diff --git a/sdk_container/src/third_party/coreos-overlay/profiles/coreos/base/package.accept_keywords b/sdk_container/src/third_party/coreos-overlay/profiles/coreos/base/package.accept_keywords
index a06f609dac..21f2b22b55 100644
--- a/sdk_container/src/third_party/coreos-overlay/profiles/coreos/base/package.accept_keywords
+++ b/sdk_container/src/third_party/coreos-overlay/profiles/coreos/base/package.accept_keywords
@@ -26,11 +26,6 @@
 =app-benchmarks/i7z-0.27-r1 ~amd64
 =dev-libs/opencryptoki-2.4.2 ~amd64
 
-# Replace the function.sh script in baselayout
-=sys-apps/efunctions-1 ~amd64 ~x86
-
-#=dev-libs/libxml2-2.9.0-r1 ~amd64
-
 # CRIU dependencies
 =dev-libs/protobuf-c-0.15 ~amd64
 
@@ -119,3 +114,6 @@ dev-util/checkbashisms
 
 # link jq binary dynamically
 =app-misc/jq-1.4-r1
+
+# https://bugs.gentoo.org/show_bug.cgi?id=548158
+=sys-apps/gentoo-functions-0.10
diff --git a/sdk_container/src/third_party/coreos-overlay/profiles/features/systemd/packages b/sdk_container/src/third_party/coreos-overlay/profiles/features/systemd/packages
index 2d4ed12f5b..92783beb68 100644
--- a/sdk_container/src/third_party/coreos-overlay/profiles/features/systemd/packages
+++ b/sdk_container/src/third_party/coreos-overlay/profiles/features/systemd/packages
@@ -1,4 +1,4 @@
 # Add systemd to the 'system' set
-*sys-apps/efunctions
+*sys-apps/gentoo-functions
 *sys-apps/systemd
 -*sys-apps/openrc
diff --git a/sdk_container/src/third_party/coreos-overlay/profiles/features/systemd/packages.build b/sdk_container/src/third_party/coreos-overlay/profiles/features/systemd/packages.build
index 12a43c51e8..a3d7e98b94 100644
--- a/sdk_container/src/third_party/coreos-overlay/profiles/features/systemd/packages.build
+++ b/sdk_container/src/third_party/coreos-overlay/profiles/features/systemd/packages.build
@@ -1,3 +1,3 @@
 sys-apps/dbus
-sys-apps/efunctions
+sys-apps/gentoo-functions
 -sys-apps/openrc
diff --git a/sdk_container/src/third_party/coreos-overlay/sys-apps/baselayout/baselayout-3.0.13.ebuild b/sdk_container/src/third_party/coreos-overlay/sys-apps/baselayout/baselayout-3.0.14.ebuild
similarity index 100%
rename from sdk_container/src/third_party/coreos-overlay/sys-apps/baselayout/baselayout-3.0.13.ebuild
rename to sdk_container/src/third_party/coreos-overlay/sys-apps/baselayout/baselayout-3.0.14.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 63c774a0a0..f7d9568c91 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
@@ -31,7 +31,7 @@ DEPEND="sys-apps/systemd
 
 # Make sure coreos-init is not installed in the SDK
 RDEPEND="${DEPEND}
-	sys-apps/efunctions
+	>=sys-apps/gentoo-functions-0.10
 	cros_host? ( !coreos-base/coreos-init )"
 
 declare -A LIB_SYMS		# list of /lib->lib64 symlinks
@@ -186,4 +186,11 @@ pkg_postinst() {
 		touch "${ROOT}/etc/"{group,gshadow,passwd,shadow}
 		chmod 640 "${ROOT}/etc/"{gshadow,shadow}
 	fi
+	# compat symlink for packages that haven't migrated to gentoo-functions
+	local func=../../lib/gentoo/functions.sh
+	if [[ "$(readlink "${ROOT}/etc/init.d/functions.sh")" != "${func}" ]]; then
+		elog "Creating /etc/init.d/functions.sh symlink..."
+		mkdir -p "${ROOT}/etc/init.d"
+		ln -sf "${func}" "${ROOT}/etc/init.d/functions.sh"
+	fi
 }