A system and method are described for utilizing task urgency information when making power management decisions. For example, one embodiment of a method for managing power states of a processor comprises: executing a first power management state machine based on a first urgency level associated with a first task; detecting the execution of a second task having a second urgency level associated therewith; if the second urgency level is greater than the first urgency level, then executing a second power management state machine associated with the second urgency level.