diff --git a/build_library/build_image_util.sh b/build_library/build_image_util.sh
index b909e1204e..742116e4ac 100755
--- a/build_library/build_image_util.sh
+++ b/build_library/build_image_util.sh
@@ -204,6 +204,7 @@ finish_image() {
   local disk_layout="$2"
   local root_fs_dir="$3"
   local image_contents="$4"
+  local install_grub=0
 
   local disk_img="${BUILD_DIR}/${image_name}"
 
@@ -220,10 +221,10 @@ finish_image() {
 
   # Only configure bootloaders if there is a boot partition
   if mountpoint -q "${root_fs_dir}"/boot; then
+    install_grub=1
     ${BUILD_LIBRARY_DIR}/configure_bootloaders.sh \
       --arch=${ARCH} \
       --disk_layout="${disk_layout}" \
-      --disk_image="${disk_img}" \
       --boot_dir="${root_fs_dir}"/usr/boot \
       --esp_dir="${root_fs_dir}"/boot \
       --boot_args="${FLAGS_boot_args}"
@@ -249,4 +250,13 @@ finish_image() {
   rm -rf "${BUILD_DIR}"/configroot
   cleanup_mounts "${root_fs_dir}"
   trap - EXIT
+
+  # This script must mount the ESP partition differently, so run it after unmount
+  if [[ "${install_grub}" -eq 1 ]]; then
+    local target
+    for target in i386-pc x86_64-efi; do
+      ${BUILD_LIBRARY_DIR}/grub_install.sh \
+          --target="${target}" --disk_image="${disk_img}"
+    done
+  fi
 }
diff --git a/build_library/configure_bootloaders.sh b/build_library/configure_bootloaders.sh
index 7458838646..09470c6f53 100755
--- a/build_library/configure_bootloaders.sh
+++ b/build_library/configure_bootloaders.sh
@@ -24,7 +24,6 @@ DEFINE_string boot_args "" \
   "Additional boot arguments to pass to the commandline (Default: '')"
 DEFINE_string disk_layout "base" \
   "The disk layout type to use for this image."
-DEFINE_string disk_image "" "The disk image."
 
 # Parse flags
 FLAGS "$@" || exit 1
@@ -52,6 +51,7 @@ SYSLINUX_DIR="${FLAGS_boot_dir}/syslinux"
 
 # Build configuration files for pygrub/pvgrub
 configure_pvgrub() {
+  info "Installing legacy PV-GRUB configuration"
   sudo mkdir -p "${GRUB_DIR}"
 
   # Add hvc0 for hypervisors
@@ -68,18 +68,21 @@ title           CoreOS B Root
 root            (hd0,0)
 kernel          /syslinux/vmlinuz.B ${grub_args} ${slot_b_args}
 EOF
-  info "Emitted ${GRUB_DIR}/menu.lst.A"
 
   sudo_clobber "${GRUB_DIR}/menu.lst.B" <<EOF
 default         1
+$(< "${GRUB_DIR}/menu.lst.A")
 EOF
-  sudo_append "${GRUB_DIR}/menu.lst.B" <"${GRUB_DIR}/menu.lst.A"
-  info "Emitted ${GRUB_DIR}/menu.lst.B"
-  sudo cp ${GRUB_DIR}/menu.lst.A ${GRUB_DIR}/menu.lst
+  sudo cp "${GRUB_DIR}/menu.lst.A" "${GRUB_DIR}/menu.lst"
+
+  # menu.lst needs to go under boot/grub so pvgrub can find it reliably
+  sudo mkdir -p "${FLAGS_esp_dir}/boot/grub"
+  sudo cp "${GRUB_DIR}/menu.lst" "${FLAGS_esp_dir}/boot/grub"
 }
 
 # Build configuration files for syslinux
 configure_syslinux() {
+  info "Installing legacy SYSLINUX configuration"
   sudo mkdir -p "${SYSLINUX_DIR}"
 
   # Add ttyS0 as a secondary console, useful for qemu -nographic
@@ -91,7 +94,6 @@ configure_syslinux() {
   fi
 
   sudo_clobber "${SYSLINUX_DIR}/syslinux.cfg" <<EOF
-SERIAL 0 115200
 PROMPT 1
 # display boot: prompt for a half second
 TIMEOUT 5
@@ -109,22 +111,10 @@ include /syslinux/root.A.cfg
 # coreos.B
 include /syslinux/root.B.cfg
 EOF
-  info "Emitted ${SYSLINUX_DIR}/syslinux.cfg"
 
-  sudo_clobber "${SYSLINUX_DIR}/default.cfg" <<EOF
-DEFAULT boot_kernel
-EOF
-  info "Emitted ${SYSLINUX_DIR}/default.cfg"
-
-  sudo_clobber "${SYSLINUX_DIR}/default.cfg.A" <<EOF
-DEFAULT coreos.A
-EOF
-  info "Emitted ${SYSLINUX_DIR}/default.cfg.A"
-
-  sudo_clobber "${SYSLINUX_DIR}/default.cfg.B" <<EOF
-DEFAULT coreos.B
-EOF
-  info "Emitted ${SYSLINUX_DIR}/default.cfg.B"
+  sudo_clobber "${SYSLINUX_DIR}/default.cfg" <<<"DEFAULT boot_kernel"
+  sudo_clobber "${SYSLINUX_DIR}/default.cfg.A" <<<"DEFAULT coreos.A"
+  sudo_clobber "${SYSLINUX_DIR}/default.cfg.B" <<<"DEFAULT coreos.B"
 
   # Different files are used so that the updater can only touch the file it
   # needs to for a given change.  This will minimize any potential accidental
@@ -135,7 +125,6 @@ label boot_kernel
   kernel vmlinuz-boot_kernel
   append ${syslinux_args} ${gptprio_args}
 EOF
-  info "Emitted ${SYSLINUX_DIR}/boot_kernel.cfg"
 
   sudo_clobber "${SYSLINUX_DIR}/root.A.cfg" <<EOF
 label coreos.A
@@ -143,7 +132,6 @@ label coreos.A
   kernel vmlinuz.A
   append ${syslinux_args} ${slot_a_args}
 EOF
-  info "Emitted ${SYSLINUX_DIR}/root.A.cfg"
 
   sudo_clobber "${SYSLINUX_DIR}/root.B.cfg" <<EOF
 label coreos.B
@@ -151,25 +139,9 @@ label coreos.B
   kernel vmlinuz.B
   append ${syslinux_args} ${slot_b_args}
 EOF
-  info "Emitted ${SYSLINUX_DIR}/root.B.cfg"
-}
 
-# Copy configurations to the ESP, this is what is actually used to boot
-copy_to_esp() {
-  if ! mountpoint -q "${FLAGS_esp_dir}"; then
-    die "${FLAGS_esp_dir} is not a mount point."
-  fi
-
-  sudo mkdir -p "${FLAGS_esp_dir}"/{syslinux,boot/grub,EFI/boot}
-  sudo cp -r "${GRUB_DIR}/." "${FLAGS_esp_dir}/boot/grub"
   sudo cp -r "${SYSLINUX_DIR}/." "${FLAGS_esp_dir}/syslinux"
 
-  # Install UEFI bootloader
-  sudo cp /usr/share/syslinux/efi64/ldlinux.e64 \
-    "${FLAGS_esp_dir}/EFI/boot/ldlinux.e64"
-  sudo cp /usr/share/syslinux/efi64/syslinux.efi \
-    "${FLAGS_esp_dir}/EFI/boot/bootx64.efi"
-
   # Stage all kernels with the only one we built.
   for kernel in syslinux/{vmlinuz-boot_kernel,vmlinuz.A,vmlinuz.B}
   do
@@ -177,28 +149,11 @@ copy_to_esp() {
   done
 }
 
-# Install GRUB2 to the disk image
-install_grub() {
-  # Install under boot/coreos/grub instead of boot/grub to prevent
-  # more recent versions of pygrub that attempt to read grub2 configs
-  # from finding it, pygrub and pvgrub must stick with using menu.lst
-  sudo mkdir -p "${FLAGS_esp_dir}/coreos/grub"
-  sudo grub-install \
-      --target=i386-pc \
-      --modules=part_gpt \
-      --boot-directory="${FLAGS_esp_dir}/coreos" \
-      "${FLAGS_disk_image}"
-  sudo cp "${BUILD_LIBRARY_DIR}/grub.cfg" \
-      "${FLAGS_esp_dir}/coreos/grub/grub.cfg"
-}
-
 [[ -d "${FLAGS_esp_dir}" ]] || die_notrace "--esp_dir is required"
-[[ -f "${FLAGS_disk_image}" ]] || die_notrace "--disk_image is required"
 
 if [[ "${FLAGS_arch}" = "x86" || "${FLAGS_arch}" = "amd64"  ]]; then
   configure_pvgrub
   configure_syslinux
-  copy_to_esp
 else
   error "No bootloader configuration for ${FLAGS_arch}"
 fi
diff --git a/build_library/disk_layout.json b/build_library/disk_layout.json
index de27813a09..9445d2b5e9 100644
--- a/build_library/disk_layout.json
+++ b/build_library/disk_layout.json
@@ -13,7 +13,7 @@
         "blocks":"262144",
         "fs_type":"vfat",
         "mount":"/boot",
-        "features": ["syslinux"]
+        "features": ["hybrid"]
       },
       "2":{
         "label":"BIOS-BOOT",
diff --git a/build_library/grub.cfg b/build_library/grub.cfg
index 69bf7d0a36..1dfc1e50aa 100644
--- a/build_library/grub.cfg
+++ b/build_library/grub.cfg
@@ -1,4 +1,8 @@
-# Use both default console and ttyS0
+# Load any and all video drivers.
+# Required under UEFI to boot Linux with a working console.
+insmod all_video
+
+# Use both default text console and ttyS0
 serial --unit=0 --speed=115200 --word=8 --parity=no --stop=1
 terminal_input console serial
 terminal_output console serial
@@ -6,4 +10,4 @@ terminal_output console serial
 # Re-use the existing syslinux configuration
 echo "Loading SYSLINUX configuration..."
 insmod syslinuxcfg
-syslinux_configfile -s /syslinux/syslinux.cfg
+syslinux_source -s /syslinux/syslinux.cfg
diff --git a/build_library/grub_install.sh b/build_library/grub_install.sh
new file mode 100755
index 0000000000..b43853fff0
--- /dev/null
+++ b/build_library/grub_install.sh
@@ -0,0 +1,127 @@
+#!/bin/bash
+
+# Copyright (c) 2014 The CoreOS Authors. All rights reserved.
+# Use of this source code is governed by a BSD-style license that can be
+# found in the LICENSE file.
+
+# Replacement script for 'grub-install' which does not detect drives
+# properly when partitions are mounted via individual loopback devices.
+
+SCRIPT_ROOT=$(readlink -f $(dirname "$0")/..)
+. "${SCRIPT_ROOT}/common.sh" || exit 1
+
+# We're invoked only by build_image, which runs in the chroot
+assert_inside_chroot
+
+# Flags.
+DEFINE_string target "" \
+  "The GRUB target to install such as i386-pc or x86_64-efi"
+DEFINE_string esp_dir "" \
+  "Path to EFI System partition mount point."
+DEFINE_string disk_image "" \
+  "The disk image containing the EFI System partition."
+
+# Parse flags
+FLAGS "$@" || exit 1
+eval set -- "${FLAGS_ARGV}"
+switch_to_strict_mode
+
+# Our GRUB lives under coreos/grub so new pygrub versions cannot find grub.cfg
+GRUB_DIR="coreos/grub/${FLAGS_target}"
+
+# Assumes the ESP is the first partition, GRUB cannot search for it by type.
+GRUB_PREFIX="(,gpt1)/coreos/grub"
+
+# Modules required to find and read everything else from ESP
+CORE_MODULES=( fat part_gpt gzio )
+
+# Name of the core image, depends on target
+CORE_NAME=
+
+case "${FLAGS_target}" in
+    i386-pc)
+        CORE_MODULES+=( biosdisk )
+        CORE_NAME="core.img"
+        ;;
+    x86_64-efi)
+        CORE_NAME="core.efi"
+        ;;
+    *)
+        die_notrace "Unknown GRUB target ${FLAGS_target}"
+        ;;
+esac
+
+# In order for grub-setup-bios to properly detect the layout of the disk
+# image it expects a normal partitioned block device. For most of the build
+# disk_util maps individual loop devices to each partition in the image so
+# the kernel can automatically detach the loop devices on unmount. When
+# using a single loop device with partitions there is no such cleanup.
+# That's the story of why this script has all this goo for loop and mount.
+STAGE_DIR=
+ESP_DIR=
+LOOP_DEV=
+
+cleanup() {
+    if [[ -d "${STAGE_DIR}" ]]; then
+        rm -rf "${STAGE_DIR}"
+    fi
+    if [[ -d "${ESP_DIR}" ]]; then
+        if mountpoint -q "${ESP_DIR}"; then
+            sudo umount "${ESP_DIR}"
+        fi
+        rm -rf "${ESP_DIR}"
+    fi
+    if [[ -b "${LOOP_DEV}" ]]; then
+        sudo losetup --detach "${LOOP_DEV}"
+    fi
+}
+trap cleanup EXIT
+
+STAGE_DIR=$(mktemp --directory)
+mkdir -p "${STAGE_DIR}/${GRUB_DIR}"
+
+info "Compressing modules in ${GRUB_DIR}"
+for file in "/usr/lib/grub/${FLAGS_target}"/*{.lst,.mod}; do
+    out="${STAGE_DIR}/${GRUB_DIR}/${file##*/}"
+    gzip --best --stdout "${file}" > "${out}"
+done
+
+info "Generating ${GRUB_DIR}/${CORE_NAME}"
+grub-mkimage \
+    --compression=auto \
+    --format "${FLAGS_target}" \
+    --prefix "${GRUB_PREFIX}" \
+    --output "${STAGE_DIR}/${GRUB_DIR}/${CORE_NAME}" \
+    "${CORE_MODULES[@]}"
+
+info "Installing GRUB ${FLAGS_target} to ${FLAGS_disk_image##*/}"
+LOOP_DEV=$(sudo losetup --find --show --partscan "${FLAGS_disk_image}")
+ESP_DIR=$(mktemp --directory)
+sudo mount -t vfat "${LOOP_DEV}p1" "${ESP_DIR}"
+sudo cp -r "${STAGE_DIR}/." "${ESP_DIR}/."
+
+# This script will get called a few times, no need to re-copy grub.cfg
+if [[ ! -f "${ESP_DIR}/coreos/grub/grub.cfg" ]]; then
+    info "Installing grub.cfg"
+    sudo cp "${BUILD_LIBRARY_DIR}/grub.cfg" "${ESP_DIR}/coreos/grub/grub.cfg"
+fi
+
+# Now target specific steps to make the system bootable
+case "${FLAGS_target}" in
+    i386-pc)
+        info "Installing MBR and the BIOS Boot partition."
+        sudo cp "/usr/lib/grub/i386-pc/boot.img" "${ESP_DIR}/${GRUB_DIR}"
+        sudo grub-bios-setup --device-map=/dev/null \
+            --directory="${ESP_DIR}/${GRUB_DIR}" "${LOOP_DEV}"
+        ;;
+    x86_64-efi)
+        info "Installing default x86_64 UEFI bootloader."
+        sudo mkdir -p "${ESP_DIR}/EFI/boot"
+        sudo cp "${STAGE_DIR}/${GRUB_DIR}/${CORE_NAME}" \
+            "${ESP_DIR}/EFI/boot/bootx64.efi"
+        ;;
+esac
+
+cleanup
+trap - EXIT
+command_completed
diff --git a/build_library/qemu_template.sh b/build_library/qemu_template.sh
index a4c107e366..30de34c9be 100755
--- a/build_library/qemu_template.sh
+++ b/build_library/qemu_template.sh
@@ -20,7 +20,7 @@ Options:
     -c FILE     Config drive as an iso or fat filesystem image.
     -a FILE     SSH public keys for login access. [~/.ssh/id_{dsa,rsa}.pub]
     -p PORT     The port on localhost to map to the VM's sshd. [2222]
-    -s          Safe settings: single simple cpu, ide disks.
+    -s          Safe settings: single simple cpu and no KVM.
     -h          this ;-)
 
 This script is a wrapper around qemu for starting CoreOS virtual machines.
@@ -131,11 +131,11 @@ fi
 
 # Start assembling our default command line arguments
 if [ "${SAFE_ARGS}" -eq 1 ]; then
-    disk_type="ide"
+    # Disable KVM, for testing things like UEFI which don't like it
+    set -- -machine accel=tcg "$@"
 else
-    disk_type="virtio"
     # Emulate the host CPU closely in both features and cores.
-    set -- -cpu host -smp "${VM_NCPUS}" "$@"
+    set -- -machine accel=kvm -cpu host -smp "${VM_NCPUS}" "$@"
 fi
 
 # ${CONFIG_DRIVE} or ${CONFIG_IMAGE} will be mounted in CoreOS as /media/configdrive
@@ -146,11 +146,11 @@ if [ -n "${CONFIG_DRIVE}" ]; then
 fi
 
 if [ -n "${CONFIG_IMAGE}" ]; then
-    set -- -drive if=${disk_type},file="${CONFIG_IMAGE}" "$@"
+    set -- -drive if=virtio,file="${CONFIG_IMAGE}" "$@"
 fi
 
 if [ -n "${VM_IMAGE}" ]; then
-    set -- -drive if=${disk_type},file="${SCRIPT_DIR}/${VM_IMAGE}" "$@"
+    set -- -drive if=virtio,file="${SCRIPT_DIR}/${VM_IMAGE}" "$@"
 fi
 
 if [ -n "${VM_KERNEL}" ]; then
@@ -173,7 +173,6 @@ fi
 qemu-system-x86_64 \
     -name "$VM_NAME" \
     -m ${VM_MEMORY} \
-    -machine accel=kvm:tcg \
     -net nic,vlan=0,model=virtio \
     -net user,vlan=0,hostfwd=tcp::"${SSH_PORT}"-:22,hostname="${VM_NAME}" \
     "$@"