diff --git a/libguile/vm-engine.c b/libguile/vm-engine.c
index 2d28bbf35..4f2dff218 100644
--- a/libguile/vm-engine.c
+++ b/libguile/vm-engine.c
@@ -34,12 +34,13 @@
 
 
 static SCM
-VM_NAME (struct scm_vm *vp, SCM program, SCM *argv, int nargs)
+VM_NAME (SCM vm, SCM program, SCM *argv, int nargs)
 {
   /* VM registers */
   register scm_t_uint8 *ip IP_REG;	/* instruction pointer */
   register SCM *sp SP_REG;		/* stack pointer */
   register SCM *fp FP_REG;		/* frame pointer */
+  struct scm_vm *vp = SCM_VM_DATA (vm);
 
   /* Cache variables */
   struct scm_objcode *bp = NULL;	/* program base pointer */
@@ -53,10 +54,6 @@ VM_NAME (struct scm_vm *vp, SCM program, SCM *argv, int nargs)
   int nvalues = 0;
   SCM finish_args;                      /* used both for returns: both in error
                                            and normal situations */
-#if VM_USE_HOOKS
-  SCM hook_args = SCM_EOL;
-#endif
-
 #ifdef HAVE_LABELS_AS_VALUES
   static void **jump_table = NULL;
 #endif
diff --git a/libguile/vm-engine.h b/libguile/vm-engine.h
index 949e9c473..2cce7344e 100644
--- a/libguile/vm-engine.h
+++ b/libguile/vm-engine.h
@@ -206,15 +206,14 @@
 
 #undef RUN_HOOK
 #if VM_USE_HOOKS
-#define RUN_HOOK(h)				\
-{						\
-  if (SCM_UNLIKELY (scm_is_true (vp->hooks[h])))\
-    {						\
-      SYNC_REGISTER ();				\
-      vm_dispatch_hook (vp, vp->hooks[h], hook_args);      \
-      CACHE_REGISTER ();			\
-    }						\
-}
+#define RUN_HOOK(h)                                     \
+  {                                                     \
+    if (SCM_UNLIKELY (vp->trace_level > 0))             \
+      {                                                 \
+        SYNC_REGISTER ();				\
+        vm_dispatch_hook (vm, h);                       \
+      }                                                 \
+  }
 #else
 #define RUN_HOOK(h)
 #endif
diff --git a/libguile/vm.c b/libguile/vm.c
index cac3354e8..121beaa26 100644
--- a/libguile/vm.c
+++ b/libguile/vm.c
@@ -144,26 +144,24 @@ scm_vm_reinstate_continuations (SCM conts)
     reinstate_vm_cont (SCM_VM_DATA (SCM_CAAR (conts)), SCM_CDAR (conts));
 }
 
-static void enfalsen_frame (void *p)
-{ 
-  struct scm_vm *vp = p;
-  vp->trace_frame = SCM_BOOL_F;
-}
-
 static void
-vm_dispatch_hook (struct scm_vm *vp, SCM hook, SCM hook_args)
+vm_dispatch_hook (SCM vm, int hook_num)
 {
-  if (!scm_is_false (vp->trace_frame))
+  struct scm_vm *vp;
+  SCM hook;
+  SCM frame;
+
+  vp = SCM_VM_DATA (vm);
+  hook = vp->hooks[hook_num];
+
+  if (SCM_LIKELY (scm_is_false (hook))
+      || scm_is_null (SCM_HOOK_PROCEDURES (hook)))
     return;
-
-  scm_dynwind_begin (0);
-  /* FIXME, stack holder should be the vm */
-  vp->trace_frame = scm_c_make_frame (SCM_BOOL_F, vp->fp, vp->sp, vp->ip, 0);
-  scm_dynwind_unwind_handler (enfalsen_frame, vp, SCM_F_WIND_EXPLICITLY);
-
-  scm_c_run_hook (hook, hook_args);
-
-  scm_dynwind_end ();
+  
+  vp->trace_level--;
+  frame = scm_c_make_frame (vm, vp->fp, vp->sp, vp->ip, 0);
+  scm_c_run_hookn (hook, &frame, 1);
+  vp->trace_level++;
 }
 
 
@@ -363,9 +361,9 @@ make_vm (void)
   vp->fp    	  = NULL;
   vp->engine      = SCM_VM_DEBUG_ENGINE;
   vp->options     = SCM_EOL;
+  vp->trace_level = 0;
   for (i = 0; i < SCM_VM_NUM_HOOKS; i++)
     vp->hooks[i] = SCM_BOOL_F;
-  vp->trace_frame = SCM_BOOL_F;
   SCM_RETURN_NEWSMOB (scm_tc16_vm, vp);
 }
 #undef FUNC_NAME
@@ -406,7 +404,7 @@ SCM
 scm_c_vm_run (SCM vm, SCM program, SCM *argv, int nargs)
 {
   struct scm_vm *vp = SCM_VM_DATA (vm);
-  return vm_engines[vp->engine](vp, program, argv, nargs);
+  return vm_engines[vp->engine](vm, program, argv, nargs);
 }
 
 SCM
@@ -618,13 +616,24 @@ SCM_DEFINE (scm_set_vm_option_x, "set-vm-option!", 3, 0, 0,
 }
 #undef FUNC_NAME
 
-SCM_DEFINE (scm_vm_trace_frame, "vm-trace-frame", 1, 0, 0,
+SCM_DEFINE (scm_vm_trace_level, "vm-trace-level", 1, 0, 0,
 	    (SCM vm),
 	    "")
-#define FUNC_NAME s_scm_vm_trace_frame
+#define FUNC_NAME s_scm_vm_trace_level
 {
   SCM_VALIDATE_VM (1, vm);
-  return SCM_VM_DATA (vm)->trace_frame;
+  return scm_from_int (SCM_VM_DATA (vm)->trace_level);
+}
+#undef FUNC_NAME
+
+SCM_DEFINE (scm_set_vm_trace_level_x, "set-vm-trace-level!", 2, 0, 0,
+	    (SCM vm, SCM level),
+	    "")
+#define FUNC_NAME s_scm_set_vm_trace_level_x
+{
+  SCM_VALIDATE_VM (1, vm);
+  SCM_VM_DATA (vm)->trace_level = scm_to_int (level);
+  return SCM_UNSPECIFIED;
 }
 #undef FUNC_NAME
 
diff --git a/libguile/vm.h b/libguile/vm.h
index cbd0c5546..f18826ef5 100644
--- a/libguile/vm.h
+++ b/libguile/vm.h
@@ -34,7 +34,7 @@
 
 struct scm_vm;
 
-typedef SCM (*scm_t_vm_engine) (struct scm_vm *vp, SCM program, SCM *argv, int nargs);
+typedef SCM (*scm_t_vm_engine) (SCM vm, SCM program, SCM *argv, int nargs);
 
 #define SCM_VM_REGULAR_ENGINE 0
 #define SCM_VM_DEBUG_ENGINE 1
@@ -50,7 +50,7 @@ struct scm_vm {
   int engine;                   /* which vm engine we're using */
   SCM hooks[SCM_VM_NUM_HOOKS];	/* hooks */
   SCM options;			/* options */
-  SCM trace_frame;              /* a frame being traced */
+  int trace_level;              /* traces enabled if trace_level > 0 */
 };
 
 SCM_API SCM scm_the_vm_fluid;
@@ -83,7 +83,8 @@ SCM_API SCM scm_vm_exit_hook (SCM vm);
 SCM_API SCM scm_vm_return_hook (SCM vm);
 SCM_API SCM scm_vm_option (SCM vm, SCM key);
 SCM_API SCM scm_set_vm_option_x (SCM vm, SCM key, SCM val);
-SCM_API SCM scm_vm_trace_frame (SCM vm);
+SCM_API SCM scm_vm_trace_level (SCM vm);
+SCM_API SCM scm_set_vm_trace_level_x (SCM vm, SCM level);
 
 struct scm_vm_cont {
   scm_t_uint8 *ip;
diff --git a/module/system/vm/vm.scm b/module/system/vm/vm.scm
index 9d8f97790..76bdb57d7 100644
--- a/module/system/vm/vm.scm
+++ b/module/system/vm/vm.scm
@@ -27,7 +27,7 @@
             vm-load vm-option set-vm-option! vm-version
             vms:time vms:clock
 
-            vm-trace-frame
+            vm-trace-level set-vm-trace-level!
             vm-next-hook vm-apply-hook vm-boot-hook vm-return-hook
             vm-break-hook vm-exit-hook vm-halt-hook vm-enter-hook))