diff --git a/ansible/.gitignore b/ansible/.gitignore
index a7197ff4c..1cabb8ad8 100644
--- a/ansible/.gitignore
+++ b/ansible/.gitignore
@@ -58,6 +58,10 @@ roles/*
 !roles/squid/**
 !roles/tuned/
 !roles/tuned/**
+!roles/sssd/
+!roles/sssd/**
+!roles/sshd/
+!roles/sshd/**
 !roles/compute_init/
 !roles/compute_init/**
 !roles/k3s/
diff --git a/ansible/bootstrap.yml b/ansible/bootstrap.yml
index e2497d9c6..88d9274b3 100644
--- a/ansible/bootstrap.yml
+++ b/ansible/bootstrap.yml
@@ -110,6 +110,15 @@
         policy: "{{ selinux_policy }}"
       register: sestatus
 
+- hosts: sshd
+  tags: sshd
+  gather_facts: no
+  become: yes
+  tasks:
+    - name: Configure sshd
+      import_role:
+        name: sshd
+
 - hosts: dnf_repos
   become: yes
   tasks:
diff --git a/ansible/fatimage.yml b/ansible/fatimage.yml
index 9a8828a35..e5de38edf 100644
--- a/ansible/fatimage.yml
+++ b/ansible/fatimage.yml
@@ -54,6 +54,11 @@
         name: freeipa
         tasks_from: client-install.yml
       when: "'freeipa_client' in group_names"
+    - name: Install sssd
+      import_role:
+        name: sssd
+        tasks_from: install.yml
+      when: "'sssd' in group_names"
 
     # - import_playbook: filesystems.yml:
     - name: Install nfs packages
diff --git a/ansible/iam.yml b/ansible/iam.yml
index 0286b9df3..857b8f840 100644
--- a/ansible/iam.yml
+++ b/ansible/iam.yml
@@ -40,3 +40,12 @@
       import_role:
         name: freeipa
         tasks_from: users.yml
+
+- hosts: sssd
+  become: yes
+  gather_facts: no
+  tags: sssd
+  tasks:
+    - name: Configure sssd
+      import_role:
+        name: sssd
diff --git a/ansible/roles/basic_users/README.md b/ansible/roles/basic_users/README.md
index 4b75100ca..65fdd2c4c 100644
--- a/ansible/roles/basic_users/README.md
+++ b/ansible/roles/basic_users/README.md
@@ -24,6 +24,7 @@ Role Variables
   - An additional key `sudo` may optionally be specified giving a string (possibly multiline) defining sudo rules to be templated.
   - Any other keys may present for other purposes (i.e. not used by this role).
 - `basic_users_groups`: Optional, default empty list. A list of mappings defining information for each group. Mapping keys/values are passed through as parameters to [ansible.builtin.group](https://docs.ansible.com/ansible/latest/collections/ansible/builtin/group_module.html) and default values are as given there.
+- `basic_users_override_sssd`: Optional bool, default false. Whether to disable `sssd` when ensuring users/groups exist with this role. Permits creating local users/groups even if they clash with users provided via sssd (e.g. from LDAP). Ignored if host is not in group `sssd` as well. Note with this option active `sssd` will be stopped and restarted each time this role is run.
 
 Dependencies
 ------------
diff --git a/ansible/roles/basic_users/defaults/main.yml b/ansible/roles/basic_users/defaults/main.yml
index 9f34bdf4c..e6c6eafaa 100644
--- a/ansible/roles/basic_users/defaults/main.yml
+++ b/ansible/roles/basic_users/defaults/main.yml
@@ -7,3 +7,4 @@ basic_users_userdefaults:
   shell: "{{'/sbin/nologin' if 'control' in group_names else omit }}"
 basic_users_users: []
 basic_users_groups: []
+basic_users_override_sssd: false
diff --git a/ansible/roles/basic_users/tasks/main.yml b/ansible/roles/basic_users/tasks/main.yml
index c27d024b4..c6733fb89 100644
--- a/ansible/roles/basic_users/tasks/main.yml
+++ b/ansible/roles/basic_users/tasks/main.yml
@@ -7,7 +7,16 @@
     label: "{{ item.name }}"
   when:
     - "item.state | default('present') == 'absent'"
-  
+
+- name: Stop sssd if required
+  systemd:
+    name: sssd
+    state: stopped
+  register: _stop_sssd
+  when:
+    - "'sssd' in group_names"
+    - basic_users_override_sssd | bool
+
 - name: Create groups
   ansible.builtin.group: "{{ item }}"
   loop:  "{{ basic_users_groups }}"
@@ -19,6 +28,12 @@
     label: "{{ item.name }} [{{ item.state | default('present') }}]"
   register: basic_users_info
 
+- name: Restart sssd if required
+  systemd:
+    name: sssd
+    state: started
+  when: _stop_sssd is changed
+
 - name: Write supplied public key as authorized for SSH access
   authorized_key:
     user: "{{ item.name }}"
diff --git a/ansible/roles/sshd/README.md b/ansible/roles/sshd/README.md
new file mode 100644
index 000000000..0fac1d189
--- /dev/null
+++ b/ansible/roles/sshd/README.md
@@ -0,0 +1,9 @@
+# sshd
+
+Configure sshd.
+
+## Role variables
+
+- `sshd_password_authentication`: Optional bool. Whether to enable password login. Default `false`.
+- `sshd_conf_src`: Optional string. Path to sshd configuration template. Default is in-role template.
+- `sshd_conf_dest`: Optional string. Path to destination for sshd configuration file. Default is `/etc/ssh/sshd_config.d/10-ansible.conf` which overides `50-{cloud-init,redhat}` files, if present.
diff --git a/ansible/roles/sshd/defaults/main.yml b/ansible/roles/sshd/defaults/main.yml
new file mode 100644
index 000000000..672305799
--- /dev/null
+++ b/ansible/roles/sshd/defaults/main.yml
@@ -0,0 +1,3 @@
+sshd_password_authentication: false
+sshd_conf_src: sshd.conf.j2
+sshd_conf_dest: /etc/ssh/sshd_config.d/10-ansible.conf
diff --git a/ansible/roles/sshd/handlers/main.yml b/ansible/roles/sshd/handlers/main.yml
new file mode 100644
index 000000000..e11aa7801
--- /dev/null
+++ b/ansible/roles/sshd/handlers/main.yml
@@ -0,0 +1,4 @@
+- name: Restart sshd
+  systemd:
+    name: sshd
+    state: restarted
diff --git a/ansible/roles/sshd/tasks/configure.yml b/ansible/roles/sshd/tasks/configure.yml
new file mode 100644
index 000000000..8aafb5c19
--- /dev/null
+++ b/ansible/roles/sshd/tasks/configure.yml
@@ -0,0 +1,15 @@
+- name: Template sshd configuration
+  # NB: If parameters are defined multiple times the first value wins;
+  # The default /etc/ssh/sshd_config has
+  #   Include /etc/ssh/sshd_config.d/*.conf
+  # early on, which is generally held to be the correct approach, so adding
+  # values to the end of that file won't work
+  template:
+    src: "{{ sshd_conf_src }}"
+    dest: "{{ sshd_conf_dest }}"
+    owner: root
+    group: root
+    mode: u=rw,go=
+    validate: sshd -t -f %s
+  notify:
+    - Restart sshd
diff --git a/ansible/roles/sshd/tasks/main.yml b/ansible/roles/sshd/tasks/main.yml
new file mode 100644
index 000000000..84f493457
--- /dev/null
+++ b/ansible/roles/sshd/tasks/main.yml
@@ -0,0 +1 @@
+- import_tasks: configure.yml
diff --git a/ansible/roles/sshd/templates/sshd.conf.j2 b/ansible/roles/sshd/templates/sshd.conf.j2
new file mode 100644
index 000000000..2746f0642
--- /dev/null
+++ b/ansible/roles/sshd/templates/sshd.conf.j2
@@ -0,0 +1,2 @@
+# {{ ansible_managed }}
+PasswordAuthentication {{ 'yes' if sshd_password_authentication | bool else 'no' }}
diff --git a/ansible/roles/sssd/README.md b/ansible/roles/sssd/README.md
new file mode 100644
index 000000000..da4e63f31
--- /dev/null
+++ b/ansible/roles/sssd/README.md
@@ -0,0 +1,18 @@
+# sssd
+
+Install and configure [sssd](https://sssd.io/docs/introduction.html).
+
+
+## Role variables
+
+The only required configuration is to create a [sssd.conf](https://www.mankier.com/5/sssd.conf) template at the location specified by `sssd_conf_src`.
+
+- `sssd_packages`: Optional list. Packages to install.
+- `sssd_ldap_install`: Optional bool. Whether to install packages enabling SSSD to authenticate against LDAP. Default `false`.
+- `sssd_ldap_packages`: Optional list. Packages to install when using `sssd_ldap_install`.
+- `sssd_enable_mkhomedir`: Optional bool. Whether to enable creation of home directories on login. Default `false`.
+- `sssd_mkhomedir_packages`: Optional list. Packages to install when using `sssd_enable_mkhomedir`.
+- `sssd_conf_src`: Optional string. Path to `sssd.conf` template. Default (which must be created) is `{{ appliances_environment_root }}/files/sssd.conf.j2`.
+- `sssd_conf_dest`: Optional string. Path to destination for `sssd.conf`. Default `/etc/sssd/sssd.conf`.
+- `sssd_started`: Optional bool. Whether `sssd` service should be started.
+- `sssd_enabled`: Optional bool. Whether `sssd` service should be enabled.
diff --git a/ansible/roles/sssd/defaults/main.yml b/ansible/roles/sssd/defaults/main.yml
new file mode 100644
index 000000000..5bc58c990
--- /dev/null
+++ b/ansible/roles/sssd/defaults/main.yml
@@ -0,0 +1,12 @@
+sssd_packages:
+  - sssd-common
+sssd_install_ldap: false
+sssd_ldap_packages:
+  - sssd-ldap
+sssd_enable_mkhomedir: false
+sssd_mkhomedir_packages:
+  - oddjob-mkhomedir
+sssd_conf_src: "{{ appliances_environment_root }}/files/sssd.conf.j2"
+sssd_conf_dest: /etc/sssd/sssd.conf
+sssd_started: true
+sssd_enabled: true
diff --git a/ansible/roles/sssd/handlers/main.yml b/ansible/roles/sssd/handlers/main.yml
new file mode 100644
index 000000000..72c36e736
--- /dev/null
+++ b/ansible/roles/sssd/handlers/main.yml
@@ -0,0 +1,5 @@
+- name: Restart sssd
+  systemd:
+    name: sssd
+    state: restarted
+  when: sssd_started | bool
diff --git a/ansible/roles/sssd/tasks/configure.yml b/ansible/roles/sssd/tasks/configure.yml
new file mode 100644
index 000000000..ae636e9dd
--- /dev/null
+++ b/ansible/roles/sssd/tasks/configure.yml
@@ -0,0 +1,28 @@
+- name: Manage sssd.conf configuration
+  template:
+    src: "{{ sssd_conf_src }}"
+    dest: "{{ sssd_conf_dest }}"
+    owner: root
+    group: root
+    mode: u=rw,go=
+  notify: "Restart sssd"
+
+- meta: flush_handlers
+
+- name: Ensure sssd service state
+  systemd:
+    name: sssd
+    state: "{{ 'started' if sssd_started | bool else 'stopped' }}"
+    enabled: "{{ sssd_enabled | bool }}"
+
+- name: Get current authselect configuration
+  command: authselect current --raw
+  changed_when: false
+  failed_when:
+    - _authselect_current.rc != 0
+    - "'No existing configuration detected' not in _authselect_current.stdout"
+  register: _authselect_current # stdout: sssd with-mkhomedir
+
+- name: Configure nsswitch and PAM for SSSD
+  command: "authselect select sssd --force{% if sssd_enable_mkhomedir | bool %} with-mkhomedir{% endif %}"
+  when: "'sssd' not in _authselect_current.stdout"
diff --git a/ansible/roles/sssd/tasks/install.yml b/ansible/roles/sssd/tasks/install.yml
new file mode 100644
index 000000000..97aa82a2f
--- /dev/null
+++ b/ansible/roles/sssd/tasks/install.yml
@@ -0,0 +1,13 @@
+- name: Ensure sssd packages are installed
+  dnf:
+    name: "{{ sssd_packages + sssd_ldap_packages if (sssd_install_ldap | bool) else [] }}"
+
+- name: Control if sssd should start on boot
+  # Needs to be done here to prevent starting after image build, is enabled by default
+  systemd:
+    name: sssd
+    enabled: "{{ sssd_enabled | bool }}"
+
+- name: Ensure mkhomedir packages are installed if required
+  dnf:
+    name: "{{ sssd_mkhomedir_packages }}"
diff --git a/ansible/roles/sssd/tasks/main.yml b/ansible/roles/sssd/tasks/main.yml
new file mode 100644
index 000000000..2b65e84b4
--- /dev/null
+++ b/ansible/roles/sssd/tasks/main.yml
@@ -0,0 +1,2 @@
+- import_tasks: install.yml
+- import_tasks: configure.yml
diff --git a/environments/.stackhpc/inventory/extra_groups b/environments/.stackhpc/inventory/extra_groups
index 7c9a7c774..2531b803e 100644
--- a/environments/.stackhpc/inventory/extra_groups
+++ b/environments/.stackhpc/inventory/extra_groups
@@ -31,3 +31,7 @@ compute
 [squid:children]
 # Install squid into fat image
 builder
+
+[sssd:children]
+# Install sssd into fat image
+builder
diff --git a/environments/.stackhpc/inventory/group_vars/builder.yml b/environments/.stackhpc/inventory/group_vars/builder.yml
index 5130e9d84..10b15adac 100644
--- a/environments/.stackhpc/inventory/group_vars/builder.yml
+++ b/environments/.stackhpc/inventory/group_vars/builder.yml
@@ -1,3 +1,5 @@
+#update_enable: false # Can uncomment for speed debugging non-update related build issues
+sssd_install_ldap: true # include sssd-ldap package in fatimage
 # update_enable: false # Can uncomment for speed debugging non-update related build issues
 
 # Uncomment below to use CI pulp servers
diff --git a/environments/.stackhpc/terraform/cluster_image.auto.tfvars.json b/environments/.stackhpc/terraform/cluster_image.auto.tfvars.json
index 47681ea8a..3c1e19058 100644
--- a/environments/.stackhpc/terraform/cluster_image.auto.tfvars.json
+++ b/environments/.stackhpc/terraform/cluster_image.auto.tfvars.json
@@ -1,6 +1,6 @@
 {
     "cluster_image": {
-        "RL8": "openhpc-RL8-250108-1703-e515b902",
-        "RL9": "openhpc-RL9-250108-1703-e515b902"
+        "RL8": "openhpc-RL8-250109-1444-ecea8219",
+        "RL9": "openhpc-RL9-250109-1444-ecea8219"
     }
 }
diff --git a/environments/common/inventory/group_vars/all/sshd.yaml b/environments/common/inventory/group_vars/all/sshd.yaml
new file mode 100644
index 000000000..5d4ed228f
--- /dev/null
+++ b/environments/common/inventory/group_vars/all/sshd.yaml
@@ -0,0 +1 @@
+sshd_password_authentication: "{{ sssd_install_ldap | default(false) | bool }}"
diff --git a/environments/common/inventory/group_vars/builder/defaults.yml b/environments/common/inventory/group_vars/builder/defaults.yml
index b43d9f03c..dae4edd9a 100644
--- a/environments/common/inventory/group_vars/builder/defaults.yml
+++ b/environments/common/inventory/group_vars/builder/defaults.yml
@@ -22,4 +22,6 @@ squid_cache_disk: 0 # just needs to be defined
 squid_cache_mem: 0
 tuned_started: false
 tuned_enabled: false
+sssd_started: false
+sssd_enabled: false
 appliances_mode: build
diff --git a/environments/common/inventory/groups b/environments/common/inventory/groups
index cbc69d800..1d756ed66 100644
--- a/environments/common/inventory/groups
+++ b/environments/common/inventory/groups
@@ -13,9 +13,6 @@ login
 control
 compute
 
-[eessi:children]
-# Hosts on which EESSI stack should be configured
-
 [hpctests:children]
 # Login group to use for running mpi-based testing.
 login
@@ -79,9 +76,6 @@ cluster
 # Hosts to install firewalld on - see ansible/roles/filewalld
 fail2ban
 
-[block_devices]
-# Superset of hosts to configure filesystems on - see ansible/roles/block_devices/README.md
-
 [basic_users]
 # Add `openhpc` group to add slurm users via creation of users on each node.
 
@@ -118,12 +112,18 @@ freeipa_client
 [cuda]
 # Hosts to install NVIDIA CUDA on - see ansible/roles/cuda/README.md
 
+[eessi]
+# Hosts on which EESSI stack should be configured
+
 [resolv_conf]
 # Allows defining nameservers in /etc/resolv.conf - see ansible/roles/resolv_conf/README.md
 
 [proxy]
 # Hosts to configure http/s proxies - see ansible/roles/proxy/README.md
 
+[manila]
+# Hosts to configure for manila fileshares
+
 [persist_hostkeys]
 # Hosts to persist hostkeys for across reimaging. NB: Requires appliances_state_dir on hosts.
 
@@ -136,6 +136,12 @@ freeipa_client
 [ansible_init]
 # Hosts to run linux-anisble-init
 
+[sssd]
+# Hosts to configure sssd on
+
+[sshd]
+# Hosts where the OpenSSH server daemon should be configured
+
 [compute_init]
 # EXPERIMENTAL: Compute hosts to enable joining cluster on boot on
 
diff --git a/environments/common/layouts/everything b/environments/common/layouts/everything
index d3b8fe040..4293cbca0 100644
--- a/environments/common/layouts/everything
+++ b/environments/common/layouts/everything
@@ -60,6 +60,7 @@ cluster
 # Hosts to install NVIDIA CUDA on - see ansible/roles/cuda/README.md
 
 [eessi:children]
+# Hosts on which EESSI stack should be configured
 openhpc
 
 [resolv_conf]
@@ -83,9 +84,15 @@ openondemand
 # Hosts to run TuneD configuration
 
 [ansible_init:children]
-# Hosts to run ansible-init
+# Hosts to run linux-anisble-init
 cluster
 
+[sssd]
+# Hosts to configure sssd on
+
+[sshd]
+# Hosts where the OpenSSH server daemon should be configured
+
 [compute_init:children]
 # EXPERIMENTAL: Compute hosts to enable joining cluster on boot on
 compute