diff --git a/rust/agama-software/src/model/state.rs b/rust/agama-software/src/model/state.rs
index dde87294ea..291bf79a34 100644
--- a/rust/agama-software/src/model/state.rs
+++ b/rust/agama-software/src/model/state.rs
@@ -179,6 +179,16 @@ impl<'a> SoftwareStateBuilder<'a> {
             ResolvableType::Package,
             ResolvableSelection::AutoSelected { optional: false },
         );
+
+        // FIPS enabled, so add fips pattern
+        if self.kernel_cmdline.get_last("fips") == Some("1".to_string()) {
+            tracing::info!("fips detected, adding fips pattern");
+            state.resolvables.add_or_replace(
+                "fips",
+                ResolvableType::Pattern,
+                ResolvableSelection::AutoSelected { optional: false },
+            );
+        }
     }
 
     /// Adds the elements from the user configuration.
diff --git a/rust/agama-utils/src/kernel_cmdline.rs b/rust/agama-utils/src/kernel_cmdline.rs
index 229769d530..b301bf7c07 100644
--- a/rust/agama-utils/src/kernel_cmdline.rs
+++ b/rust/agama-utils/src/kernel_cmdline.rs
@@ -20,21 +20,28 @@
 
 use std::{collections::HashMap, path::Path};
 
-const CMDLINE_FILE: &str = "/run/agama/cmdline.d/agama.conf";
+const AGAMA_CMDLINE_FILE: &str = "/run/agama/cmdline.d/agama.conf";
+const KERNEL_CMDLINE_FILE: &str = "/run/agama/cmdline.d/kernel.conf";
 
 /// Implements a mechanism to read the kernel's command-line arguments.
 ///
-/// It supports multiple values for a single key.
+/// It supports multiple values for a single key. Keys are case-insensitive.
 #[derive(Default)]
 pub struct KernelCmdline(HashMap<String, Vec<String>>);
 
 impl KernelCmdline {
     /// Parses the command-line.
     ///
-    /// The content of the command-line is stored, by default, in the {CMDLINE_FILE}.
+    /// The content of the command-line is stored, by default it is combination of agama and kernel cmdline args.
     pub fn parse() -> std::io::Result<Self> {
-        Self::parse_file(CMDLINE_FILE)
-            .inspect_err(|e| tracing::warn!("Could not parse the kernel command-line: {e}"))
+        let agama = Self::parse_file(AGAMA_CMDLINE_FILE).inspect_err(|e| {
+            tracing::warn!("Could not parse the agama kernel command-line: {e}")
+        })?;
+        let kernel = Self::parse_file(KERNEL_CMDLINE_FILE).inspect_err(|e| {
+            tracing::warn!("Could not parse the filtered kernel command-line: {e}")
+        })?;
+
+        Ok(agama.merge(kernel))
     }
 
     /// Builds an instance from the given file.
@@ -57,23 +64,35 @@ impl KernelCmdline {
                 .map(|(k, v)| (k, v))
                 .unwrap_or_else(|| (param, "1"));
 
-            args.entry(key.to_string())
+            args.entry(key.to_lowercase())
                 .and_modify(|v| v.push(value.to_string()))
                 .or_insert(vec![value.to_string()]);
         }
         Self(args)
     }
 
+    pub fn merge(self, other: Self) -> Self {
+        let mut args = self.0;
+        for (key, value) in other.0 {
+            args.entry(key)
+                // this modify is just for theoretical correctness as in reality we are merging kernel and agama
+                // args and they are exclusive
+                .and_modify(|v| v.extend(value.clone()))
+                .or_insert(value);
+        }
+        Self(args)
+    }
+
     /// Returns the values for the argument.
     ///
     /// * `name`: argument name.
     pub fn get(&self, name: &str) -> Vec<String> {
-        self.0.get(name).cloned().unwrap_or(vec![])
+        self.0.get(&name.to_lowercase()).cloned().unwrap_or(vec![])
     }
 
     /// Returns the last value for the argument
     pub fn get_last(&self, name: &str) -> Option<String> {
-        let values = self.0.get(name)?;
+        let values = self.0.get(&name.to_lowercase())?;
         values.last().cloned()
     }
 }
@@ -102,4 +121,35 @@ mod tests {
 
         assert_eq!(args.get_last("inst.auto_insecure"), Some("0".to_string()));
     }
+
+    #[test]
+    fn test_cmdline_args_case_insensitive() {
+        let args_str = r"Inst.Auto=file:///profile.json RD.NEEDNET";
+        let args = KernelCmdline::parse_str(args_str);
+
+        assert_eq!(
+            args.get_last("inst.auto"),
+            Some("file:///profile.json".to_string())
+        );
+        assert_eq!(
+            args.get_last("INST.AUTO"),
+            Some("file:///profile.json".to_string())
+        );
+        assert_eq!(args.get("rd.neednet"), vec!["1".to_string()]);
+    }
+
+    #[test]
+    fn test_merge() {
+        let cmdline1 = KernelCmdline::parse_str("key1=val1 key2=val2");
+        let cmdline2 = KernelCmdline::parse_str("key2=val3 key3=val4");
+
+        let merged = cmdline1.merge(cmdline2);
+
+        assert_eq!(merged.get("key1"), vec!["val1".to_string()]);
+        assert_eq!(
+            merged.get("key2"),
+            vec!["val2".to_string(), "val3".to_string()]
+        );
+        assert_eq!(merged.get("key3"), vec!["val4".to_string()]);
+    }
 }
diff --git a/rust/package/agama.changes b/rust/package/agama.changes
index b83b60288e..76ef5fd77b 100644
--- a/rust/package/agama.changes
+++ b/rust/package/agama.changes
@@ -1,3 +1,9 @@
+-------------------------------------------------------------------
+Fri Feb 20 09:35:01 UTC 2026 - Josef Reidinger <jreidinger@suse.com>
+
+- Properly mark fips pattern for installation when fips kernel
+  parameter is used (bsc#1258306)
+
 -------------------------------------------------------------------
 Thu Feb 19 16:42:12 UTC 2026 - Imobach Gonzalez Sosa <igonzalezsosa@suse.com>