A system for providing usage model context aware power management in secure systems with embedded hardware security modules is disclosed. The system determines a context associated with a transaction with a memory device that is initiated by a host device. Based on the context, the system sets conditions within its internal data structures and state machines. The context may indicate that the transaction is a secure transaction requiring cryptographic services of the memory device. Flags are set in firmware of the memory device indicating a need for context aware power management and for cryptographic services. If a power management function to reduce power to the memory device is to be executed, the firmware rejects the transaction until the memory device reenters a functional mode. If the function is not to be executed, the firmware provides the host with a notification of an impending power state change for the memory device.