diff --git a/sdk_container/src/third_party/coreos-overlay/changelog/changes/2023-03-09-pigz.md b/sdk_container/src/third_party/coreos-overlay/changelog/changes/2023-03-09-pigz.md
new file mode 100644
index 0000000000..f5457e2a49
--- /dev/null
+++ b/sdk_container/src/third_party/coreos-overlay/changelog/changes/2023-03-09-pigz.md
@@ -0,0 +1 @@
+- Added `pigz` to the image, a parallel gzip implementation, which is useful to speed up the (de)compression for large container image imports/exports ([coreos-overlay#2504](https://github.com/flatcar/coreos-overlay/pull/2504))
diff --git a/sdk_container/src/third_party/coreos-overlay/coreos-base/coreos/coreos-0.0.1.ebuild b/sdk_container/src/third_party/coreos-overlay/coreos-base/coreos/coreos-0.0.1.ebuild
index 87212ef039..78f1ee5523 100644
--- a/sdk_container/src/third_party/coreos-overlay/coreos-base/coreos/coreos-0.0.1.ebuild
+++ b/sdk_container/src/third_party/coreos-overlay/coreos-base/coreos/coreos-0.0.1.ebuild
@@ -91,6 +91,7 @@ RDEPEND="${RDEPEND}
 	app-arch/bzip2
 	app-arch/lbzip2
 	app-arch/lz4
+	app-arch/pigz
 	app-arch/xz-utils
 	app-arch/zstd
 	app-arch/tar