diff --git a/extensions/openpower-pels/manager.cpp b/extensions/openpower-pels/manager.cpp
index 907a43d..f3487b3 100644
--- a/extensions/openpower-pels/manager.cpp
+++ b/extensions/openpower-pels/manager.cpp
@@ -651,7 +651,7 @@
     }
 
     // Now check if it has any type of callout
-    if (pel->isCalloutPresent())
+    if (pel->isHwCalloutPresent())
     {
         log<level::INFO>(
             "QuiesceOnHwError enabled, PEL severity not nonError or recovered, "
diff --git a/extensions/openpower-pels/pel.cpp b/extensions/openpower-pels/pel.cpp
index a6f0af3..de70b53 100644
--- a/extensions/openpower-pels/pel.cpp
+++ b/extensions/openpower-pels/pel.cpp
@@ -21,6 +21,7 @@
 #include "extended_user_data.hpp"
 #include "extended_user_header.hpp"
 #include "failing_mtms.hpp"
+#include "fru_identity.hpp"
 #include "json_utils.hpp"
 #include "log_id.hpp"
 #include "pel_rules.hpp"
@@ -506,7 +507,7 @@
     return callouts;
 }
 
-bool PEL::isCalloutPresent() const
+bool PEL::isHwCalloutPresent() const
 {
     auto pSRC = primarySRC();
     if (!pSRC)
@@ -522,7 +523,8 @@
             if (((*i).fruIdentity()))
             {
                 auto& fruId = (*i).fruIdentity();
-                if ((*fruId).failingComponentType() != 0)
+                if ((*fruId).failingComponentType() ==
+                    src::FRUIdentity::hardwareFRU)
                 {
                     calloutPresent = true;
                     break;
diff --git a/extensions/openpower-pels/pel.hpp b/extensions/openpower-pels/pel.hpp
index 649357f..5edcf10 100644
--- a/extensions/openpower-pels/pel.hpp
+++ b/extensions/openpower-pels/pel.hpp
@@ -287,11 +287,11 @@
     }
 
     /**
-     * @brief Returns true if any callout is present in the primary SRC
+     * @brief Returns true if a hardware callout is present in the primary SRC
      *
-     * @return true if callout present, false otherwise
+     * @return true if hardware callout present, false otherwise
      */
-    bool isCalloutPresent() const;
+    bool isHwCalloutPresent() const;
 
     /**
      * @brief Updates the system info data into HB extended user