A method for managing performance and power utilization of a processor in an information handling system (IHS) employing a balanced fully-multithreaded load threshold includes providing a maximum current thread utilization (Umax) and a minimum current thread utilization (Umin) among all current thread utilizations of the processor and determining a current performance state (P state) of the processor. The method also includes increasing a current P state of the processor to a next P state of the processor towards a maximum P state (Pmax) of the processor when the current P state of the processor is between Umax and Umin and the current utilization rate of the processor is less than a first threshold utilization rate. The method further includes engaging the processor in a turbo mode when the current P state of the processor reaches the Pmax and the current utilization of the processor is greater than the first threshold utilization rate of the processor.