diff --git a/sdk_container/src/third_party/coreos-overlay/app-admin/logrotate/files/logrotate.conf b/sdk_container/src/third_party/coreos-overlay/app-admin/logrotate/files/logrotate.conf
index d25e023858..0b1d0b9265 100644
--- a/sdk_container/src/third_party/coreos-overlay/app-admin/logrotate/files/logrotate.conf
+++ b/sdk_container/src/third_party/coreos-overlay/app-admin/logrotate/files/logrotate.conf
@@ -1,13 +1,19 @@
+# Flatcar: This is a modified version of the default config that came
+# with Gentoo Linux.
+
 #
 # Default logrotate(8) configuration file for Gentoo Linux.
 # See "man logrotate" for details.
 
 # rotate log files weekly.
-weekly
+#weekly
 #daily
 
 # keep 4 weeks worth of backlogs.
-rotate 4
+#rotate 4
+
+# Flatcar: keep only the most recent old log.
+rotate 1
 
 # create new (empty) log files after rotating old ones.
 create
@@ -18,6 +24,8 @@ dateext
 # compress rotated log files.
 compress
 
+# Flatcar: If a file to rotate is missing, don't log an error.
+missingok
 notifempty
 nomail
 noolddir
@@ -26,17 +34,14 @@ noolddir
 include /etc/logrotate.d
 
 # no packages own wtmp and btmp -- we'll rotate them here.
+# must match creation rules in /usr/lib/tmpfiles.d/var.conf
 /var/log/wtmp {
-    monthly
     create 0664 root utmp
-    minsize 1M
-    rotate 1
+    size 1M
 }
 /var/log/btmp {
-    missingok
-    monthly
     create 0600 root utmp
-    rotate 1
+    size 1M
 }
 
 # system-specific logs may also be configured here.
diff --git a/sdk_container/src/third_party/coreos-overlay/app-admin/logrotate/files/logrotate.service b/sdk_container/src/third_party/coreos-overlay/app-admin/logrotate/files/logrotate.service
new file mode 100644
index 0000000000..92dcd0368e
--- /dev/null
+++ b/sdk_container/src/third_party/coreos-overlay/app-admin/logrotate/files/logrotate.service
@@ -0,0 +1,5 @@
+[Unit]
+Description=Rotate and Compress System Logs
+
+[Service]
+ExecStart=/usr/bin/logrotate /usr/share/logrotate/logrotate.conf
diff --git a/sdk_container/src/third_party/coreos-overlay/app-admin/logrotate/files/logrotate.tmpfiles b/sdk_container/src/third_party/coreos-overlay/app-admin/logrotate/files/logrotate.tmpfiles
index dfb4ab66c1..e0c2f7c293 100644
--- a/sdk_container/src/third_party/coreos-overlay/app-admin/logrotate/files/logrotate.tmpfiles
+++ b/sdk_container/src/third_party/coreos-overlay/app-admin/logrotate/files/logrotate.tmpfiles
@@ -1 +1,2 @@
 d /var/lib/misc
+d /etc/logrotate.d    -   -   -   -   -
diff --git a/sdk_container/src/third_party/coreos-overlay/app-admin/logrotate/logrotate-3.20.1-r1.ebuild b/sdk_container/src/third_party/coreos-overlay/app-admin/logrotate/logrotate-3.20.1-r1.ebuild
index 868b758df6..59e516b607 100644
--- a/sdk_container/src/third_party/coreos-overlay/app-admin/logrotate/logrotate-3.20.1-r1.ebuild
+++ b/sdk_container/src/third_party/coreos-overlay/app-admin/logrotate/logrotate-3.20.1-r1.ebuild
@@ -64,12 +64,25 @@ src_install() {
 	doman logrotate.8
 	dodoc ChangeLog.md
 
-	insinto /etc
+	# Flatcar: Put our config under /usr. We will point logrotate
+	# to use this configuration in the systemd unit we install
+	# below. User can always customize logrotate configuration by
+	# using drop-ins to point to a different path or by adding
+	# logrotate config files to /etc/logrotate.d.
+	insinto /usr/share/logrotate
 	doins "${FILESDIR}"/logrotate.conf
 
 	use cron && install_cron_file
 
-	systemd_dounit examples/logrotate.{service,timer}
+	# Flatcar: Install our own systemd service file and enable it
+	# by default.
+	#
+	# TODO: We probably should just patch the example logrotate
+	# service unit, as it has a bunch of hardening and performance
+	# tuning stuff done.
+	systemd_dounit examples/logrotate.timer
+	systemd_dounit "${FILESDIR}"/logrotate.service
+	systemd_enable_service multi-user.target logrotate.timer
 	newtmpfiles "${FILESDIR}"/${PN}.tmpfiles ${PN}.conf
 
 	keepdir /etc/logrotate.d