diff --git a/include/configs/TQM85xx.h b/include/configs/TQM85xx.h
index f0e73184f4..432c155a85 100644
--- a/include/configs/TQM85xx.h
+++ b/include/configs/TQM85xx.h
@@ -108,6 +108,13 @@
 #define CONFIG_DDR_DEFAULT_CL	30		/* CAS latency 3	*/
 #endif /* CONFIG_TQM8541 || CONFIG_TQM8555 */
 
+/*
+ * Old TQM85xx boards have 'M' type Spansion Flashes from the S29GLxxxM
+ * series while new boards have 'N' type Flashes from the S29GLxxxN
+ * series, which have bigger sectors: 2 x 128 instead of 2 x 64 KB.
+ */
+#undef CONFIG_TQM_FLASH_N_TYPE
+
 /*
  * Flash on the Local Bus
  */
@@ -151,7 +158,7 @@
 #define CFG_INIT_SP_OFFSET	CFG_GBL_DATA_OFFSET
 
 #define CFG_MONITOR_LEN		(256 * 1024)	/* Reserve 256kB for Mon */
-#define CFG_MALLOC_LEN		(128 * 1024)	/* Reserved for malloc	*/
+#define CFG_MALLOC_LEN		(256 * 1024)	/* Reserved for malloc	*/
 
 /* Serial Port */
 #if defined(CONFIG_TQM8560)
@@ -351,10 +358,15 @@
  * Environment
  */
 #define CFG_ENV_IS_IN_FLASH	1
-#define CFG_ENV_ADDR		(CFG_MONITOR_BASE - 0x20000)
-#define CFG_ENV_SECT_SIZE	0x20000	/* 128K(one sector) for env	*/
+
+#ifdef CONFIG_TQM_FLASH_N_TYPE
+#define CFG_ENV_SECT_SIZE	0x40000 /* 256K (one sector) for env	*/
+#else /* !CONFIG_TQM_FLASH_N_TYPE */
+#define CFG_ENV_SECT_SIZE	0x20000 /* 128K (one sector) for env	*/
+#endif /* CONFIG_TQM_FLASH_N_TYPE */
+#define CFG_ENV_ADDR		(CFG_MONITOR_BASE - CFG_ENV_SECT_SIZE)
 #define CFG_ENV_SIZE		0x2000
-#define CFG_ENV_ADDR_REDUND	(CFG_ENV_ADDR-CFG_ENV_SECT_SIZE)
+#define CFG_ENV_ADDR_REDUND	(CFG_ENV_ADDR - CFG_ENV_SECT_SIZE)
 #define CFG_ENV_SIZE_REDUND	(CFG_ENV_SIZE)
 
 #define CONFIG_LOADS_ECHO	1	/* echo on for serial download	*/