diff --git a/sdk_container/src/third_party/coreos-overlay/changelog/changes/2022-03-09-rngd.md b/sdk_container/src/third_party/coreos-overlay/changelog/changes/2022-03-09-rngd.md
new file mode 100644
index 0000000000..9a525d89c0
--- /dev/null
+++ b/sdk_container/src/third_party/coreos-overlay/changelog/changes/2022-03-09-rngd.md
@@ -0,0 +1 @@
+- Removed rngd.service because it is not essential anymore for the kernel to boot fast in VM environments ([PR#1700](https://github.com/flatcar-linux/coreos-overlay/pull/1700))
diff --git a/sdk_container/src/third_party/coreos-overlay/coreos-base/coreos/coreos-0.0.1.ebuild b/sdk_container/src/third_party/coreos-overlay/coreos-base/coreos/coreos-0.0.1.ebuild
index 544fc63812..8f6ec6c569 100644
--- a/sdk_container/src/third_party/coreos-overlay/coreos-base/coreos/coreos-0.0.1.ebuild
+++ b/sdk_container/src/third_party/coreos-overlay/coreos-base/coreos/coreos-0.0.1.ebuild
@@ -163,7 +163,6 @@ RDEPEND="${RDEPEND}
 	sys-apps/nvme-cli
 	sys-apps/pciutils
 	sys-apps/policycoreutils
-	sys-apps/rng-tools
 	sys-apps/sed
 	sys-apps/seismograph
 	sys-apps/semodule-utils
diff --git a/sdk_container/src/third_party/coreos-overlay/profiles/coreos/arm64/package.accept_keywords b/sdk_container/src/third_party/coreos-overlay/profiles/coreos/arm64/package.accept_keywords
index 4d35c21ab6..2d2419d651 100644
--- a/sdk_container/src/third_party/coreos-overlay/profiles/coreos/arm64/package.accept_keywords
+++ b/sdk_container/src/third_party/coreos-overlay/profiles/coreos/arm64/package.accept_keywords
@@ -44,9 +44,6 @@ dev-util/checkbashisms *
 =sys-apps/policycoreutils-3.1-r3 ~arm64
 =sys-apps/kexec-tools-2.0.22 ~arm64
 
-# needed to force enable rng-tools for arm64
-=sys-apps/rng-tools-5-r2 **
-
 =sys-apps/sandbox-2.12 ~arm64
 =sys-apps/semodule-utils-3.1 ~arm64