diff --git a/internal/app/init/pkg/system/health/health_test.go b/internal/app/init/pkg/system/health/health_test.go
index 497716ea5..0681c44b4 100644
--- a/internal/app/init/pkg/system/health/health_test.go
+++ b/internal/app/init/pkg/system/health/health_test.go
@@ -72,6 +72,9 @@ func (suite *CheckSuite) TestHealthChange() {
 
 	var state health.State
 
+	notifyCh := make(chan health.StateChange, 2)
+	state.Subscribe(notifyCh)
+
 	errCh := make(chan error)
 	ctx, ctxCancel := context.WithCancel(context.Background())
 
@@ -94,6 +97,18 @@ func (suite *CheckSuite) TestHealthChange() {
 	ctxCancel()
 
 	suite.Assert().EqualError(<-errCh, context.Canceled.Error())
+
+	state.Unsubscribe(notifyCh)
+
+	close(notifyCh)
+
+	change := <-notifyCh
+	suite.Assert().Nil(change.Old.Healthy)
+	suite.Assert().False(*change.New.Healthy)
+
+	change = <-notifyCh
+	suite.Assert().False(*change.Old.Healthy)
+	suite.Assert().True(*change.New.Healthy)
 }
 
 func (suite *CheckSuite) TestCheckAbort() {
@@ -107,7 +122,7 @@ func (suite *CheckSuite) TestCheckAbort() {
 		select {
 		case <-ctx.Done():
 			return ctx.Err()
-		case <-time.After(25 * time.Millisecond):
+		case <-time.After(10 * time.Millisecond):
 			return nil
 		}
 	}
diff --git a/internal/app/init/pkg/system/health/settings.go b/internal/app/init/pkg/system/health/settings.go
index bf643ba81..15d4149c5 100644
--- a/internal/app/init/pkg/system/health/settings.go
+++ b/internal/app/init/pkg/system/health/settings.go
@@ -17,7 +17,7 @@ type Settings struct {
 
 // DefaultSettings provides some default health check settings
 var DefaultSettings = Settings{
-	InitialDelay: 500 * time.Millisecond,
+	InitialDelay: 200 * time.Millisecond,
 	Period:       time.Second,
 	Timeout:      500 * time.Millisecond,
 }
diff --git a/internal/app/init/pkg/system/health/status.go b/internal/app/init/pkg/system/health/status.go
index 347590406..f6a602615 100644
--- a/internal/app/init/pkg/system/health/status.go
+++ b/internal/app/init/pkg/system/health/status.go
@@ -16,23 +16,74 @@ type Status struct {
 	LastMessage string
 }
 
+// StateChange is used to notify about status changes
+type StateChange struct {
+	Old Status
+	New Status
+}
+
 // State provides proper locking around health state
 type State struct {
 	sync.Mutex
 
-	status Status
+	status      Status
+	subscribers []chan<- StateChange
 }
 
 // Update health status (locked)
 func (state *State) Update(healthy bool, message string) {
 	state.Lock()
-	defer state.Unlock()
 
-	state.status.LastMessage = message
+	oldStatus := state.status
+	notify := false
+
 	if state.status.Healthy == nil || *state.status.Healthy != healthy {
+		notify = true
 		state.status.Healthy = &healthy
 		state.status.LastChange = time.Now()
 	}
+	state.status.LastMessage = message
+
+	newStatus := state.status
+
+	var subscribers []chan<- StateChange
+	if notify {
+		subscribers = append([]chan<- StateChange(nil), state.subscribers...)
+	}
+
+	state.Unlock()
+
+	if notify {
+		for _, ch := range subscribers {
+			select {
+			case ch <- StateChange{oldStatus, newStatus}:
+			default:
+				// drop messages to clients which don't consume them
+			}
+		}
+	}
+}
+
+// Subscribe for the notifications on state changes
+func (state *State) Subscribe(ch chan<- StateChange) {
+	state.Lock()
+	defer state.Unlock()
+
+	state.subscribers = append(state.subscribers, ch)
+}
+
+// Unsubscribe from state changes
+func (state *State) Unsubscribe(ch chan<- StateChange) {
+	state.Lock()
+	defer state.Unlock()
+
+	for i := range state.subscribers {
+		if state.subscribers[i] == ch {
+			state.subscribers[i] = state.subscribers[len(state.subscribers)-1]
+			state.subscribers[len(state.subscribers)-1] = nil
+			state.subscribers = state.subscribers[:len(state.subscribers)-1]
+		}
+	}
 }
 
 // Init health status (locked)
diff --git a/internal/app/init/pkg/system/mocks_test.go b/internal/app/init/pkg/system/mocks_test.go
index bb4b2bc91..79da560f5 100644
--- a/internal/app/init/pkg/system/mocks_test.go
+++ b/internal/app/init/pkg/system/mocks_test.go
@@ -6,9 +6,13 @@ package system_test
 
 import (
 	"context"
+	"sync/atomic"
+	"time"
 
+	"github.com/pkg/errors"
 	"github.com/talos-systems/talos/internal/app/init/pkg/system/conditions"
 	"github.com/talos-systems/talos/internal/app/init/pkg/system/events"
+	"github.com/talos-systems/talos/internal/app/init/pkg/system/health"
 	"github.com/talos-systems/talos/internal/app/init/pkg/system/runner"
 	"github.com/talos-systems/talos/pkg/userdata"
 )
@@ -52,6 +56,38 @@ func (m *MockService) ConditionFunc(*userdata.UserData) conditions.ConditionFunc
 	return conditions.None()
 }
 
+type MockHealthcheckedService struct {
+	MockService
+
+	notHealthy uint32
+}
+
+func (m *MockHealthcheckedService) SetHealthy(healthy bool) {
+	if healthy {
+		atomic.StoreUint32(&m.notHealthy, 0)
+	} else {
+		atomic.StoreUint32(&m.notHealthy, 1)
+	}
+}
+
+func (m *MockHealthcheckedService) HealthFunc(*userdata.UserData) health.Check {
+	return func(context.Context) error {
+		if atomic.LoadUint32(&m.notHealthy) == 0 {
+			return nil
+		}
+
+		return errors.New("not healthy")
+	}
+}
+
+func (m *MockHealthcheckedService) HealthSettings(*userdata.UserData) *health.Settings {
+	return &health.Settings{
+		InitialDelay: time.Millisecond,
+		Timeout:      time.Second,
+		Period:       time.Millisecond,
+	}
+}
+
 type MockRunner struct {
 	exitCh chan error
 }
diff --git a/internal/app/init/pkg/system/service.go b/internal/app/init/pkg/system/service.go
new file mode 100644
index 000000000..794e7f290
--- /dev/null
+++ b/internal/app/init/pkg/system/service.go
@@ -0,0 +1,35 @@
+/* This Source Code Form is subject to the terms of the Mozilla Public
+ * License, v. 2.0. If a copy of the MPL was not distributed with this
+ * file, You can obtain one at http://mozilla.org/MPL/2.0/. */
+
+package system
+
+import (
+	"github.com/talos-systems/talos/internal/app/init/pkg/system/conditions"
+	"github.com/talos-systems/talos/internal/app/init/pkg/system/health"
+	"github.com/talos-systems/talos/internal/app/init/pkg/system/runner"
+	"github.com/talos-systems/talos/pkg/userdata"
+)
+
+// Service is an interface describing a system service.
+type Service interface {
+	// ID is the service id.
+	ID(*userdata.UserData) string
+	// PreFunc is invoked before a runner is created
+	PreFunc(*userdata.UserData) error
+	// Runner creates runner for the service
+	Runner(*userdata.UserData) (runner.Runner, error)
+	// PostFunc is invoked after a runner is closed.
+	PostFunc(*userdata.UserData) error
+	// ConditionFunc describes the conditions under which a service should
+	// start.
+	ConditionFunc(*userdata.UserData) conditions.ConditionFunc
+}
+
+// HealthcheckedService is a service which provides health check
+type HealthcheckedService interface {
+	// HealtFunc provides function that checks health of the service
+	HealthFunc(*userdata.UserData) health.Check
+	// HealthSettings returns settings for the health check
+	HealthSettings(*userdata.UserData) *health.Settings
+}
diff --git a/internal/app/init/pkg/system/service_runner.go b/internal/app/init/pkg/system/service_runner.go
index c92042dd5..4ed3146e5 100644
--- a/internal/app/init/pkg/system/service_runner.go
+++ b/internal/app/init/pkg/system/service_runner.go
@@ -13,6 +13,7 @@ import (
 
 	"github.com/pkg/errors"
 	"github.com/talos-systems/talos/internal/app/init/pkg/system/events"
+	"github.com/talos-systems/talos/internal/app/init/pkg/system/health"
 	"github.com/talos-systems/talos/internal/app/init/pkg/system/runner"
 	"github.com/talos-systems/talos/pkg/userdata"
 )
@@ -28,6 +29,8 @@ type ServiceRunner struct {
 	state  events.ServiceState
 	events events.ServiceEvents
 
+	healthState health.State
+
 	ctx       context.Context
 	ctxCancel context.CancelFunc
 }
@@ -63,6 +66,32 @@ func (svcrunner *ServiceRunner) UpdateState(newstate events.ServiceState, messag
 	log.Printf("service[%s](%s): %s", svcrunner.id, svcrunner.state, event.Message)
 }
 
+func (svcrunner *ServiceRunner) healthUpdate(change health.StateChange) {
+	svcrunner.mu.Lock()
+	defer svcrunner.mu.Unlock()
+
+	// service not running, suppress event
+	if svcrunner.state != events.StateRunning {
+		return
+	}
+
+	var message string
+	if *change.New.Healthy {
+		message = "Health check successful"
+	} else {
+		message = fmt.Sprintf("Health check failed: %s", change.New.LastMessage)
+	}
+
+	event := events.ServiceEvent{
+		Message:   message,
+		State:     svcrunner.state,
+		Timestamp: time.Now(),
+	}
+	svcrunner.events.Push(event)
+
+	log.Printf("service[%s](%s): %s", svcrunner.id, svcrunner.state, event.Message)
+}
+
 // GetEventHistory returns history of events for this service
 func (svcrunner *ServiceRunner) GetEventHistory(count int) []events.ServiceEvent {
 	svcrunner.mu.Lock()
@@ -107,6 +136,7 @@ func (svcrunner *ServiceRunner) Start() {
 	}
 }
 
+// nolint: gocyclo
 func (svcrunner *ServiceRunner) run(runnr runner.Runner) error {
 	if runnr == nil {
 		// special case - run nothing (TODO: we should handle it better, e.g. in PreFunc)
@@ -126,6 +156,42 @@ func (svcrunner *ServiceRunner) run(runnr runner.Runner) error {
 		errCh <- runnr.Run(svcrunner.UpdateState)
 	}()
 
+	if healthSvc, ok := svcrunner.service.(HealthcheckedService); ok {
+		var healthWg sync.WaitGroup
+		defer healthWg.Wait()
+
+		healthWg.Add(1)
+		go func() {
+			defer healthWg.Done()
+
+			// nolint: errcheck
+			health.Run(svcrunner.ctx, healthSvc.HealthSettings(svcrunner.userData), &svcrunner.healthState, healthSvc.HealthFunc(svcrunner.userData))
+		}()
+
+		notifyCh := make(chan health.StateChange, 2)
+		svcrunner.healthState.Subscribe(notifyCh)
+		defer svcrunner.healthState.Unsubscribe(notifyCh)
+
+		healthWg.Add(1)
+		go func() {
+			defer healthWg.Done()
+
+			for {
+				select {
+				case <-svcrunner.ctx.Done():
+					return
+				case change := <-notifyCh:
+					svcrunner.healthUpdate(change)
+				}
+			}
+		}()
+
+	}
+
+	// when service run finishes, cancel context, this is important if service
+	// terminates on its own before being terminated by Stop()
+	defer svcrunner.ctxCancel()
+
 	select {
 	case <-svcrunner.ctx.Done():
 		err := runnr.Stop()
diff --git a/internal/app/init/pkg/system/service_runner_test.go b/internal/app/init/pkg/system/service_runner_test.go
index 63bfc1342..f65f373a0 100644
--- a/internal/app/init/pkg/system/service_runner_test.go
+++ b/internal/app/init/pkg/system/service_runner_test.go
@@ -59,6 +59,73 @@ func (suite *ServiceRunnerSuite) TestFullFlow() {
 	}, sr)
 }
 
+func (suite *ServiceRunnerSuite) TestFullFlowHealthy() {
+	sr := system.NewServiceRunner(&MockHealthcheckedService{}, nil)
+
+	finished := make(chan struct{})
+	go func() {
+		defer close(finished)
+		sr.Start()
+	}()
+
+	time.Sleep(50 * time.Millisecond)
+
+	select {
+	case <-finished:
+		suite.Require().Fail("service running should be still running")
+	default:
+	}
+
+	sr.Shutdown()
+
+	<-finished
+
+	suite.assertStateSequence([]events.ServiceState{
+		events.StatePreparing,
+		events.StateWaiting,
+		events.StatePreparing,
+		events.StateRunning,
+		events.StateRunning, // one more notification when service is healthy
+		events.StateFinished,
+	}, sr)
+}
+
+func (suite *ServiceRunnerSuite) TestFullFlowHealthChanges() {
+	m := MockHealthcheckedService{}
+	sr := system.NewServiceRunner(&m, nil)
+
+	finished := make(chan struct{})
+	go func() {
+		defer close(finished)
+		sr.Start()
+	}()
+
+	time.Sleep(50 * time.Millisecond)
+
+	m.SetHealthy(false)
+
+	time.Sleep(50 * time.Millisecond)
+
+	m.SetHealthy(true)
+
+	time.Sleep(50 * time.Millisecond)
+
+	sr.Shutdown()
+
+	<-finished
+
+	suite.assertStateSequence([]events.ServiceState{
+		events.StatePreparing,
+		events.StateWaiting,
+		events.StatePreparing,
+		events.StateRunning,
+		events.StateRunning, // initial: healthy
+		events.StateRunning, // not healthy
+		events.StateRunning, // one again healthy
+		events.StateFinished,
+	}, sr)
+}
+
 func (suite *ServiceRunnerSuite) TestPreStageFail() {
 	svc := &MockService{
 		preError: errors.New("pre failed"),
diff --git a/internal/app/init/pkg/system/services/containerd.go b/internal/app/init/pkg/system/services/containerd.go
index 73ce95369..0e5ffe3e7 100644
--- a/internal/app/init/pkg/system/services/containerd.go
+++ b/internal/app/init/pkg/system/services/containerd.go
@@ -5,11 +5,18 @@
 package services
 
 import (
+	"context"
 	"fmt"
 	"os"
 
+	"github.com/containerd/containerd"
 	"github.com/containerd/containerd/defaults"
+	"github.com/pkg/errors"
+	"google.golang.org/grpc/health/grpc_health_v1"
+
+	"github.com/talos-systems/talos/internal/app/init/pkg/system"
 	"github.com/talos-systems/talos/internal/app/init/pkg/system/conditions"
+	"github.com/talos-systems/talos/internal/app/init/pkg/system/health"
 	"github.com/talos-systems/talos/internal/app/init/pkg/system/runner"
 	"github.com/talos-systems/talos/internal/app/init/pkg/system/runner/process"
 	"github.com/talos-systems/talos/internal/app/init/pkg/system/runner/restart"
@@ -62,3 +69,34 @@ func (c *Containerd) Runner(data *userdata.UserData) (runner.Runner, error) {
 		restart.WithType(restart.Forever),
 	), nil
 }
+
+// HealthFunc implements the HealthcheckedService interface
+func (c *Containerd) HealthFunc(*userdata.UserData) health.Check {
+	return func(ctx context.Context) error {
+		client, err := containerd.New(constants.ContainerdAddress)
+		if err != nil {
+			return err
+		}
+
+		resp, err := client.HealthService().Check(ctx, &grpc_health_v1.HealthCheckRequest{})
+		if err != nil {
+			return err
+		}
+
+		if resp.Status != grpc_health_v1.HealthCheckResponse_SERVING {
+			return errors.Errorf("unexpected serving status: %d", resp.Status)
+		}
+
+		return nil
+	}
+}
+
+// HealthSettings implements the HealthcheckedService interface
+func (c *Containerd) HealthSettings(*userdata.UserData) *health.Settings {
+	return &health.DefaultSettings
+}
+
+// Verify healthchecked interface
+var (
+	_ system.HealthcheckedService = &Containerd{}
+)
diff --git a/internal/app/init/pkg/system/system.go b/internal/app/init/pkg/system/system.go
index 312bdf946..2b45b8b2b 100644
--- a/internal/app/init/pkg/system/system.go
+++ b/internal/app/init/pkg/system/system.go
@@ -8,8 +8,6 @@ import (
 	"sync"
 	"time"
 
-	"github.com/talos-systems/talos/internal/app/init/pkg/system/conditions"
-	"github.com/talos-systems/talos/internal/app/init/pkg/system/runner"
 	"github.com/talos-systems/talos/pkg/userdata"
 )
 
@@ -27,21 +25,6 @@ type singleton struct {
 var instance *singleton
 var once sync.Once
 
-// Service is an interface describing a system service.
-type Service interface {
-	// ID is the service id.
-	ID(*userdata.UserData) string
-	// PreFunc is invoked before a runner is created
-	PreFunc(*userdata.UserData) error
-	// Runner creates runner for the service
-	Runner(*userdata.UserData) (runner.Runner, error)
-	// PostFunc is invoked after a runner is closed.
-	PostFunc(*userdata.UserData) error
-	// ConditionFunc describes the conditions under which a service should
-	// start.
-	ConditionFunc(*userdata.UserData) conditions.ConditionFunc
-}
-
 // Services returns the instance of the system services API.
 // TODO(andrewrynhard): This should be a gRPC based API availale on a local
 // unix socket.