diff --git a/lib/propolis/src/hw/chipset/i440fx.rs b/lib/propolis/src/hw/chipset/i440fx.rs
index a3566d96c..5f874c10c 100644
--- a/lib/propolis/src/hw/chipset/i440fx.rs
+++ b/lib/propolis/src/hw/chipset/i440fx.rs
@@ -21,6 +21,7 @@ use crate::hw::pci::{
     self, Bdf, INTxPinID, LintrCfg, PcieCfgDecoder, PioCfgDecoder,
 };
 use crate::intr_pins::{IntrPin, LegacyPIC, LegacyPin, NoOpPin};
+use crate::lifecycle;
 use crate::migrate::*;
 use crate::mmio::MmioFn;
 use crate::pio::{PioBus, PioFn};
@@ -155,6 +156,7 @@ pub struct Opts {
 
 pub struct I440FxHostBridge {
     pci_state: pci::DeviceState,
+    indicator: lifecycle::Indicator,
 
     pci_topology: Arc<pci::topology::Topology>,
     pci_cfg: PioCfgDecoder,
@@ -189,6 +191,7 @@ impl I440FxHostBridge {
 
         Arc::new(Self {
             pci_state,
+            indicator: Default::default(),
 
             pci_topology,
             pci_cfg,
@@ -276,6 +279,19 @@ impl Lifecycle for I440FxHostBridge {
     fn reset(&self) {
         self.pci_state.reset(self);
     }
+    fn start(&self) -> anyhow::Result<()> {
+        self.indicator.start();
+        Ok(())
+    }
+    fn pause(&self) {
+        self.indicator.pause();
+    }
+    fn resume(&self) {
+        self.indicator.resume();
+    }
+    fn halt(&self) {
+        self.indicator.halt();
+    }
     fn migrate(&self) -> Migrator<'_> {
         Migrator::Multi(self)
     }
diff --git a/lib/propolis/src/lifecycle.rs b/lib/propolis/src/lifecycle.rs
index 1d8e194c5..c138ae7c0 100644
--- a/lib/propolis/src/lifecycle.rs
+++ b/lib/propolis/src/lifecycle.rs
@@ -173,7 +173,7 @@ impl IndicatedState {
     const fn valid_transition(old: Self, new: Self) -> bool {
         use IndicatedState::*;
         match (old, new) {
-            (Init, Run) | (Init, Halt) => true,
+            (Init, Run) | (Init, Pause) => true,
             (Run, Pause) => true,
             (Pause, Run) | (Pause, Halt) => true,
             _ => false,
diff --git a/phd-tests/tests/src/server_state_machine.rs b/phd-tests/tests/src/server_state_machine.rs
index c15a59641..352019751 100644
--- a/phd-tests/tests/src/server_state_machine.rs
+++ b/phd-tests/tests/src/server_state_machine.rs
@@ -29,6 +29,22 @@ async fn instance_start_stop_test(ctx: &Framework) {
         .await?;
 }
 
+#[phd_testcase]
+async fn instance_stop_unstarted_test(ctx: &Framework) {
+    let mut vm = ctx.spawn_default_vm("instance_stop_unstarted_test").await?;
+
+    vm.instance_ensure().await?;
+    let instance = vm.get().await?.instance;
+    assert_eq!(instance.state, InstanceState::Creating);
+
+    // At this point the VM is created and its resources are held as
+    // appropriate. Stopping the VM will cause propolis-server to destroy the
+    // VM, releasing those resources and getting the server ready for shutdown.
+    vm.stop().await?;
+    vm.wait_for_state(InstanceState::Destroyed, Duration::from_secs(60))
+        .await?;
+}
+
 #[phd_testcase]
 async fn instance_stop_causes_destroy_test(ctx: &Framework) {
     let mut vm =