diff --git a/README.md b/README.md
index 94c4f18526..d288a6b0d9 100644
--- a/README.md
+++ b/README.md
@@ -27,7 +27,7 @@ TODO: use a url shortener
 To build and run this software you need a few tools. To install them on openSUSE
 Tumbleweed just type:
 
-    $ sudo zypper in gcc gcc-c++ make openssl-devel ruby-devel npm
+    $ sudo zypper in gcc gcc-c++ make openssl-devel ruby-devel augeas-devel npm
 
 ## yastd
 
diff --git a/deploy.sh b/deploy.sh
index 9336d64b2e..e252fe2ae4 100644
--- a/deploy.sh
+++ b/deploy.sh
@@ -1,5 +1,5 @@
 #! /bin/sh
-sudo zypper --non-interactive install gcc gcc-c++ make openssl-devel ruby-devel npm git || exit 1
+sudo zypper --non-interactive install gcc gcc-c++ make openssl-devel ruby-devel npm git augeas-devel || exit 1
 
 git clone https://github.com/yast/the-installer || exit 1
 cd the-installer
diff --git a/yastd-proxy/Gemfile b/yastd-proxy/Gemfile
index f2b2fb6552..af34c30685 100644
--- a/yastd-proxy/Gemfile
+++ b/yastd-proxy/Gemfile
@@ -10,3 +10,4 @@ gem "sinatra"
 gem "sinatra-cors"
 gem "ruby-dbus", require: "dbus"
 gem "thin"
+gem "rexml" # ruby3 has it as separate gem
diff --git a/yastd/Gemfile b/yastd/Gemfile
index 8d89064797..a5c4be7529 100644
--- a/yastd/Gemfile
+++ b/yastd/Gemfile
@@ -4,8 +4,8 @@ source "https://rubygems.org"
 
 gem "rake"
 gem "ruby-dbus"
+gem "rexml" # dependency of dbus
 gem "eventmachine"
-gem "nokogiri"
 
 # Required by YaST
 gem "cheetah"
diff --git a/yastd/lib/yast2/dbus/installer.rb b/yastd/lib/yast2/dbus/installer.rb
index 4b72c369fc..209ea66a5d 100644
--- a/yastd/lib/yast2/dbus/installer.rb
+++ b/yastd/lib/yast2/dbus/installer.rb
@@ -42,6 +42,8 @@ def initialize(installer, logger, *args)
           self.StatusChanged(status.id)
         end
 
+        installer.dbus_obj = self
+
         super(*args)
       end
 
@@ -170,7 +172,7 @@ def initialize(installer, logger, *args)
         # - total_substeps: total count of smaller steps done as part of big step. Can be 0, which means no substeps defined
         # - current_substep: current substep. Always in range of 0..total_substeps
         dbus_signal :Progress,
-          "message:s, total_steps:t, current_step: t, total_substeps: t, current_substep: t"
+          "message:s, total_steps:t, current_step:t, total_substeps:t, current_substep:t"
       end
     end
   end
diff --git a/yastd/lib/yast2/progress.rb b/yastd/lib/yast2/installation_progress.rb
similarity index 50%
rename from yastd/lib/yast2/progress.rb
rename to yastd/lib/yast2/installation_progress.rb
index 9a236a07c0..d92559665c 100644
--- a/yastd/lib/yast2/progress.rb
+++ b/yastd/lib/yast2/installation_progress.rb
@@ -22,23 +22,70 @@
 # YaST specific code lives under this namespace
 module Yast2
   # This class represents the installer status
-  class Progress
-    def initialize(dbus_obj)
+  class InstallationProgress
+    KNOWN_STEPS = 3 # keep it in sync with installer.rb
+    def initialize(dbus_obj, logger: nil)
       @dbus_obj = dbus_obj
+      @logger = logger
       @total_pkgs = 0
       @remaining_pkgs = 0
     end
 
+    def partitioning(&block)
+      report(
+        # TODO: localization
+        "Partitioning target disk", 0
+      )
+      block.call(self)
+      report(
+        # TODO: localization
+        "Partitioning finished", 1
+      )
+    end
+
+    def package_installation(&block)
+      report(
+        # TODO: localization
+        "Starting to install packages", 1
+      )
+      block.call(self)
+      report(
+        # TODO: localization
+        "Package installation finished", 2
+      )
+    end
+
+    def bootloader_installation(&block)
+      report(
+        # TODO: localization
+        "Starting to deploy bootloader", 2
+      )
+      block.call(self)
+      report(
+        # TODO: localization
+        "Installation finished", 3
+      )
+    end
+
     def packages_to_install=(value)
       @total_pkgs = @remaining_pkgs = value
     end
 
     def package_installed
       @remaining_pkgs -= 1
-      @dbus_obj&.report_progress(
+      report(
         # TODO: localization
         "Installing packages (#{@remaining_pkgs} remains)",
-        1, 0, @total_pkgs, @total_pkgs - @remaining_pkgs
+        1, substeps: @total_pkgs, current_substep: @total_pkgs - @remaining_pkgs
+      )
+    end
+
+  private
+
+    def report(title, step, substeps: 0, current_substep: 0)
+      @logger&.info title
+      @dbus_obj&.Progress(
+        title, KNOWN_STEPS, step, substeps, current_substep
       )
     end
   end
diff --git a/yastd/lib/yast2/installer.rb b/yastd/lib/yast2/installer.rb
index e84d591071..3e1e8a8e5c 100644
--- a/yastd/lib/yast2/installer.rb
+++ b/yastd/lib/yast2/installer.rb
@@ -4,7 +4,7 @@
 require "y2storage"
 require "yast2/installer_status"
 require "yast2/software"
-require "yast2/progress"
+require "yast2/installation_progress"
 require "bootloader/proposal_client"
 require "bootloader/finish_client"
 require "dbus"
@@ -63,7 +63,6 @@ def initialize(logger: nil)
       @status = InstallerStatus::IDLE
       @logger = logger || Logger.new(STDOUT)
       @software = Software.new(@logger)
-      @progress = Progress.new(nil) # TODO: fix passing progress
       # Set stage to initial, so it will act as installer for some cases like
       # proposing installer instead of reading current one
       Yast::Stage.Set("initial")
@@ -86,9 +85,8 @@ def options
     def probe
       change_status(InstallerStatus::PROBING)
       probe_languages
-      @software.probe
-      @software.propose
       probe_storage
+      @software.probe
       true
     rescue StandardError => e
       logger.error "Probing error: #{e.inspect}"
@@ -120,20 +118,29 @@ def storage_proposal
     end
 
     def install
-      Yast::Installation.destdir = "/mnt"
-      logger.info "Installing(partitioning)"
-      change_status(InstallerStatus::PARTITIONING)
-      Yast::WFM.CallFunction("inst_prepdisk", [])
-      # Install software
-      logger.info "Installing(installing software)"
       change_status(InstallerStatus::INSTALLING)
-      @software.install(@progress)
-      # Install bootloader
-      logger.info "Installing(bootloader)"
+      Yast::Installation.destdir = "/mnt"
+      # lets propose it here to be sure that software proposal reflects product selection
+      # FIXME: maybe repropose after product selection change?
+      # first make bootloader proposal to be sure that required packages is installed
       proposal = ::Bootloader::ProposalClient.new.make_proposal({})
       logger.info "Bootloader proposal #{proposal.inspect}"
-      ::Bootloader::FinishClient.new.write
-      logger.info "Installing(finished)"
+      @software.propose
+
+      progress = InstallationProgress.new(@dbus_obj, logger: logger)
+      progress.partitioning do |_|
+        Yast::WFM.CallFunction("inst_prepdisk", [])
+      end
+      progress.package_installation do |progr|
+        # call inst bootloader to get properly initialized bootloader
+        # sysconfig before package installation
+        Yast::WFM.CallFunction("inst_bootloader", [])
+        @software.install(progr)
+      end
+      progress.bootloader_installation do |_|
+        Yast::WFM.SCROpen("chroot=#{Yast::Installation.destdir}:scr", false)
+        ::Bootloader::FinishClient.new.write
+      end
       change_status(InstallerStatus::IDLE)
     end
 
@@ -146,6 +153,10 @@ def on_status_change(&block)
       @on_status_change = block
     end
 
+    def dbus_obj=(obj)
+      @dbus_obj = obj
+    end
+
   private
 
     def change_status(new_status)
diff --git a/yastd/lib/yast2/software.rb b/yastd/lib/yast2/software.rb
index caa4efbead..a7dcee9866 100644
--- a/yastd/lib/yast2/software.rb
+++ b/yastd/lib/yast2/software.rb
@@ -25,6 +25,7 @@
 
 Yast.import "Pkg"
 Yast.import "PackageInstallation"
+Yast.import "Stage"
 
 # YaST specific code lives under this namespace
 module Yast2
@@ -46,19 +47,38 @@ def select_product(name)
 
     def probe
       logger.info "Probing software"
+      # as we use liveDVD with normal like ENV, lets temporary switch to normal to use its repos
+      Yast::Stage.Set("normal")
       Yast::Pkg.TargetInitialize("/")
       Yast::Pkg.TargetLoad
       Yast::Pkg.SourceRestore
       Yast::Pkg.SourceLoad
       @products = Y2Packager::Product.all
-    end
-
-    def propose
       @product = @products.first&.name
+      proposal = Yast::Packages.Proposal(force_reset = true, reinit = false, _simple = true)
+      @logger.info "proposal #{proposal["raw_proposal"]}"
+      Yast::Stage.Set("initial")
 
       raise "No Product Available" unless @product
+    end
 
-      Yast::Packages.Proposal(force_reset = true, reinit = true, _simple = true)
+    def propose
+      Yast::Pkg.TargetInitialize(Yast::Installation.destdir)
+      Yast::Pkg.TargetLoad
+      selected_product = @products.find { |p| p.name == @product }
+      selected_product.select
+      @logger.info "selected product #{selected_product.inspect}"
+
+      # as we use liveDVD with normal like ENV, lets temporary switch to normal to use its repos
+      Yast::Stage.Set("normal")
+      # FIXME: workaround to have at least reasonable proposal
+      Yast::PackagesProposal.AddResolvables("the-installer", :pattern, ["base", "enhanced_base"])
+      proposal = Yast::Packages.Proposal(force_reset = false, reinit = false, _simple = true)
+      @logger.info "proposal #{proposal["raw_proposal"]}"
+      res = Yast::Pkg.PkgSolve(unused = true)
+      @logger.info "solver run #{res.inspect}"
+
+      Yast::Stage.Set("initial")
       # do not return proposal hash, so intentional nil here
       nil
     end
@@ -69,13 +89,14 @@ def install(progress)
       PackageCallbacks.setup(progress)
 
       # TODO: error handling
-      Yast::Pkg.TargetInitialize(Yast::Installation.destdir)
       commit_result = Yast::PackageInstallation.Commit({})
 
       if commit_result.nil? || commit_result.empty?
-        log.error("Commit failed")
+        @logger.error("Commit failed")
         raise Yast::Pkg.LastError
       end
+
+      @logger.info "Commit result #{commit_result}"
     end
 
   private