diff --git a/docs/vm.md b/docs/vm.md
index c9454c3b5..73d062797 100644
--- a/docs/vm.md
+++ b/docs/vm.md
@@ -1,6 +1,6 @@
 # NEO-GO-VM
 
-A cross platform virtual machine implementation for `avm` compatible programs. 
+A cross platform virtual machine implementation for `NEF` compatible programs. 
 
 # Installation
 
@@ -46,7 +46,7 @@ Commands:
   help         display help
   ip           Show current instruction
   istack       Show invocation stack contents
-  loadavm      Load an avm script into the VM
+  loadnef      Load an avm script in NEF format into the VM
   loadgo       Compile and load a Go file into the VM
   loadhex      Load a hex-encoded script string into the VM
   ops          Dump opcodes of the current loaded program
@@ -70,10 +70,10 @@ Usage: step [<n>]
 
 ## Loading in your script
 
-To load an avm script into the VM:
+To load an avm script in NEF format into the VM:
 
 ```
-NEO-GO-VM > loadavm ../contract.avm
+NEO-GO-VM > loadnef ../contract.nef
 READY: loaded 36 instructions
 ```
 
diff --git a/pkg/vm/cli/cli.go b/pkg/vm/cli/cli.go
index efe793255..4724ff123 100644
--- a/pkg/vm/cli/cli.go
+++ b/pkg/vm/cli/cli.go
@@ -67,12 +67,12 @@ var commands = []*ishell.Cmd{
 		Func:     handleXStack,
 	},
 	{
-		Name: "loadavm",
-		Help: "Load an avm script into the VM",
-		LongHelp: `Usage: loadavm <file>
+		Name: "loadnef",
+		Help: "Load a NEF-consistent script into the VM",
+		LongHelp: `Usage: loadnef <file>
 <file> is mandatory parameter, example:
-> load /path/to/script.avm`,
-		Func: handleLoadAVM,
+> load /path/to/script.nef`,
+		Func: handleLoadNEF,
 	},
 	{
 		Name: "loadbase64",
@@ -241,7 +241,7 @@ func handleXStack(c *ishell.Context) {
 	c.Println(v.Stack(c.Cmd.Name))
 }
 
-func handleLoadAVM(c *ishell.Context) {
+func handleLoadNEF(c *ishell.Context) {
 	v := getVMFromContext(c)
 	if len(c.Args) < 1 {
 		c.Err(errors.New("missing parameter <file>"))
diff --git a/pkg/vm/vm.go b/pkg/vm/vm.go
index 90d16014b..02b9bed71 100644
--- a/pkg/vm/vm.go
+++ b/pkg/vm/vm.go
@@ -14,6 +14,7 @@ import (
 	"github.com/nspcc-dev/neo-go/pkg/crypto/keys"
 	"github.com/nspcc-dev/neo-go/pkg/encoding/bigint"
 	"github.com/nspcc-dev/neo-go/pkg/smartcontract"
+	"github.com/nspcc-dev/neo-go/pkg/smartcontract/nef"
 	"github.com/nspcc-dev/neo-go/pkg/smartcontract/trigger"
 	"github.com/nspcc-dev/neo-go/pkg/util"
 	"github.com/nspcc-dev/neo-go/pkg/vm/opcode"
@@ -86,7 +87,7 @@ type VM struct {
 	keys map[string]*keys.PublicKey
 }
 
-// New returns a new VM object ready to load .avm bytecode scripts.
+// New returns a new VM object ready to load AVM bytecode scripts.
 func New() *VM {
 	return NewWithTrigger(trigger.System)
 }
@@ -235,13 +236,17 @@ func (v *VM) AddBreakPointRel(n int) {
 	v.AddBreakPoint(ctx.ip + n)
 }
 
-// LoadFile loads a program from the given path, ready to execute it.
+// LoadFile loads a program in NEF format from the given path, ready to execute it.
 func (v *VM) LoadFile(path string) error {
 	b, err := ioutil.ReadFile(path)
 	if err != nil {
 		return err
 	}
-	v.Load(b)
+	f, err := nef.FileFromBytes(b)
+	if err != nil {
+		return err
+	}
+	v.Load(f.Script)
 	return nil
 }