diff --git a/hack/Containerfile b/hack/Containerfile
index bc45d202c..50f88ff90 100644
--- a/hack/Containerfile
+++ b/hack/Containerfile
@@ -23,6 +23,8 @@ COPY hack/provision-derived.sh /tmp
 RUN /tmp/provision-derived.sh "$variant" && rm -f /tmp/*.sh
 # Also copy in some default install configs we use for testing
 COPY hack/install-test-configs/* /usr/lib/bootc/install/
+# And some test kargs
+COPY hack/test-kargs /usr/lib/bootc/kargs.d/
 # Inject our built code
 COPY --from=build /out/bootc.tar.zst /tmp
 RUN tar -C / --zstd -xvf /tmp/bootc.tar.zst && rm -vrf /tmp/*
diff --git a/hack/test-kargs/10-test.toml b/hack/test-kargs/10-test.toml
new file mode 100644
index 000000000..a03b69779
--- /dev/null
+++ b/hack/test-kargs/10-test.toml
@@ -0,0 +1 @@
+kargs = ["kargsd-test=1", "kargsd-othertest=2"]
diff --git a/hack/test-kargs/20-test2.toml b/hack/test-kargs/20-test2.toml
new file mode 100644
index 000000000..ccf4f13ce
--- /dev/null
+++ b/hack/test-kargs/20-test2.toml
@@ -0,0 +1 @@
+kargs = ["testing-kargsd=3"]
diff --git a/lib/src/install.rs b/lib/src/install.rs
index 4369a4fa2..e0c943cac 100644
--- a/lib/src/install.rs
+++ b/lib/src/install.rs
@@ -538,6 +538,8 @@ async fn initialize_ostree_root_from_self(
     let sepolicy = state.load_policy()?;
     let sepolicy = sepolicy.as_ref();
 
+    let container_rootfs = &Dir::open_ambient_dir("/", cap_std::ambient_authority())?;
+
     // Load a fd for the mounted target physical root
     let rootfs_dir = &root_setup.rootfs_fd;
     let rootfs = root_setup.rootfs.as_path();
@@ -640,6 +642,11 @@ async fn initialize_ostree_root_from_self(
         imgref: src_imageref,
     };
 
+    // Load the kargs from the /usr/lib/bootc/kargs.d from the running root,
+    // which should be the same as the filesystem we'll deploy.
+    let kargsd = crate::kargs::get_kargs_in_root(container_rootfs, std::env::consts::ARCH)?;
+    let kargsd = kargsd.iter().map(|s| s.as_str());
+
     let install_config_kargs = state
         .install_config
         .as_ref()
@@ -647,11 +654,17 @@ async fn initialize_ostree_root_from_self(
         .into_iter()
         .flatten()
         .map(|s| s.as_str());
+    // Final kargs, in order:
+    // - root filesystem kargs
+    // - install config kargs
+    // - kargs.d from container image
+    // - args specified on the CLI
     let kargs = root_setup
         .kargs
         .iter()
         .map(|v| v.as_str())
         .chain(install_config_kargs)
+        .chain(kargsd)
         .chain(state.config_opts.karg.iter().flatten().map(|v| v.as_str()))
         .collect::<Vec<_>>();
     let mut options = ostree_container::deploy::DeployOpts::default();
diff --git a/lib/src/kargs.rs b/lib/src/kargs.rs
index 6de0a51d0..f686400b1 100644
--- a/lib/src/kargs.rs
+++ b/lib/src/kargs.rs
@@ -22,7 +22,7 @@ struct Config {
 
 /// Load and parse all bootc kargs.d files in the specified root, returning
 /// a combined list.
-fn get_kargs_in_root(d: &Dir, sys_arch: &str) -> Result<Vec<String>> {
+pub(crate) fn get_kargs_in_root(d: &Dir, sys_arch: &str) -> Result<Vec<String>> {
     // If the directory doesn't exist, that's OK.
     let d = if let Some(d) = d.open_dir_optional("usr/lib/bootc/kargs.d")? {
         d
diff --git a/tests-integration/src/install.rs b/tests-integration/src/install.rs
index fc390bb76..73b9f30e7 100644
--- a/tests-integration/src/install.rs
+++ b/tests-integration/src/install.rs
@@ -100,6 +100,11 @@ pub(crate) fn run_alongside(image: &str, mut testargs: libtest_mimic::Arguments)
                     "sudo /bin/sh -c 'grep localtestkarg=somevalue /boot/loader/entries/*.conf'"
                 )
                 .run()?;
+                cmd!(
+                    sh,
+                    "sudo /bin/sh -c 'grep testing-kargsd=3 /boot/loader/entries/*.conf'"
+                )
+                .run()?;
                 let deployment = &find_deployment_root()?;
                 let cwd = sh.push_dir(format!("/proc/self/fd/{}", deployment.as_raw_fd()));
                 cmd!(