diff --git a/dlls/msi/install.c b/dlls/msi/install.c
index b19b6471ee2..63ffbfeaeae 100644
--- a/dlls/msi/install.c
+++ b/dlls/msi/install.c
@@ -1313,33 +1313,18 @@ UINT WINAPI MsiSetComponentStateW(MSIHANDLE hInstall, LPCWSTR szComponent,
     MSIPACKAGE* package;
     UINT ret;
 
+    if (!szComponent)
+        return ERROR_UNKNOWN_COMPONENT;
+
     package = msihandle2msiinfo(hInstall, MSIHANDLETYPE_PACKAGE);
     if (!package)
     {
         MSIHANDLE remote;
-        HRESULT hr;
-        BSTR component;
 
         if (!(remote = msi_get_remote(hInstall)))
             return ERROR_INVALID_HANDLE;
 
-        component = SysAllocString(szComponent);
-        if (!component)
-            return ERROR_OUTOFMEMORY;
-
-        hr = remote_SetComponentState(remote, component, iState);
-
-        SysFreeString(component);
-
-        if (FAILED(hr))
-        {
-            if (HRESULT_FACILITY(hr) == FACILITY_WIN32)
-                return HRESULT_CODE(hr);
-
-            return ERROR_FUNCTION_FAILED;
-        }
-
-        return ERROR_SUCCESS;
+        return remote_SetComponentState(remote, szComponent, iState);
     }
 
     ret = MSI_SetComponentStateW(package, szComponent, iState);
diff --git a/dlls/msi/package.c b/dlls/msi/package.c
index 18b860122c5..b1b2cb4d680 100644
--- a/dlls/msi/package.c
+++ b/dlls/msi/package.c
@@ -2540,10 +2540,9 @@ UINT __cdecl remote_GetComponentState(MSIHANDLE hinst, LPCWSTR component,
     return MsiGetComponentStateW(hinst, component, installed, action);
 }
 
-HRESULT __cdecl remote_SetComponentState(MSIHANDLE hinst, BSTR component, INSTALLSTATE state)
+UINT __cdecl remote_SetComponentState(MSIHANDLE hinst, LPCWSTR component, INSTALLSTATE state)
 {
-    UINT r = MsiSetComponentStateW(hinst, component, state);
-    return HRESULT_FROM_WIN32(r);
+    return MsiSetComponentStateW(hinst, component, state);
 }
 
 HRESULT __cdecl remote_GetLanguage(MSIHANDLE hinst, LANGID *language)
diff --git a/dlls/msi/tests/custom.c b/dlls/msi/tests/custom.c
index b2c9352e27d..2f9ba5d3231 100644
--- a/dlls/msi/tests/custom.c
+++ b/dlls/msi/tests/custom.c
@@ -719,6 +719,25 @@ static void test_feature_states(MSIHANDLE hinst)
     ok(hinst, !r, "got %u\n", r);
     ok(hinst, state == INSTALLSTATE_UNKNOWN, "got state %d\n", state);
     ok(hinst, action == INSTALLSTATE_LOCAL, "got action %d\n", action);
+
+    r = MsiSetComponentStateA(hinst, NULL, INSTALLSTATE_ABSENT);
+    ok(hinst, r == ERROR_UNKNOWN_COMPONENT, "got %u\n", r);
+
+    r = MsiSetComponentStateA(hinst, "One", INSTALLSTATE_SOURCE);
+    ok(hinst, !r, "got %u\n", r);
+
+    r = MsiGetComponentStateA(hinst, "One", &state, &action);
+    ok(hinst, !r, "got %u\n", r);
+    ok(hinst, state == INSTALLSTATE_ABSENT, "got state %d\n", state);
+    ok(hinst, action == INSTALLSTATE_SOURCE, "got action %d\n", action);
+
+    r = MsiSetComponentStateA(hinst, "One", INSTALLSTATE_LOCAL);
+    ok(hinst, !r, "got %u\n", r);
+
+    r = MsiGetComponentStateA(hinst, "One", &state, &action);
+    ok(hinst, !r, "got %u\n", r);
+    ok(hinst, state == INSTALLSTATE_ABSENT, "got state %d\n", state);
+    ok(hinst, action == INSTALLSTATE_LOCAL, "got action %d\n", action);
 }
 
 /* Main test. Anything that doesn't depend on a specific install configuration
diff --git a/dlls/msi/winemsi.idl b/dlls/msi/winemsi.idl
index 59964871cb3..132f140d870 100644
--- a/dlls/msi/winemsi.idl
+++ b/dlls/msi/winemsi.idl
@@ -84,7 +84,7 @@ interface IWineMsiRemote
     UINT remote_GetFeatureState( [in] MSIHANDLE hinst, [in, string] LPCWSTR feature, [out] INSTALLSTATE *installed, [out] INSTALLSTATE *action );
     UINT remote_SetFeatureState( [in] MSIHANDLE hinst, [in, string] LPCWSTR feature, [in] INSTALLSTATE state );
     UINT remote_GetComponentState( [in] MSIHANDLE hinst, [in, string] LPCWSTR component, [out] INSTALLSTATE *installed, [out] INSTALLSTATE *action );
-    HRESULT remote_SetComponentState( [in] MSIHANDLE hinst, [in] BSTR component, [in] INSTALLSTATE state );
+    UINT remote_SetComponentState( [in] MSIHANDLE hinst, [in, string] LPCWSTR component, [in] INSTALLSTATE state );
     HRESULT remote_GetLanguage( [in] MSIHANDLE hinst, [out] LANGID *language );
     HRESULT remote_SetInstallLevel( [in] MSIHANDLE hinst, [in] int level );
     HRESULT remote_FormatRecord( [in] MSIHANDLE hinst, [in] MSIHANDLE record, [out] BSTR *value );