diff --git a/sdk_container/src/third_party/coreos-overlay/coreos-base/hard-host-depends/hard-host-depends-0.0.1-r152.ebuild b/sdk_container/src/third_party/coreos-overlay/coreos-base/hard-host-depends/hard-host-depends-0.0.1-r153.ebuild
similarity index 100%
rename from sdk_container/src/third_party/coreos-overlay/coreos-base/hard-host-depends/hard-host-depends-0.0.1-r152.ebuild
rename to sdk_container/src/third_party/coreos-overlay/coreos-base/hard-host-depends/hard-host-depends-0.0.1-r153.ebuild
diff --git a/sdk_container/src/third_party/coreos-overlay/coreos-base/hard-host-depends/hard-host-depends-0.0.1.ebuild b/sdk_container/src/third_party/coreos-overlay/coreos-base/hard-host-depends/hard-host-depends-0.0.1.ebuild
index 619339de2c..756660f174 100644
--- a/sdk_container/src/third_party/coreos-overlay/coreos-base/hard-host-depends/hard-host-depends-0.0.1.ebuild
+++ b/sdk_container/src/third_party/coreos-overlay/coreos-base/hard-host-depends/hard-host-depends-0.0.1.ebuild
@@ -144,6 +144,7 @@ RDEPEND="${RDEPEND}
 RDEPEND="${RDEPEND}
 	coreos-base/verity
 	sys-fs/libfat
+	sys-fs/squashfs-tools
 	"
 
 # Host dependency used by the chromeos-base/root-certificates ebuild
diff --git a/sdk_container/src/third_party/coreos-overlay/eclass/cros-kernel/x86_64_defconfig b/sdk_container/src/third_party/coreos-overlay/eclass/cros-kernel/x86_64_defconfig
index 78f28d26a7..06fa2c1238 100644
--- a/sdk_container/src/third_party/coreos-overlay/eclass/cros-kernel/x86_64_defconfig
+++ b/sdk_container/src/third_party/coreos-overlay/eclass/cros-kernel/x86_64_defconfig
@@ -2740,7 +2740,14 @@ CONFIG_MISC_FILESYSTEMS=y
 # CONFIG_EFS_FS is not set
 # CONFIG_LOGFS is not set
 # CONFIG_CRAMFS is not set
-# CONFIG_SQUASHFS is not set
+CONFIG_SQUASHFS=y
+# CONFIG_SQUASHFS_XATTR is not set
+CONFIG_SQUASHFS_ZLIB=y
+CONFIG_SQUASHFS_LZO=y
+CONFIG_SQUASHFS_XZ=y
+# CONFIG_SQUASHFS_4K_DEVBLK_SIZE is not set
+# CONFIG_SQUASHFS_EMBEDDED is not set
+CONFIG_SQUASHFS_FRAGMENT_CACHE_SIZE=3
 # CONFIG_VXFS_FS is not set
 # CONFIG_MINIX_FS is not set
 # CONFIG_OMFS_FS is not set
diff --git a/sdk_container/src/third_party/coreos-overlay/sys-kernel/bootengine/bootengine-0.0.1.ebuild b/sdk_container/src/third_party/coreos-overlay/sys-kernel/bootengine/bootengine-0.0.1.ebuild
index b3674977dd..963730502e 100644
--- a/sdk_container/src/third_party/coreos-overlay/sys-kernel/bootengine/bootengine-0.0.1.ebuild
+++ b/sdk_container/src/third_party/coreos-overlay/sys-kernel/bootengine/bootengine-0.0.1.ebuild
@@ -38,7 +38,7 @@ RDEPEND="${DEPEND}"
 
 src_install() {
 	insinto /usr/lib/dracut/modules.d/
-	doins -r dracut/80gptprio
+	doins -r dracut/.
 	dosbin update-bootengine
 }
 
diff --git a/sdk_container/src/third_party/coreos-overlay/sys-kernel/bootengine/bootengine-9999.ebuild b/sdk_container/src/third_party/coreos-overlay/sys-kernel/bootengine/bootengine-9999.ebuild
index d5033a42e1..50c6595e7c 100644
--- a/sdk_container/src/third_party/coreos-overlay/sys-kernel/bootengine/bootengine-9999.ebuild
+++ b/sdk_container/src/third_party/coreos-overlay/sys-kernel/bootengine/bootengine-9999.ebuild
@@ -37,7 +37,7 @@ RDEPEND="${DEPEND}"
 
 src_install() {
 	insinto /usr/lib/dracut/modules.d/
-	doins -r dracut/80gptprio
+	doins -r dracut/.
 	dosbin update-bootengine
 }
 
diff --git a/sdk_container/src/third_party/coreos-overlay/sys-kernel/coreos-kernel/coreos-kernel-3.10.10-r2.ebuild b/sdk_container/src/third_party/coreos-overlay/sys-kernel/coreos-kernel/coreos-kernel-3.10.10-r3.ebuild
similarity index 100%
rename from sdk_container/src/third_party/coreos-overlay/sys-kernel/coreos-kernel/coreos-kernel-3.10.10-r2.ebuild
rename to sdk_container/src/third_party/coreos-overlay/sys-kernel/coreos-kernel/coreos-kernel-3.10.10-r3.ebuild