diff --git a/crates/lib/src/bootloader.rs b/crates/lib/src/bootloader.rs
index fe7aa46d8..275d035a3 100644
--- a/crates/lib/src/bootloader.rs
+++ b/crates/lib/src/bootloader.rs
@@ -14,16 +14,19 @@ pub(crate) fn install_via_bootupd(
     device: &PartitionTable,
     rootfs: &Utf8Path,
     configopts: &crate::install::InstallConfigOpts,
+    deployment_path: &str,
 ) -> Result<()> {
     let verbose = std::env::var_os("BOOTC_BOOTLOADER_DEBUG").map(|_| "-vvvv");
     // bootc defaults to only targeting the platform boot method.
     let bootupd_opts = (!configopts.generic_image).then_some(["--update-firmware", "--auto"]);
 
+    let srcroot = rootfs.join(deployment_path);
     let devpath = device.path();
     let args = ["backend", "install", "--write-uuid"]
         .into_iter()
         .chain(verbose)
         .chain(bootupd_opts.iter().copied().flatten())
+        .chain(["--src-root", srcroot.as_str()])
         .chain(["--device", devpath.as_str(), rootfs.as_str()]);
     Task::new("Running bootupctl to install bootloader", "bootupctl")
         .args(args)
diff --git a/crates/lib/src/install.rs b/crates/lib/src/install.rs
index f59b5d053..32f06a7bd 100644
--- a/crates/lib/src/install.rs
+++ b/crates/lib/src/install.rs
@@ -1347,7 +1347,7 @@ async fn install_with_sysroot(
 ) -> Result<()> {
     // And actually set up the container in that root, returning a deployment and
     // the aleph state (see below).
-    let (_deployment, aleph) = install_container(state, rootfs, &sysroot, has_ostree).await?;
+    let (deployment, aleph) = install_container(state, rootfs, &sysroot, has_ostree).await?;
     // Write the aleph data that captures the system state at the time of provisioning for aid in future debugging.
     rootfs
         .physical_root
@@ -1356,6 +1356,8 @@ async fn install_with_sysroot(
         })
         .context("Writing aleph version")?;
 
+    let deployment_path = sysroot.deployment_dirpath(&deployment);
+
     if cfg!(target_arch = "s390x") {
         // TODO: Integrate s390x support into install_via_bootupd
         crate::bootloader::install_via_zipl(&rootfs.device_info, boot_uuid)?;
@@ -1364,6 +1366,7 @@ async fn install_with_sysroot(
             &rootfs.device_info,
             &rootfs.physical_root_path,
             &state.config_opts,
+            &deployment_path.as_str(),
         )?;
     }
     tracing::debug!("Installed bootloader");