diff --git a/internal/distro/rhel9/images.go b/internal/distro/rhel9/images.go
index 9d8486273..293a62ab9 100644
--- a/internal/distro/rhel9/images.go
+++ b/internal/distro/rhel9/images.go
@@ -412,8 +412,14 @@ func edgeSimplifiedInstallerImage(workload workload.Workload,
 	if bpFDO := customizations.GetFDO(); bpFDO != nil {
 		img.FDO = fdo.FromBP(*bpFDO)
 	}
-	if bpIgnition := customizations.GetIgnition(); bpIgnition != nil && customizations.Ignition.FirstBoot != nil {
-		img.Ignition = ignition.FromBP(*bpIgnition.FirstBoot)
+	// ignition configs from blueprint
+	if bpIgnition := customizations.GetIgnition(); bpIgnition != nil {
+		if bpIgnition.FirstBoot != nil {
+			img.IgnitionFirstBoot = ignition.FirstbootOptionsFromBP(*bpIgnition.FirstBoot)
+		}
+		if bpIgnition.Embedded != nil {
+			img.IgnitionEmbedded = ignition.EmbeddedOptionsFromBP(*bpIgnition.Embedded)
+		}
 	}
 
 	d := t.arch.distro
diff --git a/internal/ignition/ignition.go b/internal/ignition/ignition.go
index da0b9e7f1..cca1afe0a 100644
--- a/internal/ignition/ignition.go
+++ b/internal/ignition/ignition.go
@@ -2,11 +2,21 @@ package ignition
 
 import "github.com/osbuild/osbuild-composer/internal/blueprint"
 
-type Options struct {
+type FirstBootOptions struct {
 	ProvisioningURL string
 }
 
-func FromBP(bpIgnitionFirstboot blueprint.FirstBootIgnitionCustomization) *Options {
-	ignition := Options(bpIgnitionFirstboot)
+func FirstbootOptionsFromBP(bpIgnitionFirstboot blueprint.FirstBootIgnitionCustomization) *FirstBootOptions {
+	ignition := FirstBootOptions(bpIgnitionFirstboot)
+	return &ignition
+}
+
+type EmbeddedOptions struct {
+	ProvisioningURL string
+	Data64          string
+}
+
+func EmbeddedOptionsFromBP(bpIgnitionEmbedded blueprint.EmbeddedIgnitionCustomization) *EmbeddedOptions {
+	ignition := EmbeddedOptions(bpIgnitionEmbedded)
 	return &ignition
 }
diff --git a/internal/image/ostree_simplified_installer.go b/internal/image/ostree_simplified_installer.go
index a7bd3e1d0..15ca7ea6d 100644
--- a/internal/image/ostree_simplified_installer.go
+++ b/internal/image/ostree_simplified_installer.go
@@ -51,8 +51,11 @@ type OSTreeSimplifiedInstaller struct {
 
 	FDO *fdo.Options
 
-	// ignition firstboot configuration options
-	Ignition *ignition.Options
+	// Ignition firstboot configuration options
+	IgnitionFirstBoot *ignition.FirstBootOptions
+
+	// Ignition embedded configuration options
+	IgnitionEmbedded *ignition.EmbeddedOptions
 
 	AdditionalDracutModules []string
 }
@@ -88,6 +91,7 @@ func (img *OSTreeSimplifiedInstaller) InstantiateManifest(m *manifest.Manifest,
 	coiPipeline.ExtraPackages = img.ExtraBasePackages.Include
 	coiPipeline.ExtraRepos = img.ExtraBasePackages.Repositories
 	coiPipeline.FDO = img.FDO
+	coiPipeline.Ignition = img.IgnitionEmbedded
 	coiPipeline.Biosdevname = (img.Platform.GetArch() == platform.ARCH_X86_64)
 	coiPipeline.Variant = img.Variant
 	coiPipeline.AdditionalDracutModules = img.AdditionalDracutModules
@@ -124,8 +128,8 @@ func (img *OSTreeSimplifiedInstaller) InstantiateManifest(m *manifest.Manifest,
 	}
 
 	// ignition firstboot options
-	if img.Ignition != nil {
-		kernelOpts = append(kernelOpts, "coreos.inst.append ignition.config.url="+img.Ignition.ProvisioningURL)
+	if img.IgnitionFirstBoot != nil {
+		kernelOpts = append(kernelOpts, "coreos.inst.append ignition.config.url="+img.IgnitionFirstBoot.ProvisioningURL)
 	}
 
 	bootTreePipeline.KernelOpts = kernelOpts
diff --git a/internal/manifest/coi_iso_tree.go b/internal/manifest/coi_iso_tree.go
index 699d3cfb0..028e61337 100644
--- a/internal/manifest/coi_iso_tree.go
+++ b/internal/manifest/coi_iso_tree.go
@@ -1,6 +1,7 @@
 package manifest
 
 import (
+	"crypto/sha256"
 	"fmt"
 
 	"github.com/osbuild/osbuild-composer/internal/disk"
@@ -66,6 +67,30 @@ func (p *CoreOSISOTree) serialize() osbuild.Pipeline {
 		osbuild.NewFilesInputs(osbuild.NewFilesInputReferencesPipeline(p.payloadPipeline.Name(), p.payloadPipeline.Filename)),
 	))
 
+	if p.coiPipeline.Ignition != nil {
+		filename := ""
+		copyInput := ""
+		// These specific filenames in the root of the ISO are expected by
+		// coreos-installer-dracut during installation
+		if p.coiPipeline.Ignition.Data64 != "" {
+			filename = "ignition_config"
+			copyInput = p.coiPipeline.Ignition.Data64
+		} else {
+			filename = "ignition_url"
+			copyInput = p.coiPipeline.Ignition.ProvisioningURL
+		}
+		pipeline.AddStage(osbuild.NewCopyStageSimple(
+			&osbuild.CopyStageOptions{
+				Paths: []osbuild.CopyStagePath{
+					{
+						From: fmt.Sprintf("input://inlinefile/sha256:%x", sha256.Sum256([]byte(copyInput))),
+						To:   fmt.Sprintf("tree:///%s", filename),
+					},
+				},
+			},
+			osbuild.NewIgnitionInlineInput(copyInput)))
+	}
+
 	pipeline.AddStage(osbuild.NewMkdirStage(&osbuild.MkdirStageOptions{
 		Paths: []osbuild.Path{
 			{
diff --git a/internal/manifest/coreos_installer.go b/internal/manifest/coreos_installer.go
index fed41d993..973958990 100644
--- a/internal/manifest/coreos_installer.go
+++ b/internal/manifest/coreos_installer.go
@@ -4,6 +4,7 @@ import (
 	"fmt"
 
 	"github.com/osbuild/osbuild-composer/internal/fdo"
+	"github.com/osbuild/osbuild-composer/internal/ignition"
 	"github.com/osbuild/osbuild-composer/internal/osbuild"
 	"github.com/osbuild/osbuild-composer/internal/platform"
 	"github.com/osbuild/osbuild-composer/internal/rpmmd"
@@ -35,6 +36,9 @@ type CoreOSInstaller struct {
 
 	FDO *fdo.Options
 
+	// For the coreos-installer we only have EmbeddedOptions for ignition
+	Ignition *ignition.EmbeddedOptions
+
 	AdditionalDracutModules []string
 }
 
@@ -127,11 +131,20 @@ func (p *CoreOSInstaller) serializeStart(packages []rpmmd.PackageSpec) {
 }
 
 func (p *CoreOSInstaller) getInline() []string {
+	inlineData := []string{}
 	// inline data for FDO cert
 	if p.FDO != nil && p.FDO.DiunPubKeyRootCerts != "" {
-		return []string{p.FDO.DiunPubKeyRootCerts}
+		inlineData = append(inlineData, p.FDO.DiunPubKeyRootCerts)
 	}
-	return []string{}
+	// inline data for ignition embedded (url or data)
+	if p.Ignition != nil {
+		if p.Ignition.Data64 != "" {
+			inlineData = append(inlineData, p.Ignition.Data64)
+		} else {
+			inlineData = append(inlineData, p.Ignition.ProvisioningURL)
+		}
+	}
+	return inlineData
 }
 
 func (p *CoreOSInstaller) serializeEnd() {
diff --git a/internal/osbuild/ignition_stage.go b/internal/osbuild/ignition_stage.go
new file mode 100644
index 000000000..ae07747f9
--- /dev/null
+++ b/internal/osbuild/ignition_stage.go
@@ -0,0 +1,29 @@
+package osbuild
+
+import (
+	"crypto/sha256"
+	"fmt"
+)
+
+type IgnitionStageInputInline struct {
+	InlineFile IgnitionStageInput `json:"inlinefile"`
+}
+
+func (IgnitionStageInputInline) isStageInputs() {}
+
+type IgnitionStageInput struct {
+	inputCommon
+	References IgnitionStageReferences `json:"references"`
+}
+
+type IgnitionStageReferences []string
+
+func (IgnitionStageReferences) isReferences() {}
+
+func NewIgnitionInlineInput(embeddedData string) Inputs {
+	inputs := new(IgnitionStageInputInline)
+	inputs.InlineFile.Type = "org.osbuild.files"
+	inputs.InlineFile.Origin = "org.osbuild.source"
+	inputs.InlineFile.References = IgnitionStageReferences{fmt.Sprintf("sha256:%x", sha256.Sum256([]byte(embeddedData)))}
+	return inputs
+}