diff --git a/pkg/daemon/update.go b/pkg/daemon/update.go
index 6fdaaa91b6..a041a56df6 100644
--- a/pkg/daemon/update.go
+++ b/pkg/daemon/update.go
@@ -622,6 +622,13 @@ func (dn *Daemon) deleteStaleData(oldConfig, newConfig *mcfgv1.MachineConfig) er
 		for j := range u.Dropins {
 			path := filepath.Join(pathSystemd, u.Name+".d", u.Dropins[j].Name)
 			if _, ok := newDropinSet[path]; !ok {
+				if _, err := os.Stat(origFileName(path)); err == nil {
+					if err := os.Rename(origFileName(path), path); err != nil {
+						return err
+					}
+					glog.V(2).Infof("Restored dropoin %q", path)
+					continue
+				}
 				glog.V(2).Infof("Deleting stale systemd dropin file: %s", path)
 				if err := os.Remove(path); err != nil {
 					newErr := fmt.Errorf("unable to delete %s: %s", path, err)
@@ -696,6 +703,9 @@ func (dn *Daemon) writeUnits(units []igntypes.Unit) error {
 		for i := range u.Dropins {
 			glog.Infof("Writing systemd unit dropin %q", u.Dropins[i].Name)
 			dpath := filepath.Join(pathSystemd, u.Name+".d", u.Dropins[i].Name)
+			if err := createOrigFile(dpath); err != nil {
+				return err
+			}
 			if err := writeFileAtomicallyWithDefaults(dpath, []byte(u.Dropins[i].Contents)); err != nil {
 				return fmt.Errorf("failed to write systemd unit dropin %q: %v", u.Dropins[i].Name, err)
 			}
diff --git a/templates/common/_base/files/etc-systemd-system-crio.service.d-10-default-env.conf.yaml b/templates/common/_base/files/etc-systemd-system-crio.service.d-10-default-env.conf.yaml
index 52b9c9fd40..42482b07d8 100644
--- a/templates/common/_base/files/etc-systemd-system-crio.service.d-10-default-env.conf.yaml
+++ b/templates/common/_base/files/etc-systemd-system-crio.service.d-10-default-env.conf.yaml
@@ -1,6 +1,6 @@
 filesystem: "root"
 mode: 0644
-path: "/etc/systemd/system/crio.service.d/10-default-env.conf"
+path: "/etc/systemd/system/crio.service.d/10-mco-default-env.conf"
 contents:
   inline: |
     {{if .Proxy -}}
diff --git a/templates/common/_base/files/etc-systemd-system-kubelet.service.d-10-default-env.conf.yaml b/templates/common/_base/files/etc-systemd-system-kubelet.service.d-10-default-env.conf.yaml
index 227cca12e5..2334f248e9 100644
--- a/templates/common/_base/files/etc-systemd-system-kubelet.service.d-10-default-env.conf.yaml
+++ b/templates/common/_base/files/etc-systemd-system-kubelet.service.d-10-default-env.conf.yaml
@@ -1,6 +1,6 @@
 filesystem: "root"
 mode: 0644
-path: "/etc/systemd/system/kubelet.service.d/10-default-env.conf"
+path: "/etc/systemd/system/kubelet.service.d/10-mco-default-env.conf"
 contents:
   inline: |
     {{if .Proxy -}}
diff --git a/templates/common/_base/files/etc-systemd-system-machine-config-daemon-host.service.d-10-default-env.conf.yaml b/templates/common/_base/files/etc-systemd-system-machine-config-daemon-host.service.d-10-default-env.conf.yaml
index 01a376035c..7454598efe 100644
--- a/templates/common/_base/files/etc-systemd-system-machine-config-daemon-host.service.d-10-default-env.conf.yaml
+++ b/templates/common/_base/files/etc-systemd-system-machine-config-daemon-host.service.d-10-default-env.conf.yaml
@@ -1,6 +1,6 @@
 filesystem: "root"
 mode: 0644
-path: "/etc/systemd/system/machine-config-daemon-host.service.d/10-default-env.conf"
+path: "/etc/systemd/system/machine-config-daemon-host.service.d/10-mco-default-env.conf"
 contents:
   inline: |
     {{if .Proxy -}}
diff --git a/templates/common/_base/files/etc-systemd-system-pivot.service.d-10-default-env.conf.yaml b/templates/common/_base/files/etc-systemd-system-pivot.service.d-10-default-env.conf.yaml
index 524900b6f5..03cae632d0 100644
--- a/templates/common/_base/files/etc-systemd-system-pivot.service.d-10-default-env.conf.yaml
+++ b/templates/common/_base/files/etc-systemd-system-pivot.service.d-10-default-env.conf.yaml
@@ -1,6 +1,6 @@
 filesystem: "root"
 mode: 0644
-path: "/etc/systemd/system/pivot.service.d/10-default-env.conf"
+path: "/etc/systemd/system/pivot.service.d/10-mco-default-env.conf"
 contents:
   inline: |
     {{if .Proxy -}}