diff --git a/sdk_container/src/third_party/coreos-overlay/app-emulation/google-startup-scripts/Manifest b/sdk_container/src/third_party/coreos-overlay/app-emulation/google-startup-scripts/Manifest
index abbd981714..fd682a9a9b 100644
--- a/sdk_container/src/third_party/coreos-overlay/app-emulation/google-startup-scripts/Manifest
+++ b/sdk_container/src/third_party/coreos-overlay/app-emulation/google-startup-scripts/Manifest
@@ -1 +1 @@
-DIST google-startup-scripts-1.1.1.tar.gz 12852 SHA256 33739257421ef2cc3d1170ae84540215e739160d9395f9a72e166401fa64086f SHA512 7f69c1c7ed260c42b31c789b1a0e684e58b52f126b691c68105b5ebe6c96f2e4a694c9c773d3e89f5c768a5a62e4d30e8b20220c2be372ac1e4f5983cc543bd1 WHIRLPOOL 1d0164bfeac0b20f40e183f7bb48f1f374c39de608ab5060801f914b2543a28b69b2315c39ae926bf9a5902afdcf5f3a67eb093ca2ce09fe9dfd4db0eee7e820
+DIST google-startup-scripts-1.3.2.tar.gz 15750 SHA256 e26f70714d9bfc8feba83d44c0881b2c10f54a594bc206e77c03c2f0611a5f39 SHA512 f5c2d4bca4030426dbec9103c0b53cb8c166645ae0d6926bfc318112c6b14743dd2df8834cd35e5f5eb73a4862b709deda50e95018250abf069cac52ec436217 WHIRLPOOL a09f4b169e87301f23688d2404d12e546d19930e87894c79bf5f5253ebc05ed796d49ab3dfe8233de50797ec50afbb0ffc935c881f0f00f975363e5a4189592e
diff --git a/sdk_container/src/third_party/coreos-overlay/app-emulation/google-startup-scripts/files/0001-Allow-location-of-startup-scripts-to-be-overridden.patch b/sdk_container/src/third_party/coreos-overlay/app-emulation/google-startup-scripts/files/0001-Allow-location-of-startup-scripts-to-be-overridden.patch
new file mode 100644
index 0000000000..9f952683c2
--- /dev/null
+++ b/sdk_container/src/third_party/coreos-overlay/app-emulation/google-startup-scripts/files/0001-Allow-location-of-startup-scripts-to-be-overridden.patch
@@ -0,0 +1,163 @@
+From 73c4917ef66a0be37b625f00d0c38dffe5cbc70c Mon Sep 17 00:00:00 2001
+From: Alex Crawford <alex.crawford@coreos.com>
+Date: Thu, 12 May 2016 14:28:01 -0700
+Subject: [PATCH] Allow location of startup scripts to be overridden
+
+---
+ google-startup-scripts/usr/share/google/fetch_script  |  3 ++-
+ google-startup-scripts/usr/share/google/first-boot    |  7 ++++---
+ google-startup-scripts/usr/share/google/onboot        | 19 ++++++++++---------
+ .../usr/share/google/run-shutdown-scripts             |  5 +++--
+ .../usr/share/google/run-startup-scripts              |  5 +++--
+ 5 files changed, 22 insertions(+), 17 deletions(-)
+
+diff --git a/google-startup-scripts/usr/share/google/fetch_script b/google-startup-scripts/usr/share/google/fetch_script
+index 72ba9ac..2946a71 100755
+--- a/google-startup-scripts/usr/share/google/fetch_script
++++ b/google-startup-scripts/usr/share/google/fetch_script
+@@ -24,6 +24,7 @@ fi
+ 
+ declare -r CURL_RETRY_LIMIT=10
+ declare -r CURL_TIMEOUT=10
++declare -r SCRIPTS_PREFIX=${GOOGLE_SCRIPTS_PREFIX:-/usr/share/google/}
+ 
+ function log() {
+   echo "$@" | ${LOGGER} -t google -p daemon.info
+@@ -109,7 +110,7 @@ function download_url() {
+ 
+ function get_metadata_attribute() {
+   local readonly varname=$1
+-  /usr/share/google/get_metadata_value "attributes/${varname}"
++  ${SCRIPTS_PREFIX}/get_metadata_value "attributes/${varname}"
+   return $?
+ }
+ 
+diff --git a/google-startup-scripts/usr/share/google/first-boot b/google-startup-scripts/usr/share/google/first-boot
+index b346b65..836857d 100755
+--- a/google-startup-scripts/usr/share/google/first-boot
++++ b/google-startup-scripts/usr/share/google/first-boot
+@@ -17,6 +17,7 @@
+ 
+ declare -r INSTANCE_FILE=${PREFIX}/var/lib/google/vm-instance-id
+ declare -r LOCK_FILE=${INSTANCE_FILE}.lock
++declare -r SCRIPTS_PREFIX=${GOOGLE_SCRIPTS_PREFIX:-/usr/share/google/}
+ 
+ mkdir -p ${PREFIX}/var/lib/google/per-instance
+ 
+@@ -29,7 +30,7 @@ function log() {
+ }
+ 
+ function get_instance_id() {
+-  ${PREFIX}/usr/share/google/get_metadata_value id 2>/dev/null
++  ${PREFIX}/${SCRIPTS_PREFIX}/get_metadata_value id 2>/dev/null
+ }
+ 
+ # Checks the instance id has changed.
+@@ -71,8 +72,8 @@ function manage_stored_instance_id() {
+     log "Running first-boot"
+ 
+     # Regenerate host keys for ssh.
+-    if [[ -x ${PREFIX}/usr/share/google/regenerate-host-keys ]]; then
+-      ${PREFIX}/usr/share/google/regenerate-host-keys
++    if [[ -x ${PREFIX}/${SCRIPTS_PREFIX}/regenerate-host-keys ]]; then
++      ${PREFIX}/${SCRIPTS_PREFIX}/regenerate-host-keys
+     fi
+ 
+     # We are booting this instance for the first time.
+diff --git a/google-startup-scripts/usr/share/google/onboot b/google-startup-scripts/usr/share/google/onboot
+index 482d384..a3df445 100755
+--- a/google-startup-scripts/usr/share/google/onboot
++++ b/google-startup-scripts/usr/share/google/onboot
+@@ -33,7 +33,8 @@ else
+     declare -r LOGGER=/bin/logger
+ fi
+ 
+-declare -r BOTO_SETUP_SCRIPT=/usr/share/google/boto/boot_setup.py
++declare -r SCRIPTS_PREFIX=${GOOGLE_SCRIPTS_PREFIX:-/usr/share/google/}
++declare -r BOTO_SETUP_SCRIPT=${SCRIPTS_PREFIX}/boto/boot_setup.py
+ declare -r GOOGLE_ENVIRONMENT=/var/run/google.environment
+ 
+ function log() {
+@@ -42,26 +43,26 @@ function log() {
+ }
+ 
+ function set_interrupts() {
+-  if [[ -x /usr/share/google/set-interrupts ]]; then
+-    /usr/share/google/set-interrupts
++  if [[ -x ${SCRIPTS_PREFIX}/set-interrupts ]]; then
++    ${SCRIPTS_PREFIX}/set-interrupts
+   fi
+ }
+ 
+ function virtionet_irq_affinity() {
+-  if [[ -x /usr/share/google/virtionet-irq-affinity ]]; then
+-    /usr/share/google/virtionet-irq-affinity
++  if [[ -x ${SCRIPTS_PREFIX}/virtionet-irq-affinity ]]; then
++    ${SCRIPTS_PREFIX}/virtionet-irq-affinity
+   fi
+ }
+ 
+ function first_boot() {
+-  if [[ -x /usr/share/google/first-boot ]]; then
+-    /usr/share/google/first-boot
++  if [[ -x ${SCRIPTS_PREFIX}/first-boot ]]; then
++    ${SCRIPTS_PREFIX}/first-boot
+   fi
+ }
+ 
+ function get_metadata_value() {
+   local readonly varname=$1
+-  /usr/share/google/get_metadata_value ${varname}
++  ${SCRIPTS_PREFIX}/get_metadata_value ${varname}
+   return $?
+ }
+ 
+@@ -119,7 +120,7 @@ function check_for_connection() {
+   log "Checking for metadata server connection."
+   while true; do
+     ((count++))
+-    MDS_TRIES=1 /usr/share/google/get_metadata_value "?recursive=True"
++    MDS_TRIES=1 ${SCRIPTS_PREFIX}/get_metadata_value "?recursive=True"
+     return_code=$?
+     case ${return_code} in
+       # No error.  Connection is active.
+diff --git a/google-startup-scripts/usr/share/google/run-shutdown-scripts b/google-startup-scripts/usr/share/google/run-shutdown-scripts
+index 61377e9..b81f49b 100755
+--- a/google-startup-scripts/usr/share/google/run-shutdown-scripts
++++ b/google-startup-scripts/usr/share/google/run-shutdown-scripts
+@@ -20,6 +20,7 @@
+ PATH=/sbin:/usr/sbin:/bin:/usr/bin:/usr/local/bin
+ 
+ declare -r SHUTDOWN_SCRIPT=/var/run/google.shutdown.script
++declare -r SCRIPTS_PREFIX=${GOOGLE_SCRIPTS_PREFIX:-/usr/share/google/}
+ 
+ # NOTE
+ # Make sure that the shutdown script completes within 90 seconds, so
+@@ -27,5 +28,5 @@ declare -r SHUTDOWN_SCRIPT=/var/run/google.shutdown.script
+ # buffers to disk.
+ #
+ # The shutdown script blocks other shutdown operations from proceeding.
+-/usr/share/google/fetch_script ${SHUTDOWN_SCRIPT} shutdown
+-/usr/share/google/run-scripts ${SHUTDOWN_SCRIPT} shutdown
++${SCRIPTS_PREFIX}/fetch_script ${SHUTDOWN_SCRIPT} shutdown
++${SCRIPTS_PREFIX}/run-scripts ${SHUTDOWN_SCRIPT} shutdown
+diff --git a/google-startup-scripts/usr/share/google/run-startup-scripts b/google-startup-scripts/usr/share/google/run-startup-scripts
+index b9e2667..c9afddf 100755
+--- a/google-startup-scripts/usr/share/google/run-startup-scripts
++++ b/google-startup-scripts/usr/share/google/run-startup-scripts
+@@ -19,9 +19,10 @@
+ PATH=/sbin:/usr/sbin:/bin:/usr/bin:/usr/local/bin
+ 
+ declare -r STARTUP_SCRIPT=/var/run/google.startup.script
++declare -r SCRIPTS_PREFIX=${GOOGLE_SCRIPTS_PREFIX:-/usr/share/google/}
+ 
+ # Make sure all udev changes settle before running startup scripts.
+ udevadm settle
+ 
+-/usr/share/google/fetch_script ${STARTUP_SCRIPT} startup
+-/usr/share/google/run-scripts ${STARTUP_SCRIPT} startup
++${SCRIPTS_PREFIX}/fetch_script ${STARTUP_SCRIPT} startup
++${SCRIPTS_PREFIX}/run-scripts ${STARTUP_SCRIPT} startup
+-- 
+2.7.3
+
diff --git a/sdk_container/src/third_party/coreos-overlay/app-emulation/google-startup-scripts/files/0001-fix-google-startup-scripts-use-GOOGLE_STARTUP_SCRIPT.patch b/sdk_container/src/third_party/coreos-overlay/app-emulation/google-startup-scripts/files/0001-fix-google-startup-scripts-use-GOOGLE_STARTUP_SCRIPT.patch
deleted file mode 100644
index 8ed5827817..0000000000
--- a/sdk_container/src/third_party/coreos-overlay/app-emulation/google-startup-scripts/files/0001-fix-google-startup-scripts-use-GOOGLE_STARTUP_SCRIPT.patch
+++ /dev/null
@@ -1,63 +0,0 @@
-From 2748f99730e699b2597653ddef1c4109cae976b2 Mon Sep 17 00:00:00 2001
-From: Brandon Philips <brandon@ifup.co>
-Date: Tue, 1 Apr 2014 16:35:28 -0700
-Subject: [PATCH] fix(google-startup-scripts): use
- ${GOOGLE_STARTUP_SCRIPTS_PREFIX} in onboot
-
-We can't install these scripts into /usr/share/google. So, take a PREFIX
-environment variable.
----
- google-startup-scripts/usr/share/google/onboot | 14 +++++++-------
- 1 file changed, 7 insertions(+), 7 deletions(-)
-
-diff --git a/google-startup-scripts/usr/share/google/onboot b/google-startup-scripts/usr/share/google/onboot
-index d740d07..f65b5ab 100755
---- a/google-startup-scripts/usr/share/google/onboot
-+++ b/google-startup-scripts/usr/share/google/onboot
-@@ -33,7 +33,7 @@ else
-     declare -r LOGGER=/bin/logger
- fi
- 
--declare -r BOTO_SETUP_SCRIPT=/usr/share/google/boto/boot_setup.py
-+declare -r BOTO_SETUP_SCRIPT=${GOOGLE_STARTUP_SCRIPTS_PREFIX}/boto/boot_setup.py
- 
- declare -r CURL_RETRY_LIMIT=10
- declare -r CURL_TIMEOUT=10
-@@ -105,13 +105,13 @@ function download_url() {
- 
- function get_metadata_value() {
-   local readonly varname=$1
--  /usr/share/google/get_metadata_value ${varname}
-+  ${GOOGLE_STARTUP_SCRIPTS_PREFIX}/get_metadata_value ${varname}
-   return $?
- }
- 
- function get_metadata_attribute() {
-   local readonly varname=$1
--  /usr/share/google/get_metadata_value "attributes/${varname}"
-+  ${GOOGLE_STARTUP_SCRIPTS_PREFIX}/get_metadata_value "attributes/${varname}"
-   return $?
- }
- 
-@@ -129,14 +129,14 @@ function run_command_with_retry() {
- }
- 
- function first_boot() {
--  if [[ -x /usr/share/google/first-boot ]]; then
--    /usr/share/google/first-boot
-+  if [[ -x ${GOOGLE_STARTUP_SCRIPTS_PREFIX}/first-boot ]]; then
-+    ${GOOGLE_STARTUP_SCRIPTS_PREFIX}/first-boot
-   fi
- }
- 
- function virtionet_irq_affinity() {
--  if [[ -x /usr/share/google/virtionet-irq-affinity ]]; then
--    /usr/share/google/virtionet-irq-affinity
-+  if [[ -x ${GOOGLE_STARTUP_SCRIPTS_PREFIX}/virtionet-irq-affinity ]]; then
-+    ${GOOGLE_STARTUP_SCRIPTS_PREFIX}/virtionet-irq-affinity
-   fi
- }
- 
--- 
-1.8.5.2 (Apple Git-48)
-
diff --git a/sdk_container/src/third_party/coreos-overlay/app-emulation/google-startup-scripts/google-startup-scripts-1.1.1-r3.ebuild b/sdk_container/src/third_party/coreos-overlay/app-emulation/google-startup-scripts/google-startup-scripts-1.3.2.ebuild
similarity index 59%
rename from sdk_container/src/third_party/coreos-overlay/app-emulation/google-startup-scripts/google-startup-scripts-1.1.1-r3.ebuild
rename to sdk_container/src/third_party/coreos-overlay/app-emulation/google-startup-scripts/google-startup-scripts-1.3.2.ebuild
index faa76ad563..621700a224 100644
--- a/sdk_container/src/third_party/coreos-overlay/app-emulation/google-startup-scripts/google-startup-scripts-1.1.1-r3.ebuild
+++ b/sdk_container/src/third_party/coreos-overlay/app-emulation/google-startup-scripts/google-startup-scripts-1.3.2.ebuild
@@ -19,12 +19,10 @@ RDEPEND="dev-lang/python-oem"
 S="${WORKDIR}"
 
 src_prepare() {
-	epatch "${FILESDIR}"/0001-fix-google-startup-scripts-use-GOOGLE_STARTUP_SCRIPT.patch
+	epatch "${FILESDIR}/0001-Allow-location-of-startup-scripts-to-be-overridden.patch"
 }
 
 src_install() {
-	mkdir -p ${D}/usr/share/oem/google-startup-scripts/usr/share/google/
-	cp -Ra ${WORKDIR}/usr/share/google/. ${D}/usr/share/oem/google-startup-scripts/ || die
-	# We don't install python or gsutil so skip this
-	rm -R ${D}/usr/share/oem/google-startup-scripts/boto || die
+	exeinto "/usr/share/oem/google-startup-scripts/"
+	doexe "${S}"/usr/share/google/*
 }