A system, method, and computer program product for reporting and recovering from an internal processor error in a multiprocessor system supporting system management mode. In accordance with the method of the present invention one or more replacement agents are allocated such as during system startup within the multiprocessor system. Machine specific error-reporting registers are monitored for one or more active processor agents during system operation. In response to detecting a faulty agent via the monitoring, a system management interrupt (SMI) request is issued to one or both the faulty agent and a selected replacement agent. In response to receiving the SMI request, the operating state of the faulty agent is copied to the selected replacement agent in system management mode. Operating system processing is then resumed using the replacement agent.