diff --git a/xCAT-server/share/xcat/netboot/rh/dracut/install b/xCAT-server/share/xcat/netboot/rh/dracut/install.netboot
similarity index 51%
rename from xCAT-server/share/xcat/netboot/rh/dracut/install
rename to xCAT-server/share/xcat/netboot/rh/dracut/install.netboot
index bae06f172..294be8e87 100755
--- a/xCAT-server/share/xcat/netboot/rh/dracut/install
+++ b/xCAT-server/share/xcat/netboot/rh/dracut/install.netboot
@@ -1,6 +1,6 @@
 #!/bin/sh
 echo $drivers
-dracut_install wget cpio gzip
-dracut_install grep ifconfig hostname awk egrep grep dash
+dracut_install wget cpio gzip dash  modprobe
+dracut_install grep ifconfig hostname awk egrep grep dirname
 inst "$moddir/xcatroot" "/sbin/xcatroot"
 inst_hook cmdline 10 "$moddir/xcat-cmdline.sh" 
diff --git a/xCAT-server/share/xcat/netboot/rh/dracut/install.statelite b/xCAT-server/share/xcat/netboot/rh/dracut/install.statelite
new file mode 100755
index 000000000..9168603fb
--- /dev/null
+++ b/xCAT-server/share/xcat/netboot/rh/dracut/install.statelite
@@ -0,0 +1,5 @@
+#!/bin/sh
+echo $drivers
+dracut_install wget cpio gzip dash  modprobe
+dracut_install grep ifconfig hostname awk egrep grep dirname
+inst_hook pre-pivot 10 "$moddir/xcat-prepivot.sh"
diff --git a/xCAT-server/share/xcat/netboot/rh/dracut/xcat-prepivot.sh b/xCAT-server/share/xcat/netboot/rh/dracut/xcat-prepivot.sh
new file mode 100755
index 000000000..6ee5b641f
--- /dev/null
+++ b/xCAT-server/share/xcat/netboot/rh/dracut/xcat-prepivot.sh
@@ -0,0 +1,83 @@
+#!/bin/sh
+NEWROOT=/sysroot
+SERVER=${SERVER%%/*}
+SERVER=${SERVER%:}
+RWDIR=.statelite
+if [ ! -z $statemnt ]; then #btw, uri style might have left future options other than nfs open, will u    se // to detect uri in the future I guess
+    SNAPSHOTSERVER=${statemnt%:*}
+    SNAPSHOTROOT=${statemnt#*/}
+    # may be that there is not server and just a directory.
+    if [ -z $SNAPSHOTROOT ]; then
+        SNAPSHOTROOT=$SNAPSHOTSERVER
+        SNAPSHOTSERVER=
+    fi
+fi
+
+echo Setting up Statelite
+mkdir -p $NEWROOT
+
+# now we need to mount the rest of the system.  This is the read/write portions
+# echo Mounting snapshot directories
+
+MAXTRIES=7
+ITER=0
+if [ ! -e "$NEWROOT/$RWDIR" ]; then
+    echo ""
+    echo "This NFS root directory doesn't have a /$RWDIR directory for me to mount a rw filesystem.      You'd better create it... "
+    echo ""
+    /bin/sh
+fi
+
+if [ ! -e "$NEWROOT/etc/init.d/statelite" ]; then
+    echo ""
+    echo "$NEWROOT/etc/init.d/statelite doesn't exist.  Perhaps you didn't create this image with th    e -m statelite mode"
+    echo ""
+    /bin/sh
+fi
+
+mount -t tmpfs rw $NEWROOT/$RWDIR
+mkdir -p $NEWROOT/$RWDIR/tmpfs
+ME=`hostname`
+
+# mount the SNAPSHOT directory here for persistent use.
+if [ ! -z $SNAPSHOTSERVER ]; then
+    mkdir -p $NEWROOT/$RWDIR/persistent
+    MAXTRIES=5
+    ITER=0
+    while ! mount $SNAPSHOTSERVER:$SNAPSHOTROOT  $NEWROOT/$RWDIR/persistent -o nolock,rsize=32768,tc    p,nfsvers=3,timeo=14; do
+        ITER=$((ITER +1 ))
+        if [ "$ITER" == "$MAXTRIES" ]; then
+            echo "Your are dead, rpower $ME boot to play again."
+            echo "Possible problems:
+1.  $SNAPSHOTSERVER is not exporting $SNAPSHOTROOT ?
+2.  Is DNS set up?  Maybe that's why I can't mount $SNAPSHOTSERVER."
+            /bin/sh
+            exit
+        fi
+        RS= $(( $RANDOM % 20 ))
+        echo "Trying again in $RS seconds..."
+        sleep $RS
+    done
+fi
+
+# TODO: handle the dhclient/resolv.conf/ntp, etc
+echo "TODO: handle the dhclient/resolv/ntp, etc"
+$NEWROOT/etc/init.d/statelite
+READONLY=yes
+export READONLY
+fastboot=yes
+export fastboot
+keep_old_ip=yes
+export keep_old_ip
+mount -n --bind /dev $NREWROOT/dev
+mount -n --bind /proc $NEWROOT/proc
+mount -n --bind /sys $NEWROOT/sys
+
+if [ -d "$NEWROOT/etc/sysconfig" -a ! -e "$NEWROOT/etc/sysconfig/selinux" ]; then
+    echo "SELINUX=disabled" >> "$NEWROOT/etc/sysconfig/selinux"
+fi
+
+# inject new exit_if_exists
+echo 'settle_exit_if_exists="--exit-if-exists=/dev/root"; rm "$job"' > /initqueue/xcat.sh
+# force udevsettle to break
+> /initqueue/work
diff --git a/xCAT-server/share/xcat/netboot/rh/dracut/xcatroot b/xCAT-server/share/xcat/netboot/rh/dracut/xcatroot
index c76dcfcf7..df339f36e 100755
--- a/xCAT-server/share/xcat/netboot/rh/dracut/xcatroot
+++ b/xCAT-server/share/xcat/netboot/rh/dracut/xcatroot
@@ -21,155 +21,12 @@ if [ ! -z "$imgurl" ]; then
 		SERVER=${SERVER%:}
 		ROOTDIR=/${ROOTDIR#*/} 
 	fi
-elif [ ! -z "$nfsroot" ]; then #fyi, done this way to tolerate nfs://
-	NFSROOT=1
-	SERVER=${nfsroot}
-	ROOTDIR=$SERVER
-	SERVER=${SERVER%%/*}
-	SERVER=${SERVER%:}
-	ROOTDIR=/${ROOTDIR#*/} 
-elif [ ! -z $statemnt ]; then #btw, uri style might have left future options other than nfs open, will use // to detect uri in the future I guess
-	NFSROOT=1
-	SNAPSHOTSERVER=${statemnt%:*}
-	SNAPSHOTROOT=${statemnt#*/}
-	# may be that there is not server and just a directory.
-	if [ -z $SNAPSHOTROOT ]
-	then
-		SNAPSHOTROOT=$SNAPSHOTSERVER
-		SNAPSHOTSERVER=
-	fi
-fi
-
 #echo 0 > /proc/sys/vm/zone_reclaim_mode #Avoid kernel bug
 
-if [ "$NFSROOT" = "1" ]; then
-	echo Setting up Statelite
-	mkdir -p $NEWROOT
- 	MAXTRIES=7
-	ITER=0
-	#ME=`hostname`
-	while ! mount.nfs ${SERVER}:${ROOTDIR}/rootimg $NEWROOT -r -n -o nolock,rsize=32768,tcp,nfsvers=3,timeo=14
-	do
-		ITER=$(expr $ITER + 1)
-		if [ "$ITER" == "$MAXTRIES" ]
-      		then
-				echo "Failed mounting nfs"
-				echo "Possible problems:
-1.  This initrd wasn't created for statelite node?  rerun genimage with the -m statelite flag, then rerun 'nodeset $ME statelite'
-2.  Is DNS set up?  Maybe that's why I can't mount ${SERVER}.
-3.  The nfs modules aren't set right in this initfs?"
-    
-			/bin/dash
-			exit
-		fi
-		echo "Could not mount $SERVER:$ROOTDIR on $NEWROOT $RESET"
-		RS=30 #`expr $RANDOM % 30`
-		echo -e "Trying again in $RS seconds"
-		sleep $RS
-	done
-
-# now we need to mount the rest of the system.  This is the read/write portions
-#echo "Mounting Snapshot directories"
-
-	if [ ! -e "$NEWROOT/$RWDIR" ]
-	then
-		echo ""
-		echo "This NFS root directory doesn't have a /$RWDIR directory for me to mount a rw filesystem.  You'd better create it... ${NORMAL}"
-		echo "."
-		/bin/dash
-	fi
-
-	while [ ! -e "$NEWROOT/etc/init.d/statelite" ]
-	do
-		echo ""
-		echo "$NEWROOT/etc/init.d/statelite doesn't exist.  Perhaps you didn't create this image with the -m statelite mode"
-		echo ""
-		/bin/dash
-	done
-	grep '\(shell\)' /proc/cmdline >/dev/null && /bin/dash
-	mount -t tmpfs rw  -o mode= $NEWROOT/$RWDIR
-	mkdir -p $NEWROOT/$RWDIR/tmpfs
-
-
-	# mount the SNAPSHOT directory here for persistent use.
-	if [ ! -z $SNAPSHOTSERVER ]
-	then
-		mkdir -p $NEWROOT/$RWDIR/persistent
- 		MAXTRIES=5
-		ITER=0
-		while ! mount $SNAPSHOTSERVER:$SNAPSHOTROOT  $NEWROOT/$RWDIR/persistent -o nolock,rsize=32768,tcp,nfsvers=3,timeo=14
-		do
-			ITER=$(expr $ITER + 1)
-			if [ "$ITER" == "$MAXTRIES" ]
-      			then
-				echo "You're dead.  rpower $ME boot to play again."
-				echo "Possible problems:
-1.  $SNAPSHOTSERVER is not exporting $SNAPSHOTROOT ?
-2.  Is DNS set up?  Maybe that's why I can't mount $SNAPSHOTSERVER."
-				shell
-				exit
-			fi
-			echo "Can't mount $SNAPSHOTSERVER:$SNAPSHOTROOT. ${NORMAL}"
-			RS=45 #`expr $RANDOM % 20`
-			echo "Trying again in $RS seconds"
-			sleep $RS	
-		done
-	fi
-
-	grep '\(shell\)' /proc/cmdline >/dev/null && /bin/dash
-
-	# have to preserve the initial DHCP request.  So we link it.
-
-	if [ ! -d $NEWROOT/$RWDIR/tmpfs/var/lib/dhclient ]
-	then
-		mkdir -p $NEWROOT/$RWDIR/tmpfs/var/lib/dhclient
-	fi
-	if [ ! -d $NEWROOT/$RWDIR/tmpfs/var/lib/dhcp ]
-	then
-		mkdir -p $NEWROOT/$RWDIR/tmpfs/var/lib/dhcp
-	fi
-
-	[ -e /etc/ntp.conf ] && mkdir -p $NEWROOT/$RWDIR/tmpfs/etc && cp /etc/ntp.conf $NEWROOT/$RWDIR/tmpfs/etc/ 
-
-	
-	[ -e /etc/ntp/step-kickers ] && mkdir -p $NEWROOT/$RWDIR/tmpfs/etc/ntp && cp /etc/ntp/step-kickers $NEWROOT/$RWDIR/tmpfs/etc/ntp 
-
-	
-	[ -e /etc/resolv.conf ] && mkdir -p $NEWROOT/$RWDIR/tmpfs/etc && cp /etc/resolv.conf $NEWROOT/$RWDIR/tmpfs/etc/ 
-
-	# now that everything is mounted, lets do this
-	# hmmm, apparently I'm checking this twice... so I'd better
-	# be really sure the file is there.
-	while [ -z $NEWROOT/etc/init.d/statelite ]
-	do
-		echo "$NEWROOT/etc/init.d/statelite does not exist in image!"
-		/bin/dash
-	done
-
-	# do all the mounts:
-	$NEWROOT/etc/init.d/statelite	
-
-	# give the debug shell just before we go if specified!
-	grep '(shell)' /proc/cmdline > /dev/null && dash
-
-	echo 0x100 > /proc/sys/kernel/real-root-dev
-	keep_old_ip=yes
-	export keep_old_ip
-	fastboot=yes
-	export fastboot
-	READONLY=yes
-	export READONLY
-	grep '\(shell\)' /proc/cmdline >/dev/null && /bin/dash
-	mount -n --bind /dev $NEWROOT/dev
-	umount /sys
-	umount /proc
-
-fi
-# END NFSROOT/Statelite code
-
 # RAM root Hybrid with NFS root
 if [ "$NFS" = "1" ]; then
   echo Setting up nfs with ram overlay.
+  modprobe nfs
   mknod /dev/loop0 b 7 0
   mkdir -p /ro
   mkdir -p /rw
diff --git a/xCAT-server/share/xcat/netboot/rh/genimage b/xCAT-server/share/xcat/netboot/rh/genimage
index d8e88a682..073911747 100755
--- a/xCAT-server/share/xcat/netboot/rh/genimage
+++ b/xCAT-server/share/xcat/netboot/rh/genimage
@@ -189,22 +189,23 @@ foreach (split /,/,$netdriver) {
    }
    push @ndrivers,$_;
 }
-if($mode eq "statelite"){
-	push @ndrivers,"fscache.ko";
-	push @ndrivers,"sunrpc.ko";
-	push @ndrivers,"lockd.ko";
-	push @ndrivers,"nfs_acl.ko";
-	push @ndrivers,"nfs.ko";
+unless (-d "$rootimg_dir/usr/share/dracut") { # dracut will handle the nfs-related kernel modules
+    if($mode eq "statelite"){
+	    push @ndrivers,"fscache.ko";
+	    push @ndrivers,"sunrpc.ko";
+	    push @ndrivers,"lockd.ko";
+	    push @ndrivers,"nfs_acl.ko";
+	    push @ndrivers,"nfs.ko";
 	
-	# Additional modules needed on s390x
-	if ($arch eq "s390x") {
-		# The network drivers need to be loaded in this order
-		unshift @ndrivers,"ccwgroup.ko";
-		unshift @ndrivers,"qdio.ko";
-	}
+	    # Additional modules needed on s390x
+	    if ($arch eq "s390x") {
+		    # The network drivers need to be loaded in this order
+		    unshift @ndrivers,"ccwgroup.ko";
+		    unshift @ndrivers,"qdio.ko";
+	    }
+    }
 }
 
-
 unless ($onlyinitrd) {
    @yumdirs=();
    find(\&isyumdir, <$installroot/$osver/$arch/>);
@@ -483,21 +484,81 @@ sub getlibs {
 }
 
 sub mkinitrd_dracut {
-    mkpath("$rootimg_dir/usr/share/dracut/modules.d/97xcat");
-    foreach (<$fullpath/dracut/*>) {
-        my $perm = (stat($_))[2];
-        cp($_,"$rootimg_dir/usr/share/dracut/modules.d/97xcat");
-        chmod($perm&07777,"$rootimg_dir/usr/share/dracut/modules.d/97xcat/".basename($_));
+    my $dracutmpath = "$rootimg_dir/usr/share/dracut/modules.d/97xcat";
+    mkpath($dracutmpath);
+
+    my $perm = (stat("$fullpath/dracut/check"))[2];
+    cp("$fullpath/dracut/check", $dracutmpath);
+    chmod($perm&07777, "$dracutmpath/check");
+
+    my $add_drivers = join(' ', @ndrivers);
+    my $DRACUTCONF;
+
+    if ($mode eq "statelite") {
+        # for statelite
+        cp("$fullpath/dracut/install.statelite","$dracutmpath/install");
+        $perm = (stat("$fullpath/dracut/install.statelite"))[2];
+        chmod($perm&07777, "$dracutmpath/install");
+
+        cp("$fullpath/dracut/xcat-prepivot.sh",$dracutmpath);
+        $perm = (stat("$fullpath/dracut/xcat-prepivot.sh"))[2];
+        chmod($perm&07777, "$dracutmpath/xcat-prepivot.sh");
+
+        # update etc/dracut.conf
+        open($DRACUTCONF, '>', "$rootimg_dir/etc/dracut.conf");
+        print $DRACUTCONF qq{dracutmodules+="xcat nfs base network"\n};
+        print $DRACUTCONF qq{add_drivers+="$add_drivers"\n};
+        print $DRACUTCONF qq{filesystems+="nfs"\n};
+        close $DRACUTCONF;
+        # TODO: modify etc/rc.sysinit, prevent remounting
+        my $SYSINITFILE;
+        my $TMPSYSINITFILE;
+        open($SYSINITFILE, "$rootimg_dir/etc/rc.sysinit");
+        open($TMPSYSINITFILE, '>', "/tmp/rc.sysinit.tmp");
+        # find the following lines,
+        # if remount_needed ; then
+        #   action $"Remounting root filesystem in read-write mode: " mount -n -o remount,rw /
+        # fi
+        # and change "if remount_needed ; then" to "if false; then"
+        while(<$SYSINITFILE>) {
+            if ($_ eq "if remount_needed ; then\n") {
+                $_ = "if false; then\n";
+            }
+            print $TMPSYSINITFILE $_;
+        }
+        close($SYSINITFILE);
+        close($TMPSYSINITFILE);
+        cp("/tmp/rc.sysinit.tmp", "$rootimg_dir/etc/rc.sysinit");
+    } else {
+        # for diskless
+        cp("$fullpath/dracut/install.netboot","$dracutmpath/install");
+        $perm = (stat("$fullpath/dracut/xcat-cmdline.sh"))[2];
+        chmod($perm&07777, "$dracutmpath/install");
+
+        if ($prinic) {
+            my $optspec;
+            open($optspec,'>>',"$dracutmpath/xcat-cmdline.sh");
+            print $optspec "IFACE=$prinic\n";
+            close $optspec;
+        }
+
+        cp("$fullpath/dracut/xcatroot","$dracutmpath/");
+        $perm = (stat("$fullpath/dracut/xcatroot"))[2];
+        chmod($perm&07777, "$dracutmpath/xcatroot");
+
+        cp("$fullpath/dracut/installkernel", "$dracutmpath/");
+        $perm = (stat("$fullpath/dracut/installkernel"))[2];
+        chmod($perm&07777, "$dracutmpath/installkernel");
+
+        # update etc/dracut.conf
+        open($DRACUTCONF, '>', "$rootimg_dir/etc/dracut.conf");
+        print $DRACUTCONF qq{dracutmodules+="xcat base network"\n};
+        print $DRACUTCONF qq{add_drivers+="$add_drivers"\n};
+        close $DRACUTCONF;
     }
-    if ($prinic) {
-        my $optspec;
-        open($optspec,'>>',"$rootimg_dir/usr/share/dracut/modules.d/97xcat/xcat-cmdline.sh");
-        print $optspec "IFACE=$prinic\n";
-        close($optspec);
-    }
-    foreach (@ndrivers) { s/\.ko$//; }
-    system("chroot '$rootimg_dir' dracut -d '".join(' ',@ndrivers)."' -m 'xcat base' /tmp/initrd.$$.gz $kernelver");
-    move("$rootimg_dir/tmp/initrd.$$.gz","$destdir/initrd.gz");
+    system("chroot '$rootimg_dir' dracut -f /tmp/initrd.$$.gz $kernelver");
+    print "the initial ramdisk is generated successfully.\n";
+    move("$rootimg_dir/tmp/initrd.$$.gz", "$destdir/initrd.gz");
 }
 
 sub mkinitrd {