diff --git a/sdk_container/src/third_party/coreos-overlay/profiles/coreos/base/package.use b/sdk_container/src/third_party/coreos-overlay/profiles/coreos/base/package.use
index b23ddbbec2..a53eccf76b 100644
--- a/sdk_container/src/third_party/coreos-overlay/profiles/coreos/base/package.use
+++ b/sdk_container/src/third_party/coreos-overlay/profiles/coreos/base/package.use
@@ -107,3 +107,6 @@ net-misc/rsync -cpu_flags_x86_sse2
 
 # Don't read the firmware config from /etc/portage/savedconfig/
 sys-kernel/coreos-firmware -savedconfig
+
+# Make kmod support kernel modules compressed via lzma(xz)
+sys-apps/kmod lzma
diff --git a/sdk_container/src/third_party/coreos-overlay/sys-kernel/coreos-modules/files/commonconfig-5.8 b/sdk_container/src/third_party/coreos-overlay/sys-kernel/coreos-modules/files/commonconfig-5.8
index 4b8edaef18..ae7f232a1e 100644
--- a/sdk_container/src/third_party/coreos-overlay/sys-kernel/coreos-modules/files/commonconfig-5.8
+++ b/sdk_container/src/third_party/coreos-overlay/sys-kernel/coreos-modules/files/commonconfig-5.8
@@ -435,6 +435,8 @@ CONFIG_MMC_BLOCK_MINORS=16
 CONFIG_MMC_SDHCI=m
 CONFIG_MMC_SDHCI_PCI=m
 CONFIG_MODULES=y
+CONFIG_MODULE_COMPRESS=y
+CONFIG_MODULE_COMPRESS_XZ=y
 CONFIG_MODULE_SIG=y
 CONFIG_MODULE_SIG_KEY="certs/modules.pem"
 CONFIG_MODULE_SIG_SHA256=y