diff --git a/drivers/net/e1000e/defines.h b/drivers/net/e1000e/defines.h
index 8890c97..4329ec3 100644
--- a/drivers/net/e1000e/defines.h
+++ b/drivers/net/e1000e/defines.h
@@ -575,6 +575,8 @@
 #define PHY_1000T_STATUS 0x0A /* 1000Base-T Status Reg */
 #define PHY_EXT_STATUS   0x0F /* Extended Status Reg */
 
+#define PHY_CONTROL_LB   0x4000 /* PHY Loopback bit */
+
 /* NVM Control */
 #define E1000_EECD_SK        0x00000001 /* NVM Clock */
 #define E1000_EECD_CS        0x00000002 /* NVM Chip Select */
diff --git a/drivers/net/e1000e/phy.c b/drivers/net/e1000e/phy.c
index e23459c..d845394 100644
--- a/drivers/net/e1000e/phy.c
+++ b/drivers/net/e1000e/phy.c
@@ -2737,6 +2737,11 @@
 	if (hw->phy.type != e1000_phy_82578)
 		goto out;
 
+	/* Do not apply workaround if in PHY loopback bit 14 set */
+	hw->phy.ops.read_phy_reg(hw, PHY_CONTROL, &data);
+	if (data & PHY_CONTROL_LB)
+		goto out;
+
 	/* check if link is up and at 1Gbps */
 	ret_val = hw->phy.ops.read_phy_reg(hw, BM_CS_STATUS, &data);
 	if (ret_val)