diff --git a/dlls/msi/msi.c b/dlls/msi/msi.c
index 9055c59..f86f194 100644
--- a/dlls/msi/msi.c
+++ b/dlls/msi/msi.c
@@ -1299,7 +1299,7 @@ static BOOL msi_comp_find_package(LPCWSTR prodcode, MSIINSTALLCONTEXT context)
 
 static BOOL msi_comp_find_prodcode(LPWSTR squished_pc,
                                    MSIINSTALLCONTEXT context,
-                                   LPCWSTR comp, DWORD *sz)
+                                   LPCWSTR comp, LPWSTR val, DWORD *sz)
 {
     HKEY hkey;
     LONG res;
@@ -1313,8 +1313,7 @@ static BOOL msi_comp_find_prodcode(LPWSTR squished_pc,
     if (r != ERROR_SUCCESS)
         return FALSE;
 
-    *sz = 0;
-    res = RegQueryValueExW(hkey, squished_pc, NULL, NULL, NULL, sz);
+    res = RegQueryValueExW(hkey, squished_pc, NULL, NULL, (BYTE *)val, sz);
     if (res != ERROR_SUCCESS)
         return FALSE;
 
@@ -1327,6 +1326,7 @@ UINT WINAPI MsiQueryComponentStateW(LPCWSTR szProductCode,
                                     LPCWSTR szComponent, INSTALLSTATE *pdwState)
 {
     WCHAR squished_pc[GUID_SIZE];
+    WCHAR val[MAX_PATH];
     BOOL found;
     DWORD sz;
 
@@ -1357,13 +1357,22 @@ UINT WINAPI MsiQueryComponentStateW(LPCWSTR szProductCode,
 
     *pdwState = INSTALLSTATE_UNKNOWN;
 
-    if (!msi_comp_find_prodcode(squished_pc, dwContext, szComponent, &sz))
+    sz = MAX_PATH;
+    if (!msi_comp_find_prodcode(squished_pc, dwContext, szComponent, val, &sz))
         return ERROR_UNKNOWN_COMPONENT;
 
     if (sz == 0)
         *pdwState = INSTALLSTATE_NOTUSED;
     else
-        *pdwState = INSTALLSTATE_LOCAL;
+    {
+        if (lstrlenW(val) > 2 &&
+            val[0] >= '0' && val[0] <= '9' && val[1] >= '0' && val[1] <= '9')
+        {
+            *pdwState = INSTALLSTATE_SOURCE;
+        }
+        else
+            *pdwState = INSTALLSTATE_LOCAL;
+    }
 
     return ERROR_SUCCESS;
 }
diff --git a/dlls/msi/tests/msi.c b/dlls/msi/tests/msi.c
index 0e262ae..bafcddc 100644
--- a/dlls/msi/tests/msi.c
+++ b/dlls/msi/tests/msi.c
@@ -1237,6 +1237,43 @@ static void test_MsiQueryComponentState(void)
     res = RegSetValueExA(compkey, prod_squashed, 0, REG_SZ, (const BYTE *)"hi", 2);
     ok(res == ERROR_SUCCESS, "Expected ERROR_SUCCESS, got %d\n", res);
 
+    /* INSTALLSTATE_LOCAL */
+    state = MAGIC_ERROR;
+    r = pMsiQueryComponentStateA(prodcode, NULL, MSIINSTALLCONTEXT_MACHINE, component, &state);
+    ok(r == ERROR_SUCCESS, "Expected ERROR_SUCCESS, got %d\n", r);
+    ok(state == INSTALLSTATE_LOCAL, "Expected INSTALLSTATE_LOCAL, got %d\n", state);
+
+    res = RegSetValueExA(compkey, prod_squashed, 0, REG_SZ, (const BYTE *)"01\\", 4);
+    ok(res == ERROR_SUCCESS, "Expected ERROR_SUCCESS, got %d\n", res);
+
+    /* INSTALLSTATE_SOURCE */
+    state = MAGIC_ERROR;
+    r = pMsiQueryComponentStateA(prodcode, NULL, MSIINSTALLCONTEXT_MACHINE, component, &state);
+    ok(r == ERROR_SUCCESS, "Expected ERROR_SUCCESS, got %d\n", r);
+    ok(state == INSTALLSTATE_SOURCE, "Expected INSTALLSTATE_SOURCE, got %d\n", state);
+
+    res = RegSetValueExA(compkey, prod_squashed, 0, REG_SZ, (const BYTE *)"01", 3);
+    ok(res == ERROR_SUCCESS, "Expected ERROR_SUCCESS, got %d\n", res);
+
+    /* bad INSTALLSTATE_SOURCE */
+    state = MAGIC_ERROR;
+    r = pMsiQueryComponentStateA(prodcode, NULL, MSIINSTALLCONTEXT_MACHINE, component, &state);
+    ok(r == ERROR_SUCCESS, "Expected ERROR_SUCCESS, got %d\n", r);
+    ok(state == INSTALLSTATE_LOCAL, "Expected INSTALLSTATE_LOCAL, got %d\n", state);
+
+    res = RegSetValueExA(compkey, prod_squashed, 0, REG_SZ, (const BYTE *)"01a", 4);
+    ok(res == ERROR_SUCCESS, "Expected ERROR_SUCCESS, got %d\n", res);
+
+    /* INSTALLSTATE_SOURCE */
+    state = MAGIC_ERROR;
+    r = pMsiQueryComponentStateA(prodcode, NULL, MSIINSTALLCONTEXT_MACHINE, component, &state);
+    ok(r == ERROR_SUCCESS, "Expected ERROR_SUCCESS, got %d\n", r);
+    ok(state == INSTALLSTATE_SOURCE, "Expected INSTALLSTATE_SOURCE, got %d\n", state);
+
+    res = RegSetValueExA(compkey, prod_squashed, 0, REG_SZ, (const BYTE *)"01", 3);
+    ok(res == ERROR_SUCCESS, "Expected ERROR_SUCCESS, got %d\n", res);
+
+    /* bad INSTALLSTATE_SOURCE */
     state = MAGIC_ERROR;
     r = pMsiQueryComponentStateA(prodcode, NULL, MSIINSTALLCONTEXT_MACHINE, component, &state);
     ok(r == ERROR_SUCCESS, "Expected ERROR_SUCCESS, got %d\n", r);
-- 
1.5.4.3