diff --git a/sdk_container/src/third_party/coreos-overlay/sys-kernel/coreos-kernel/coreos-kernel-6.6.87.ebuild b/sdk_container/src/third_party/coreos-overlay/sys-kernel/coreos-kernel/coreos-kernel-6.6.87.ebuild
index 51c20b07ae..f63fe81030 100644
--- a/sdk_container/src/third_party/coreos-overlay/sys-kernel/coreos-kernel/coreos-kernel-6.6.87.ebuild
+++ b/sdk_container/src/third_party/coreos-overlay/sys-kernel/coreos-kernel/coreos-kernel-6.6.87.ebuild
@@ -12,6 +12,7 @@ RDEPEND="=sys-kernel/coreos-modules-${PVR}"
 DEPEND="${RDEPEND}
 	app-alternatives/awk
 	app-alternatives/gzip
+	app-arch/xz-utils
 	app-arch/zstd
 	app-crypt/clevis
 	app-shells/bash
diff --git a/sdk_container/src/third_party/coreos-overlay/sys-kernel/coreos-modules/files/amd64_defconfig-6.6 b/sdk_container/src/third_party/coreos-overlay/sys-kernel/coreos-modules/files/amd64_defconfig-6.6
index 8214e055a1..1d171bc519 100644
--- a/sdk_container/src/third_party/coreos-overlay/sys-kernel/coreos-modules/files/amd64_defconfig-6.6
+++ b/sdk_container/src/third_party/coreos-overlay/sys-kernel/coreos-modules/files/amd64_defconfig-6.6
@@ -72,7 +72,7 @@ CONFIG_ISCSI_IBFT=y
 CONFIG_ISCSI_IBFT_FIND=y
 CONFIG_ITCO_VENDOR_SUPPORT=y
 CONFIG_ITCO_WDT=m
-CONFIG_KERNEL_ZSTD=y
+CONFIG_KERNEL_XZ=y
 CONFIG_KEXEC_FILE=y
 CONFIG_KPROBES_ON_FTRACE=y
 CONFIG_KVM=m