diff --git a/rpcs3/Emu/Cell/PPUThread.cpp b/rpcs3/Emu/Cell/PPUThread.cpp
index 7ecb5d05b5..3df05e8421 100644
--- a/rpcs3/Emu/Cell/PPUThread.cpp
+++ b/rpcs3/Emu/Cell/PPUThread.cpp
@@ -3049,12 +3049,29 @@ static bool ppu_store_reservation(ppu_thread& ppu, u32 addr, u64 reg_value)
 		return false;
 	}())
 	{
-		// Test a common pattern in lwmutex
 		extern atomic_t<u32> liblv2_begin, liblv2_end;
 
+		const u32 notify = ppu.res_notify;
+
+		if (notify)
+		{
+			vm::reservation_notifier(notify).notify_all();
+			ppu.res_notify = 0;
+		}
+
+		// Avoid notifications from lwmutex or sys_spinlock
 		if (ppu.cia < liblv2_begin || ppu.cia >= liblv2_end)
 		{
-			res.notify_all();
+			if (!notify)
+			{
+				// Try to postpone notification to when PPU is asleep or join notifications on the same address
+				// This also optimizes a mutex - won't notify after lock is aqcuired (prolonging the critical section duration), only notifies on unlock
+				ppu.res_notify = addr;
+			}
+			else if ((addr ^ notify) & -128)
+			{
+				res.notify_all();
+			}
 		}
 
 		if (addr == ppu.last_faddr)
@@ -3066,6 +3083,16 @@ static bool ppu_store_reservation(ppu_thread& ppu, u32 addr, u64 reg_value)
 		return true;
 	}
 
+	const u32 notify = ppu.res_notify;
+
+	// Do not risk postponing too much (because this is probably an indefinite loop)
+	// And on failure it has some time to do something else
+	if (notify && ((addr ^ notify) & -128))
+	{
+		vm::reservation_notifier(notify).notify_all();
+		ppu.res_notify = 0;
+	}
+
 	return false;
 }
 
diff --git a/rpcs3/Emu/Cell/PPUThread.h b/rpcs3/Emu/Cell/PPUThread.h
index 2bb03c412c..72b99eae61 100644
--- a/rpcs3/Emu/Cell/PPUThread.h
+++ b/rpcs3/Emu/Cell/PPUThread.h
@@ -262,6 +262,7 @@ public:
 	u64 rtime{0};
 	alignas(64) std::byte rdata[128]{}; // Reservation data
 	bool use_full_rdata{};
+	u32 res_notify{};
 
 	union ppu_prio_t
 	{
diff --git a/rpcs3/Emu/Cell/lv2/lv2.cpp b/rpcs3/Emu/Cell/lv2/lv2.cpp
index b265c83dfe..f49e070d03 100644
--- a/rpcs3/Emu/Cell/lv2/lv2.cpp
+++ b/rpcs3/Emu/Cell/lv2/lv2.cpp
@@ -2,6 +2,7 @@
 #include "Emu/System.h"
 #include "Emu/system_config.h"
 #include "Emu/Memory/vm_ptr.h"
+#include "Emu/Memory/vm_reservation.h"
 #include "Emu/Memory/vm_locking.h"
 
 #include "Emu/Cell/PPUFunction.h"
@@ -1268,6 +1269,31 @@ bool lv2_obj::sleep(cpu_thread& cpu, const u64 timeout)
 		prepare_for_sleep(cpu);
 	}
 
+	if (cpu.id_type() == 1)
+	{
+		if (u32 addr = static_cast<ppu_thread&>(cpu).res_notify)
+		{
+			static_cast<ppu_thread&>(cpu).res_notify = 0;
+
+			const usz notify_later_idx = std::basic_string_view<const void*>{g_to_notify, std::size(g_to_notify)}.find_first_of(std::add_pointer_t<const void>{});
+
+			if (notify_later_idx != umax)
+			{
+				g_to_notify[notify_later_idx] = &vm::reservation_notifier(addr);
+
+				if (notify_later_idx < std::size(g_to_notify) - 1)
+				{
+					// Null-terminate the list if it ends before last slot
+					g_to_notify[notify_later_idx + 1] = nullptr;
+				}
+			}
+			else
+			{
+				vm::reservation_notifier(addr).notify_all();
+			}
+		}
+	}
+
 	bool result = false;
 	const u64 current_time = get_guest_system_time();
 	{
@@ -1294,6 +1320,31 @@ bool lv2_obj::sleep(cpu_thread& cpu, const u64 timeout)
 
 bool lv2_obj::awake(cpu_thread* thread, s32 prio)
 {
+	if (ppu_thread* ppu = cpu_thread::get_current<ppu_thread>())
+	{
+		if (u32 addr = ppu->res_notify)
+		{
+			ppu->res_notify = 0;
+
+			const usz notify_later_idx = std::basic_string_view<const void*>{g_to_notify, std::size(g_to_notify)}.find_first_of(std::add_pointer_t<const void>{});
+
+			if (notify_later_idx != umax)
+			{
+				g_to_notify[notify_later_idx] = &vm::reservation_notifier(addr);
+
+				if (notify_later_idx < std::size(g_to_notify) - 1)
+				{
+					// Null-terminate the list if it ends before last slot
+					g_to_notify[notify_later_idx + 1] = nullptr;
+				}
+			}
+			else
+			{
+				vm::reservation_notifier(addr).notify_all();
+			}
+		}
+	}
+
 	bool result = false;
 	{
 		std::lock_guard lock(g_mutex);
@@ -1673,7 +1724,7 @@ void lv2_obj::cleanup()
 
 void lv2_obj::schedule_all(u64 current_time)
 {
-	usz notify_later_idx = 0;
+	usz notify_later_idx = std::basic_string_view<const void*>{g_to_notify, std::size(g_to_notify)}.find_first_of(std::add_pointer_t<const void>{});
 
 	if (!g_pending && g_scheduler_ready)
 	{
@@ -1692,7 +1743,7 @@ void lv2_obj::schedule_all(u64 current_time)
 					continue;
 				}
 
-				if (notify_later_idx == std::size(g_to_notify))
+				if (notify_later_idx >= std::size(g_to_notify))
 				{
 					// Out of notification slots, notify locally (resizable container is not worth it)
 					target->state.notify_one();
@@ -1726,7 +1777,7 @@ void lv2_obj::schedule_all(u64 current_time)
 				ensure(!target->state.test_and_set(cpu_flag::notify));
 
 				// Otherwise notify it to wake itself
-				if (notify_later_idx == std::size(g_to_notify))
+				if (notify_later_idx >= std::size(g_to_notify))
 				{
 					// Out of notification slots, notify locally (resizable container is not worth it)
 					target->state.notify_one();
diff --git a/rpcs3/Emu/Cell/lv2/sys_sync.h b/rpcs3/Emu/Cell/lv2/sys_sync.h
index 28a04d281a..3233213613 100644
--- a/rpcs3/Emu/Cell/lv2/sys_sync.h
+++ b/rpcs3/Emu/Cell/lv2/sys_sync.h
@@ -465,7 +465,8 @@ public:
 
 				// While IDM mutex is still locked (this function assumes so) check if the notification is still needed
 				// Pending flag is meant for forced notification (if the CPU really has pending work it can restore the flag in theory)
-				if (cpu != &g_to_notify && static_cast<const decltype(cpu_thread::state)*>(cpu)->none_of(cpu_flag::signal + cpu_flag::pending))
+				// Disabled to allow reservation notifications from here
+				if (false && cpu != &g_to_notify && static_cast<const decltype(cpu_thread::state)*>(cpu)->none_of(cpu_flag::signal + cpu_flag::pending))
 				{
 					// Omit it (this is a void pointer, it can hold anything)
 					cpu = &g_to_notify;