diff --git a/ci/scripts/test/rc/firstboot_ci b/ci/scripts/test/rc/firstboot_ci
new file mode 100755
--- /dev/null
+++ b/ci/scripts/test/rc/firstboot_ci
@@ -0,0 +1,59 @@
+#!/bin/sh
+
+# KEYWORD: firstboot
+# PROVIDE: firstboot_ci
+# REQUIRE: NETWORKING
+# BEFORE: LOGIN
+
+# Add the following lines to /etc/rc.conf.local or /etc/rc.conf (in the disk
+# image, since this only runs on the first boot) to enable this:
+#
+# firstboot_ci_enable="YES"
+#
+
+. /etc/rc.subr
+
+: ${firstboot_ci_enable:="NO"}
+
+name="firstboot_ci"
+rcvar=firstboot_ci_enable
+start_cmd="firstboot_ci_run"
+stop_cmd=":"
+os_version=$(uname -K)
+os_arch=$(uname -p)
+metadir="/meta"
+
+firstboot_ci_run()
+{
+    if [ -f "$meta/test_zfs" ];then
+        /usr/src/release/ci/scripts/test/subr/run-kyua-zfs.sh
+        exit 0
+    fi
+    if [ -f "$meta/test_tcptestsuite" ];then
+        /usr/src/release/ci/scripts/test/subr/run-kyua-tcptestsuite.sh
+        exit 0
+    fi
+    if [ -f "$meta/test_ltp" ];then
+        /usr/src/release/ci/scripts/test/subr/run-kyua-ltp.sh
+        exit 0
+    fi
+    if [ -f "$meta/disable-zfs-tests" ];then
+        /usr/src/release/ci/scripts/test/subr/disable-zfs-tests.sh
+    fi
+    if [ -f "$meta/disable-dtrace-tests" ];then
+        /usr/src/release/ci/scripts/test/subr/disable-dtrace-tests.sh
+    fi
+    if [ -f "$meta/disable-disks-tests" ];then
+        /usr/src/release/ci/scripts/test/subr/disable-disks-tests.sh
+    fi
+    if [ -f "$meta/disable-notyet-tests" ];then
+        /usr/src/release/ci/scripts/test/subr/disable-notyet-tests.sh
+    fi
+    if [ ! -f "$meta/test_zfs" ] && [ ! -f "$meta/test_tcptestsuite" ] && [ ! -f "$meta/test_ltp" ];then
+        /usr/src/release/ci/scripts/test/subr/run-kyua.sh
+        exit 0
+    fi
+}
+
+load_rc_config $name
+run_rc_command "$1"
diff --git a/ci/scripts/test/rc/rc.local b/ci/scripts/test/rc/rc.local
new file mode 100755
--- /dev/null
+++ b/ci/scripts/test/rc/rc.local
@@ -0,0 +1,45 @@
+#!/bin/sh
+echo
+echo "--------------------------------------------------------------"
+echo "rc.local start!"
+echo "--------------------------------------------------------------"
+PATH=/sbin:/bin:/usr/sbin:/usr/bin:/usr/local/sbin:/usr/local/bin
+export PATH
+
+set -x
+
+ddb script kdb.enter.panic="show pcpu; reset"
+
+for TARDEV in /dev/vtbd0 /dev/vtbd1 /dev/ada0 /dev/ada1; do
+        ISTAR=$(file -s ${TARDEV} | grep "POSIX tar archive" | wc -l)
+        if [ ${ISTAR} -eq 1 ]; then
+                break
+        fi
+done
+
+METADIR=/meta
+
+if [ ${ISTAR} -eq 1 ]; then
+        rm -fr ${METADIR}
+        mkdir -p ${METADIR}
+        tar xvf ${TARDEV} -C ${METADIR}
+        tar cvf ${TARDEV} -C ${METADIR} .
+else
+    echo "ERROR: no device with POSIX tar archive format found."
+    # Don't shutdown because this is not run in unattended mode
+    exit 1
+fi
+
+if [ -f ${METADIR}/auto-shutdown ]; then
+    # XXX: Currently RISC-V and MIPS64 kernels lack the ability
+    #      to make qemu exit on shutdown.  Reboot instead;
+    #      it makes qemu exit too.
+    case "$(uname -p)" in
+        mips64|riscv64)
+            shutdown -r now
+            ;;
+        *)
+            shutdown -p now
+            ;;
+    esac
+fi
diff --git a/ci/scripts/test/subr/disable-disks-tests.sh b/ci/scripts/test/subr/disable-disks-tests.sh
new file mode 100644
--- /dev/null
+++ b/ci/scripts/test/subr/disable-disks-tests.sh
@@ -0,0 +1,7 @@
+#!/bin/sh
+
+if [ -f /etc/kyua/kyua.conf ]; then
+	sed -i '' -E \
+		-e 's,test_suites.FreeBSD.(cam|disks),-- &,' \
+		/etc/kyua/kyua.conf
+fi
diff --git a/ci/scripts/test/subr/disable-dtrace-tests.sh b/ci/scripts/test/subr/disable-dtrace-tests.sh
new file mode 100644
--- /dev/null
+++ b/ci/scripts/test/subr/disable-dtrace-tests.sh
@@ -0,0 +1,5 @@
+#!/bin/sh
+
+if [ -f /usr/tests/cddl/usr.sbin/dtrace/Kyuafile ]; then
+	rm -f /usr/tests/cddl/usr.sbin/dtrace/Kyuafile
+fi
diff --git a/ci/scripts/test/subr/disable-notyet-tests.sh b/ci/scripts/test/subr/disable-notyet-tests.sh
new file mode 100644
--- /dev/null
+++ b/ci/scripts/test/subr/disable-notyet-tests.sh
@@ -0,0 +1,36 @@
+#!/bin/sh
+
+F=/usr/tests/lib/libcasper/services/cap_dns/Kyuafile
+if [ -f ${F} ]; then
+	sed -i '' \
+		-e 's/tap_test_program{name="dns_test", }/-- tap_test_program{name="dns_test", }/' \
+		${F}
+fi
+
+F=/usr/tests/lib/libcasper/services/cap_net/Kyuafile
+if [ -f ${F} ]; then
+	sed -i '' \
+		-e 's/atf_test_program{name="net_test", }/-- atf_test_program{name="net_test", }/' \
+		${F}
+fi
+
+F=/usr/local/tests/kyua/utils/signals/Kyuafile
+if [ -f ${F} ]; then
+	sed -i '' \
+		-e 's,atf_test_program{name="timer_test"},-- atf_test_program{name="timer_test"},' \
+		${F}
+fi
+
+F=/usr/local/tests/kyua/integration/cmd_about_test
+if [ -f ${F} ]; then
+	sed -i .'' \
+		-e 's,atf_add_test_case topic__authors__installed,#atf_add_test_case topic__authors__installed,' \
+		${F}
+fi
+
+F=/usr/tests/sys/netmap/Kyuafile
+if [ -f ${F} ]; then
+	sed -i '' \
+		-e 's,plain_test_program{name="ctrl-api-test",-- plain_test_program{name="ctrl-api-test",' \
+		${F}
+fi
diff --git a/ci/scripts/test/subr/disable-zfs-tests.sh b/ci/scripts/test/subr/disable-zfs-tests.sh
new file mode 100644
--- /dev/null
+++ b/ci/scripts/test/subr/disable-zfs-tests.sh
@@ -0,0 +1,7 @@
+#!/bin/sh
+
+if [ -f /usr/tests/sys/cddl/Kyuafile ]; then
+	sed -i '' \
+		-e 's,include("zfs/Kyuafile"),-- include("zfs/Kyuafile"),' \
+		/usr/tests/sys/cddl/Kyuafile
+fi
diff --git a/ci/scripts/test/subr/run-kyua-ltp.sh b/ci/scripts/test/subr/run-kyua-ltp.sh
new file mode 100644
--- /dev/null
+++ b/ci/scripts/test/subr/run-kyua-ltp.sh
@@ -0,0 +1,48 @@
+#!/bin/sh
+
+METADIR=/meta
+
+PATH=/sbin:/bin:/usr/sbin:/usr/bin:/usr/local/sbin:/usr/local/bin
+export PATH
+
+# Enable services needed by tests
+sysrc linux_enable="YES"
+for i in proc sys tmp dev; do
+	mkdir -p /compat/linux/$i
+done
+service linux start
+
+# runltp creates nobody, bin, and daemon users, but not root
+echo 'root:x:0:0:root::' > /compat/linux/etc/passwd
+
+# runltp creates nobody, bin, daemon, sys, and users groups, but not root
+echo 'root:x:0:' > /compat/linux/etc/group
+
+# Workaround for https://bugs.freebsd.org/bugzilla/show_bug.cgi?id=242955
+kldload ext2fs
+
+# Disable tests that hang undefinitely.
+cat > /compat/linux/ltp-skipfile.conf << END
+rt_sigtimedwait01 rt_sigtimedwait01
+sigtimedwait01 sigtimedwait01
+sigwaitinfo01 sigwaitinfo01
+inotify06 inotify06
+pidns05 pidns05
+utstest_unshare_3 utstest_unshare_3
+utstest_unshare_4 utstest_unshare_4
+kill10 kill10
+mmap_24-1 mmap_24-1
+sigaction_16-1 sigaction_16-1
+END
+
+# Add Open POSIX to the default run.
+echo "openposix" >> /compat/linux/opt/ltp/scenario_groups/default
+
+mdconfig -s 512m
+
+set +e
+yes | chroot /compat/linux /opt/ltp/runltp -Q -S /ltp-skipfile.conf -b /dev/md0 -pl /ltp-results.log
+echo $? > ${METADIR}/runltp.error
+set -e
+
+mv -v /compat/linux/ltp-results.log ${METADIR}
diff --git a/ci/scripts/test/subr/run-kyua-tcttestsuite.sh b/ci/scripts/test/subr/run-kyua-tcttestsuite.sh
new file mode 100644
--- /dev/null
+++ b/ci/scripts/test/subr/run-kyua-tcttestsuite.sh
@@ -0,0 +1,31 @@
+#!/bin/sh
+
+METADIR=/meta
+
+PATH=/sbin:/bin:/usr/sbin:/usr/bin:/usr/local/sbin:/usr/local/bin
+export PATH
+
+cat <<EOF >> /etc/kyua/kyua.conf
+test_suites.FreeBSD.disks = '/dev/vtbd2 /dev/vtbd3 /dev/vtbd4 /dev/vtbd5 /dev/vtbd6'
+EOF
+
+newfs /dev/vtbd7
+mount /dev/vtbd7 /tmp
+
+# Required by Packet Drill
+sysctl vm.old_mlock=1
+
+cd /usr/local/tests/tcptestsuite
+set +e
+/usr/bin/kyua test
+rc=$?
+if [ ${rc} -ne 0 ] && [ ${rc} -ne 1 ]; then
+	exit ${rc}
+fi
+
+umount /tmp
+set -e
+
+/usr/bin/kyua report --verbose --results-filter passed,skipped,xfail,broken,failed --output test-report.txt
+/usr/bin/kyua report-junit --output=test-report.xml
+mv test-report.* ${METADIR}
diff --git a/ci/scripts/test/subr/run-kyua-zfs.sh b/ci/scripts/test/subr/run-kyua-zfs.sh
new file mode 100644
--- /dev/null
+++ b/ci/scripts/test/subr/run-kyua-zfs.sh
@@ -0,0 +1,32 @@
+#!/bin/sh
+
+METADIR=/meta
+
+PATH=/sbin:/bin:/usr/sbin:/usr/bin:/usr/local/sbin:/usr/local/bin
+export PATH
+
+cat <<EOF >> /etc/kyua/kyua.conf
+test_suites.FreeBSD.disks = '/dev/vtbd2 /dev/vtbd3 /dev/vtbd4 /dev/vtbd5 /dev/vtbd6'
+EOF
+
+newfs /dev/vtbd7
+mount /dev/vtbd7 /tmp
+
+# Enable services needed by tests
+sysrc zfsd_enable="YES"
+service zfsd start
+
+cd /usr/tests/sys/cddl/zfs
+set +e
+/usr/bin/kyua test
+rc=$?
+if [ ${rc} -ne 0 ] && [ ${rc} -ne 1 ]; then
+	exit ${rc}
+fi
+
+umount /tmp
+set -e
+
+/usr/bin/kyua report --verbose --results-filter passed,skipped,xfail,broken,failed --output test-report.txt
+/usr/bin/kyua report-junit --output=test-report.xml
+mv test-report.* ${METADIR}
diff --git a/ci/scripts/test/subr/run-kyua.sh b/ci/scripts/test/subr/run-kyua.sh
new file mode 100644
--- /dev/null
+++ b/ci/scripts/test/subr/run-kyua.sh
@@ -0,0 +1,20 @@
+#!/bin/sh
+
+echo "--------------------------------------------------------------"
+echo "start kyua tests!"
+echo "--------------------------------------------------------------"
+
+cd /usr/tests
+set +e
+kyua test
+rc=$?
+set -e
+if [ ${rc} -ne 0 ] && [ ${rc} -ne 1 ]; then
+	exit ${rc}
+fi
+kyua report --verbose --results-filter passed,skipped,xfail,broken,failed --output test-report.txt
+kyua report-junit --output=test-report.xml
+mv test-report.* /meta
+echo "--------------------------------------------------------------"
+echo "Finished kyua tests!"
+echo "--------------------------------------------------------------"
diff --git a/release/Makefile b/release/Makefile
--- a/release/Makefile
+++ b/release/Makefile
@@ -19,6 +19,9 @@
 # Variables affecting the build process:
 #  WORLDDIR: location of src tree -- must have built world and default kernel
 #            (by default, the directory above this one)
+#  OBJDIR: location of objdir -- must have the artficats generated by
+#            packagesystem. (by default the value of ${.OBJDIR} as this
+#            needs to be passed to the scripts
 #  PORTSDIR: location of ports tree to distribute (default: /usr/ports)
 #  XTRADIR:  xtra-bits-dir argument for <arch>/mkisoimages.sh
 #  NOPKG:    if set, do not distribute third-party packages
@@ -30,11 +33,16 @@
 #  WITH_VMIMAGES: if set, build virtual machine images with the release
 #  WITH_COMPRESSED_VMIMAGES: if set, compress virtual machine disk images
 #  		with xz(1) (extremely time consuming)
+#  WITH_COMPRESSED_CLOUDWARE: if set, compress virtual machine disk images
+#  		with xz(1) (extremely time consuming)
 #  WITH_CLOUDWARE: if set, build cloud hosting disk images with the release
+#  WITH_PACKAGESYSTEM: if set, build images with packagesystem rather than
+#       installworld installkernel distribution
 #  TARGET/TARGET_ARCH: architecture of built release
 #
 
 WORLDDIR?=	${.CURDIR}/..
+OBJDIR?=	${.OBJDIR}
 PORTSDIR?=	/usr/ports
 
 .if !defined(TARGET) || empty(TARGET)
diff --git a/release/Makefile.vm b/release/Makefile.vm
--- a/release/Makefile.vm
+++ b/release/Makefile.vm
@@ -11,6 +11,8 @@
 VMFS?=		ufs
 SWAPSIZE?=	1g
 VMBASE?=	vm
+PACKAGESYSTEM=no
+PACKAGESYSTEM_ARGS=-P ${PACKAGESYSTEM}
 
 VHD_DESC=	Azure, VirtualPC, Hyper-V, Xen disk image
 VMDK_DESC=	VMWare, VirtualBox disk image
@@ -18,6 +20,7 @@
 RAW_DESC=	Unformatted raw disk image
 
 CLOUDWARE?=	BASIC-CI \
+		CI \
 		EC2 \
 		GCE \
 		OCI \
@@ -27,8 +30,11 @@
 AZURE_DESC=	Microsoft Azure platform image
 AZURE_DISK=	${OSRELEASE}.${AZURE_FORMAT}
 BASIC-CI_FORMAT=	raw
-BASIC-CI_DESC=		Image for CI
+BASIC-CI_DESC=		Image for FreeDesktop CI
 BASIC-CI_DISK=	${OSRELEASE}.${BASIC-CI_FORMAT}
+CI_FORMAT=	raw
+CI_DESC=		Image for CI
+CI_DISK=	${OSRELEASE}.${CI_FORMAT}
 EC2_FORMAT=	raw
 EC2_DESC=	Amazon EC2 image
 EC2_DISK=	${OSRELEASE}.${EC2_FORMAT}
@@ -54,6 +60,15 @@
 . endif
 .endfor
 
+.if defined(WITH_PACKAGESYSTEM) && !empty(WITH_PACKAGESYSTEM)
+.if !exists(${.OBJDIR}/base.txz) && (!exists(${.OBJDIR}/kernel.txz) || !exists(${.OBJDIR}/kernel-dbg.txz))
+.error A build with packagesystem is required first. You may have a wrong MAKEOBJDIRPREFIX
+.else
+PACKAGESYSTEM=yes
+PACKAGESYSTEM_ARGS+=-D ${.OBJDIR}
+.endif
+.endif
+
 emulator-portinstall:
 .if ${TARGET_ARCH} != ${MACHINE_ARCH}
 .if ( ${TARGET_ARCH} != "i386" ) || ( ${MACHINE_ARCH} != "amd64" )
@@ -93,8 +108,15 @@
 		${.CURDIR}/scripts/mk-vmimage.sh \
 		-C ${.CURDIR}/tools/vmimage.subr -d ${.OBJDIR}/${.TARGET} -F ${VMFS} \
 		-i ${.OBJDIR}/${_CW:tl}.img -s ${VMSIZE} -f ${${_CW:tu}_FORMAT} \
-		-S ${WORLDDIR} -o ${.OBJDIR}/${${_CW:tu}IMAGE} -c ${${_CW:tu}CONF}
+		-S ${WORLDDIR} -o ${.OBJDIR}/${${_CW:tu}IMAGE} -c ${${_CW:tu}CONF} \
+		${PACKAGESYSTEM_ARGS}
 	touch ${.TARGET}
+. if defined(WITH_COMPRESSED_CLOUDWARE) && !empty(WITH_COMPRESSED_CLOUDWARE)
+.  for FORMAT in ${${_CW:tu}_FORMAT}
+	# Don't keep the originals.  There is a copy in ${.OBJDIR} if needed.
+	${XZ_CMD} ${.OBJDIR}/${_CW:tl}.${FORMAT}
+.  endfor
+. endif
 
 cw${_CW:tl}-package:
 	@# Special target to handle packaging cloud images in the formats
diff --git a/release/scripts/mk-vmimage.sh b/release/scripts/mk-vmimage.sh
--- a/release/scripts/mk-vmimage.sh
+++ b/release/scripts/mk-vmimage.sh
@@ -3,6 +3,9 @@
 # Copyright (c) 2014, 2015 The FreeBSD Foundation
 # All rights reserved.
 #
+# Portions of this software were developed by Muhammad Moinur Rahman
+# under sponsorship from the FreeBSD Foundation.
+#
 # This software was developed by Glen Barber under sponsorship
 # from the FreeBSD Foundation.
 #
@@ -31,7 +34,7 @@
 #
 # $FreeBSD$
 #
-
+set -ex
 usage() {
 	echo "${0} usage:"
 	echo "${@}"
@@ -41,7 +44,7 @@
 main() {
 	local arg
 	VMCONFIG="/dev/null"
-	while getopts "C:c:d:F:f:i:o:s:S:" arg; do
+	while getopts "C:c:D:d:F:f:i:P:o:s:S:" arg; do
 		case "${arg}" in
 			C)
 				VMBUILDCONF="${OPTARG}"
@@ -49,6 +52,9 @@
 			c)
 				VMCONFIG="${OPTARG}"
 				;;
+			D)
+				OBJDIR="${OPTARG}"
+				;;
 			d)
 				DESTDIR="${OPTARG}"
 				;;
@@ -64,6 +70,9 @@
 			o)
 				VMIMAGE="${OPTARG}"
 				;;
+			P)
+				PACKAGESYSTEM="${OPTARG}"
+				;;
 			s)
 				VMSIZE="${OPTARG}"
 				;;
diff --git a/release/tools/ci.conf b/release/tools/ci.conf
new file mode 100644
--- /dev/null
+++ b/release/tools/ci.conf
@@ -0,0 +1,95 @@
+#!/bin/sh
+
+#VMSIZE?=	5120m
+#VMFS?=		ufs
+#SWAPSIZE?=	1g
+#VMBASE?=	vm
+
+# Should be enough for base image, image can be resized in needed
+export VMSIZE=8g
+
+# Set to a list of third-party software to enable in rc.conf(5).
+export VM_RC_LIST="auditd freebsd-ci"
+
+# Install packages needed by tests:
+# coreutils: bin/date
+# gdb: local/kyua/utils/stacktrace_test
+# jq: sys/net/if_bridge_test
+# kyua: everything
+# ksh93: tests/sys/cddl/zfs/...
+# nist-kat: sys/opencrypto/runtests
+# nmap: sys/netinet/fibs_test:arpresolve_checks_interface_fib
+# perl5: lots of stuff
+# pkgconf: local/lutok/examples_test, local/atf/atf-c, local/atf/atf-c++
+# py-dpkt: sys/opencrypto/runtests
+# python3: sys/opencrypto/runtests
+# devel/py-pytest: sys/net/routing, tests in python in general
+# sudo: tests/sys/cddl/zfs/tests/delegate/...
+# tcptestsuite: network stack test suite
+export VM_EXTRA_PACKAGES="coreutils gdb	jq ksh93 nist-kat nmap perl5 net/py-dpkt net/scapy python python3 devel/py-pytest sudo tcptestsuite"
+
+if [ "${TARGET}" = "amd64" ]; then
+    export VM_EXTRA_PACKAGES="$VM_EXTRA_PACKAGES linux-c7-ltp"
+fi
+
+vm_extra_pre_umount() {
+    cat << EOF >> ${DESTDIR}/boot/loader.conf
+autoboot_delay=1
+beastie_disable="YES"
+loader_logo="none"
+console="comconsole,vidconsole"
+net.fibs=3
+net.inet.ip.fw.default_to_accept=1
+mac_bsdextended_load="YES"
+vfs.zfs.arc_max=4294967296
+EOF
+    cat << EOF >> ${DESTDIR}/etc/kyua/kyua.conf
+test_suites.FreeBSD.ci = 'true'
+test_suites.FreeBSD.fibs = '1 2'
+test_suites.FreeBSD.allow_sysctl_side_effects = '1'
+test_suites.FreeBSD.cam_test_device = '/dev/ada0'
+test_suites.FreeBSD.disks = '/dev/vtbd2 /dev/vtbd3 /dev/vtbd4 /dev/vtbd5 /dev/vtbd6'
+EOF
+    cat << EOF >> ${DESTDIR}/etc/rc.conf
+kld_list=""				# Load modules needed by tests
+kld_list="${kld_list} blake2"		# sys/opencrypto
+kld_list="${kld_list} cryptodev"	# sys/opencrypto
+kld_list="${kld_list} fusefs"		# sys/fs/fusefs
+kld_list="${kld_list} ipsec"		# sys/netipsec
+kld_list="${kld_list} mac_portacl"	# sys/mac/portacl
+kld_list="${kld_list} mqueuefs"		# sys/kern/mqueue_test
+kld_list="${kld_list} pfsync"		# sys/netpfil/pf (loads pf)
+kld_list="${kld_list} pflog"		# sys/netpfil/pf
+kld_list="${kld_list} ipl"		# sys/sbin/ipf (loads ipfilter)
+kld_list="${kld_list} ipfw"		# sys/netpfil/ipfw (loads ipfw)
+kld_list="${kld_list} ipfw_nat"		# sys/netpfil/ipfw (loads ipfw_nat)
+kld_list="${kld_list} ipdivert"		# sys/netinet (loads ipdivert)
+kld_list="${kld_list} dummynet"		# sys/netpfil/common
+kld_list="${kld_list} carp"		# sys/netinet/carp
+kld_list="${kld_list} if_stf"		# sys/net/if_stf
+background_fsck="NO"
+sendmail_enable="NONE"
+cron_enable="NO"
+syslogd_enable="NO"
+newsyslog_enable="NO"
+firstboot_ci_enable="YES"
+EOF
+    cat <<EOF >> ${DESTDIR}/etc/sysctl.conf
+kern.cryptodevallowsoft=1
+kern.ipc.tls.enable=1
+net.add_addr_allfibs=0
+security.mac.bsdextended.enabled=0
+vfs.aio.enable_unsafe=1
+vfs.usermount=1
+EOF
+    cat <<EOF >> ${DESTDIR}/etc/fstab
+fdesc                      /dev/fd fdescfs   rw      0       0
+EOF
+    mkdir -p ${DESTDIR}/usr/local/etc/rc.d
+    echo $scriptdir
+    cp -p ${scriptdir}/../../ci/scripts/test/rc/firstboot_ci ${DESTDIR}/usr/local/etc/rc.d/
+    cp -p ${scriptdir}/../../ci/scripts/test/rc/rc.local ${DESTDIR}/etc
+    touch ${DESTDIR}/firstboot
+
+    return 0
+}
diff --git a/release/tools/vmimage.subr b/release/tools/vmimage.subr
--- a/release/tools/vmimage.subr
+++ b/release/tools/vmimage.subr
@@ -51,20 +51,25 @@
 
 vm_install_base() {
 	# Installs the FreeBSD userland/kernel to the virtual machine disk.
-
-	cd ${WORLDDIR} && \
-		make DESTDIR=${DESTDIR} \
-		installworld installkernel distribution || \
-		err "\n\nCannot install the base system to ${DESTDIR}."
-
-	# Bootstrap etcupdate(8) and mergemaster(8) databases.
-	mkdir -p ${DESTDIR}/var/db/etcupdate
-	etcupdate extract -B \
-		-M "TARGET=${TARGET} TARGET_ARCH=${TARGET_ARCH}" \
-		-s ${WORLDDIR} -d ${DESTDIR}/var/db/etcupdate
-	sh ${WORLDDIR}/release/scripts/mm-mtree.sh -m ${WORLDDIR} \
-		-F "TARGET=${TARGET} TARGET_ARCH=${TARGET_ARCH}" \
-		-D ${DESTDIR}
+    if [ "${PACKAGESYSTEM}" == yes ]; then
+        for _DIST in $(ls ${OBJDIR}/*.txz); do
+            tar Jxf ${_DIST} -C ${DESTDIR}
+        done
+    else
+        cd ${WORLDDIR} && \
+            make DESTDIR=${DESTDIR} \
+            installworld installkernel distribution || \
+            err "\n\nCannot install the base system to ${DESTDIR}."
+
+        # Bootstrap etcupdate(8) and mergemaster(8) databases.
+        mkdir -p ${DESTDIR}/var/db/etcupdate
+        etcupdate extract -B \
+            -M "TARGET=${TARGET} TARGET_ARCH=${TARGET_ARCH}" \
+            -s ${WORLDDIR} -d ${DESTDIR}/var/db/etcupdate
+        sh ${WORLDDIR}/release/scripts/mm-mtree.sh -m ${WORLDDIR} \
+            -F "TARGET=${TARGET} TARGET_ARCH=${TARGET_ARCH}" \
+            -D ${DESTDIR}
+    fi
 
 	echo '# Custom /etc/fstab for FreeBSD VM images' \
 		> ${DESTDIR}/etc/fstab
@@ -172,8 +177,10 @@
 
 vm_extra_pkg_rmcache() {
 	if [ -e ${DESTDIR}/usr/local/sbin/pkg ]; then
+        mount -t devfs devfs ${DESTDIR}/dev
 		chroot ${DESTDIR} ${EMULATOR} env ASSUME_ALWAYS_YES=yes \
 			/usr/local/sbin/pkg clean -y -a
+        umount_loop ${DESTDIR}/dev
 	fi
 
 	return 0
@@ -270,7 +277,7 @@
 		amd64:amd64 | i386:i386)
 			ESP=yes
 			BOOTPARTS="-b ${BOOTFILES}/i386/pmbr/pmbr \
-				   -p freebsd-boot/bootfs:=${BOOTFILES}/${X86GPTBOOTFILE}${BOOTPARTSOFFSET}"
+                -p freebsd-boot/bootfs:=${BOOTFILES}/${X86GPTBOOTFILE}${BOOTPARTSOFFSET}"
 			ROOTFSPART="-p ${FSPARTTYPE}/rootfs:=${VMBASE}"
 			MAKEFSARGS="$MAKEFSARGS -B little"
 			;;
@@ -329,4 +336,3 @@
 
 	return 0
 }
-