diff --git a/overlay.d/05core/usr/lib/dracut/modules.d/35coreos-ignition/coreos-teardown-initramfs.sh b/overlay.d/05core/usr/lib/dracut/modules.d/35coreos-ignition/coreos-teardown-initramfs.sh
index 7f52ff85d6..afe69a99b4 100755
--- a/overlay.d/05core/usr/lib/dracut/modules.d/35coreos-ignition/coreos-teardown-initramfs.sh
+++ b/overlay.d/05core/usr/lib/dracut/modules.d/35coreos-ignition/coreos-teardown-initramfs.sh
@@ -168,6 +168,20 @@ propagate_initramfs_hostname() {
     fi
 }
 
+# Propagate the ifname= karg udev rules. The policy here is:
+#
+#     - IF ifname karg udev rule file exists
+#     - THEN copy it to the real root
+#
+propagate_ifname_udev_rules() {
+    local udev_file='/etc/udev/rules.d/80-ifname.rules'
+    if [ -e "${udev_file}" ]; then
+        echo "info: propagating ifname karg udev rules to the real root"
+        cp -v "${udev_file}" "/sysroot/${udev_file}"
+        coreos-relabel "${udev_file}"
+    fi
+}
+
 main() {
     # Load libraries from dracut
     load_dracut_libs
@@ -192,6 +206,7 @@ main() {
     else
         propagate_initramfs_hostname
         propagate_initramfs_networking
+        propagate_ifname_udev_rules
     fi
 
     # Configuration has been propagated, but we can't clean up
diff --git a/tests/kola/networking/ifname-karg/data/commonlib.sh b/tests/kola/networking/ifname-karg/data/commonlib.sh
new file mode 120000
index 0000000000..b8dcbdca1a
--- /dev/null
+++ b/tests/kola/networking/ifname-karg/data/commonlib.sh
@@ -0,0 +1 @@
+../../../data/commonlib.sh
\ No newline at end of file
diff --git a/tests/kola/networking/ifname-karg/data/ifname-karg-lib.sh b/tests/kola/networking/ifname-karg/data/ifname-karg-lib.sh
new file mode 100644
index 0000000000..8b6dd2f8dc
--- /dev/null
+++ b/tests/kola/networking/ifname-karg/data/ifname-karg-lib.sh
@@ -0,0 +1,36 @@
+# This is a library created for our ifname-karg tests
+
+. $KOLA_EXT_DATA/commonlib.sh
+
+# check IP for given NIC name
+check_ip() {
+    # User provides the NIC name.
+    local nic_name=$1
+    # The expected IP is the first one in the range given out by QEMU
+    # user mode networking: https://www.qemu.org/docs/master/system/devices/net.html#using-the-user-mode-network-stack
+    local expected_ip="10.0.2.15"
+    # Verify the given nic name has the expected IP.
+    local nic_ip=$(get_ipv4_for_nic ${nic_name})
+    if [ "${nic_ip}" != "${expected_ip}" ]; then
+        fatal "Error: get ${nic_name} ip = ${nic_ip}, expected is ${expected_ip}"
+    fi
+    ok "get ${nic_name} ip is ${expected_ip}"
+}
+
+# simple file existence check
+check_file_exists() {
+    local file=$1
+    if [ ! -f $file ]; then
+        fatal "expected file ${file} doesn't exist on disk"
+    fi
+    ok "expected file ${file} exists on disk"
+}
+
+# simple file non-existence check
+check_file_not_exists() {
+    local file=$1
+    if [ -f $file ]; then
+        fatal "expected file ${file} to not exist on disk"
+    fi
+    ok "file ${file} does not exist on disk"
+}
diff --git a/tests/kola/networking/ifname-karg/everyboot-systemd-link-file/config.bu b/tests/kola/networking/ifname-karg/everyboot-systemd-link-file/config.bu
new file mode 100644
index 0000000000..c79d3aa60e
--- /dev/null
+++ b/tests/kola/networking/ifname-karg/everyboot-systemd-link-file/config.bu
@@ -0,0 +1,7 @@
+variant: fcos
+version: 1.4.0
+kernel_arguments:
+  should_exist:
+    # Persistently set the ifname kernel argument to set the given MAC to the
+    # NIC named `kolatest`. The MAC address is the default one QEMU assigns.
+    - ifname=kolatest:52:54:00:12:34:56
diff --git a/tests/kola/networking/ifname-karg/everyboot-systemd-link-file/data/commonlib.sh b/tests/kola/networking/ifname-karg/everyboot-systemd-link-file/data/commonlib.sh
new file mode 120000
index 0000000000..7028449b11
--- /dev/null
+++ b/tests/kola/networking/ifname-karg/everyboot-systemd-link-file/data/commonlib.sh
@@ -0,0 +1 @@
+../../../../data/commonlib.sh
\ No newline at end of file
diff --git a/tests/kola/networking/ifname-karg/everyboot-systemd-link-file/data/ifname-karg-lib.sh b/tests/kola/networking/ifname-karg/everyboot-systemd-link-file/data/ifname-karg-lib.sh
new file mode 120000
index 0000000000..d50acc0fb4
--- /dev/null
+++ b/tests/kola/networking/ifname-karg/everyboot-systemd-link-file/data/ifname-karg-lib.sh
@@ -0,0 +1 @@
+../../data/ifname-karg-lib.sh
\ No newline at end of file
diff --git a/tests/kola/networking/ifname-karg/everyboot-systemd-link-file/test.sh b/tests/kola/networking/ifname-karg/everyboot-systemd-link-file/test.sh
new file mode 100755
index 0000000000..afc715f3f4
--- /dev/null
+++ b/tests/kola/networking/ifname-karg/everyboot-systemd-link-file/test.sh
@@ -0,0 +1,43 @@
+#!/bin/bash
+## kola:
+##   description: Verify persistent ifname= karg works via systemd-network-generator.
+##   # appendFirstbootKernelArgs is only supported on QEMU
+##   platforms: qemu
+##   # Don't run the propagate code. With this test we want to
+##   # validate that the systemd.link file gets created by
+##   # systemd-network-generator.
+##   appendFirstbootKernelArgs: "coreos.no_persist_ip"
+##   # appendFirstbootKernelArgs doesn't work on s390x
+##   # https://github.com/coreos/coreos-assembler/issues/2776
+##   architectures: "!s390x"
+
+set -xeuo pipefail
+
+. $KOLA_EXT_DATA/commonlib.sh
+. $KOLA_EXT_DATA/ifname-karg-lib.sh
+
+nicname='kolatest'
+
+run_tests() {
+    # Make sure nothing was persisted from the initramfs
+    check_file_not_exists '/etc/udev/rules.d/80-ifname.rules' 
+    # Make sure systemd-network-generator ran (from the real root)
+    check_file_exists "/run/systemd/network/90-${nicname}.link"
+    # Make sure the NIC is in use and got the expected IP address
+    check_ip "${nicname}"
+}
+
+case "${AUTOPKGTEST_REBOOT_MARK:-}" in
+    "")
+        ok "first boot"
+        run_tests
+        /tmp/autopkgtest-reboot rebooted
+      ;;
+
+    rebooted)
+        ok "second boot"
+        run_tests
+      ;;
+
+  *) fatal "unexpected mark: ${AUTOPKGTEST_REBOOT_MARK}";;
+esac
diff --git a/tests/kola/networking/ifname-karg/udev-rule-firstboot-propagation b/tests/kola/networking/ifname-karg/udev-rule-firstboot-propagation
new file mode 100755
index 0000000000..0d11c01691
--- /dev/null
+++ b/tests/kola/networking/ifname-karg/udev-rule-firstboot-propagation
@@ -0,0 +1,47 @@
+#!/bin/bash
+## kola:
+##   description: Verify firstboot ifname= karg udev rule propoagation works.
+##   # appendFirstbootKernelArgs is only supported on QEMU
+##   platforms: qemu
+##   # Append ifname kernel argument to set the given MAC address to the NIC
+##   # named `kolatest`. The MAC address is the default one QEMU assigns.
+##   appendFirstbootKernelArgs: "ifname=kolatest:52:54:00:12:34:56"
+##   # appendFirstbootKernelArgs doesn't work on s390x
+##   # https://github.com/coreos/coreos-assembler/issues/2776
+##   architectures: "!s390x"
+
+# Part of https://github.com/coreos/fedora-coreos-tracker/issues/553
+
+set -xeuo pipefail
+
+. $KOLA_EXT_DATA/commonlib.sh
+. $KOLA_EXT_DATA/ifname-karg-lib.sh
+
+nicname='kolatest'
+
+case "${AUTOPKGTEST_REBOOT_MARK:-}" in
+    "")
+        ok "first boot"
+        # Make sure the rules were persisted from the initramfs
+        check_file_exists '/etc/udev/rules.d/80-ifname.rules' 
+        # On first boot we expect systemd-network-generator to run too
+        # because the ifname= karg was present, but only for first boot
+        check_file_exists "/run/systemd/network/90-${nicname}.link"
+        # Make sure the NIC is in use and got the expected IP address
+        check_ip "${nicname}"
+        /tmp/autopkgtest-reboot rebooted
+      ;;
+
+    rebooted)
+        ok "second boot"
+        # Make sure the rules are still there
+        check_file_exists '/etc/udev/rules.d/80-ifname.rules' 
+        # On second boot the ifname= karg isn't there so the file
+        # created by systemd-network-generator shouldn't exist.
+        check_file_not_exists "/run/systemd/network/90-${nicname}.link"
+        # Make sure the NIC is in use and got the expected IP address
+        check_ip "${nicname}"
+      ;;
+
+  *) fatal "unexpected mark: ${AUTOPKGTEST_REBOOT_MARK}";;
+esac