diff --git a/changelog/changes/2023-05-12-coreos-cloudinit.md b/changelog/changes/2023-05-12-coreos-cloudinit.md
new file mode 100644
index 0000000000..1c59259d06
--- /dev/null
+++ b/changelog/changes/2023-05-12-coreos-cloudinit.md
@@ -0,0 +1 @@
+- Changed coreos-cloudinit to now set the short hostname instead of the FQDN when fetched from the metadata service ([coreos-cloudinit#19](https://github.com/flatcar/coreos-cloudinit/pull/19))
diff --git a/sdk_container/src/third_party/coreos-overlay/coreos-base/coreos-cloudinit/coreos-cloudinit-9999.ebuild b/sdk_container/src/third_party/coreos-overlay/coreos-base/coreos-cloudinit/coreos-cloudinit-9999.ebuild
index fe3d1fa8c6..d811b4aca1 100644
--- a/sdk_container/src/third_party/coreos-overlay/coreos-base/coreos-cloudinit/coreos-cloudinit-9999.ebuild
+++ b/sdk_container/src/third_party/coreos-overlay/coreos-base/coreos-cloudinit/coreos-cloudinit-9999.ebuild
@@ -12,7 +12,7 @@ inherit cros-workon systemd toolchain-funcs udev coreos-go
 if [[ "${PV}" == 9999 ]]; then
 	KEYWORDS="~amd64 ~arm64"
 else
-	CROS_WORKON_COMMIT="2c383a41a1718f66be2add7f58a885df5b89d86f" # flatcar-master
+	CROS_WORKON_COMMIT="89319292b9bca85a7a1f5f8a47c459dd45a8cc7a" # flatcar-master
 	KEYWORDS="amd64 arm64"
 fi