diff --git a/SPECS/dracut/00-hostonly.conf b/SPECS/dracut/00-hostonly.conf
new file mode 100644
index 00000000000..a3abc684a08
--- /dev/null
+++ b/SPECS/dracut/00-hostonly.conf
@@ -0,0 +1,4 @@
+# kdump currently uses the host system's initrd when enrolling a crash kernel
+# and initrd. There is a limitation where the kdump initrd must be generated
+# with dracut in hostonly mode. So, set hostonly as the default.
+hostonly=yes
diff --git a/SPECS/dracut/00-hyperv.conf b/SPECS/dracut/00-hyperv.conf
new file mode 100644
index 00000000000..f91e805b313
--- /dev/null
+++ b/SPECS/dracut/00-hyperv.conf
@@ -0,0 +1,2 @@
+# VM guest drivers for Hyper-V.
+add_drivers+=" hv_utils hv_vmbus hv_storvsc hv_netvsc hv_sock hv_balloon "
diff --git a/SPECS/dracut/00-virtio.conf b/SPECS/dracut/00-virtio.conf
new file mode 100644
index 00000000000..319553eb181
--- /dev/null
+++ b/SPECS/dracut/00-virtio.conf
@@ -0,0 +1,2 @@
+# VM guest drivers for virtio (e.g. KVM/QEMU).
+add_drivers+=" virtio_blk virtio-rng virtio_console virtio_crypto virtio_mem vmw_vsock_virtio_transport vmw_vsock_virtio_transport_common 9pnet_virtio "
diff --git a/SPECS/dracut/00-vrf.conf b/SPECS/dracut/00-vrf.conf
new file mode 100644
index 00000000000..2dca20bfd1c
--- /dev/null
+++ b/SPECS/dracut/00-vrf.conf
@@ -0,0 +1 @@
+add_drivers+=" vrf "
diff --git a/SPECS/dracut/00-xen.conf b/SPECS/dracut/00-xen.conf
new file mode 100644
index 00000000000..52eb75f30a4
--- /dev/null
+++ b/SPECS/dracut/00-xen.conf
@@ -0,0 +1,2 @@
+# VM guest drivers for Xen.
+add_drivers+=" xen-scsifront xen-blkfront xen-evtchn xen-gntalloc xen-gntdev xen-privcmd xen-pciback xenfs "
diff --git a/SPECS/dracut/defaults.conf b/SPECS/dracut/defaults.conf
deleted file mode 100644
index 8886f98c756..00000000000
--- a/SPECS/dracut/defaults.conf
+++ /dev/null
@@ -1,6 +0,0 @@
-# kdump currently uses the host system's initrd when enrolling a crash kernel
-# and initrd. There is a limitation where the kdump initrd must be generated
-# with dracut in hostonly mode. So, set hostonly as the default.
-hostonly=yes
-
-add_drivers+=" xen-scsifront xen-blkfront xen-evtchn xen-gntalloc xen-gntdev xen-privcmd xen-pciback xenfs hv_utils hv_vmbus hv_storvsc hv_netvsc hv_sock hv_balloon virtio_blk virtio-rng virtio_console virtio_crypto virtio_mem vmw_vsock_virtio_transport vmw_vsock_virtio_transport_common 9pnet_virtio vrf "
diff --git a/SPECS/dracut/dracut.signatures.json b/SPECS/dracut/dracut.signatures.json
index 0e7651e1920..9b1a61e4b02 100644
--- a/SPECS/dracut/dracut.signatures.json
+++ b/SPECS/dracut/dracut.signatures.json
@@ -1,6 +1,10 @@
 {
  "Signatures": {
-  "defaults.conf": "eb71a776e9f31c88cf51fdb9b499ef5e797e26e347247d0292aa2b3e7ad2bf1a",
+  "00-hostonly.conf": "b446b39e4574648d8d2a1a852b5d41010aa103dda24b3c3256835149a5ad22ee",
+  "00-hyperv.conf": "d499f617f633f320a53a16436dcd9c1aebcc175510a77a29ccafd946882c7685",
+  "00-virtio.conf": "173e93feea30f328d4cda7d07f756446fe45830ad9a5ee99b007bed0579b9a64",
+  "00-vrf.conf": "e2885a4b090d8ca3771e60ce6dcd8b849e28ce5002a5c7b71ff796a92deb2810",
+  "00-xen.conf": "8b7a89b7716cb40a9c0d681caed6994d81ff4dfad4fe50cea15cd47b885dc5a6",
   "dracut-059.tar.gz": "eabf0bb685420c1e1d5475b6855ef787104508f0135ff570312845256e0fcecf",
   "lgpl-2.1.txt": "dc626520dcd53a22f727af3ee42c770e56c97a64fe3adb063799d8ab032fe551",
   "megaraid.conf": "914824cdbe0c525b71efa05a75e453335b0068beb8bc28bef2a5866d74bf7dd4",
diff --git a/SPECS/dracut/dracut.spec b/SPECS/dracut/dracut.spec
index 7630586c43c..d6f11302b2c 100644
--- a/SPECS/dracut/dracut.spec
+++ b/SPECS/dracut/dracut.spec
@@ -4,7 +4,7 @@
 Summary:        dracut to create initramfs
 Name:           dracut
 Version:        059
-Release:        18%{?dist}
+Release:        19%{?dist}
 # The entire source code is GPLv2+
 # except install/* which is LGPLv2+
 License:        GPLv2+ AND LGPLv2+
@@ -18,7 +18,11 @@ Source1:        https://www.gnu.org/licenses/lgpl-2.1.txt
 Source3:        megaraid.conf
 Source4:        20overlayfs/module-setup.sh
 Source5:        20overlayfs/overlayfs-mount.sh
-Source6:        defaults.conf
+Source6:        00-hostonly.conf
+Source7:        00-hyperv.conf
+Source8:        00-virtio.conf
+Source9:        00-vrf.conf
+Source10:       00-xen.conf
 
 Patch:          fix-functions-Avoid-calling-grep-with-PCRE-P.patch
 # allow-liveos-overlay-no-user-confirmation-prompt.patch has been introduced by
@@ -75,6 +79,20 @@ Requires:       nss
 This package requires everything which is needed to build an
 initramfs with dracut, which does an integrity check.
 
+%package hostonly
+Summary:        dracut configuration needed to build an initramfs with hostonly enabled
+Requires:       %{name} = %{version}-%{release}
+
+%description hostonly
+This package contains dracut configuration needed to build an initramfs with hostonly enabled
+
+%package hyperv
+Summary:        dracut configuration needed to build an initramfs with hyperv guest drivers
+Requires:       %{name} = %{version}-%{release}
+
+%description hyperv
+This package contains dracut configuration needed to build an initramfs with hyperv guest drivers
+
 %package megaraid
 Summary:        dracut configuration needed to build an initramfs with MegaRAID driver support
 Requires:       %{name} = %{version}-%{release}
@@ -96,6 +114,27 @@ Requires:       %{name} = %{version}-%{release}
 %description overlayfs
 This package contains dracut module needed to build an initramfs with OverlayFS support.
 
+%package virtio
+Summary:        dracut configuration needed to build an initramfs with virtio guest drivers
+Requires:       %{name} = %{version}-%{release}
+
+%description virtio
+This package contains dracut configuration needed to build an initramfs with virtio guest drivers
+
+%package vrf
+Summary:        dracut configuration needed to build an initramfs with the vrf driver
+Requires:       %{name} = %{version}-%{release}
+
+%description vrf
+This package contains dracut configuration needed to build an initramfs with the vrf driver
+
+%package xen
+Summary:        dracut configuration needed to build an initramfs with xen guest drivers
+Requires:       %{name} = %{version}-%{release}
+
+%description xen
+This package contains dracut configuration needed to build an initramfs with xen guest drivers
+
 %prep
 %autosetup -p1
 cp %{SOURCE1} .
@@ -134,7 +173,11 @@ install -m 0644 dracut.conf.d/fips.conf.example %{buildroot}%{_sysconfdir}/dracu
 > %{buildroot}%{_sysconfdir}/system-fips
 
 install -m 0644 %{SOURCE3} %{buildroot}%{_sysconfdir}/dracut.conf.d/50-megaraid.conf
-install -m 0644 %{SOURCE6} %{buildroot}%{_sysconfdir}/dracut.conf.d/00-defaults.conf
+install -m 0644 %{SOURCE6} %{buildroot}%{_sysconfdir}/dracut.conf.d/00-hostonly.conf
+install -m 0644 %{SOURCE7} %{buildroot}%{_sysconfdir}/dracut.conf.d/00-hyperv.conf
+install -m 0644 %{SOURCE8} %{buildroot}%{_sysconfdir}/dracut.conf.d/00-virtio.conf
+install -m 0644 %{SOURCE9} %{buildroot}%{_sysconfdir}/dracut.conf.d/00-vrf.conf
+install -m 0644 %{SOURCE10} %{buildroot}%{_sysconfdir}/dracut.conf.d/00-xen.conf
 
 mkdir -p %{buildroot}%{dracutlibdir}/modules.d/20overlayfs/
 install -p -m 0755 %{SOURCE4} %{buildroot}%{dracutlibdir}/modules.d/20overlayfs/
@@ -170,7 +213,6 @@ ln -srv %{buildroot}%{_bindir}/%{name} %{buildroot}%{_sbindir}/%{name}
 %{dracutlibdir}/skipcpio
 %{dracutlibdir}/%{name}-util
 %config(noreplace) %{_sysconfdir}/%{name}.conf
-%config %{_sysconfdir}/dracut.conf.d/00-defaults.conf
 %dir %{_sysconfdir}/%{name}.conf.d
 %dir %{dracutlibdir}/%{name}.conf.d
 %dir %{_var}/opt/%{name}/log
@@ -201,6 +243,14 @@ ln -srv %{buildroot}%{_bindir}/%{name} %{buildroot}%{_sbindir}/%{name}
 %{_sysconfdir}/dracut.conf.d/40-fips.conf
 %config(missingok) %{_sysconfdir}/system-fips
 
+%files hostonly
+%defattr(-,root,root,0755)
+%{_sysconfdir}/dracut.conf.d/00-hostonly.conf
+
+%files hyperv
+%defattr(-,root,root,0755)
+%{_sysconfdir}/dracut.conf.d/00-hyperv.conf
+
 %files megaraid
 %defattr(-,root,root,0755)
 %{_sysconfdir}/dracut.conf.d/50-megaraid.conf
@@ -212,12 +262,27 @@ ln -srv %{buildroot}%{_bindir}/%{name} %{buildroot}%{_sbindir}/%{name}
 %dir %{dracutlibdir}/modules.d/20overlayfs
 %{dracutlibdir}/modules.d/20overlayfs/*
 
+%files virtio
+%defattr(-,root,root,0755)
+%{_sysconfdir}/dracut.conf.d/00-virtio.conf
+
+%files vrf
+%defattr(-,root,root,0755)
+%{_sysconfdir}/dracut.conf.d/00-vrf.conf
+
+%files xen
+%defattr(-,root,root,0755)
+%{_sysconfdir}/dracut.conf.d/00-xen.conf
+
 %{_bindir}/%{name}-catimages
 %dir /boot/%{name}
 %dir %{_sharedstatedir}/%{name}
 %dir %{_sharedstatedir}/%{name}/overlay
 
 %changelog
+* Thu May 30 2024 Chris Gunn <chrisgun@microsoft.com> - 059-19
+- Split defaults into separate subpackages: hostonly, hyperv, virtio, vrf, and xen
+
 * Tue May 28 2024 Cameron Baird <cameronbaird@microsoft.com> - 059-18
 - Remove reference to zlib from dracut-fips module setup to address
     pedantic initramfs regeneration behavior
diff --git a/SPECS/initramfs/initramfs.spec b/SPECS/initramfs/initramfs.spec
index 4359b52be72..ed249ab2791 100644
--- a/SPECS/initramfs/initramfs.spec
+++ b/SPECS/initramfs/initramfs.spec
@@ -1,7 +1,7 @@
 Summary:        initramfs
 Name:           initramfs
 Version:        3.0
-Release:        3%{?dist}
+Release:        4%{?dist}
 License:        Apache License
 Vendor:         Microsoft Corporation
 Distribution:   Azure Linux
@@ -19,7 +19,7 @@ mkdir -p %{buildroot}%{_sysconfdir}/dracut.conf.d
 install -D -m644 %{SOURCE0} %{buildroot}%{_sysconfdir}/dracut.conf.d/
 
 %define watched_path %{_sbindir} %{_libdir}/udev/rules.d %{_libdir}/systemd/system /lib/modules %{_sysconfdir}/dracut.conf.d
-%define watched_pkgs e2fsprogs, systemd, kpartx, device-mapper-multipath, verity-read-only-root, dracut-fips, dracut-megaraid
+%define watched_pkgs e2fsprogs, systemd, kpartx, device-mapper-multipath, verity-read-only-root, dracut-fips, dracut-megaraid, dracut-hostonly, dracut-hyperv, dracut-overlayfs, dracut-virtio, dracut-vrf, dracut-xen
 
 %define removal_action() rm -rf %{_localstatedir}/lib/rpm-state/initramfs
 
@@ -112,6 +112,9 @@ echo "initramfs" %{version}-%{release} "postun" >&2
 %{_sysconfdir}/dracut.conf.d/fscks.conf
 
 %changelog
+* Thu Mar 23 2024 Cameron Baird <cameronbaird@microsoft.com> - 3.0-4
+- Flag all dracut driver list configs as watched pkgs for initramfs regen
+
 * Wed Mar 06 2024 Chris Gunn <chrisgun@microsoft.com> - 3.0-3
 - Remove /var/lib/initramfs/kernel files.
 
diff --git a/toolkit/imageconfigs/core-efi-selinux.json b/toolkit/imageconfigs/core-efi-selinux.json
index 6a610190849..557a90556b7 100644
--- a/toolkit/imageconfigs/core-efi-selinux.json
+++ b/toolkit/imageconfigs/core-efi-selinux.json
@@ -48,7 +48,8 @@
                 "packagelists/hyperv-packages.json",
                 "packagelists/core-packages-image.json",
                 "packagelists/cloud-init-packages.json",
-                "packagelists/selinux-full.json"
+                "packagelists/selinux-full.json",
+                "packagelists/virt-guest-packages.json"
             ],
             "KernelCommandLine": {
                 "SELinux": "permissive"
diff --git a/toolkit/imageconfigs/core-efi.json b/toolkit/imageconfigs/core-efi.json
index 9ad3605aa76..97a3374217b 100644
--- a/toolkit/imageconfigs/core-efi.json
+++ b/toolkit/imageconfigs/core-efi.json
@@ -47,7 +47,8 @@
             "PackageLists": [
                 "packagelists/hyperv-packages.json",
                 "packagelists/core-packages-image.json",
-                "packagelists/cloud-init-packages.json"
+                "packagelists/cloud-init-packages.json",
+                "packagelists/virt-guest-packages.json"
             ],
             "KernelOptions": {
                 "default": "kernel"
diff --git a/toolkit/imageconfigs/core-fips.json b/toolkit/imageconfigs/core-fips.json
index cc1bd746f74..d6b4063574a 100644
--- a/toolkit/imageconfigs/core-fips.json
+++ b/toolkit/imageconfigs/core-fips.json
@@ -48,7 +48,8 @@
                 "packagelists/core-packages-image.json",
                 "packagelists/core-tools-packages.json",
                 "packagelists/cloud-init-packages.json",
-                "packagelists/selinux.json"
+                "packagelists/selinux.json",
+                "packagelists/virt-guest-packages.json"
             ],
             "KernelOptions": {
                 "default": "kernel"
diff --git a/toolkit/imageconfigs/core-legacy-unattended-hyperv.json b/toolkit/imageconfigs/core-legacy-unattended-hyperv.json
index 6304206e154..34850db4a1d 100644
--- a/toolkit/imageconfigs/core-legacy-unattended-hyperv.json
+++ b/toolkit/imageconfigs/core-legacy-unattended-hyperv.json
@@ -42,7 +42,8 @@
             "PackageLists": [
                 "packagelists/hyperv-packages.json",
                 "packagelists/core-packages-image.json",
-                "packagelists/cloud-init-packages.json"
+                "packagelists/cloud-init-packages.json",
+                "packagelists/virt-guest-packages.json"
             ],
             "KernelOptions": {
                 "default": "kernel"
diff --git a/toolkit/imageconfigs/core-legacy.json b/toolkit/imageconfigs/core-legacy.json
index 85e80dbdb47..a1bd8a6299d 100644
--- a/toolkit/imageconfigs/core-legacy.json
+++ b/toolkit/imageconfigs/core-legacy.json
@@ -45,7 +45,8 @@
             "PackageLists": [
                 "packagelists/hyperv-packages.json",
                 "packagelists/core-packages-image.json",
-                "packagelists/cloud-init-packages.json"
+                "packagelists/cloud-init-packages.json",
+                "packagelists/virt-guest-packages.json"
             ],
             "KernelOptions": {
                 "default": "kernel"
diff --git a/toolkit/imageconfigs/core-ova.json b/toolkit/imageconfigs/core-ova.json
index f8b0c3610eb..b277960df7c 100644
--- a/toolkit/imageconfigs/core-ova.json
+++ b/toolkit/imageconfigs/core-ova.json
@@ -47,7 +47,8 @@
                 "packagelists/core-packages-image.json",
                 "packagelists/cloud-init-packages.json",
                 "packagelists/core-tools-packages.json",
-                "packagelists/selinux.json"
+                "packagelists/selinux.json",
+                "packagelists/virt-guest-packages.json"
             ],
             "Hostname": "mariner",
             "KernelOptions": {
diff --git a/toolkit/imageconfigs/full-aarch64.json b/toolkit/imageconfigs/full-aarch64.json
index 2bdb1541a64..a3dba2d0156 100644
--- a/toolkit/imageconfigs/full-aarch64.json
+++ b/toolkit/imageconfigs/full-aarch64.json
@@ -8,7 +8,8 @@
                 "packagelists/virtualization-host-packages.json",
                 "packagelists/core-packages-image-aarch64.json",
                 "packagelists/core-tools-packages.json",
-                "packagelists/selinux-full.json"
+                "packagelists/selinux-full.json",
+                "packagelists/virt-guest-packages.json"
             ],
             "KernelCommandLine": {
                 "SELinux": "permissive"
@@ -24,7 +25,8 @@
             "Name": "Azure Linux Core",
             "PackageLists": [
                 "packagelists/hyperv-packages.json",
-                "packagelists/core-packages-image-aarch64.json"
+                "packagelists/core-packages-image-aarch64.json",
+                "packagelists/virt-guest-packages.json"
             ],
             "KernelOptions": {
                 "default": "kernel"
diff --git a/toolkit/imageconfigs/full.json b/toolkit/imageconfigs/full.json
index 152b78f5968..4e6d349cbe8 100644
--- a/toolkit/imageconfigs/full.json
+++ b/toolkit/imageconfigs/full.json
@@ -11,7 +11,8 @@
                 "packagelists/hyperv-packages.json",
                 "packagelists/ssh-server.json",
                 "packagelists/selinux-full.json",
-                "packagelists/drtm.json"
+                "packagelists/drtm.json",
+                "packagelists/virt-guest-packages.json"
             ],
             "KernelCommandLine": {
                 "SELinux": "permissive"
@@ -28,7 +29,8 @@
             "PackageLists": [
                 "packagelists/grub2-mkconfig.json",
                 "packagelists/hyperv-packages.json",
-                "packagelists/core-packages-image.json"
+                "packagelists/core-packages-image.json",
+                "packagelists/virt-guest-packages.json"
             ],
             "KernelOptions": {
                 "default": "kernel"
diff --git a/toolkit/imageconfigs/marketplace-gen1-fips.json b/toolkit/imageconfigs/marketplace-gen1-fips.json
index 22a2c9dede3..64776032631 100644
--- a/toolkit/imageconfigs/marketplace-gen1-fips.json
+++ b/toolkit/imageconfigs/marketplace-gen1-fips.json
@@ -56,7 +56,8 @@
                 "packagelists/fips-packages.json",
                 "packagelists/core-packages-image.json",
                 "packagelists/marketplace-tools-packages.json",
-                "packagelists/azurevm-packages.json"
+                "packagelists/azurevm-packages.json",
+                "packagelists/hyperv-packages.json"
             ],
             "AdditionalFiles": {
                 "additionalconfigs/cloud-init.cfg": "/etc/cloud/cloud.cfg",
diff --git a/toolkit/imageconfigs/marketplace-gen1.json b/toolkit/imageconfigs/marketplace-gen1.json
index 2b0cc8b9db8..802e39c7bfb 100644
--- a/toolkit/imageconfigs/marketplace-gen1.json
+++ b/toolkit/imageconfigs/marketplace-gen1.json
@@ -55,7 +55,8 @@
             "PackageLists": [
                 "packagelists/core-packages-image.json",
                 "packagelists/marketplace-tools-packages.json",
-                "packagelists/azurevm-packages.json"
+                "packagelists/azurevm-packages.json",
+                "packagelists/hyperv-packages.json"
             ],
             "AdditionalFiles": {
                 "additionalconfigs/cloud-init.cfg": "/etc/cloud/cloud.cfg",
diff --git a/toolkit/imageconfigs/marketplace-gen2-aarch64.json b/toolkit/imageconfigs/marketplace-gen2-aarch64.json
index ae139d5e4a0..650d012dcff 100644
--- a/toolkit/imageconfigs/marketplace-gen2-aarch64.json
+++ b/toolkit/imageconfigs/marketplace-gen2-aarch64.json
@@ -58,7 +58,8 @@
             "PackageLists": [
                 "packagelists/core-packages-image-aarch64.json",
                 "packagelists/marketplace-tools-packages.json",
-                "packagelists/azurevm-packages.json"
+                "packagelists/azurevm-packages.json",
+                "packagelists/hyperv-packages.json"
             ],
             "AdditionalFiles": {
                 "additionalconfigs/cloud-init.cfg": "/etc/cloud/cloud.cfg",
diff --git a/toolkit/imageconfigs/marketplace-gen2-fips.json b/toolkit/imageconfigs/marketplace-gen2-fips.json
index 1ce1e326e18..13155b12d59 100644
--- a/toolkit/imageconfigs/marketplace-gen2-fips.json
+++ b/toolkit/imageconfigs/marketplace-gen2-fips.json
@@ -59,7 +59,8 @@
                 "packagelists/fips-packages.json",
                 "packagelists/core-packages-image.json",
                 "packagelists/marketplace-tools-packages.json",
-                "packagelists/azurevm-packages.json"
+                "packagelists/azurevm-packages.json",
+                "packagelists/hyperv-packages.json"
             ],
             "AdditionalFiles": {
                 "additionalconfigs/cloud-init.cfg": "/etc/cloud/cloud.cfg",
diff --git a/toolkit/imageconfigs/marketplace-gen2.json b/toolkit/imageconfigs/marketplace-gen2.json
index c154400876f..92a89de3f59 100644
--- a/toolkit/imageconfigs/marketplace-gen2.json
+++ b/toolkit/imageconfigs/marketplace-gen2.json
@@ -58,7 +58,8 @@
             "PackageLists": [
                 "packagelists/core-packages-image.json",
                 "packagelists/marketplace-tools-packages.json",
-                "packagelists/azurevm-packages.json"
+                "packagelists/azurevm-packages.json",
+                "packagelists/hyperv-packages.json"
             ],
             "AdditionalFiles": {
                 "additionalconfigs/cloud-init.cfg": "/etc/cloud/cloud.cfg",
diff --git a/toolkit/imageconfigs/packagelists/azurevm-packages.json b/toolkit/imageconfigs/packagelists/azurevm-packages.json
index d43369f621a..44da141ee4d 100644
--- a/toolkit/imageconfigs/packagelists/azurevm-packages.json
+++ b/toolkit/imageconfigs/packagelists/azurevm-packages.json
@@ -4,6 +4,7 @@
         "cloud-init-azure-kvp",
         "cloud-utils-growpart",
         "dhcp-client",
+        "dracut-hyperv",
         "grubby",
         "hyperv-daemons",
         "kexec-tools",
diff --git a/toolkit/imageconfigs/packagelists/base-image-packages.json b/toolkit/imageconfigs/packagelists/base-image-packages.json
index 7fec7ad6d31..30df2b899ce 100644
--- a/toolkit/imageconfigs/packagelists/base-image-packages.json
+++ b/toolkit/imageconfigs/packagelists/base-image-packages.json
@@ -23,6 +23,8 @@
         "tdnf-plugin-repogpgcheck",
         "util-linux",
         "zlib",
+        "dracut-hostonly",
+        "dracut-vrf",
         "initramfs"
     ]
 }
diff --git a/toolkit/imageconfigs/packagelists/core-packages-image-aarch64.json b/toolkit/imageconfigs/packagelists/core-packages-image-aarch64.json
index fce0cb40825..d8f325b74ef 100644
--- a/toolkit/imageconfigs/packagelists/core-packages-image-aarch64.json
+++ b/toolkit/imageconfigs/packagelists/core-packages-image-aarch64.json
@@ -6,6 +6,8 @@
         "cronie-anacron",
         "logrotate",
         "core-packages-base-image",
+        "dracut-hostonly",
+        "dracut-vrf",
         "initramfs"
     ],
     "_comment": "Install 'initramfs' last to avoid unnecessary regeneration when other packages, such as 'kernel', are installed."
diff --git a/toolkit/imageconfigs/packagelists/core-packages-image.json b/toolkit/imageconfigs/packagelists/core-packages-image.json
index f7c5a6ba11e..bb8e609fed0 100644
--- a/toolkit/imageconfigs/packagelists/core-packages-image.json
+++ b/toolkit/imageconfigs/packagelists/core-packages-image.json
@@ -6,6 +6,8 @@
         "cronie-anacron",
         "logrotate",
         "core-packages-base-image",
+        "dracut-hostonly",
+        "dracut-vrf",
         "initramfs"
     ],
     "_comment": "Install 'initramfs' last to avoid unnecessary regeneration when other packages, such as 'kernel', are installed."
diff --git a/toolkit/imageconfigs/packagelists/hyperv-packages.json b/toolkit/imageconfigs/packagelists/hyperv-packages.json
index ba373bd9e15..0b2a5b0124c 100644
--- a/toolkit/imageconfigs/packagelists/hyperv-packages.json
+++ b/toolkit/imageconfigs/packagelists/hyperv-packages.json
@@ -1,5 +1,6 @@
 {
     "packages": [
+        "dracut-hyperv",
         "hyperv-daemons"
     ]
 }
diff --git a/toolkit/imageconfigs/packagelists/qemu-guest-packages.json b/toolkit/imageconfigs/packagelists/qemu-guest-packages.json
index 5ceaade7ab6..01c4ec1c4d4 100644
--- a/toolkit/imageconfigs/packagelists/qemu-guest-packages.json
+++ b/toolkit/imageconfigs/packagelists/qemu-guest-packages.json
@@ -1,5 +1,6 @@
 {
     "packages": [
-        "qemu-guest-agent"
+        "qemu-guest-agent",
+        "dracut-virtio"
     ]
 }
diff --git a/toolkit/imageconfigs/packagelists/virt-guest-packages.json b/toolkit/imageconfigs/packagelists/virt-guest-packages.json
new file mode 100644
index 00000000000..89e62d33c9d
--- /dev/null
+++ b/toolkit/imageconfigs/packagelists/virt-guest-packages.json
@@ -0,0 +1,7 @@
+{
+    "packages": [
+        "dracut-hyperv",
+        "dracut-virtio",
+        "dracut-xen"
+    ]
+}
diff --git a/toolkit/imageconfigs/swuvm.json b/toolkit/imageconfigs/swuvm.json
index bfd9bb579a1..6017b6b8fc6 100644
--- a/toolkit/imageconfigs/swuvm.json
+++ b/toolkit/imageconfigs/swuvm.json
@@ -48,7 +48,8 @@
             "PackageLists": [
                 "packagelists/core-packages-image.json",
                 "packagelists/core-tools-packages.json",
-                "packagelists/hyperv-packages.json"
+                "packagelists/hyperv-packages.json",
+                "packagelists/virt-guest-packages.json"
             ],
             "KernelOptions": {
                 "default": "kernel"