diff --git a/subsystems/ntvdm/emulator.c b/subsystems/ntvdm/emulator.c
index fe4bdfd4a13..6128d5d6ffc 100644
--- a/subsystems/ntvdm/emulator.c
+++ b/subsystems/ntvdm/emulator.c
@@ -203,7 +203,7 @@ VOID EmulatorSimulate(VOID)
     }
     CpuCallLevel++;
 
-    CpuSimulate = TRUE;
+    VdmRunning = CpuSimulate = TRUE;
     while (VdmRunning && CpuSimulate) ClockUpdate();
 
     CpuCallLevel--;