diff --git a/xCAT-server/share/xcat/netboot/rh/dracut/check b/xCAT-server/share/xcat/netboot/rh/dracut/check
new file mode 100755
index 000000000..d7cc89ce0
--- /dev/null
+++ b/xCAT-server/share/xcat/netboot/rh/dracut/check
@@ -0,0 +1,3 @@
+#!/bin/sh
+[ "$1" = "-d" ] && echo network
+exit 0
diff --git a/xCAT-server/share/xcat/netboot/rh/dracut/install b/xCAT-server/share/xcat/netboot/rh/dracut/install
new file mode 100755
index 000000000..10b703630
--- /dev/null
+++ b/xCAT-server/share/xcat/netboot/rh/dracut/install
@@ -0,0 +1,5 @@
+#!/bin/sh
+echo $drivers
+dracut_install wget cpio gzip
+inst "$moddir/xcatroot" "/sbin/xcatroot"
+inst_hook cmdline 10 "$moddir/xcat-cmdline.sh" 
diff --git a/xCAT-server/share/xcat/netboot/rh/dracut/xcat-cmdline.sh b/xCAT-server/share/xcat/netboot/rh/dracut/xcat-cmdline.sh
new file mode 100644
index 000000000..6559a23ac
--- /dev/null
+++ b/xCAT-server/share/xcat/netboot/rh/dracut/xcat-cmdline.sh
@@ -0,0 +1,5 @@
+root=1
+rootok=1
+IFACES=eth0 #THIS WILL SOURCE FROM /procm/cmdline if genimage -i argument omitted, TODO
+netroot=xcat
+echo '[ -e $NEWROOT/proc ]' > /initqueue-finished/xcatroot.sh
diff --git a/xCAT-server/share/xcat/netboot/rh/dracut/xcatroot b/xCAT-server/share/xcat/netboot/rh/dracut/xcatroot
new file mode 100755
index 000000000..22ddd0b43
--- /dev/null
+++ b/xCAT-server/share/xcat/netboot/rh/dracut/xcatroot
@@ -0,0 +1,245 @@
+#!/bin/sh
+NEWROOT=$3
+if [ ! -z "$imgurl" ]; then
+	if [ xhttp = x${imgurl%:*} ]; then
+		NFS=0
+		FILENAME=${imgurl##*/}
+		while [ ! -r "$FILENAME" ]; do
+			echo Getting $imgurl...
+			if ! wget $imgurl; then
+				rm -f $FILENAME
+				sleep 27
+			fi
+		done
+	elif [ xnfs = x${imgurl%:*} ]; then
+		NFS=1
+		SERVER=${imgurl#nfs:}
+		SERVER=${SERVER#/}
+		SERVER=${SERVER#/}
+		ROOTDIR=$SERVER
+		SERVER=${SERVER%%/*}
+		SERVER=${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.
+  mknod /dev/loop0 b 7 0
+  mkdir -p /ro
+  mkdir -p /rw
+  #NOTE: should prob have max count
+  while [ ! -d /ro/bin ]; do
+    echo mounting $SERVER:$ROOTDIR on /ro
+    mount.nfs $SERVER:$ROOTDIR /ro -r -n -o nolock,rsize=32768,tcp,nfsvers=3,timeo=14
+    ST=`expr $RANDOM % 5`
+    sleep $ST
+  done
+  mount -t tmpfs rw /rw
+  mkdir -p /rw/etc
+  mkdir -p /rw/var/lib/dhclient
+  cp /etc/resolv.conf /rw/etc/
+  mount -t aufs -o dirs=/rw:/ro mergedroot  $NEWROOT
+  mkdir -p $NEWROOT/ro
+  mkdir -p $NEWROOT/rw
+  mount --move /ro $NEWROOT/ro
+  mount --move /rw $NEWROOT/rw
+  cp /etc/resolv.conf $NEWROOT/etc/
+  echo xcatfs / aufs rw,_netdev 0 0 >> $NEWROOT/etc/fstab
+elif [ -r /rootimg.sfs ]; then
+  echo Setting up squashfs with ram overlay.
+  mknod /dev/loop0 b 7 0
+  mkdir -p /ro
+  mkdir -p /rw
+  mount -t squashfs /rootimg.sfs /ro
+  mount -t tmpfs rw /rw
+  mount -t aufs -o dirs=/rw:/ro mergedroot $NEWROOT
+  mkdir -p $NEWROOT/ro
+  mkdir -p $NEWROOT/rw
+  mount --move /ro $NEWROOT/ro
+  mount --move /rw $NEWROOT/rw
+elif [ -r /rootimg.gz ]; then
+echo Setting up RAM-root tmpfs.
+  mount -t tmpfs rootfs $NEWROOT
+  cd $NEWROOT
+  echo -n "Extracting root filesystem:"
+  if [ -x /bin/cpio ]; then
+  gzip -cd /rootimg.gz |/bin/cpio -idum
+  else
+  gzip -cd /rootimg.gz |cpio -idum
+  fi
+  echo Done
+else
+  echo -n Failed to download image, panicing in 5...
+  for i in 4 3 2 1 0; do
+    /bin/sleep 1
+    echo -n $i...
+  done
+  echo
+  echo "You're dead.  rpower nodename reset to play again.
+
+* Did you packimage with -m cpio, -m squashfs, or -m nfs?
+* If using -m squashfs did you include aufs.ko with geninitrd?
+  e.g.:  -n tg3,squashfs,aufs,loop
+* If using -m nfs did you export NFS and sync rootimg?  And
+  did you include the aufs and nfs modules in the proper order:
+  e.g.:  -n tg3,aufs,loop,sunrpc,lockd,nfs_acl,nfs
+
+"
+  /bin/dash
+  exit
+fi
+cd /
+if [ -d "$NEWROOT/etc/sysconfig" && ! -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 "$job"' > /initqueue/xcat.sh
+# force udevsettle to break
+> /initqueue/work
diff --git a/xCAT-server/share/xcat/netboot/rh/genimage b/xCAT-server/share/xcat/netboot/rh/genimage
index 738b47336..b8a08e1e7 100755
--- a/xCAT-server/share/xcat/netboot/rh/genimage
+++ b/xCAT-server/share/xcat/netboot/rh/genimage
@@ -396,6 +396,9 @@ while (scalar @checkdeps) {
 }
 close($moddeps);
 unlink "/tmp/genimage.$$.yum.conf";
+if (-d "$rootimg_dir/usr/share/dracut") {
+    $dracutmode=1;
+}
 
 #-- run postinstall script
 if (!$imagename) {
@@ -442,7 +445,11 @@ if($mode eq "statelite"){
 
 
 
-mkinitrd();
+if ($dracutmode) {
+    mkinitrd_dracut();
+} else {
+    mkinitrd();
+}
 
 sub getlibs {
 	my $file = shift;
@@ -466,6 +473,15 @@ sub getlibs {
    }
 }
 
+sub mknitrd_dracut {
+    mkpath("$rootimg_dir/usr/share/dracut/modules.d/97xcat");
+    foreach (<$fullpath/dracut/*>) {
+        copy($_,"$rootimg_dir/usr/share/dracut/modules.d/97xcat");
+    }
+    system("chroot '$rootimg_dir' dracut -d '".join(' ',@ndrivers)."' -m 'xcat base' /tmp/initrd.$$.gz")
+    move("$rootimg_dir/tmp/initrd.$$.gz","$destdir/initrd.gz");
+}
+
 sub mkinitrd {
 	mkpath("/tmp/xcatinitrd.$$/bin");
 	if($basekernelver eq $kernelver) {