diff --git a/0001-qemu-check-backing-chains-even-when-cgroup-is-omitte.patch b/0001-qemu-check-backing-chains-even-when-cgroup-is-omitte.patch
new file mode 100644
index 0000000..e3ac506
--- /dev/null
+++ b/0001-qemu-check-backing-chains-even-when-cgroup-is-omitte.patch
@@ -0,0 +1,53 @@
+From 82d5fe543720da6d83c1d6bfa1c347d7d9fda278 Mon Sep 17 00:00:00 2001
+From: Eric Blake <eblake@redhat.com>
+Date: Wed, 20 Feb 2013 15:34:48 -0700
+Subject: [PATCH] qemu: check backing chains even when cgroup is omitted
+
+https://bugzilla.redhat.com/show_bug.cgi?id=896685 points out
+a regression caused by commit 38c4a9c - libvirt only labels
+the backing chain if the backing chain cache is populated, but
+the code to populate the cache was only conditionally performed
+if cgroup labeling was necessary.
+
+* src/qemu/qemu_cgroup.c (qemuSetupCgroup): Hoist cache setup...
+* src/qemu/qemu_process.c (qemuProcessStart): ...earlier into
+caller, where it is now unconditional.
+---
+ src/qemu/qemu_cgroup.c  | 4 +---
+ src/qemu/qemu_process.c | 5 +++++
+ 2 files changed, 6 insertions(+), 3 deletions(-)
+
+diff --git a/src/qemu/qemu_cgroup.c b/src/qemu/qemu_cgroup.c
+index 4fde1af..e65b486 100644
+--- a/src/qemu/qemu_cgroup.c
++++ b/src/qemu/qemu_cgroup.c
+@@ -234,9 +234,7 @@ int qemuSetupCgroup(virQEMUDriverPtr driver,
+         }
+ 
+         for (i = 0; i < vm->def->ndisks ; i++) {
+-            if (qemuDomainDetermineDiskChain(driver, vm->def->disks[i],
+-                                             false) < 0 ||
+-                qemuSetupDiskCgroup(vm, cgroup, vm->def->disks[i]) < 0)
++            if (qemuSetupDiskCgroup(vm, cgroup, vm->def->disks[i]) < 0)
+                 goto cleanup;
+         }
+ 
+diff --git a/src/qemu/qemu_process.c b/src/qemu/qemu_process.c
+index aade682..b560d2e 100644
+--- a/src/qemu/qemu_process.c
++++ b/src/qemu/qemu_process.c
+@@ -3706,6 +3706,11 @@ int qemuProcessStart(virConnectPtr conn,
+         goto cleanup;
+ 
+     VIR_DEBUG("Checking for CDROM and floppy presence");
++    for (i = 0; i < vm->def->ndisks ; i++) {
++        if (qemuDomainDetermineDiskChain(driver, vm->def->disks[i],
++                                         false) < 0)
++            goto cleanup;
++    }
+     if (qemuDomainCheckDiskPresence(driver, vm,
+                                     flags & VIR_QEMU_PROCESS_START_COLD) < 0)
+         goto cleanup;
+-- 
+1.8.1.2
+
diff --git a/libvirt.spec b/libvirt.spec
index 2b0a0f7..062a9de 100644
--- a/libvirt.spec
+++ b/libvirt.spec
@@ -341,7 +341,7 @@
 Summary: Library providing a simple virtualization API
 Name: libvirt
 Version: 1.0.2
-Release: 2%{?dist}%{?extra_release}
+Release: 3%{?dist}%{?extra_release}
 License: LGPLv2+
 Group: Development/Libraries
 BuildRoot: %{_tmppath}/%{name}-%{version}-%{release}-root
@@ -353,6 +353,7 @@ URL: http://libvirt.org/
 Source: http://libvirt.org/sources/%{?mainturl}libvirt-%{version}.tar.gz
 Patch1: 0001-complete-virterror-virerror-name-change.patch
 Patch2: 0001-Fix-missing-error-constants-in-libvirt-python-module.patch
+Patch3: 0001-qemu-check-backing-chains-even-when-cgroup-is-omitte.patch
 
 %if %{with_libvirtd}
 Requires: libvirt-daemon = %{version}-%{release}
@@ -1082,6 +1083,7 @@ of recent versions of Linux (and other OSes).
 %setup -q
 %patch1 -p1
 %patch2 -p1
+%patch3 -p1
 
 %build
 %if ! %{with_xen}
@@ -1998,6 +2000,10 @@ fi
 %endif
 
 %changelog
+* Thu Feb 28 2013 Richard W.M. Jones <rjones@redhat.com> - 1.0.2-3
+- Backport "qemu: check backing chains even when cgroup is omitted"
+  (RHBZ#896685).
+
 * Tue Feb  5 2013 Daniel P. Berrange <berrange@redhat.com> - 1.0.2-2
 - Fix missing python binding constants