diff --git a/sdk_container/src/third_party/coreos-overlay/coreos/config/env/sec-policy/selinux-base b/sdk_container/src/third_party/coreos-overlay/coreos/config/env/sec-policy/selinux-base
new file mode 100644
index 0000000000..3f8bd09b3b
--- /dev/null
+++ b/sdk_container/src/third_party/coreos-overlay/coreos/config/env/sec-policy/selinux-base
@@ -0,0 +1,5 @@
+cros_post_src_install_disable_on_sdk() {
+    if [[ $(flatcar_target) = 'sdk' ]] ; then
+        sed -i -e 's/SELINUX=permissive/SELINUX=disabled/' "${ED}"/etc/selinux/config
+    fi
+}