diff --git a/sdk_container/src/third_party/coreos-overlay/sys-apps/shadow/shadow-4.8-r5.ebuild b/sdk_container/src/third_party/coreos-overlay/sys-apps/shadow/shadow-4.8-r5.ebuild
index f5d73554c9..b04fd057bc 100644
--- a/sdk_container/src/third_party/coreos-overlay/sys-apps/shadow/shadow-4.8-r5.ebuild
+++ b/sdk_container/src/third_party/coreos-overlay/sys-apps/shadow/shadow-4.8-r5.ebuild
@@ -3,7 +3,7 @@
 
 EAPI=7
 
-inherit autotools libtool pam systemd
+inherit autotools libtool pam
 
 DESCRIPTION="Utilities to deal with user accounts"
 HOMEPAGE="https://github.com/shadow-maint/shadow"
@@ -93,14 +93,14 @@ set_login_opt() {
 		comment="#"
 		sed -i \
 			-e "/^${opt}\>/s:^:#:" \
-			"${ED}"/usr/share/shadow/login.defs || die
+			"${ED}"/etc/login.defs || die
 	else
 		sed -i -r \
 			-e "/^#?${opt}\>/s:.*:${opt} ${val}:" \
-			"${ED}"/usr/share/shadow/login.defs
+			"${ED}"/etc/login.defs
 	fi
-	local res=$(grep "^${comment}${opt}\>" "${ED}"/usr/share/shadow/login.defs)
-	einfo "${res:-Unable to find ${opt} in /usr/share/shadow/login.defs}"
+	local res=$(grep "^${comment}${opt}\>" "${ED}"/etc/login.defs)
+	einfo "${res:-Unable to find ${opt} in /etc/login.defs}"
 }
 
 src_install() {
@@ -113,41 +113,29 @@ src_install() {
 	#   remove it.
 	rm -f "${ED}"/{,usr/}$(get_libdir)/lib{misc,shadow}.{a,la}
 
-	# Remove files from /etc, they will be symlinks to /usr instead.
-	rm -f "${ED}"/etc/{limits,login.access,login.defs,securetty,default/useradd}
-
-	# CoreOS: break shadow.conf into two files so that we only have to apply
-	# etc-shadow.conf in the initrd.
-	systemd_dotmpfilesd "${FILESDIR}"/tmpfiles.d/etc-shadow.conf
-	systemd_dotmpfilesd "${FILESDIR}"/tmpfiles.d/var-shadow.conf
-	# Package the symlinks for the SDK and containers.
-	systemd-tmpfiles --create --root="${ED}" "${FILESDIR}"/tmpfiles.d/*
-
-	insinto /usr/share/shadow
+	insinto /etc
 	if ! use pam ; then
 		insopts -m0600
 		doins etc/login.access etc/limits
 	fi
-	# Using a securetty with devfs device names added
-	# (compat names kept for non-devfs compatibility)
-	insopts -m0600 ; doins "${FILESDIR}"/securetty
-	# Output arch-specific cruft
-	local devs
-	case $(tc-arch) in
-		ppc*)  devs="hvc0 hvsi0 ttyPSC0";;
-		hppa)  devs="ttyB0";;
-		arm)   devs="ttyFB0 ttySAC0 ttySAC1 ttySAC2 ttySAC3 ttymxc0 ttymxc1 ttymxc2 ttymxc3 ttyO0 ttyO1 ttyO2";;
-		sh)    devs="ttySC0 ttySC1";;
-		amd64|x86)      devs="hvc0";;
-	esac
-	if [[ -n ${devs} ]]; then
-		printf '%s\n' ${devs} >> "${ED}"/usr/share/shadow/securetty
-	fi
 
 	# needed for 'useradd -D'
+	insinto /etc/default
 	insopts -m0600
 	doins "${FILESDIR}"/default/useradd
 
+	if use split-usr ; then
+		# move passwd to / to help recover broke systems #64441
+		# We cannot simply remove this or else net-misc/scponly
+		# and other tools will break because of hardcoded passwd
+		# location
+		dodir /bin
+		mv "${ED}"/usr/bin/passwd "${ED}"/bin/ || die
+		dosym ../../bin/passwd /usr/bin/passwd
+	fi
+
+	cd "${S}" || die
+	insinto /etc
 	insopts -m0644
 	newins etc/login.defs login.defs
 
@@ -201,7 +189,7 @@ src_install() {
 			-e 'b exit' \
 			-e ': pamnote; i# NOTE: This setting should be configured via /etc/pam.d/ and not in this file.' \
 			-e ': exit' \
-			"${ED}"/usr/share/shadow/login.defs || die
+			"${ED}"/etc/login.defs || die
 
 		# remove manpages that pam will install for us
 		# and/or don't apply when using pam
@@ -232,3 +220,22 @@ pkg_preinst() {
 	rm -f "${EROOT}"/etc/pam.d/system-auth.new \
 		"${EROOT}/etc/login.defs.new"
 }
+
+pkg_postinst() {
+	# Enable shadow groups.
+	if [ ! -f "${EROOT}"/etc/gshadow ] ; then
+		if grpck -r -R "${EROOT}" 2>/dev/null ; then
+			grpconv -R "${EROOT}"
+		else
+			ewarn "Running 'grpck' returned errors.  Please run it by hand, and then"
+			ewarn "run 'grpconv' afterwards!"
+		fi
+	fi
+
+	[[ ! -f "${EROOT}"/etc/subgid ]] &&
+		touch "${EROOT}"/etc/subgid
+	[[ ! -f "${EROOT}"/etc/subuid ]] &&
+		touch "${EROOT}"/etc/subuid
+
+	einfo "The 'adduser' symlink to 'useradd' has been dropped."
+}