                     appConfig.instanceId = new byte[64];
@@ -1298,7 +1298,9 @@
             try {
                 return new VirtualMachineDescriptor(
                         ParcelFileDescriptor.open(mConfigFilePath, MODE_READ_ONLY),
-                        ParcelFileDescriptor.open(mInstanceIdPath, MODE_READ_ONLY),
+                        mInstanceIdPath != null
+                                ? ParcelFileDescriptor.open(mInstanceIdPath, MODE_READ_ONLY)
+                                : null,
                         ParcelFileDescriptor.open(mInstanceFilePath, MODE_READ_ONLY),
                         mEncryptedStoreFilePath != null
                                 ? ParcelFileDescriptor.open(mEncryptedStoreFilePath, MODE_READ_ONLY)
diff --git a/microdroid_manager/src/dice.rs b/microdroid_manager/src/dice.rs
index a8b88aa..2469325 100644
--- a/microdroid_manager/src/dice.rs
+++ b/microdroid_manager/src/dice.rs
@@ -14,11 +14,11 @@
 
 use crate::dice_driver::DiceDriver;
 use crate::instance::{ApexData, ApkData};
-use crate::{is_debuggable, MicrodroidData};
+use crate::{is_debuggable, is_strict_boot, MicrodroidData};
 use anyhow::{bail, Context, Result};
 use ciborium::{cbor, Value};
 use coset::CborSerializable;
-use diced_open_dice::OwnedDiceArtifacts;
+use diced_open_dice::{Hidden, OwnedDiceArtifacts, HIDDEN_SIZE};
 use microdroid_metadata::PayloadMetadata;
 use openssl::sha::{sha512, Sha512};
 use std::iter::once;
@@ -53,10 +53,37 @@
     let debuggable = is_debuggable()?;
 
     // Send the details to diced
-    let hidden = instance_data.salt.clone().try_into().unwrap();
+    let hidden = if cfg!(llpvm_changes) {
+        hidden_input_from_instance_id()?
+    } else {
+        instance_data.salt.clone().try_into().unwrap()
+    };
     dice.derive(code_hash, &config_descriptor, authority_hash, debuggable, hidden)
 }
 
+// Get the "Hidden input" for DICE derivation.
+// This provides differentiation of secrets for different VM instances with same payload.
+fn hidden_input_from_instance_id() -> Result<Hidden> {
+    // For protected VM: this is all 0s, pvmfw ensures differentiation is added early in secrets.
+    // For non-protected VM: this is derived from instance_id of the VM instance.
+    let hidden_input = if !is_strict_boot() {
+        if let Some(id) = super::get_instance_id()? {
+            sha512(&id)
+        } else {
+            // TODO(b/325094712): Absence of instance_id occurs due to missing DT in some
+            // x86_64 test devices (such as Cuttlefish). From security perspective, this is
+            // acceptable for non-protected VM.
+            log::warn!(
+                "Instance Id missing, this may lead to 2 non protected VMs having same secrets"
+            );
+            [0u8; HIDDEN_SIZE]
+        }
+    } else {
+        [0u8; HIDDEN_SIZE]
+    };
+    Ok(hidden_input)
+}
+
 struct Subcomponent {
     name: String,
     version: u64,
diff --git a/microdroid_manager/src/instance.rs b/microdroid_manager/src/instance.rs
index 7a9f0e0..f42b86d 100644
--- a/microdroid_manager/src/instance.rs
+++ b/microdroid_manager/src/instance.rs
@@ -273,6 +273,8 @@
 
 #[derive(Debug, Serialize, Deserialize, PartialEq, Eq)]
 pub struct MicrodroidData {
+    // `salt` is obsolete, it was used as a differentiator for non-protected VM instances running
+    // same payload. Instance-id (present in DT) is used for that now.
     pub salt: Vec<u8>, // Should be [u8; 64] but that isn't serializable.
     pub apk_data: ApkData,
     pub extra_apks_data: Vec<ApkData>,
diff --git a/microdroid_manager/src/main.rs b/microdroid_manager/src/main.rs
index 0d67632..e8017e8 100644
--- a/microdroid_manager/src/main.rs
+++ b/microdroid_manager/src/main.rs
@@ -42,7 +42,7 @@
 use keystore2_crypto::ZVec;
 use libc::VMADDR_CID_HOST;
 use log::{error, info};
-use microdroid_metadata::PayloadMetadata;
+use microdroid_metadata::{Metadata, PayloadMetadata};
 use microdroid_payload_config::{ApkConfig, OsConfig, Task, TaskType, VmPayloadConfig};
 use nix::sys::signal::Signal;
 use payload::load_metadata;
@@ -236,16 +236,12 @@
     }
 }
 
-fn try_run_payload(
-    service: &Strong<dyn IVirtualMachineService>,
-    vm_payload_service_fd: OwnedFd,
-) -> Result<i32> {
-    let metadata = load_metadata().context("Failed to load payload metadata")?;
-    let dice = DiceDriver::new(Path::new("/dev/open-dice0")).context("Failed to load DICE")?;
-
+fn verify_payload_with_instance_img(
+    metadata: &Metadata,
+    dice: &DiceDriver,
+) -> Result<MicrodroidData> {
     let mut instance = InstanceDisk::new().context("Failed to load instance.img")?;
-    let saved_data =
-        instance.read_microdroid_data(&dice).context("Failed to read identity data")?;
+    let saved_data = instance.read_microdroid_data(dice).context("Failed to read identity data")?;
 
     if is_strict_boot() {
         // Provisioning must happen on the first boot and never again.
@@ -265,7 +261,7 @@
     }
 
     // Verify the payload before using it.
-    let extracted_data = verify_payload(&metadata, saved_data.as_ref())
+    let extracted_data = verify_payload(metadata, saved_data.as_ref())
         .context("Payload verification failed")
         .map_err(|e| MicrodroidError::PayloadVerificationFailed(e.to_string()))?;
 
@@ -289,10 +285,28 @@
     } else {
         info!("Saving verified data.");
         instance
-            .write_microdroid_data(&extracted_data, &dice)
+            .write_microdroid_data(&extracted_data, dice)
             .context("Failed to write identity data")?;
         extracted_data
     };
+    Ok(instance_data)
+}
+
+fn try_run_payload(
+    service: &Strong<dyn IVirtualMachineService>,
+    vm_payload_service_fd: OwnedFd,
+) -> Result<i32> {
+    let metadata = load_metadata().context("Failed to load payload metadata")?;
+    let dice = DiceDriver::new(Path::new("/dev/open-dice0")).context("Failed to load DICE")?;
+
+    // TODO(b/291306122): Checking with host about Secretkeeper support multiple times introduces
+    // a whole range of security vulnerability since host can give different answers. Guest should
+    // check only once and the same answer should be known to pVM Firmware and Microdroid.
+    let instance_data = if let Some(_sk) = vm_secret::is_sk_supported(service)? {
+        verify_payload(&metadata, None)?
+    } else {
+        verify_payload_with_instance_img(&metadata, &dice)?
+    };
 
     let payload_metadata = metadata.payload.ok_or_else(|| {
         MicrodroidError::PayloadInvalidConfig("No payload config in metadata".to_string())
diff --git a/microdroid_manager/src/verify.rs b/microdroid_manager/src/verify.rs
index 445c1ae..65c32b0 100644
--- a/microdroid_manager/src/verify.rs
+++ b/microdroid_manager/src/verify.rs
@@ -169,13 +169,14 @@
     // verified is consistent with the root hash) or because we have the saved APK data which will
     // be checked as identical to the data we have verified.
 
-    // Use the salt from a verified instance, or generate a salt for a new instance.
-    let salt = if let Some(saved_data) = saved_data {
-        saved_data.salt.clone()
-    } else if is_strict_boot() {
-        // No need to add more entropy as a previous stage must have used a new, random salt.
+    let salt = if cfg!(llpvm_changes) || is_strict_boot() {
+        // Salt is obsolete with llpvm_changes.
         vec![0u8; 64]
+    } else if let Some(saved_data) = saved_data {
+        // Use the salt from a verified instance.
+        saved_data.salt.clone()
     } else {
+        // Generate a salt for a new instance.
         let mut salt = vec![0u8; 64];
         salt.as_mut_slice().try_fill(&mut rand::thread_rng())?;
         salt
diff --git a/microdroid_manager/src/vm_secret.rs b/microdroid_manager/src/vm_secret.rs
index 4ead211..91f5abd 100644
--- a/microdroid_manager/src/vm_secret.rs
+++ b/microdroid_manager/src/vm_secret.rs
@@ -268,9 +268,9 @@
     anyhow!("{:?}", err)
 }
 
-// Get the secretkeeper connection if supported. Host can be consulted whether the device supports
-// secretkeeper but that should be used with caution for protected VM.
-fn is_sk_supported(
+/// Get the secretkeeper connection if supported. Host can be consulted whether the device supports
+/// secretkeeper but that should be used with caution for protected VM.
+pub fn is_sk_supported(
     host: &Strong<dyn IVirtualMachineService>,
 ) -> Result<Option<Strong<dyn ISecretkeeper>>> {
     let sk = if cfg!(llpvm_changes) {
diff --git a/tests/testapk/src/java/com/android/microdroid/test/MicrodroidTests.java b/tests/testapk/src/java/com/android/microdroid/test/MicrodroidTests.java
index 3b8b4ac..51aace4 100644
--- a/tests/testapk/src/java/com/android/microdroid/test/MicrodroidTests.java
+++ b/tests/testapk/src/java/com/android/microdroid/test/MicrodroidTests.java
@@ -1070,6 +1070,10 @@
     })
     public void instancesOfSameVmHaveDifferentCdis() throws Exception {
         assumeSupportedDevice();
+        // TODO(b/325094712): VMs on CF with same payload have the same secret. This is because
+        // `instance-id` which is input to DICE is contained in DT which is missing in CF.
+        assumeFalse(
+                "Cuttlefish doesn't support device tree under /proc/device-tree", isCuttlefish());
 
         grantPermission(VirtualMachine.USE_CUSTOM_VIRTUAL_MACHINE_PERMISSION);
         VirtualMachineConfig normalConfig =
@@ -1504,6 +1508,10 @@
     @CddTest(requirements = {"9.17/C-1-1"})
     public void encryptedStorageIsInaccessibleToDifferentVm() throws Exception {
         assumeSupportedDevice();
+        // TODO(b/325094712): VMs on CF with same payload have the same secret. This is because
+        // `instance-id` which is input to DICE is contained in DT which is missing in CF.
+        assumeFalse(
+                "Cuttlefish doesn't support device tree under /proc/device-tree", isCuttlefish());
 
         VirtualMachineConfig config =
                 newVmConfigBuilderWithPayloadBinary("MicrodroidTestNativeLib.so")