diff --git a/xCAT-server/lib/xcat/plugins/packimage.pm b/xCAT-server/lib/xcat/plugins/packimage.pm
index 2cf3f9e1f..9dbb6f04b 100755
--- a/xCAT-server/lib/xcat/plugins/packimage.pm
+++ b/xCAT-server/lib/xcat/plugins/packimage.pm
@@ -585,7 +585,11 @@ sub process_request {
         }
 
         if (!-x "/sbin/mksquashfs" && !-x "/usr/bin/mksquashfs") {
-            $callback->({ error => ["mksquashfs not found, squashfs-tools rpm should be installed on the management node"], errorcode => [1] });
+            if ($osver =~ /sle/) {
+                $callback->({ error => ["mksquashfs not found, squashfs rpm should be installed on the management node"], errorcode => [1] });
+            } else {
+                $callback->({ error => ["mksquashfs not found, squashfs-tools rpm should be installed on the management node"], errorcode => [1] });
+            }
             return 1;
         }
         my $mksquashfs_command = "mksquashfs $temppath ../rootimg.sfs $flags";
diff --git a/xCAT-test/autotest/testcase/installation/reg_linux_diskless_installation_flat b/xCAT-test/autotest/testcase/installation/reg_linux_diskless_installation_flat
index dbc91f768..56d2fdfcc 100644
--- a/xCAT-test/autotest/testcase/installation/reg_linux_diskless_installation_flat
+++ b/xCAT-test/autotest/testcase/installation/reg_linux_diskless_installation_flat
@@ -133,6 +133,9 @@ cmd:rm -rf /tmp/mountoutput
 #Make sure squashfs-tools rpm is installed on Ubuntu
 cmd:if [ "$$OS" = "ubuntu" ];then apt-get install -y squashfs-tools; fi
 
+#Make sure squashfs rpm is installed on SLES
+cmd:if [ "$$OS" = "sle" ];then zypper install -y squashfs; fi
+
 cmd:packimage -m squashfs __GETNODEATTR($$CN,os)__-__GETNODEATTR($$CN,arch)__-netboot-compute
 check:rc==0
 check:output=~archive method:squashfs
diff --git a/xCAT-test/autotest/testcase/installation/reg_linux_diskless_installation_hierarchy b/xCAT-test/autotest/testcase/installation/reg_linux_diskless_installation_hierarchy
index 8e863f65a..411c9f37f 100644
--- a/xCAT-test/autotest/testcase/installation/reg_linux_diskless_installation_hierarchy
+++ b/xCAT-test/autotest/testcase/installation/reg_linux_diskless_installation_hierarchy
@@ -156,6 +156,9 @@ check:rc==0
 #Make sure squashfs-tools rpm is installed on Ubuntu
 cmd:if [ "$$OS" = "ubuntu" ];then apt-get install -y squashfs-tools; fi
 
+#Make sure squashfs rpm is installed on SLES
+cmd:if [ "$$OS" = "sle" ];then zypper install -y squashfs; fi
+
 cmd:packimage -m squashfs __GETNODEATTR($$CN,os)__-__GETNODEATTR($$CN,arch)__-netboot-compute
 check:rc==0
 check:output=~archive method:squashfs