diff --git a/changelog/bugfixes/2023-10-17-cloudsigma-tty-raw.md b/changelog/bugfixes/2023-10-17-cloudsigma-tty-raw.md
new file mode 100644
index 0000000000..58d299b748
--- /dev/null
+++ b/changelog/bugfixes/2023-10-17-cloudsigma-tty-raw.md
@@ -0,0 +1 @@
+- Set TTY used for fetching server_context to RAW mode before running cloudinit on cloudsigma ([scripts#1280](https://github.com/flatcar/scripts/pull/1280))
diff --git a/sdk_container/src/third_party/coreos-overlay/coreos-base/oem-cloudsigma/files/cloud-config.yml b/sdk_container/src/third_party/coreos-overlay/coreos-base/oem-cloudsigma/files/cloud-config.yml
index b78f16b7f0..757796e101 100644
--- a/sdk_container/src/third_party/coreos-overlay/coreos-base/oem-cloudsigma/files/cloud-config.yml
+++ b/sdk_container/src/third_party/coreos-overlay/coreos-base/oem-cloudsigma/files/cloud-config.yml
@@ -11,6 +11,7 @@ coreos:
 
         [Service]
         Type=oneshot
+        ExecStartPre=stty -F /dev/ttyS1 raw -echo
         ExecStart=/usr/bin/coreos-cloudinit --oem=cloudsigma
 
   oem:
diff --git a/sdk_container/src/third_party/coreos-overlay/coreos-base/oem-cloudsigma/oem-cloudsigma-0.0.3-r3.ebuild b/sdk_container/src/third_party/coreos-overlay/coreos-base/oem-cloudsigma/oem-cloudsigma-0.0.3-r4.ebuild
similarity index 100%
rename from sdk_container/src/third_party/coreos-overlay/coreos-base/oem-cloudsigma/oem-cloudsigma-0.0.3-r3.ebuild
rename to sdk_container/src/third_party/coreos-overlay/coreos-base/oem-cloudsigma/oem-cloudsigma-0.0.3-r4.ebuild