A processor and method are described for managing different privilege levels associated with different types of program code, including binary translation program code. For example, one embodiment of a method comprises entering into one of a plurality of privilege modes responsive to detecting the execution of a corresponding one of a plurality of different types of program code including native executable program code, translated executable program code, and binary translation program code. In one embodiment, the binary translation program code includes sub-components each of which are associated with a different privilege level for improved security.