diff --git a/src/emu/cpu/sh2/sh2.c b/src/emu/cpu/sh2/sh2.c
index 70282c98c95..505d4b7560e 100644
--- a/src/emu/cpu/sh2/sh2.c
+++ b/src/emu/cpu/sh2/sh2.c
@@ -2173,6 +2173,7 @@ static CPU_RESET( sh2 )
 	memset(&sh2->irq_queue[0], 0, sizeof(sh2->irq_queue[0])*16);
 	memset(&sh2->irq_line_state[0], 0, sizeof(sh2->irq_line_state[0])*17);
 	sh2->frc = sh2->ocra = sh2->ocrb = sh2->icr = 0;
+	sh2->frc_remainder = 0;
 	sh2->frc_base = 0;
 	sh2->frt_input = sh2->internal_irq_level = sh2->internal_irq_vector = 0;
 	sh2->dma_timer_active[0] = sh2->dma_timer_active[1] = 0;
diff --git a/src/emu/cpu/sh2/sh2comn.c b/src/emu/cpu/sh2/sh2comn.c
index c3e80888704..099d90a7016 100644
--- a/src/emu/cpu/sh2/sh2comn.c
+++ b/src/emu/cpu/sh2/sh2comn.c
@@ -64,7 +64,17 @@ static void sh2_timer_resync(sh2_state *sh2)
 	UINT64 cur_time = sh2->device->total_cycles();
 
 	if(divider)
-		sh2->frc += (cur_time - sh2->frc_base) >> divider;
+	{
+		sh2->frc += (cur_time - sh2->frc_base) / (1 << divider);
+		sh2->frc_remainder += (cur_time - sh2->frc_base) % (1 << divider);
+
+		if(sh2->frc_remainder >= divider)
+		{
+			sh2->frc_remainder-=divider;
+			sh2->frc++;
+		}
+	}
+
 	sh2->frc_base = cur_time;
 }
 
@@ -119,6 +129,7 @@ static TIMER_CALLBACK( sh2_timer_callback )
 	if(frc == sh2->ocrb)
 		sh2->m[4] |= OCFB;
 
+	/* FIXME: frc increments isn't stable! */
 	if(frc == 0x0000)
 		sh2->m[4] |= OVF;
 
@@ -127,7 +138,7 @@ static TIMER_CALLBACK( sh2_timer_callback )
 		sh2->m[4] |= OCFA;
 
 		if(sh2->m[4] & 0x010000)
-			sh2->frc = 0;
+			sh2->frc = sh2->frc_remainder = 0;
 	}
 
 	sh2_recalc_irq(sh2);
@@ -528,6 +539,7 @@ WRITE32_HANDLER( sh2_internal_w )
 //      printf("SH2.%s: TIER write %04x @ %04x\n", sh2->device->tag(), data >> 16, mem_mask>>16);
 		sh2->m[4] = (sh2->m[4] & ~(ICF|OCFA|OCFB|OVF)) | (old & sh2->m[4] & (ICF|OCFA|OCFB|OVF));
 		COMBINE_DATA(&sh2->frc);
+		sh2->frc_remainder = 0;
 		if((mem_mask & 0x00ffffff) != 0)
 			sh2_timer_activate(sh2);
 		sh2_recalc_irq(sh2);
@@ -988,6 +1000,7 @@ void sh2_common_init(sh2_state *sh2, legacy_cpu_device *device, device_irq_callb
 	device->save_pointer(NAME(sh2->m), 0x200/4);
 	device->save_item(NAME(sh2->nmi_line_state));
 	device->save_item(NAME(sh2->frc));
+	device->save_item(NAME(sh2->frc_remainder));
 	device->save_item(NAME(sh2->ocra));
 	device->save_item(NAME(sh2->ocrb));
 	device->save_item(NAME(sh2->icr));
diff --git a/src/emu/cpu/sh2/sh2comn.h b/src/emu/cpu/sh2/sh2comn.h
index 9f2509a0146..99cef451114 100644
--- a/src/emu/cpu/sh2/sh2comn.h
+++ b/src/emu/cpu/sh2/sh2comn.h
@@ -127,6 +127,7 @@ typedef struct
 	INT8  nmi_line_state;
 
 	UINT16	frc;
+	UINT16  frc_remainder;
 	UINT16	ocra, ocrb, icr;
 	UINT64	frc_base;