diff --git a/sdk_container/src/third_party/coreos-overlay/sys-apps/baselayout/baselayout-3.0.11.ebuild b/sdk_container/src/third_party/coreos-overlay/sys-apps/baselayout/baselayout-3.0.12.ebuild
similarity index 100%
rename from sdk_container/src/third_party/coreos-overlay/sys-apps/baselayout/baselayout-3.0.11.ebuild
rename to sdk_container/src/third_party/coreos-overlay/sys-apps/baselayout/baselayout-3.0.12.ebuild
diff --git a/sdk_container/src/third_party/coreos-overlay/sys-apps/baselayout/baselayout-9999.ebuild b/sdk_container/src/third_party/coreos-overlay/sys-apps/baselayout/baselayout-9999.ebuild
index 7c62de8ab4..3c12b6eb88 100644
--- a/sdk_container/src/third_party/coreos-overlay/sys-apps/baselayout/baselayout-9999.ebuild
+++ b/sdk_container/src/third_party/coreos-overlay/sys-apps/baselayout/baselayout-9999.ebuild
@@ -181,4 +181,9 @@ pkg_postinst() {
 			ln -sfT "${USR_SYMS[$sym]}" "${ROOT}/usr/lib/debug/${sym}"
 		done
 	fi
+	# The default passwd/group files must exist in the SDK for some ebuilds
+	if use cros_host; then
+		touch "${ROOT}/etc/"{group,gshadow,passwd,shadow}
+		chmod 640 "${ROOT}/etc/"{gshadow,shadow}
+	fi
 }