diff --git a/tools/osbuilder/node-builder/azure-linux/common.sh b/tools/osbuilder/node-builder/azure-linux/common.sh
index 793d81e819a6..26d849224503 100755
--- a/tools/osbuilder/node-builder/azure-linux/common.sh
+++ b/tools/osbuilder/node-builder/azure-linux/common.sh
@@ -34,8 +34,8 @@ else
 	INSTALL_PATH_PREFIX="/usr"
 	UVM_TOOLS_PATH_OSB="/opt/kata-containers/uvm/tools/osbuilder"
 	UVM_TOOLS_PATH_SRC="/opt/kata-containers/uvm/src"
-	UVM_PATH="/var/cache/kata-containers/osbuilder-images/kernel-uvm"
-	INITRD_FILE_NAME="kata-containers-initrd.img"
+	UVM_PATH="${INSTALL_PATH_PREFIX}/share/kata-containers"
+	IMG_FILE_NAME="kata-containers.img"
 	SHIM_CONFIG_PATH="${INSTALL_PATH_PREFIX}/share/defaults/kata-containers"
 	SHIM_CONFIG_FILE_NAME="configuration-clh.toml"
 	SHIM_CONFIG_INST_FILE_NAME="configuration.toml"
diff --git a/tools/osbuilder/node-builder/azure-linux/package_build.sh b/tools/osbuilder/node-builder/azure-linux/package_build.sh
index 7bc675ae2ff8..e7f666d6c0e5 100755
--- a/tools/osbuilder/node-builder/azure-linux/package_build.sh
+++ b/tools/osbuilder/node-builder/azure-linux/package_build.sh
@@ -84,10 +84,6 @@ if [ "${CONF_PODS}" == "yes" ]; then
 	sed -i "s|${IGVM_FILE_NAME}|${IGVM_DBG_FILE_NAME}|g" "${SHIM_DBG_CONFIG_FILE_NAME}"
 	sed -i '/^#enable_debug =/s|^#||g' "${SHIM_DBG_CONFIG_FILE_NAME}"
 	sed -i '/^#debug_console_enabled =/s|^#||g' "${SHIM_DBG_CONFIG_FILE_NAME}"
-else
-	# We currently use the default config snippet from upstream that defaults to IMAGEPATH/image for the config.
-	# If we shift to using an image for vanilla Kata, we can use IMAGEPATH to set the proper path (or better make sure the image file gets placed so that default values can be used).
-	sed -i -e "s|image = .*$|initrd = \"${UVM_PATH}/${INITRD_FILE_NAME}\"|" "${SHIM_CONFIG_FILE_NAME}"
 fi
 popd
 
diff --git a/tools/osbuilder/node-builder/azure-linux/package_tools_install.sh b/tools/osbuilder/node-builder/azure-linux/package_tools_install.sh
index 7fa3b91537ee..a52981e19e70 100755
--- a/tools/osbuilder/node-builder/azure-linux/package_tools_install.sh
+++ b/tools/osbuilder/node-builder/azure-linux/package_tools_install.sh
@@ -24,16 +24,14 @@ pushd "${repo_dir}"
 echo "Creating target directories"
 mkdir -p "${PREFIX}/${UVM_TOOLS_PATH_OSB}/scripts"
 mkdir -p "${PREFIX}/${UVM_TOOLS_PATH_OSB}/rootfs-builder/cbl-mariner"
+mkdir -p "${PREFIX}/${UVM_TOOLS_PATH_OSB}/image-builder"
 mkdir -p "${PREFIX}/${UVM_TOOLS_PATH_OSB}/node-builder/azure-linux/agent-install/usr/bin"
 mkdir -p "${PREFIX}/${UVM_TOOLS_PATH_OSB}/node-builder/azure-linux/agent-install/usr/lib/systemd/system"
 
 if [ "${CONF_PODS}" == "yes" ]; then
 	mkdir -p "${PREFIX}/${UVM_TOOLS_PATH_SRC}/kata-opa"
 	mkdir -p "${PREFIX}/${UVM_TOOLS_PATH_SRC}/tarfs"
-	mkdir -p "${PREFIX}/${UVM_TOOLS_PATH_OSB}/image-builder"
 	mkdir -p "${PREFIX}/${UVM_TOOLS_PATH_OSB}/igvm-builder/azure-linux"
-else
-	mkdir -p "${PREFIX}/${UVM_TOOLS_PATH_OSB}/initrd-builder"
 fi
 
 echo "Installing UVM build scripting"
@@ -42,6 +40,7 @@ cp -a --backup=numbered tools/osbuilder/scripts/lib.sh "${PREFIX}/${UVM_TOOLS_PA
 cp -a --backup=numbered tools/osbuilder/rootfs-builder/rootfs.sh "${PREFIX}/${UVM_TOOLS_PATH_OSB}/rootfs-builder/"
 cp -a --backup=numbered tools/osbuilder/rootfs-builder/cbl-mariner/config.sh "${PREFIX}/${UVM_TOOLS_PATH_OSB}/rootfs-builder/cbl-mariner/"
 cp -a --backup=numbered tools/osbuilder/rootfs-builder/cbl-mariner/rootfs_lib.sh "${PREFIX}/${UVM_TOOLS_PATH_OSB}/rootfs-builder/cbl-mariner/"
+cp -a --backup=numbered tools/osbuilder/image-builder/image_builder.sh "${PREFIX}/${UVM_TOOLS_PATH_OSB}/image-builder/"
 cp -a --backup=numbered tools/osbuilder/node-builder/azure-linux/Makefile "${PREFIX}/${UVM_TOOLS_PATH_OSB}/node-builder/azure-linux/"
 cp -a --backup=numbered tools/osbuilder/node-builder/azure-linux/clean.sh "${PREFIX}/${UVM_TOOLS_PATH_OSB}/node-builder/azure-linux/"
 cp -a --backup=numbered tools/osbuilder/node-builder/azure-linux/common.sh "${PREFIX}/${UVM_TOOLS_PATH_OSB}/node-builder/azure-linux/"
@@ -57,12 +56,9 @@ if [ "${CONF_PODS}" == "yes" ]; then
 	cp -a --backup=numbered src/kata-opa/allow-set-policy.rego "${PREFIX}/${UVM_TOOLS_PATH_SRC}/kata-opa/"
 	cp -a --backup=numbered src/tarfs/Makefile "${PREFIX}/${UVM_TOOLS_PATH_SRC}/tarfs/"
 	cp -a --backup=numbered src/tarfs/tarfs.c "${PREFIX}/${UVM_TOOLS_PATH_SRC}/tarfs/"
-	cp -a --backup=numbered tools/osbuilder/image-builder/image_builder.sh "${PREFIX}/${UVM_TOOLS_PATH_OSB}/image-builder/"
 	cp -a --backup=numbered tools/osbuilder/igvm-builder/igvm_builder.sh "${PREFIX}/${UVM_TOOLS_PATH_OSB}/igvm-builder/"
 	cp -a --backup=numbered tools/osbuilder/igvm-builder/azure-linux/config.sh "${PREFIX}/${UVM_TOOLS_PATH_OSB}/igvm-builder/azure-linux/"
 	cp -a --backup=numbered tools/osbuilder/igvm-builder/azure-linux/igvm_lib.sh "${PREFIX}/${UVM_TOOLS_PATH_OSB}/igvm-builder/azure-linux/"
-else
-	cp -a --backup=numbered tools/osbuilder/initrd-builder/initrd_builder.sh "${PREFIX}/${UVM_TOOLS_PATH_OSB}/initrd-builder/"
 fi
 
 popd
diff --git a/tools/osbuilder/node-builder/azure-linux/uvm_build.sh b/tools/osbuilder/node-builder/azure-linux/uvm_build.sh
index 0f4aa7370166..91c9b7a8a8f4 100755
--- a/tools/osbuilder/node-builder/azure-linux/uvm_build.sh
+++ b/tools/osbuilder/node-builder/azure-linux/uvm_build.sh
@@ -65,9 +65,9 @@ if [ "${CONF_PODS}" == "yes" ]; then
 	sudo make igvm DISTRO=cbl-mariner IGVM_SVN=${IGVM_SVN}
 	popd
 else
-	echo "Creating initrd based on rootfs"
+	echo "Building image based on rootfs"
 	pushd tools/osbuilder
-	sudo -E PATH=$PATH make DISTRO=cbl-mariner TARGET_ROOTFS=${ROOTFS_PATH} initrd
+	sudo -E PATH=$PATH make DISTRO=cbl-mariner image
 	popd
 fi
 
diff --git a/tools/osbuilder/node-builder/azure-linux/uvm_install.sh b/tools/osbuilder/node-builder/azure-linux/uvm_install.sh
index 7763cbea1fb3..bf385ea6bdb9 100755
--- a/tools/osbuilder/node-builder/azure-linux/uvm_install.sh
+++ b/tools/osbuilder/node-builder/azure-linux/uvm_install.sh
@@ -27,14 +27,14 @@ mkdir -p "${UVM_PATH}"
 
 echo "Installing UVM files to target directory"
 if [ "${CONF_PODS}" == "yes" ]; then
-	cp -a --backup=numbered "${IMG_FILE_NAME}" "${UVM_PATH}"
 	cp -a --backup=numbered "${IGVM_FILE_NAME}" "${UVM_PATH}"
 	cp -a --backup=numbered "${IGVM_DBG_FILE_NAME}" "${UVM_PATH}"
 	cp -a --backup=numbered "${UVM_MEASUREMENT_FILE_NAME}" "${UVM_PATH}"
 	cp -a --backup=numbered "${UVM_DBG_MEASUREMENT_FILE_NAME}" "${UVM_PATH}"
-else
-	cp -a --backup=numbered "${INITRD_FILE_NAME}" "${UVM_PATH}"
 fi
+
+cp -a --backup=numbered "${IMG_FILE_NAME}" "${UVM_PATH}"
+
 popd
 
 popd