diff --git a/packages/linux-firmware/brcmfmac_sdio-firmware/system.d/brcmfmac-firmware.service b/packages/linux-firmware/brcmfmac_sdio-firmware/system.d/brcmfmac-firmware.service
index 75f1746401..06f7ab2ee4 100644
--- a/packages/linux-firmware/brcmfmac_sdio-firmware/system.d/brcmfmac-firmware.service
+++ b/packages/linux-firmware/brcmfmac_sdio-firmware/system.d/brcmfmac-firmware.service
@@ -1,6 +1,5 @@
 [Unit]
 Description=Broadcom SDIO Firmware Symlink Service
-After=kernel-overlays.service
 Before=kodi.service
 
 [Service]
diff --git a/packages/sysutils/busybox/package.mk b/packages/sysutils/busybox/package.mk
index bdec2db98a..9556a1c488 100644
--- a/packages/sysutils/busybox/package.mk
+++ b/packages/sysutils/busybox/package.mk
@@ -136,6 +136,9 @@ makeinstall_target() {
     cp ${PKG_DIR}/scripts/pastebinit ${INSTALL}/usr/bin/
       ln -sf pastebinit ${INSTALL}/usr/bin/paste
 
+  mkdir -p ${INSTALL}/usr/sbin
+    cp ${PKG_DIR}/scripts/kernel-overlays-setup ${INSTALL}/usr/sbin
+
   mkdir -p ${INSTALL}/usr/lib/libreelec
     cp ${PKG_DIR}/scripts/functions ${INSTALL}/usr/lib/libreelec
     cp ${PKG_DIR}/scripts/fs-resize ${INSTALL}/usr/lib/libreelec
diff --git a/packages/sysutils/busybox/scripts/init b/packages/sysutils/busybox/scripts/init
index 988e3a7f89..b999230c94 100755
--- a/packages/sysutils/busybox/scripts/init
+++ b/packages/sysutils/busybox/scripts/init
@@ -1113,8 +1113,12 @@ done
 /usr/bin/busybox mount --move /dev /sysroot/dev
 /usr/bin/busybox mount --move /proc /sysroot/proc
 /usr/bin/busybox mount --move /sys /sysroot/sys
+/usr/bin/busybox mount --move /run /sysroot/run
 /usr/bin/busybox rm -fr /tmp
 
+# setup kernel overlays
+/usr/bin/busybox chroot /sysroot /usr/sbin/kernel-overlays-setup
+
 # tell OE settings addon to disable updates
 if [ "$UPDATE_DISABLED" = "yes" ]; then
   echo "" > /sysroot/dev/.update_disabled
diff --git a/packages/sysutils/systemd/scripts/kernel-overlays-setup b/packages/sysutils/busybox/scripts/kernel-overlays-setup
similarity index 100%
rename from packages/sysutils/systemd/scripts/kernel-overlays-setup
rename to packages/sysutils/busybox/scripts/kernel-overlays-setup
diff --git a/packages/sysutils/busybox/system.d/rpi-flash-firmware.service b/packages/sysutils/busybox/system.d/rpi-flash-firmware.service
index c05ea654d4..f2921242fa 100644
--- a/packages/sysutils/busybox/system.d/rpi-flash-firmware.service
+++ b/packages/sysutils/busybox/system.d/rpi-flash-firmware.service
@@ -1,7 +1,7 @@
 [Unit]
 Description=RPi Flash Firmware
-Requires=tmp.mount var.mount sys-kernel-config.mount kernel-overlays.service
-After=tmp.mount var.mount sys-kernel-config.mount kernel-overlays.service
+Requires=tmp.mount var.mount sys-kernel-config.mount
+After=tmp.mount var.mount sys-kernel-config.mount
 DefaultDependencies=no
 
 [Service]
diff --git a/packages/sysutils/systemd/package.mk b/packages/sysutils/systemd/package.mk
index 03e3295b30..ffb52a5789 100644
--- a/packages/sysutils/systemd/package.mk
+++ b/packages/sysutils/systemd/package.mk
@@ -214,7 +214,6 @@ post_makeinstall_target() {
   find_file_path scripts/cpufreq && cp -PRv ${FOUND_PATH} ${INSTALL}/usr/bin
 
   mkdir -p ${INSTALL}/usr/sbin
-  cp ${PKG_DIR}/scripts/kernel-overlays-setup ${INSTALL}/usr/sbin
   cp ${PKG_DIR}/scripts/network-base-setup ${INSTALL}/usr/sbin
   cp ${PKG_DIR}/scripts/systemd-timesyncd-setup ${INSTALL}/usr/sbin
 
@@ -282,7 +281,6 @@ post_install() {
   enable_service userconfig.service
   enable_service usercache.service
   enable_service envconfig.service
-  enable_service kernel-overlays.service
   enable_service hwdb.service
   enable_service cpufreq.service
   enable_service network-base.service
diff --git a/packages/sysutils/systemd/system.d/kernel-overlays.service b/packages/sysutils/systemd/system.d/kernel-overlays.service
deleted file mode 100644
index 4207403c52..0000000000
--- a/packages/sysutils/systemd/system.d/kernel-overlays.service
+++ /dev/null
@@ -1,12 +0,0 @@
-[Unit]
-Description=Create kernel modules tree from overlays
-DefaultDependencies=no
-Before=systemd-udevd.service systemd-udev-trigger.service systemd-modules-load.service systemd-remount-fs.service swap.service machine-id.service kmod-static-nodes.service
-
-[Service]
-Type=oneshot
-RemainAfterExit=yes
-ExecStart=/usr/sbin/kernel-overlays-setup
-
-[Install]
-WantedBy=local-fs.target
diff --git a/packages/sysutils/systemd/system.d/modprobe@.service.d/dependencies.conf b/packages/sysutils/systemd/system.d/modprobe@.service.d/dependencies.conf
deleted file mode 100644
index c721677e3b..0000000000
--- a/packages/sysutils/systemd/system.d/modprobe@.service.d/dependencies.conf
+++ /dev/null
@@ -1,2 +0,0 @@
-[Unit]
-After=kernel-overlays.service