diff --git a/xCAT-client/bin/db2sqlsetup b/xCAT-client/bin/db2sqlsetup
index 14e8e6d3d..4b147419e 100755
--- a/xCAT-client/bin/db2sqlsetup
+++ b/xCAT-client/bin/db2sqlsetup
@@ -968,6 +968,45 @@ sub setupinstance
     {
       xCAT::MsgUtils->message("SI", " $cmd warning.");
     }
+    # add export of EXTSHM to /etc/rc.db2 on AIX, so env variable will
+    # be exported when db2fmcd starts the database on reboot
+    my  $message;
+    if ($::osname eq 'AIX') {
+       my $rcdb2file="/etc/rc.db2";
+       my $entry="EXTSHM=ON\nexport EXTSHM";
+       my $entry2="#!/usr/bin/ksh \nEXTSHM=ON\nexport EXTSHM";
+       if (-e($rcdb2file)) { # add to file
+          $cmd = "fgrep EXTSHM $rcdb2file"; # check to see if there
+          xCAT::Utils->runcmd($cmd, -1);
+          if ($::RUNCMD_RC != 0)  # if not there
+          {
+             $cmd = "echo \"$entry\" >> $rcdb2file";
+             xCAT::Utils->runcmd($cmd, 0);
+             if ($::RUNCMD_RC != 0)
+             {
+               $message = "$cmd failed. Could not setup $rcdb2file. This will affect running ISNM on the system.";
+               xCAT::MsgUtils->message("E", "$message");
+             }
+          }
+       } else{  # create the file
+           $cmd = "echo \"$entry2\" >> $rcdb2file";
+           xCAT::Utils->runcmd($cmd, 0);
+           if ($::RUNCMD_RC != 0)
+           {
+              $message = "$cmd failed. Could not setup $rcdb2file. This will affect running ISNM on the system. Please check documentation for manual setup. ";
+              xCAT::MsgUtils->message("E", "$message");
+            } else {
+                $cmd = "chmod 554 $rcdb2file";
+                xCAT::Utils->runcmd($cmd, 0);
+                if ($::RUNCMD_RC != 0)
+                {
+                  xCAT::MsgUtils->message("E", " $cmd failed.");
+                }
+
+            }
+                   
+      }
+    }
 
     
 }