diff --git a/reactos/ntoskrnl/ke/i386/init.S b/reactos/ntoskrnl/ke/i386/init.S
new file mode 100644
index 00000000000..2d84d07f050
--- /dev/null
+++ b/reactos/ntoskrnl/ke/i386/init.S
@@ -0,0 +1,39 @@
+/*
+ * FILE:            ntoskrnl/ke/i386/init.S
+ * COPYRIGHT:       See COPYING in the top level directory
+ * PURPOSE:         Kernel Initialization
+ * PROGRAMMER:      Thomas Weidenmueller <w3seek@reactos.org>
+ */
+
+/* INCLUDES ******************************************************************/
+
+#include <asm.h>
+#include <internal/i386/asmmacro.S>
+.intel_syntax noprefix
+
+/* FUNCTIONS ******************************************************************/
+
+.text
+.globl _KiSetupStackAndInitializeKernel@24
+.func KiSetupStackAndInitializeKernel@24
+_KiSetupStackAndInitializeKernel@24:
+
+    mov esi, esp
+
+    /* Setup the new stack */
+    mov esp, [esp + 12]
+    sub esp, NPX_FRAME_LENGTH + KTRAP_FRAME_ALIGN + KTRAP_FRAME_LENGTH
+    push CR0_EM + CR0_TS + CR0_MP
+
+    /* Copy all parameters to the new stack */
+    push [esi + 24]
+    push [esi + 20]
+    push [esi + 16]
+    push [esi + 12]
+    push [esi + 8]
+    push [esi + 4]
+    xor ebp, ebp
+    call _KiInitializeKernel@24
+
+    jmp _KiSystemStartupFinal@0
+.endfunc
diff --git a/reactos/ntoskrnl/ke/i386/kiinit.c b/reactos/ntoskrnl/ke/i386/kiinit.c
index bff40a36a88..ef1b1b409e7 100644
--- a/reactos/ntoskrnl/ke/i386/kiinit.c
+++ b/reactos/ntoskrnl/ke/i386/kiinit.c
@@ -12,6 +12,16 @@
 #define NDEBUG
 #include <debug.h>
 
+
+VOID
+NTAPI
+KiSetupStackAndInitializeKernel(IN PKPROCESS InitProcess,
+                                IN PKTHREAD InitThread,
+                                IN PVOID IdleStack,
+                                IN PKPRCB Prcb,
+                                IN CCHAR Number,
+                                IN PLOADER_PARAMETER_BLOCK LoaderBlock);
+
 /* GLOBALS *******************************************************************/
 
 /* Spinlocks used only on X86 */
@@ -752,28 +762,32 @@ AppCpuInit:
     KfRaiseIrql(HIGH_LEVEL);
 
     /* Align stack and make space for the trap frame and NPX frame */
-    InitialStack &= -KTRAP_FRAME_ALIGN;
-#ifdef __GNUC__
-    __asm__ __volatile__("xorl %ebp, %ebp");
-    __asm__ __volatile__("movl %0,%%esp" : :"r" (InitialStack));
-    __asm__ __volatile__("subl %0,%%esp" : :"r" (NPX_FRAME_LENGTH +
-                                                 KTRAP_FRAME_LENGTH +
-                                                 KTRAP_FRAME_ALIGN));
-    __asm__ __volatile__("push %0" : :"r" (CR0_EM + CR0_TS + CR0_MP));
-#else
-    __asm xor ebp, ebp;
-    __asm mov esp, InitialStack;
-    __asm sub esp, NPX_FRAME_LENGTH + KTRAP_FRAME_ALIGN + KTRAP_FRAME_LENGTH;
-    __asm push CR0_EM + CR0_TS + CR0_MP;
-#endif
+    InitialStack &= ~(KTRAP_FRAME_ALIGN - 1);
 
-    /* Call main kernel initialization */
-    KiInitializeKernel(&KiInitialProcess.Pcb,
-                       InitialThread,
-                       (PVOID)InitialStack,
-                       (PKPRCB)__readfsdword(KPCR_PRCB),
-                       (CCHAR)Cpu,
-                       KeLoaderBlock);
+    /* NOTE: We cannot setup the stack using inline assembly and then later assume
+             that the compiler is smart enough to figure out how the stack layout
+             changed! This is to avoid generating wrong code. We cannot directly
+             call KiInitializeKernel from here! */
+
+    KiSetupStackAndInitializeKernel(&KiInitialProcess.Pcb,
+                                    InitialThread,
+                                    (PVOID)InitialStack,
+                                    (PKPRCB)__readfsdword(KPCR_PRCB),
+                                    (CCHAR)Cpu,
+                                    KeLoaderBlock);
+
+    /* NOTE: KiSetupStackAndInitializeKernel never returns! Do NOT add any code here! */
+    ASSERT(FALSE);
+}
+
+VOID
+NTAPI
+KiSystemStartupFinal(VOID)
+{
+    /* NOTE: This routine is called after setting up the stack in KiSystemStartup!
+             This code cannot be moved to KiSystemStartup because it cannot be assumed
+             that the compiler can generate working code after modifying ESP/EBP
+             using inline assembly! */
 
     /* Set the priority of this thread to 0 */
     KeGetCurrentThread()->Priority = 0;
diff --git a/reactos/ntoskrnl/ntoskrnl.rbuild b/reactos/ntoskrnl/ntoskrnl.rbuild
index d31e7bf3932..90acbe823a8 100644
--- a/reactos/ntoskrnl/ntoskrnl.rbuild
+++ b/reactos/ntoskrnl/ntoskrnl.rbuild
@@ -36,6 +36,7 @@
                 <file>cpu.c</file>
                 <file>ctxswitch.S</file>
                 <file>exp.c</file>
+                <file>init.S</file>
                 <file>irqobj.c</file>
                 <file>kiinit.c</file>
                 <file>ldt.c</file>