diff --git a/dlls/msi/action.c b/dlls/msi/action.c
index 2029c1110a4..ff931248742 100644
--- a/dlls/msi/action.c
+++ b/dlls/msi/action.c
@@ -3372,7 +3372,7 @@ static UINT ACTION_PublishProduct(MSIPACKAGE *package)
     if (rc != ERROR_SUCCESS)
         goto end;
 
-    rc = MSIREG_OpenInstallPropertiesKey(package->ProductCode,&props,TRUE);
+    rc = MSIREG_OpenCurrentUserInstallProps(package->ProductCode, &props, TRUE);
     if (rc != ERROR_SUCCESS)
         goto end;
 
@@ -3905,7 +3905,7 @@ static UINT msi_make_package_local( MSIPACKAGE *package, HKEY hkey )
 
     msi_reg_set_val_str( hkey, INSTALLPROPERTY_LOCALPACKAGEW, packagefile );
 
-    r = MSIREG_OpenInstallPropertiesKey(package->ProductCode, &props, TRUE);
+    r = MSIREG_OpenCurrentUserInstallProps(package->ProductCode, &props, TRUE);
     if (r != ERROR_SUCCESS)
         return r;
 
@@ -3995,7 +3995,7 @@ static UINT ACTION_RegisterProduct(MSIPACKAGE *package)
     if (rc != ERROR_SUCCESS)
         return rc;
 
-    rc = MSIREG_OpenInstallPropertiesKey(package->ProductCode, &props, TRUE);
+    rc = MSIREG_OpenCurrentUserInstallProps(package->ProductCode, &props, TRUE);
     if (rc != ERROR_SUCCESS)
         return rc;
 
@@ -4295,7 +4295,7 @@ static UINT ACTION_RegisterUser(MSIPACKAGE *package)
     if (!productid)
         return ERROR_SUCCESS;
 
-    rc = MSIREG_OpenInstallPropertiesKey(package->ProductCode, &hkey, TRUE);
+    rc = MSIREG_OpenCurrentUserInstallProps(package->ProductCode, &hkey, TRUE);
     if (rc != ERROR_SUCCESS)
         goto end;
 
diff --git a/dlls/msi/msi.c b/dlls/msi/msi.c
index 32a41732eb7..adc4b6862d0 100644
--- a/dlls/msi/msi.c
+++ b/dlls/msi/msi.c
@@ -630,7 +630,7 @@ static UINT WINAPI MSI_GetProductInfo(LPCWSTR szProduct, LPCWSTR szAttribute,
     if (classes)
         MSIREG_OpenLocalSystemProductKey(szProduct, &userdata, FALSE);
     else
-        MSIREG_OpenInstallPropertiesKey(szProduct, &userdata, FALSE);
+        MSIREG_OpenCurrentUserInstallProps(szProduct, &userdata, FALSE);
 
     if (!lstrcmpW(szAttribute, INSTALLPROPERTY_HELPLINKW) ||
         !lstrcmpW(szAttribute, INSTALLPROPERTY_HELPTELEPHONEW) ||
@@ -939,7 +939,7 @@ UINT WINAPI MsiGetProductInfoExW(LPCWSTR szProductCode, LPCWSTR szUserSid,
     if (dwContext == MSIINSTALLCONTEXT_USERUNMANAGED)
     {
         package = INSTALLPROPERTY_LOCALPACKAGEW;
-        MSIREG_OpenInstallPropertiesKey(szProductCode, &props, FALSE);
+        MSIREG_OpenCurrentUserInstallProps(szProductCode, &props, FALSE);
 
         if (!props && !prod)
             goto done;
@@ -947,7 +947,7 @@ UINT WINAPI MsiGetProductInfoExW(LPCWSTR szProductCode, LPCWSTR szUserSid,
     else if (dwContext == MSIINSTALLCONTEXT_USERMANAGED)
     {
         package = managed_local_package;
-        MSIREG_OpenInstallPropertiesKey(szProductCode, &props, FALSE);
+        MSIREG_OpenCurrentUserInstallProps(szProductCode, &props, FALSE);
 
         if (!props && !managed)
             goto done;
@@ -1197,7 +1197,7 @@ static BOOL msi_comp_find_package(LPCWSTR prodcode, MSIINSTALLCONTEXT context)
     if (context == MSIINSTALLCONTEXT_MACHINE)
         r = MSIREG_OpenLocalSystemProductKey(prodcode, &hkey, FALSE);
     else
-        r = MSIREG_OpenInstallPropertiesKey(prodcode, &hkey, FALSE);
+        r = MSIREG_OpenCurrentUserInstallProps(prodcode, &hkey, FALSE);
 
     if (r != ERROR_SUCCESS)
         return FALSE;
@@ -1303,57 +1303,67 @@ INSTALLSTATE WINAPI MsiQueryProductStateA(LPCSTR szProduct)
 
 INSTALLSTATE WINAPI MsiQueryProductStateW(LPCWSTR szProduct)
 {
-    UINT rc;
-    INSTALLSTATE state = INSTALLSTATE_UNKNOWN;
-    HKEY hkey = 0, props = 0;
-    DWORD sz;
-    BOOL userkey_exists = FALSE;
+    INSTALLSTATE state = INSTALLSTATE_ADVERTISED;
+    HKEY prodkey = 0, userdata = 0;
+    BOOL user = TRUE;
+    DWORD val;
+    UINT r;
 
-    static const int GUID_LEN = 38;
-    static const WCHAR szInstallProperties[] = {
-            'I','n','s','t','a','l','l','P','r','o','p','e','r','t','i','e','s',0
-    };
     static const WCHAR szWindowsInstaller[] = {
-            'W','i','n','d','o','w','s','I','n','s','t','a','l','l','e','r',0
-    };
+        'W','i','n','d','o','w','s','I','n','s','t','a','l','l','e','r',0};
 
     TRACE("%s\n", debugstr_w(szProduct));
 
-    if (!szProduct || !*szProduct || lstrlenW(szProduct) != GUID_LEN)
+    if (!szProduct || !*szProduct)
         return INSTALLSTATE_INVALIDARG;
 
-    rc = MSIREG_OpenUserProductsKey(szProduct,&hkey,FALSE);
-    if (rc == ERROR_SUCCESS)
+    if (lstrlenW(szProduct) != GUID_SIZE - 1)
+        return INSTALLSTATE_INVALIDARG;
+
+    r = MSIREG_OpenLocalManagedProductKey(szProduct, &prodkey, FALSE);
+    if (r != ERROR_SUCCESS)
     {
-        userkey_exists = TRUE;
-        state = INSTALLSTATE_ADVERTISED;
-        RegCloseKey(hkey);
+        r = MSIREG_OpenUserProductsKey(szProduct, &prodkey, FALSE);
+        if (r != ERROR_SUCCESS)
+        {
+            r = MSIREG_OpenLocalClassesProductKey(szProduct, &prodkey, FALSE);
+            if (r == ERROR_SUCCESS)
+               user = FALSE;
+        }
     }
 
-    rc = MSIREG_OpenUserDataProductKey(szProduct,&hkey,FALSE);
-    if (rc != ERROR_SUCCESS)
-        goto end;
+    if (user)
+    {
+        r = MSIREG_OpenCurrentUserInstallProps(szProduct, &userdata, FALSE);
+        if (r != ERROR_SUCCESS)
+            goto done;
+    }
+    else
+    {
+        r = MSIREG_OpenLocalSystemInstallProps(szProduct, &userdata, FALSE);
+        if (r != ERROR_SUCCESS)
+            goto done;
+    }
 
-    rc = RegOpenKeyW(hkey, szInstallProperties, &props);
-    if (rc != ERROR_SUCCESS)
-        goto end;
+    if (!msi_reg_get_val_dword(userdata, szWindowsInstaller, &val))
+        goto done;
 
-    sz = sizeof(state);
-    rc = RegQueryValueExW(props,szWindowsInstaller,NULL,NULL,(LPVOID)&state, &sz);
-    if (rc != ERROR_SUCCESS)
-        goto end;
-
-    if (state)
+    if (val)
         state = INSTALLSTATE_DEFAULT;
     else
         state = INSTALLSTATE_UNKNOWN;
 
-    if (state == INSTALLSTATE_DEFAULT && !userkey_exists)
-        state = INSTALLSTATE_ABSENT;
+done:
+    if (!prodkey)
+    {
+        state = INSTALLSTATE_UNKNOWN;
 
-end:
-    RegCloseKey(props);
-    RegCloseKey(hkey);
+        if (userdata)
+            state = INSTALLSTATE_ABSENT;
+    }
+
+    RegCloseKey(prodkey);
+    RegCloseKey(userdata);
     return state;
 }
 
diff --git a/dlls/msi/msipriv.h b/dlls/msi/msipriv.h
index 43fa9231871..58877ba08a2 100644
--- a/dlls/msi/msipriv.h
+++ b/dlls/msi/msipriv.h
@@ -758,7 +758,8 @@ extern UINT MSIREG_OpenUserDataComponentKey(LPCWSTR szComponent, HKEY *key, BOOL
 extern UINT MSIREG_OpenProductsKey(LPCWSTR szProduct, HKEY* key, BOOL create);
 extern UINT MSIREG_OpenPatchesKey(LPCWSTR szPatch, HKEY* key, BOOL create);
 extern UINT MSIREG_OpenUserDataProductKey(LPCWSTR szProduct, HKEY* key, BOOL create);
-extern UINT MSIREG_OpenInstallPropertiesKey(LPCWSTR szProduct, HKEY* key, BOOL create);
+extern UINT MSIREG_OpenCurrentUserInstallProps(LPCWSTR szProduct, HKEY* key, BOOL create);
+extern UINT MSIREG_OpenLocalSystemInstallProps(LPCWSTR szProduct, HKEY* key, BOOL create);
 extern UINT MSIREG_OpenUserFeaturesKey(LPCWSTR szProduct, HKEY* key, BOOL create);
 extern UINT MSIREG_OpenUserComponentsKey(LPCWSTR szComponent, HKEY* key, BOOL create);
 extern UINT MSIREG_OpenUpgradeCodesKey(LPCWSTR szProduct, HKEY* key, BOOL create);
diff --git a/dlls/msi/registry.c b/dlls/msi/registry.c
index 1d41e6505cf..74f84f7141d 100644
--- a/dlls/msi/registry.c
+++ b/dlls/msi/registry.c
@@ -753,18 +753,34 @@ UINT MSIREG_OpenUserDataProductKey(LPCWSTR szProduct, HKEY *key, BOOL create)
     return rc;
 }
 
-UINT MSIREG_OpenInstallPropertiesKey(LPCWSTR szProduct, HKEY *key, BOOL create)
+static UINT MSIREG_OpenInstallProps(LPCWSTR szProduct, LPCWSTR szUserSID,
+                                    HKEY *key, BOOL create)
 {
     UINT rc;
     WCHAR squished_pc[GUID_SIZE];
     WCHAR keypath[0x200];
-    LPWSTR usersid;
 
     TRACE("%s\n", debugstr_w(szProduct));
     if (!squash_guid(szProduct, squished_pc))
         return ERROR_FUNCTION_FAILED;
     TRACE("squished (%s)\n", debugstr_w(squished_pc));
 
+    sprintfW(keypath, szInstallProperties_fmt, szUserSID, squished_pc);
+
+    if (create)
+        rc = RegCreateKeyW(HKEY_LOCAL_MACHINE, keypath, key);
+    else
+        rc = RegOpenKeyW(HKEY_LOCAL_MACHINE, keypath, key);
+
+    return rc;
+}
+
+UINT MSIREG_OpenCurrentUserInstallProps(LPCWSTR szProduct, HKEY *key,
+                                               BOOL create)
+{
+    UINT rc;
+    LPWSTR usersid;
+
     rc = get_user_sid(&usersid);
     if (rc != ERROR_SUCCESS || !usersid)
     {
@@ -772,17 +788,20 @@ UINT MSIREG_OpenInstallPropertiesKey(LPCWSTR szProduct, HKEY *key, BOOL create)
         return rc;
     }
 
-    sprintfW(keypath, szInstallProperties_fmt, usersid, squished_pc);
-
-    if (create)
-        rc = RegCreateKeyW(HKEY_LOCAL_MACHINE, keypath, key);
-    else
-        rc = RegOpenKeyW(HKEY_LOCAL_MACHINE, keypath, key);
+    rc = MSIREG_OpenInstallProps(szProduct, usersid, key, create);
 
     LocalFree(usersid);
     return rc;
 }
 
+UINT MSIREG_OpenLocalSystemInstallProps(LPCWSTR szProduct, HKEY *key,
+                                        BOOL create)
+{
+    static const WCHAR localsid[] = {'S','-','1','-','5','-','1','8',0};
+
+    return MSIREG_OpenInstallProps(szProduct, localsid, key, create);
+}
+
 UINT MSIREG_DeleteUserDataProductKey(LPCWSTR szProduct)
 {
     UINT rc;
diff --git a/dlls/msi/tests/install.c b/dlls/msi/tests/install.c
index 5ac3852416b..7b1d92e8ffe 100644
--- a/dlls/msi/tests/install.c
+++ b/dlls/msi/tests/install.c
@@ -2552,7 +2552,10 @@ static void test_publish_registeruser(void)
     ok(pf_exists("msitest"), "File not installed\n");
 
     state = MsiQueryProductState("{7DF88A48-996F-4EC8-A022-BF956F9B2CBB}");
-    ok(state == INSTALLSTATE_UNKNOWN, "Expected INSTALLSTATE_UNKNOWN, got %d\n", state);
+    todo_wine
+    {
+        ok(state == INSTALLSTATE_UNKNOWN, "Expected INSTALLSTATE_UNKNOWN, got %d\n", state);
+    }
 
     state = MsiQueryFeatureState("{7DF88A48-996F-4EC8-A022-BF956F9B2CBB}", "feature");
     ok(state == INSTALLSTATE_UNKNOWN, "Expected INSTALLSTATE_UNKNOWN, got %d\n", state);
diff --git a/dlls/msi/tests/msi.c b/dlls/msi/tests/msi.c
index bb45d8da8fe..b704d2b13b8 100644
--- a/dlls/msi/tests/msi.c
+++ b/dlls/msi/tests/msi.c
@@ -414,6 +414,7 @@ static void test_MsiQueryProductState(void)
     INSTALLSTATE state;
     LONG res;
     HKEY userkey, localkey, props;
+    HKEY prodkey;
     DWORD data;
 
     create_test_guid(prodcode, prod_squashed);
@@ -443,7 +444,8 @@ static void test_MsiQueryProductState(void)
     state = MsiQueryProductStateA("A938G02JF-2NF3N93-VN3-2NNF-3KGKALDNF93");
     ok(state == INSTALLSTATE_UNKNOWN, "Expected INSTALLSTATE_UNKNOWN, got %d\n", state);
 
-    /* created guid cannot possibly be an installed product code */
+    /* MSIINSTALLCONTEXT_USERUNMANAGED */
+
     state = MsiQueryProductStateA(prodcode);
     ok(state == INSTALLSTATE_UNKNOWN, "Expected INSTALLSTATE_UNKNOWN, got %d\n", state);
 
@@ -519,13 +521,109 @@ static void test_MsiQueryProductState(void)
     state = MsiQueryProductStateA(prodcode);
     ok(state == INSTALLSTATE_ABSENT, "Expected INSTALLSTATE_ABSENT, got %d\n", state);
 
-    LocalFree(usersid);
     RegDeleteValueA(props, "WindowsInstaller");
     RegDeleteKeyA(props, "");
-    RegDeleteKeyA(localkey, "");
-    RegCloseKey(userkey);
-    RegCloseKey(localkey);
     RegCloseKey(props);
+    RegDeleteKeyA(localkey, "");
+    RegCloseKey(localkey);
+    RegDeleteKeyA(userkey, "");
+    RegCloseKey(userkey);
+
+    /* MSIINSTALLCONTEXT_USERMANAGED */
+
+    lstrcpyA(keypath, "Software\\Microsoft\\Windows\\CurrentVersion\\Installer\\Managed\\");
+    lstrcatA(keypath, usersid);
+    lstrcatA(keypath, "\\Installer\\Products\\");
+    lstrcatA(keypath, prod_squashed);
+
+    res = RegCreateKeyA(HKEY_LOCAL_MACHINE, keypath, &prodkey);
+    ok(res == ERROR_SUCCESS, "Expected ERROR_SUCCESS, got %d\n", res);
+
+    state = MsiQueryProductStateA(prodcode);
+    ok(state == INSTALLSTATE_ADVERTISED,
+       "Expected INSTALLSTATE_ADVERTISED, got %d\n", state);
+
+    lstrcpyA(keypath, "Software\\Microsoft\\Windows\\CurrentVersion\\Installer\\UserData\\");
+    lstrcatA(keypath, usersid);
+    lstrcatA(keypath, "\\Products\\");
+    lstrcatA(keypath, prod_squashed);
+
+    res = RegCreateKeyA(HKEY_LOCAL_MACHINE, keypath, &localkey);
+    ok(res == ERROR_SUCCESS, "Expected ERROR_SUCCESS, got %d\n", res);
+
+    state = MsiQueryProductStateA(prodcode);
+    ok(state == INSTALLSTATE_ADVERTISED,
+       "Expected INSTALLSTATE_ADVERTISED, got %d\n", state);
+
+    res = RegCreateKeyA(localkey, "InstallProperties", &props);
+    ok(res == ERROR_SUCCESS, "Expected ERROR_SUCCESS, got %d\n", res);
+
+    state = MsiQueryProductStateA(prodcode);
+    ok(state == INSTALLSTATE_ADVERTISED,
+       "Expected INSTALLSTATE_ADVERTISED, got %d\n", state);
+
+    data = 1;
+    res = RegSetValueExA(props, "WindowsInstaller", 0, REG_DWORD, (const BYTE *)&data, sizeof(DWORD));
+    ok(res == ERROR_SUCCESS, "Expected ERROR_SUCCESS, got %d\n", res);
+
+    /* WindowsInstaller value exists */
+    state = MsiQueryProductStateA(prodcode);
+    ok(state == INSTALLSTATE_DEFAULT, "Expected INSTALLSTATE_DEFAULT, got %d\n", state);
+
+    RegDeleteValueA(props, "WindowsInstaller");
+    RegDeleteKeyA(props, "");
+    RegCloseKey(props);
+    RegDeleteKeyA(localkey, "");
+    RegCloseKey(localkey);
+    RegDeleteKeyA(prodkey, "");
+    RegCloseKey(prodkey);
+
+    /* MSIINSTALLCONTEXT_MACHINE */
+
+    lstrcpyA(keypath, "Software\\Classes\\Installer\\Products\\");
+    lstrcatA(keypath, prod_squashed);
+
+    res = RegCreateKeyA(HKEY_LOCAL_MACHINE, keypath, &prodkey);
+    ok(res == ERROR_SUCCESS, "Expected ERROR_SUCCESS, got %d\n", res);
+
+    state = MsiQueryProductStateA(prodcode);
+    ok(state == INSTALLSTATE_ADVERTISED, "Expected INSTALLSTATE_ADVERTISED, got %d\n", state);
+
+    lstrcpyA(keypath, "Software\\Microsoft\\Windows\\CurrentVersion\\Installer\\UserData\\");
+    lstrcatA(keypath, "S-1-5-18\\Products\\");
+    lstrcatA(keypath, prod_squashed);
+
+    res = RegCreateKeyA(HKEY_LOCAL_MACHINE, keypath, &localkey);
+    ok(res == ERROR_SUCCESS, "Expected ERROR_SUCCESS, got %d\n", res);
+
+    state = MsiQueryProductStateA(prodcode);
+    ok(state == INSTALLSTATE_ADVERTISED,
+       "Expected INSTALLSTATE_ADVERTISED, got %d\n", state);
+
+    res = RegCreateKeyA(localkey, "InstallProperties", &props);
+    ok(res == ERROR_SUCCESS, "Expected ERROR_SUCCESS, got %d\n", res);
+
+    state = MsiQueryProductStateA(prodcode);
+    ok(state == INSTALLSTATE_ADVERTISED,
+       "Expected INSTALLSTATE_ADVERTISED, got %d\n", state);
+
+    data = 1;
+    res = RegSetValueExA(props, "WindowsInstaller", 0, REG_DWORD, (const BYTE *)&data, sizeof(DWORD));
+    ok(res == ERROR_SUCCESS, "Expected ERROR_SUCCESS, got %d\n", res);
+
+    /* WindowsInstaller value exists */
+    state = MsiQueryProductStateA(prodcode);
+    ok(state == INSTALLSTATE_DEFAULT, "Expected INSTALLSTATE_DEFAULT, got %d\n", state);
+
+    RegDeleteValueA(props, "WindowsInstaller");
+    RegDeleteKeyA(props, "");
+    RegCloseKey(props);
+    RegDeleteKeyA(localkey, "");
+    RegCloseKey(localkey);
+    RegDeleteKeyA(prodkey, "");
+    RegCloseKey(prodkey);
+
+    LocalFree(usersid);
 }
 
 static const char table_enc85[] =