diff --git a/sdk_container/src/third_party/coreos-overlay/profiles/coreos/base/package.use b/sdk_container/src/third_party/coreos-overlay/profiles/coreos/base/package.use
index 137a9e81af..75a0218508 100644
--- a/sdk_container/src/third_party/coreos-overlay/profiles/coreos/base/package.use
+++ b/sdk_container/src/third_party/coreos-overlay/profiles/coreos/base/package.use
@@ -44,8 +44,8 @@ sys-boot/grub -multislot -nls -themes -fonts
 # disable "high performance ssh" patch, turn on kerberos
 net-misc/openssh -hpn kerberos
 
-# xz and lzo are required to run grub tests
-sys-fs/squashfs-tools lzo xz
+# xz and lzo are required to run grub tests, zstd is the default for sysexts
+sys-fs/squashfs-tools xz lz4 lzma lzo zstd
 
 # make the kernel version discoverable via the traditional gentoo symlink
 sys-kernel/coreos-sources symlink