diff --git a/pkg/asset/ignition/bootstrap/bootstrap.go b/pkg/asset/ignition/bootstrap/bootstrap.go
index cf5c040a7d5..24a80cf66a5 100644
--- a/pkg/asset/ignition/bootstrap/bootstrap.go
+++ b/pkg/asset/ignition/bootstrap/bootstrap.go
@@ -173,6 +173,14 @@ func (a *Bootstrap) Generate(dependencies asset.Parents) error {
 	if err != nil {
 		return errors.Wrap(err, "failed to Marshal Ignition config")
 	}
+
+	if installConfig.Config.Spec3 == true {
+		data, err = ignition.ConvertSpec2ToSpec3(data)
+		if err != nil {
+			return err
+		}
+	}
+
 	a.File = &asset.File{
 		Filename: bootstrapIgnFilename,
 		Data:     data,
diff --git a/pkg/asset/ignition/machine/master.go b/pkg/asset/ignition/machine/master.go
index bf7e860ef36..3751147a3eb 100644
--- a/pkg/asset/ignition/machine/master.go
+++ b/pkg/asset/ignition/machine/master.go
@@ -8,6 +8,7 @@ import (
 	"github.com/pkg/errors"
 
 	"github.com/openshift/installer/pkg/asset"
+	"github.com/openshift/installer/pkg/asset/ignition"
 	"github.com/openshift/installer/pkg/asset/installconfig"
 	"github.com/openshift/installer/pkg/asset/tls"
 )
@@ -44,6 +45,14 @@ func (a *Master) Generate(dependencies asset.Parents) error {
 	if err != nil {
 		return errors.Wrap(err, "failed to marshal Ignition config")
 	}
+
+	if installConfig.Config.Spec3 == true {
+		data, err = ignition.ConvertSpec2ToSpec3(data)
+		if err != nil {
+			return err
+		}
+	}
+
 	a.File = &asset.File{
 		Filename: masterIgnFilename,
 		Data:     data,
diff --git a/pkg/asset/ignition/machine/worker.go b/pkg/asset/ignition/machine/worker.go
index e47f28fdcc5..15440fdf41c 100644
--- a/pkg/asset/ignition/machine/worker.go
+++ b/pkg/asset/ignition/machine/worker.go
@@ -8,6 +8,7 @@ import (
 	"github.com/pkg/errors"
 
 	"github.com/openshift/installer/pkg/asset"
+	"github.com/openshift/installer/pkg/asset/ignition"
 	"github.com/openshift/installer/pkg/asset/installconfig"
 	"github.com/openshift/installer/pkg/asset/tls"
 )
@@ -44,6 +45,14 @@ func (a *Worker) Generate(dependencies asset.Parents) error {
 	if err != nil {
 		return errors.Wrap(err, "failed to marshal Ignition config")
 	}
+
+	if installConfig.Config.Spec3 == true {
+		data, err = ignition.ConvertSpec2ToSpec3(data)
+		if err != nil {
+			return err
+		}
+	}
+
 	a.File = &asset.File{
 		Filename: workerIgnFilename,
 		Data:     data,
diff --git a/pkg/asset/ignition/spec2to3.go b/pkg/asset/ignition/spec2to3.go
new file mode 100644
index 00000000000..6295904e0a2
--- /dev/null
+++ b/pkg/asset/ignition/spec2to3.go
@@ -0,0 +1,74 @@
+package ignition
+
+import (
+	"encoding/json"
+
+	"github.com/pkg/errors"
+)
+
+// ConvertSpec2ToSpec3 converts Ignition spec2 to ignition spec3
+func ConvertSpec2ToSpec3(spec2data []byte) ([]byte, error) {
+	// Unmarshal
+	jsonMap := make(map[string]interface{})
+	err := json.Unmarshal(spec2data, &jsonMap)
+	if err != nil {
+		return nil, errors.Wrap(err, "failed to Marshal Ignition config")
+	}
+
+	// Replace ignition.version
+	ign := jsonMap["ignition"].(map[string]interface{})
+	ign["version"] = "3.0.0"
+
+	// ignition.config.append -> ignition.config.merge
+	config := ign["config"].(map[string]interface{})
+	if val, ok := config["append"]; ok {
+		config["merge"] = val
+		delete(config, "append")
+	}
+	ign["config"] = config
+	jsonMap["ignition"] = ign
+
+	// Delete networkd section
+	if _, ok := jsonMap["networkd"]; ok {
+		delete(jsonMap, "networkd")
+	}
+
+	// Modify storage.files
+	if sval, ok := jsonMap["storage"]; ok {
+		storage := sval.(map[string]interface{})
+
+		if fval, ok := storage["files"]; ok {
+			files := fval.([]interface{})
+
+			updatedFiles := make([]interface{}, 0)
+
+			for i := range files {
+				file := files[i].(map[string]interface{})
+				// Remove filesystem
+				if _, ok := file["filesystem"]; ok {
+					delete(file, "filesystem")
+				}
+				// append is no longer a flag
+				if val, ok := file["append"]; ok {
+					if val == "true" {
+						if contentsval, ok := file["contents"]; ok {
+							file["append"] = contentsval
+							delete(file, "contents")
+						}
+					}
+				}
+
+				updatedFiles = append(updatedFiles, file)
+			}
+			storage["files"] = updatedFiles
+		}
+		jsonMap["storage"] = storage
+	}
+
+	// Convert to bytes
+	spec3data, err := json.Marshal(jsonMap)
+	if err != nil {
+		return nil, errors.Wrap(err, "failed to Marshal Ignition config")
+	}
+	return spec3data, nil
+}
diff --git a/pkg/types/installconfig.go b/pkg/types/installconfig.go
index 7b2c0ee41ca..a3d77c34244 100644
--- a/pkg/types/installconfig.go
+++ b/pkg/types/installconfig.go
@@ -87,6 +87,10 @@ type InstallConfig struct {
 
 	// ImageContentSources lists sources/repositories for the release-image content.
 	ImageContentSources []ImageContentSource `json:"imageContentSources,omitempty"`
+
+	// Spec3 is a flag to convert Ignition in spec3
+	// +optional
+	Spec3 bool `json:"spec3,omitempty"`
 }
 
 // ClusterDomain returns the DNS domain that all records for a cluster must belong to.