diff --git a/Config.in b/Config.in
index 8632387..351303a 100644
--- a/Config.in
+++ b/Config.in
@@ -15,6 +15,7 @@ config AIMEEOS
 	select BR2_PACKAGE_HOST_MTOOLS
 	select BR2_TARGET_GRUB2
 	select BR2_PACKAGE_HOST_ZSTD
+	select BR2_PACKAGE_AIMEE_OS_UTILS
 	help
 	  Enable all Aimee OS features.
 
@@ -35,3 +36,5 @@ config AIMEEOS_DEFAULT_ROOTFLAGS
 	string "Default kernel command line argumens"
 	help
 	  Additional command line arguments to pass to the kernel by default.
+
+source "$BR2_EXTERNAL_AIMEEOS_PATH/package/aimee-os-utils/Config.in"
diff --git a/boot/grub2/gen-grub-cfg.sh b/boot/grub2/gen-grub-cfg.sh
index 37adca2..ca34682 100755
--- a/boot/grub2/gen-grub-cfg.sh
+++ b/boot/grub2/gen-grub-cfg.sh
@@ -9,5 +9,6 @@ cat > "${TARGET_DIR}"/boot/grub.cfg <<EOF
 menuentry "Aimee OS ${vers} (Buildroot ${br2_vers}) on \$dev" --class gnu-linux --id "id-\$partuuid" "\$dev" "\$partuuid" {
     set root="\$2"
     linux "/boot/${kernel_filename}" root=PARTUUID=\$3 ro \$rootflags
+    initrd "/boot/initramfs.img.zst"
 }
 EOF
diff --git a/boot/initramfs/init-storage.sh b/boot/initramfs/init-storage.sh
new file mode 100755
index 0000000..f2bb4ee
--- /dev/null
+++ b/boot/initramfs/init-storage.sh
@@ -0,0 +1,165 @@
+#!/bin/sh
+# vim: set sw=4 ts=4 sts=4 et :
+
+SUBVOLUMES='
+    /var
+    /var/log
+    /var/tmp
+    /etc
+'
+
+cleanup() {
+    if [ -n "${tmpdir}" ] && [ "${tmpdir}" != / ]; then
+        if mountpoint -q "${tmpdir}"; then
+            umount "${tmpdir}"
+        fi
+        rm -rf "${tmpdir}"
+        unset tmpdir
+    fi
+}
+
+copy_vol() {
+    dev="$1"
+    vol=$2
+
+    printf 'Copying %s contents to data volume\n' "${vol}" >&2
+    mount -o subvol="${vol#/}" "${dev}" "${tmpdir}" || exit
+    cp -au${VERBOSE+v} /sysroot/${vol#/}/. "${tmpdir}" || exit
+    umount "${tmpdir}"
+}
+
+format_dev() {
+    dev="$1"
+    partno=$(partition_number "${dev}")
+    if [ -n "${partno}" ]; then
+        disk="$(get_disk "${dev}")"
+        if [ -n "${disk}" ]; then
+            printf 'Resizing partition %d on disk %s\n' \
+                "${partno}" \
+                "${disk}" \
+                >&2
+            resize_partition "${disk}" "${partno}"
+        else
+            printf 'Could not find disk for device %s\n' \
+                "${dev}" \
+                >&2
+        fi
+    fi
+
+    printf 'Creating BTRFS filesystem on %s\n' "${dev}" >&2
+    mkfs.btrfs --quiet "${dev}" || exit
+
+    mount "${dev}" "${tmpdir}" || exit
+    for vol in ${SUBVOLUMES}; do
+        mkdir -p "${tmpdir}${vol%/*}" || exit
+        btrfs subvolume create "${tmpdir}${vol}" || exit
+    done
+    relabel_all
+    umount "${dev}" || exit
+}
+
+get_disk() {
+    _syspath=/sys/class/block/${1##*/}
+    [ -d "${_syspath}" ] || return 1
+    if [ ! -f "${_syspath}"/partition ]; then
+        readlink -f "${1}"
+        return $?
+    fi
+    _disk=$(readlink -f "${_syspath}"/..)
+    if [ -n "${_disk}" ]; then
+        printf '/dev/%s\n' "${_disk##*/}"
+        return 0
+    fi
+    return 1
+}
+
+has_fs() {
+    dev="$1"
+    fstype=$(blkid -o value -s TYPE "${dev}")
+    [ -n "${fstype}" ]
+}
+
+last_partition() {
+    cat /sys/class/block/"${1##*/}"/*/partition \
+        | sort -n \
+        | tail -n1
+}
+
+partition_number() {
+    cat /sys/class/block/${1##*/}/partition
+}
+
+relabel_all() {
+    if [ ! -d /sys/fs/selinux ] || [ ! -f /etc/selinux/config ]; then
+        return
+    fi
+    selinuxtype=$(. /etc/selinux/config && echo ${SELINUXTYPE})
+    find "${tmpdir}" | \
+    setfiles \
+        -v \
+        -F \
+        -m \
+        -r "${tmpdir}" \
+        -s \
+        /etc/selinux/${selinuxtype}/contexts/files/file_contexts
+}
+
+resize_partition() {
+    _disk="${1}"
+    _part="${2}"
+    _lastpart=$(last_partition "${_disk}")
+    if [ "${_part}" -ne "${_lastpart}" ]; then
+        printf 'Cannot resize %s, it is not the last partition on the disk\n' \
+            "${_dev}" \
+            >&2
+        return 1
+    fi
+    _uuid=$(sfdisk --part-uuid "${_disk}" "${_part}") || return $?
+    _type=$(sfdisk --part-type "${_disk}" "${_part}") || return $?
+    _label=$(sfdisk --part-label "${_disk}" "${_part}") || return $?
+    sfdisk --delete "${_disk}" "${_part}" || return $?
+    printf 'type=%s, uuid=%s, name="%s"\n' \
+        "${_type}" \
+        "${_uuid}" \
+        "${_label}" \
+        | sfdisk -N "${_part}" "${_disk}" --quiet --force \
+        || return $?
+    partx -u "${_disk}"
+}
+
+setup_etc() {
+    dev="$1"
+
+    echo 'Initializing /etc overlay' >&2
+    mkdir -p /run/aimeeos/etc || return
+    mount -o subvol=etc "${dev}" /run/aimeeos/etc || return
+    mkdir -p /run/aimeeos/etc/rw /run/aimeeos/etc/work || return
+    mount -t overlay \
+        -o lowerdir=/sysroot/etc,upperdir=/run/aimeeos/etc/rw,workdir=/run/aimeeos/etc/work \
+        overlay \
+        /sysroot/etc
+}
+
+rootdev=$(findfs "$1")
+datapart=$(findfs "${2:-PARTLABEL=aimeeos-data}")
+if [ -b "${datapart}" ]; then
+    printf 'Found data partition: %s\n' "${datapart}" >&2
+else
+    echo 'Could not identify data partition' >&2
+    exit 1
+fi
+
+trap cleanup INT TERM QUIT EXIT
+tmpdir=/run/storinit
+mkdir -p "${tmpdir}"
+
+if ! has_fs "${datapart}"; then
+    format_dev "${datapart}"
+fi
+
+mkdir -p /sysroot
+mount -o ro "${rootdev}" /sysroot || exit
+
+setup_etc "${datapart}"
+copy_vol "${datapart}" /var
+exit 0
diff --git a/boot/initramfs/initramfs-init.sh b/boot/initramfs/initramfs-init.sh
new file mode 100755
index 0000000..b45e7a4
--- /dev/null
+++ b/boot/initramfs/initramfs-init.sh
@@ -0,0 +1,27 @@
+#!/bin/sh
+
+mkdir -p \
+    /dev \
+    /proc \
+    /run \
+    /sys \
+    /sysroot \
+    && :
+
+mount -t devtmpfs devtmpfs /dev
+mount -t proc proc /proc
+mount -t sysfs sysfs /sys
+mount -t tmpfs tmpfs /run
+
+set -- $(cat /proc/cmdline)
+for arg; do
+    case "${arg}" in
+    root=*)
+        root=${arg#root=}
+        ;;
+    esac
+done
+
+init-storage "${root}"
+
+exec switch_root /sysroot /sbin/init
diff --git a/boot/mkinitramfs.sh b/boot/mkinitramfs.sh
new file mode 100755
index 0000000..b12c5cc
--- /dev/null
+++ b/boot/mkinitramfs.sh
@@ -0,0 +1,113 @@
+#!/bin/sh
+
+if [ $(id -u) != 0 ]; then
+    exec "${HOST_DIR}"/bin/fakeroot "$0" "$@"
+fi
+
+export PATH="${HOST_DIR}:${PATH}"
+
+TARGET_DIR=$1
+WORKDIR=$(mktemp -d)
+OUTDIR="${WORKDIR}"/initramfs
+LIB_CACHE="${WORKDIR}"/libs.cache
+PKGDIR="${0%/*}"
+
+trap 'rm -rf "${WORKDIR}"' INT QUIT TERM EXIT
+
+cache_libs() {
+    find \
+        "${TARGET_DIR}"/usr/lib \
+        "${TARGET_DIR}"/usr/lib64 \
+        \( -type f -o -type l \) \
+        -name '*.so*' \
+        | sed "s@${TARGET_DIR}@@" \
+        > "${LIB_CACHE}"
+}
+
+bin_install() {
+    for arg; do
+        arg=${arg#/}
+        [ -e "${OUTDIR}/${arg}" ] && continue
+        mkdir -p "${OUTDIR}/${arg%/*}"
+        cp -a "${TARGET_DIR}/${arg}" "${OUTDIR}/${arg}"
+        if [ -h "${TARGET_DIR}/${arg}" ]; then
+            bin_install "$(realpath --relative-to "${TARGET_DIR}" "${TARGET_DIR}/${arg}")"
+        elif [ -f "${TARGET_DIR}/${arg}" ]; then
+            readelf --dynamic "${TARGET_DIR}/${arg}" \
+                | awk '$2=="(NEEDED)"{gsub(/\[|\]/,"",$5); print $5}' \
+                | while IFS= read -r lib; do
+                    path="$(grep "${lib}"'$' "${LIB_CACHE}")"
+                    if [ -z "${path}" ]; then
+                        printf 'ERROR could not resolve shared library %s\n' "${lib}" >&2
+                        return 1
+                    fi
+                    bin_install "${path}"
+            done
+        elif [ ! -e "${TARGET_DIR}/${arg}" ]; then
+            printf 'ERROR could not find /%s to copy\n' "${arg}" >&2
+            return 1
+        fi
+    done
+}
+
+mk_skel() {
+    mkdir -p "${OUTDIR}"/dev
+    mknod -m 0622 "${OUTDIR}"/dev/console c 5 1
+
+    mkdir -p \
+        "${OUTDIR}"/usr \
+        "${OUTDIR}"/usr/bin \
+        "${OUTDIR}"/usr/sbin \
+        "${OUTDIR}"/usr/lib
+    ln -s usr/bin "${OUTDIR}"/bin
+    ln -s usr/sbin "${OUTDIR}"/sbin
+    ln -s usr/lib "${OUTDIR}"/lib
+    if [ -h "${TARGET_DIR}"/usr/lib64 ]; then
+        cp -P "${TARGET_DIR}"/usr/lib64 "${OUTDIR}"/usr
+    fi
+    if [ -h "${TARGET_DIR}"/lib64 ]; then
+        cp -P "${TARGET_DIR}"/lib64 "${OUTDIR}"
+    fi
+}
+
+rm -rf "${OUTDIR}"
+
+mk_skel || exit
+cache_libs || exit
+
+bin_install \
+    /bin/cat \
+    /bin/cp \
+    /bin/ls \
+    /bin/mkdir \
+    /bin/mount \
+    /bin/rm \
+    /bin/sh \
+    /bin/sort \
+    /bin/tail \
+    /bin/umount \
+    /usr/bin/btrfs \
+    /usr/bin/mkfs.btrfs \
+    /usr/bin/mountpoint \
+    /usr/bin/readlink \
+    /usr/sbin/blkid \
+    /usr/sbin/findfs \
+    /usr/sbin/partx \
+    /usr/sbin/sfdisk \
+    /usr/sbin/switch_root \
+    || exit
+
+if [ -e "${TARGET_DIR}"/usr/bin/setfiles ]; then
+    bin_install /usr/bin/setfiles || exit
+fi
+
+install "${PKGDIR}"/initramfs/initramfs-init.sh "${OUTDIR}"/init || exit
+install "${PKGDIR}"/initramfs/init-storage.sh "${OUTDIR}"/usr/bin/init-storage || exit
+
+mkdir -p "${TARGET_DIR}"/boot
+
+(cd "${OUTDIR}" && find . -mindepth 1 \
+    | LC_ALL=C sort \
+    | cpio --reproducible --quiet -o -H newc \
+    | zstd \
+) > "${TARGET_DIR}"/boot/initramfs.img.zst
diff --git a/external.mk b/external.mk
index 834c04b..f33020b 100644
--- a/external.mk
+++ b/external.mk
@@ -1,3 +1,20 @@
+ifeq ($(AIMEEOS),y)
+
+# Disable the default fstab
+SKELETON_INIT_SYSTEMD_ROOT_RO_OR_RW =
+# Disable the default var.mount
+SKELETON_INIT_SYSTEMD_ROOTFS_PRE_CMD_HOOKS =
+
+# Enable required kernel options for Aimee OS storage
+define AIMEEOS_LINUX_CONFIG_FIXUPS
+$(call KCONFIG_ENABLE_OPT,CONFIG_BTRFS_FS)
+$(call KCONFIG_ENABLE_OPT,CONFIG_BLK_DEV_INITRD)
+endef
+LINUX_KCONFIG_FIXUP_CMDS += $(AIMEEOS_LINUX_CONFIG_FIXUPS)
+
+# Generate the initramfs image after building the target
+BR2_ROOTFS_POST_BUILD_SCRIPT += $(BR2_EXTERNAL_AIMEEOS_PATH)/boot/mkinitramfs.sh
+
 # Overwrite the grub.cfg provided by Buildroot with our own.
 define AIMEEOS_GRUB2_INSTALL_IMAGES_CMDS
 $(foreach tuple, $(GRUB2_TUPLES-y), \
@@ -27,3 +44,7 @@ define AIMEEOS_GEN_GRUB_CFG
 $(BR2_EXTERNAL_AIMEEOS_PATH)/boot/grub2/gen-grub-cfg.sh $(AIMEEOS_KERNEL_FILENAME)
 endef
 LINUX_TARGET_FINALIZE_HOOKS += AIMEEOS_GEN_GRUB_CFG
+
+endif
+
+include $(sort $(wildcard $(BR2_EXTERNAL_AIMEEOS_PATH)/package/*/*.mk))
diff --git a/package/aimee-os-utils/Config.in b/package/aimee-os-utils/Config.in
new file mode 100644
index 0000000..2807f2b
--- /dev/null
+++ b/package/aimee-os-utils/Config.in
@@ -0,0 +1,8 @@
+config BR2_PACKAGE_AIMEE_OS_UTILS
+    bool
+    select BR2_PACKAGE_BTRFS_PROGS
+    select BR2_PACKAGE_UTIL_LINUX
+    select BR2_PACKAGE_UTIL_LINUX_BINARIES
+    select BR2_PACKAGE_UTIL_LINUX_MOUNTPOINT
+    select BR2_PACKAGE_UTIL_LINUX_PARTX
+    select BR2_PACKAGE_UTIL_LINUX_SWITCH_ROOT
diff --git a/package/aimee-os-utils/aimee-os-utils.mk b/package/aimee-os-utils/aimee-os-utils.mk
new file mode 100644
index 0000000..7952bee
--- /dev/null
+++ b/package/aimee-os-utils/aimee-os-utils.mk
@@ -0,0 +1,21 @@
+################################################################################
+#
+# Aimee OS Utils
+#
+################################################################################
+
+AIMEE_OS_UTILS_VERSION = 2.0
+AIMEE_OS_UTILS_LICENSE = GPL-3.0+
+AIMEE_OS_UTILS_DEPENDENCIES = \
+	host-fakeroot \
+	btrfs-progs \
+
+AIMEE_OS_UTILS_SOURCE =
+
+define AIMEE_OS_UTILS_INSTALL_INIT_SYSTEMD
+	$(INSTALL) -D -m u=rw,go=r \
+		$(AIMEE_OS_UTILS_PKGDIR)/var.mount \
+		$(TARGET_DIR)/usr/lib/systemd/system/var.mount
+endef
+
+$(eval $(generic-package))
diff --git a/package/aimee-os-utils/var.mount b/package/aimee-os-utils/var.mount
new file mode 100644
index 0000000..17a27bc
--- /dev/null
+++ b/package/aimee-os-utils/var.mount
@@ -0,0 +1,12 @@
+[Unit]
+Description=/var
+DefaultDependencies=no
+Conflicts=umount.target
+Before=local-fs.target umount.target
+After=swap.target
+
+[Mount]
+What=PARTLABEL=aimeeos-data
+Where=/var
+Type=btrfs
+Options=subvol=var,nosuid,nodev,noexec