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Today’s cloud tenants are facing severe security threats such as compromised hypervisors, which forces a strong adversary model where the hypervisor should be excluded out of the TCB. Previous approaches to shielding guest VMs either suffer from insufficient protection or result in suboptimal performance due to frequent VM exits (especially for I/O operations). This paper presents CloudVisor-D, an efficient nested hypervisor design that embraces both strong protection and high performance. The core idea of CloudVisor-D is to disaggregate the nested hypervisor by separating major protection logics into a protected Guardian-VM alongside each guest VM. The Guardian-VM is securely isolated and protected by the nested hypervisor and provides secure services for most privileged operations like hypercalls, EPT violations and I/O operations from guest VMs. By leveraging recent hardware features, most privileged operations from a guest VM require no VM exits to the nested hypervisor, which are the major sources of performance slowdown in prior designs. We have implemented CloudVisor-D on a commercially available machine with these recent hardware features. Experimental evaluation shows that CloudVisor-D incurs negligible performance overhead even for I/O intensive benchmarks and in some cases outperforms a vanilla hypervisor due to the reduced number of VM exits.