A method, system and computer program product are provided for implementing concurrent adapter firmware update of a Single Root Input/Output Virtualization (SRIOV) adapter in a virtualized system. An adapter driver is used to update adapter firmware concurrent with normal I/O operations. When configuration is stored in a scratchpad buffer, the adapter driver detects virtual functions (VFs) configured and operating. An enhanced error handling (EEH) process is initiated, freezing the VFs, and an updated adapter firmware image is loaded to the adapter. The adapter driver completes the EEH recovery, the adapter is restarted using the new updated adapter firmware. The VFs device drivers unfreeze the VFs, and complete the EEH recovery.