diff --git a/README.md b/README.md
index 60e52a8..f14725d 100644
--- a/README.md
+++ b/README.md
@@ -6,5 +6,5 @@ The kernel-install hooks were adapted from the AUR package originally written by
 
 The package does a few things:
 * Installs hooks to automate the installation and removal of kernels using kernel-install
-* Enables support for the Dracut rescue image
+* Enables support for both full fallback images and optimized "hostonly" images
 * Saves kernel options to /etc/kernel/cmdline to support recovery in a chroot
diff --git a/src/etc/dracut.conf.d/rescue.conf b/src/etc/dracut.conf.d/rescue.conf
deleted file mode 100644
index 6d6a170..0000000
--- a/src/etc/dracut.conf.d/rescue.conf
+++ /dev/null
@@ -1 +0,0 @@
-dracut_rescue_image="yes"
diff --git a/src/etc/kernel/install.d/50-dracut.install b/src/etc/kernel/install.d/50-dracut.install
new file mode 100755
index 0000000..7af3114
--- /dev/null
+++ b/src/etc/kernel/install.d/50-dracut.install
@@ -0,0 +1,65 @@
+#!/bin/bash
+
+COMMAND="$1"
+KERNEL_VERSION="$2"
+BOOT_DIR_ABS="$3"
+KERNEL_IMAGE="$4"
+
+# If KERNEL_INSTALL_MACHINE_ID is defined but empty, BOOT_DIR_ABS is a fake directory.
+# So, let's skip to create initrd.
+if ! [[ ${KERNEL_INSTALL_MACHINE_ID-x} ]]; then
+    exit 0
+fi
+
+if [[ -d "$BOOT_DIR_ABS" ]]; then
+    INITRD="initrd"
+else
+    BOOT_DIR_ABS="/boot"
+    INITRD="initramfs-${KERNEL_VERSION}.img"
+fi
+
+ret=0
+case "$COMMAND" in
+    add)
+        INITRD_IMAGE_PREGENERATED=${KERNEL_IMAGE%/*}/initrd
+        if [[ -f ${INITRD_IMAGE_PREGENERATED} ]]; then
+            # we found an initrd at the same place as the kernel
+            # use this and don't generate a new one
+            cp --reflink=auto "$INITRD_IMAGE_PREGENERATED" "$BOOT_DIR_ABS/$INITRD" \
+                && chown root:root "$BOOT_DIR_ABS/$INITRD" \
+                && chmod 0600 "$BOOT_DIR_ABS/$INITRD" \
+                && exit 0
+        fi
+
+        if [[ -f /etc/kernel/cmdline ]]; then
+            read -r -d '' -a BOOT_OPTIONS < /etc/kernel/cmdline
+        elif [[ -f /usr/lib/kernel/cmdline ]]; then
+            read -r -d '' -a BOOT_OPTIONS < /usr/lib/kernel/cmdline
+        else
+            declare -a BOOT_OPTIONS
+
+            read -r -d '' -a line < /proc/cmdline
+            for i in "${line[@]}"; do
+                [[ "${i#initrd=*}" != "$i" ]] && continue
+                BOOT_OPTIONS+=("$i")
+            done
+        fi
+
+        unset noimageifnotneeded
+
+        for ((i=0; i < "${#BOOT_OPTIONS[@]}"; i++)); do
+            # shellcheck disable=SC1001
+            if [[ ${BOOT_OPTIONS[$i]} == root\=PARTUUID\=* ]]; then
+                noimageifnotneeded="yes"
+                break
+            fi
+        done
+	dracut --hostonly --no-hostonly-cmdline -f ${noimageifnotneeded:+--noimageifnotneeded} "$BOOT_DIR_ABS/$INITRD" "$KERNEL_VERSION"
+        ret=$?
+	;;
+    remove)
+        rm -f -- "$BOOT_DIR_ABS/$INITRD"
+        ret=$?
+	;;
+esac
+exit $ret
diff --git a/src/usr/lib/kernel/install.d/50-dracut-fallback.install b/src/usr/lib/kernel/install.d/50-dracut-fallback.install
new file mode 100755
index 0000000..5ccffe7
--- /dev/null
+++ b/src/usr/lib/kernel/install.d/50-dracut-fallback.install
@@ -0,0 +1,65 @@
+#!/bin/bash
+
+COMMAND="$1"
+KERNEL_VERSION="$2"
+BOOT_DIR_ABS="$3"
+KERNEL_IMAGE="$4"
+
+# If KERNEL_INSTALL_MACHINE_ID is defined but empty, BOOT_DIR_ABS is a fake directory.
+# So, let's skip to create initrd.
+if ! [[ ${KERNEL_INSTALL_MACHINE_ID-x} ]]; then
+    exit 0
+fi
+
+if [[ -d "$BOOT_DIR_ABS" ]]; then
+    INITRD="initrd-fallback"
+else
+    BOOT_DIR_ABS="/boot"
+    INITRD="initramfs-${KERNEL_VERSION}.img"
+fi
+
+ret=0
+case "$COMMAND" in
+    add)
+        INITRD_IMAGE_PREGENERATED=${KERNEL_IMAGE%/*}/initrd-fallback
+        if [[ -f ${INITRD_IMAGE_PREGENERATED} ]]; then
+            # we found an initrd at the same place as the kernel
+            # use this and don't generate a new one
+            cp --reflink=auto "$INITRD_IMAGE_PREGENERATED" "$BOOT_DIR_ABS/$INITRD" \
+                && chown root:root "$BOOT_DIR_ABS/$INITRD" \
+                && chmod 0600 "$BOOT_DIR_ABS/$INITRD" \
+                && exit 0
+        fi
+
+        if [[ -f /etc/kernel/cmdline ]]; then
+            read -r -d '' -a BOOT_OPTIONS < /etc/kernel/cmdline
+        elif [[ -f /usr/lib/kernel/cmdline ]]; then
+            read -r -d '' -a BOOT_OPTIONS < /usr/lib/kernel/cmdline
+        else
+            declare -a BOOT_OPTIONS
+
+            read -r -d '' -a line < /proc/cmdline
+            for i in "${line[@]}"; do
+                [[ "${i#initrd=*}" != "$i" ]] && continue
+                BOOT_OPTIONS+=("$i")
+            done
+        fi
+
+        unset noimageifnotneeded
+
+        for ((i=0; i < "${#BOOT_OPTIONS[@]}"; i++)); do
+            # shellcheck disable=SC1001
+            if [[ ${BOOT_OPTIONS[$i]} == root\=PARTUUID\=* ]]; then
+                noimageifnotneeded="yes"
+                break
+            fi
+        done
+	dracut -f ${noimageifnotneeded:+--noimageifnotneeded} "$BOOT_DIR_ABS/$INITRD" "$KERNEL_VERSION"
+        ret=$?
+	;;
+    remove)
+        rm -f -- "$BOOT_DIR_ABS/$INITRD"
+        ret=$?
+	;;
+esac
+exit $ret
diff --git a/src/usr/lib/kernel/install.d/90-loaderentry-fallback.install b/src/usr/lib/kernel/install.d/90-loaderentry-fallback.install
new file mode 100755
index 0000000..6ad80cf
--- /dev/null
+++ b/src/usr/lib/kernel/install.d/90-loaderentry-fallback.install
@@ -0,0 +1,155 @@
+#!/bin/sh
+# -*- mode: shell-script; indent-tabs-mode: nil; sh-basic-offset: 4; -*-
+# ex: ts=8 sw=4 sts=4 et filetype=sh
+# SPDX-License-Identifier: LGPL-2.1-or-later
+#
+# This file is part of systemd.
+#
+# systemd is free software; you can redistribute it and/or modify it
+# under the terms of the GNU Lesser General Public License as published by
+# the Free Software Foundation; either version 2.1 of the License, or
+# (at your option) any later version.
+#
+# systemd is distributed in the hope that it will be useful, but
+# WITHOUT ANY WARRANTY; without even the implied warranty of
+# MERCHANTABILITY or FITNESS FOR A PARTICULAR PURPOSE. See the GNU
+# General Public License for more details.
+#
+# You should have received a copy of the GNU Lesser General Public License
+# along with systemd; If not, see <http://www.gnu.org/licenses/>.
+
+COMMAND="$1"
+KERNEL_VERSION="$2"
+ENTRY_DIR_ABS="$3"
+KERNEL_IMAGE="$4"
+INITRD_OPTIONS_SHIFT=4
+
+[ "$KERNEL_INSTALL_LAYOUT" = "bls" ] || exit 0
+
+MACHINE_ID="$KERNEL_INSTALL_MACHINE_ID"
+ENTRY_TOKEN="$KERNEL_INSTALL_ENTRY_TOKEN"
+BOOT_ROOT="$KERNEL_INSTALL_BOOT_ROOT"
+
+BOOT_MNT="$(stat -c %m "$BOOT_ROOT")"
+if [ "$BOOT_MNT" = '/' ]; then
+    ENTRY_DIR="$ENTRY_DIR_ABS"
+else
+    ENTRY_DIR="${ENTRY_DIR_ABS#"$BOOT_MNT"}"
+fi
+
+case "$COMMAND" in
+    remove)
+        [ "$KERNEL_INSTALL_VERBOSE" -gt 0 ] && \
+            echo "Removing $BOOT_ROOT/loader/entries/$ENTRY_TOKEN-$KERNEL_VERSION-fallback*.conf"
+        exec rm -f \
+            "$BOOT_ROOT/loader/entries/$ENTRY_TOKEN-$KERNEL_VERSION-fallback.conf" \
+            "$BOOT_ROOT/loader/entries/$ENTRY_TOKEN-$KERNEL_VERSION-fallback+"*".conf"
+        ;;
+    add)
+        ;;
+    *)
+        exit 1
+        ;;
+esac
+
+if [ -r /etc/os-release ]; then
+    # shellcheck source=/dev/null
+    . /etc/os-release
+elif [ -r /usr/lib/os-release ]; then
+    # shellcheck source=/dev/null
+    . /usr/lib/os-release
+fi
+
+[ -n "$PRETTY_NAME" ] || PRETTY_NAME="Linux $KERNEL_VERSION"
+
+SORT_KEY="$IMAGE_ID"
+[ -z "$SORT_KEY" ] && SORT_KEY="$ID"
+
+if [ -r /etc/kernel/cmdline ]; then
+    BOOT_OPTIONS="$(tr -s "$IFS" ' ' </etc/kernel/cmdline)"
+elif [ -r /usr/lib/kernel/cmdline ]; then
+    BOOT_OPTIONS="$(tr -s "$IFS" ' ' </usr/lib/kernel/cmdline)"
+else
+    BOOT_OPTIONS="$(tr -s "$IFS" '\n' </proc/cmdline | grep -ve '^BOOT_IMAGE=' -e '^initrd=' | tr '\n' ' ')"
+fi
+
+BOOT_OPTIONS="${BOOT_OPTIONS% }"
+
+# If the boot entries are named after the machine ID, then suffix the kernel
+# command line with the machine ID we use, so that the machine ID remains
+# stable, even during factory reset, in the initrd (where the system's machine
+# ID is not directly accessible yet), and if the root file system is volatile.
+if [ "$ENTRY_TOKEN" = "$MACHINE_ID" ]; then
+    BOOT_OPTIONS="$BOOT_OPTIONS systemd.machine_id=$MACHINE_ID"
+fi
+
+if [ -r /etc/kernel/tries ]; then
+    read -r TRIES </etc/kernel/tries
+    if ! echo "$TRIES" | grep -q '^[0-9][0-9]*$'; then
+        echo "/etc/kernel/tries does not contain an integer." >&2
+        exit 1
+    fi
+    LOADER_ENTRY="$BOOT_ROOT/loader/entries/$ENTRY_TOKEN-$KERNEL_VERSION-fallback+$TRIES.conf"
+else
+    LOADER_ENTRY="$BOOT_ROOT/loader/entries/$ENTRY_TOKEN-$KERNEL_VERSION-fallback.conf"
+fi
+
+if ! [ -d "$ENTRY_DIR_ABS" ]; then
+    echo "Error: entry directory '$ENTRY_DIR_ABS' does not exist" >&2
+    exit 1
+fi
+
+install -g root -o root -m 0644 "$KERNEL_IMAGE" "$ENTRY_DIR_ABS/linux" || {
+    echo "Error: could not copy '$KERNEL_IMAGE' to '$ENTRY_DIR_ABS/linux'." >&2
+    exit 1
+}
+
+shift "$INITRD_OPTIONS_SHIFT"
+# All files listed as arguments, and staged files starting with "initrd-fallback" are installed as initrds.
+for initrd in "$@" "${KERNEL_INSTALL_STAGING_AREA}"/initrd-fallback*; do
+    [ -f "$initrd" ] || {
+        [ "$initrd" = "${KERNEL_INSTALL_STAGING_AREA}/initrd-fallback*" ] && continue
+        echo "Error: initrd '$initrd' not a file." >&2
+        exit 1
+    }
+
+    initrd_basename="${initrd##*/}"
+    [ "$KERNEL_INSTALL_VERBOSE" -gt 0 ] && echo "Installing $ENTRY_DIR_ABS/$initrd_basename"
+    install -g root -o root -m 0644 "$initrd" "$ENTRY_DIR_ABS/$initrd_basename" || {
+        echo "Error: could not copy '$initrd' to '$ENTRY_DIR_ABS/$initrd_basename'." >&2
+        exit 1
+    }
+done
+
+mkdir -p "${LOADER_ENTRY%/*}" || {
+    echo "Error: could not create loader entry directory '${LOADER_ENTRY%/*}'." >&2
+    exit 1
+}
+
+[ "$KERNEL_INSTALL_VERBOSE" -gt 0 ] && echo "Creating $LOADER_ENTRY"
+{
+    echo "title      $PRETTY_NAME"
+    echo "version    $KERNEL_VERSION-fallback"
+    if [ "$ENTRY_TOKEN" = "$MACHINE_ID" ]; then
+        # See similar logic above for the systemd.machine_id= kernel command line option
+        echo "machine-id $MACHINE_ID"
+    fi
+    [ -n "$SORT_KEY" ] && echo "sort-key   $SORT_KEY"
+    echo "options    $BOOT_OPTIONS"
+    echo "linux      $ENTRY_DIR/linux"
+
+    have_initrd=
+    for initrd in "${@}" "${KERNEL_INSTALL_STAGING_AREA}"/initrd-fallback*; do
+        [ -f "$initrd" ] || continue
+        echo "initrd     $ENTRY_DIR/${initrd##*/}"
+        have_initrd=yes
+    done
+
+    # Try "initrd", generated by dracut in its kernel-install hook, if no initrds were supplied
+    [ -z "$have_initrd" ] && [ -f "$ENTRY_DIR_ABS/initrd-fallback" ] && echo "initrd     $ENTRY_DIR/initrd-fallback"
+    :
+} >"$LOADER_ENTRY" || {
+    echo "Error: could not create loader entry '$LOADER_ENTRY'." >&2
+    exit 1
+}
+exit 0