diff --git a/1934-revert-add-overlayfs-module.patch b/1934-revert-add-overlayfs-module.patch
deleted file mode 100644
index 94cbf13..0000000
--- a/1934-revert-add-overlayfs-module.patch
+++ /dev/null
@@ -1,205 +0,0 @@
-From 59105d4a8e51f7d3e7fe716b4382bf604933abdd Mon Sep 17 00:00:00 2001
-From: rpm-build <rpm-build>
-Date: Tue, 21 Feb 2023 21:47:34 +0100
-Subject: [PATCH] Revert PR#1934
-
----
- .github/labeler.yml                           |  3 --
- .../90dmsquash-live/dmsquash-live-root.sh     | 17 ++++++++++
- modules.d/90dmsquash-live/module-setup.sh     |  4 +--
- .../90dmsquash-live/parse-dmsquash-live.sh    |  3 --
- modules.d/90overlayfs/module-setup.sh         | 18 ----------
- modules.d/90overlayfs/mount-overlayfs.sh      | 33 -------------------
- test/TEST-16-DMSQUASH/test.sh                 |  6 ----
- test/TEST-20-NFS/test.sh                      | 10 +-----
- 8 files changed, 20 insertions(+), 74 deletions(-)
- delete mode 100755 modules.d/90overlayfs/module-setup.sh
- delete mode 100755 modules.d/90overlayfs/mount-overlayfs.sh
-
-diff --git a/.github/labeler.yml b/.github/labeler.yml
-index ba47d04..faa782a 100644
---- a/.github/labeler.yml
-+++ b/.github/labeler.yml
-@@ -138,9 +138,6 @@ multipath:
- nvdimm:
-   - modules.d/90nvdimm/*
- 
--overlayfs:
--  - modules.d/90overlayfs/*
--
- ppcmac:
-   - modules.d/90ppcmac/*
- 
-diff --git a/modules.d/90dmsquash-live/dmsquash-live-root.sh b/modules.d/90dmsquash-live/dmsquash-live-root.sh
-index 62d1b5e..d5b03bc 100755
---- a/modules.d/90dmsquash-live/dmsquash-live-root.sh
-+++ b/modules.d/90dmsquash-live/dmsquash-live-root.sh
-@@ -410,6 +410,23 @@ if [ -n "$overlayfs" ]; then
-     else
-         ln -sf /run/initramfs/live /run/rootfsbase
-     fi
-+    mkdir -m 0755 -p /run/overlayfs
-+    mkdir -m 0755 -p /run/ovlwork
-+    if [ -n "$reset_overlay" ] && [ -h /run/overlayfs ]; then
-+        ovlfs=$(readlink /run/overlayfs)
-+        info "Resetting the OverlayFS overlay directory."
-+        rm -r -- "${ovlfs:?}"/* "${ovlfs:?}"/.* > /dev/null 2>&1
-+    fi
-+    if [ -n "$readonly_overlay" ] && [ -h /run/overlayfs-r ]; then
-+        ovlfs=lowerdir=/run/overlayfs-r:/run/rootfsbase
-+    else
-+        ovlfs=lowerdir=/run/rootfsbase
-+    fi
-+    if [ -z "$DRACUT_SYSTEMD" ]; then
-+        printf 'mount -t overlay LiveOS_rootfs -o%s,%s %s\n' "$ROOTFLAGS" \
-+            "$ovlfs",upperdir=/run/overlayfs,workdir=/run/ovlwork \
-+            "$NEWROOT" > "$hookdir"/mount/01-$$-live.sh
-+    fi
- else
-     if [ -z "$DRACUT_SYSTEMD" ]; then
-         [ -n "$ROOTFLAGS" ] && ROOTFLAGS="-o $ROOTFLAGS"
-diff --git a/modules.d/90dmsquash-live/module-setup.sh b/modules.d/90dmsquash-live/module-setup.sh
-index b905e3d..cf3dfe5 100755
---- a/modules.d/90dmsquash-live/module-setup.sh
-+++ b/modules.d/90dmsquash-live/module-setup.sh
-@@ -11,13 +11,13 @@ check() {
- depends() {
-     # if dmsetup is not installed, then we cannot support fedora/red hat
-     # style live images
--    echo dm rootfs-block img-lib overlayfs
-+    echo dm rootfs-block img-lib
-     return 0
- }
- 
- # called by dracut
- installkernel() {
--    instmods squashfs loop iso9660
-+    instmods squashfs loop iso9660 overlay
- }
- 
- # called by dracut
-diff --git a/modules.d/90dmsquash-live/parse-dmsquash-live.sh b/modules.d/90dmsquash-live/parse-dmsquash-live.sh
-index 1a316a2..8c4423b 100755
---- a/modules.d/90dmsquash-live/parse-dmsquash-live.sh
-+++ b/modules.d/90dmsquash-live/parse-dmsquash-live.sh
-@@ -39,9 +39,6 @@ case "$liveroot" in
-     live:/*.[Ii][Mm][Gg] | /*.[Ii][Mm][Gg])
-         [ -f "${root#live:}" ] && rootok=1
-         ;;
--    live:nfs*)
--        rootok=1
--        ;;
- esac
- 
- [ "$rootok" = "1" ] || return 1
-diff --git a/modules.d/90overlayfs/module-setup.sh b/modules.d/90overlayfs/module-setup.sh
-deleted file mode 100755
-index 27aa7cf..0000000
---- a/modules.d/90overlayfs/module-setup.sh
-+++ /dev/null
-@@ -1,18 +0,0 @@
--#!/bin/bash
--
--check() {
--    [[ $hostonly ]] && return 1
--    return 255
--}
--
--depends() {
--    echo base
--}
--
--installkernel() {
--    instmods overlay
--}
--
--install() {
--    inst_hook mount 01 "$moddir/mount-overlayfs.sh"
--}
-diff --git a/modules.d/90overlayfs/mount-overlayfs.sh b/modules.d/90overlayfs/mount-overlayfs.sh
-deleted file mode 100755
-index 7e2da1a..0000000
---- a/modules.d/90overlayfs/mount-overlayfs.sh
-+++ /dev/null
-@@ -1,33 +0,0 @@
--#!/bin/sh
--
--type getarg > /dev/null 2>&1 || . /lib/dracut-lib.sh
--
--getargbool 0 rd.live.overlay.overlayfs && overlayfs="yes"
--getargbool 0 rd.live.overlay.reset -d -y reset_overlay && reset_overlay="yes"
--getargbool 0 rd.live.overlay.readonly -d -y readonly_overlay && readonly_overlay="--readonly" || readonly_overlay=""
--
--ROOTFLAGS="$(getarg rootflags)"
--
--if [ -n "$overlayfs" ]; then
--    if ! [ -e /run/rootfsbase ]; then
--        mkdir -m 0755 -p /run/rootfsbase
--        mount --bind "$NEWROOT" /run/rootfsbase
--    fi
--
--    mkdir -m 0755 -p /run/overlayfs
--    mkdir -m 0755 -p /run/ovlwork
--    if [ -n "$reset_overlay" ] && [ -h /run/overlayfs ]; then
--        ovlfsdir=$(readlink /run/overlayfs)
--        info "Resetting the OverlayFS overlay directory."
--        rm -r -- "${ovlfsdir:?}"/* "${ovlfsdir:?}"/.* > /dev/null 2>&1
--    fi
--    if [ -n "$readonly_overlay" ] && [ -h /run/overlayfs-r ]; then
--        ovlfs=lowerdir=/run/overlayfs-r:/run/rootfsbase
--    else
--        ovlfs=lowerdir=/run/rootfsbase
--    fi
--
--    if ! strstr "$(cat /proc/mounts)" LiveOS_rootfs; then
--        mount -t overlay LiveOS_rootfs -o "$ROOTFLAGS,$ovlfs",upperdir=/run/overlayfs,workdir=/run/ovlwork "$NEWROOT"
--    fi
--fi
-diff --git a/test/TEST-16-DMSQUASH/test.sh b/test/TEST-16-DMSQUASH/test.sh
-index d8a7bc7..5854ab8 100755
---- a/test/TEST-16-DMSQUASH/test.sh
-+++ b/test/TEST-16-DMSQUASH/test.sh
-@@ -15,12 +15,6 @@ test_run() {
-     qemu_add_drive_args disk_index disk_args "$TESTDIR"/marker.img marker
-     qemu_add_drive_args disk_index disk_args "$TESTDIR"/root.img root
- 
--    "$testdir"/run-qemu \
--        "${disk_args[@]}" \
--        -boot order=d \
--        -append "rd.live.overlay.overlayfs=1 root=LABEL=dracut console=ttyS0,115200n81 quiet selinux=0 rd.info rd.shell=0 panic=1 oops=panic softlockup_panic=1 $DEBUGFAIL" \
--        -initrd "$TESTDIR"/initramfs.testing
--
-     "$testdir"/run-qemu \
-         "${disk_args[@]}" \
-         -boot order=d \
-diff --git a/test/TEST-20-NFS/test.sh b/test/TEST-20-NFS/test.sh
-index c637b57..2af41f4 100755
---- a/test/TEST-20-NFS/test.sh
-+++ b/test/TEST-20-NFS/test.sh
-@@ -173,14 +173,6 @@ test_nfsv3() {
-     client_test "NFSv3 root=dhcp DHCP proto:IP:path,options" 52:54:00:12:34:07 \
-         "root=dhcp" 192.168.50.3 wsize=4096 || return 1
- 
--    client_test "NFSv3 Overlayfs root=nfs:..." 52:54:00:12:34:04 \
--        "root=nfs:192.168.50.1:/nfs/client rd.live.overlay.overlayfs=1" \
--        192.168.50.1 -wsize=4096 || return 1
--
--    client_test "NFSv3 Live Overlayfs root=nfs:..." 52:54:00:12:34:04 \
--        "root=nfs:192.168.50.1:/nfs/client rd.live.image rd.live.overlay.overlayfs=1" \
--        192.168.50.1 -wsize=4096 || return 1
--
-     return 0
- }
- 
-@@ -400,7 +392,7 @@ test_setup() {
-     # Make client's dracut image
-     "$basedir"/dracut.sh -l -i "$TESTDIR"/overlay / \
-         -o "plymouth" \
--        -a "dmsquash-live debug watchdog ${USE_NETWORK}" \
-+        -a "debug watchdog ${USE_NETWORK}" \
-         --no-hostonly-cmdline -N \
-         -f "$TESTDIR"/initramfs.testing "$KVERSION" || return 1
- 
--- 
-2.39.1
-
diff --git a/2233-dmsquash-live-restore-compatibility.patch b/2233-dmsquash-live-restore-compatibility.patch
new file mode 100644
index 0000000..2c9e98a
--- /dev/null
+++ b/2233-dmsquash-live-restore-compatibility.patch
@@ -0,0 +1,26 @@
+From 0e780720efe6488c4e07af39926575ee12f40339 Mon Sep 17 00:00:00 2001
+From: Laszlo Gombos <laszlo.gombos@gmail.com>
+Date: Fri, 24 Feb 2023 01:57:19 +0000
+Subject: [PATCH] fix(dmsquash-live): restore compatibility with earlier
+ releases
+
+Follow-up to 40dd5c90e0efcb9ebaa9abb42a38c7316e9706bd .
+---
+ modules.d/90dmsquash-live/dmsquash-live-root.sh | 4 ++++
+ 1 file changed, 4 insertions(+)
+
+diff --git a/modules.d/90dmsquash-live/dmsquash-live-root.sh b/modules.d/90dmsquash-live/dmsquash-live-root.sh
+index 62d1b5e7c..a98e258c2 100755
+--- a/modules.d/90dmsquash-live/dmsquash-live-root.sh
++++ b/modules.d/90dmsquash-live/dmsquash-live-root.sh
+@@ -403,6 +403,10 @@ fi
+ 
+ ROOTFLAGS="$(getarg rootflags)"
+ 
++if [ "$overlayfs" = required ]; then
++    echo "rd.live.overlay.overlayfs=1" > /etc/cmdline.d/dmsquash-need-overlay.conf
++fi
++
+ if [ -n "$overlayfs" ]; then
+     if [ -n "$FSIMG" ]; then
+         mkdir -m 0755 -p /run/rootfsbase
diff --git a/dracut.spec b/dracut.spec
index c3c2e6b..32954d8 100644
--- a/dracut.spec
+++ b/dracut.spec
@@ -7,7 +7,7 @@
 %global __requires_exclude pkg-config
 
 # rpmdev-bumpspec and releng automation compatible variable
-%global baserelease 3
+%global baserelease 4
 
 Name: dracut
 Version: 059
@@ -40,9 +40,10 @@ Patch2: 1825-Skip-creating-initrd-when-initrd-is-provided.patch
 # https://github.com/dracutdevs/dracut/pull/2218
 Patch3: 2218-add-module-driver-support-for-macbook-keyboards.patch
 
-# Revert PR#1934
-# https://bugzilla.redhat.com/show_bug.cgi?id=2172269#c3
-Patch4: 1934-revert-add-overlayfs-module.patch
+# fix(dmsquash-live): restore compatibility with earlier releases
+# https://github.com/dracutdevs/dracut/pull/2233/
+# https://bugzilla.redhat.com/show_bug.cgi?id=2172269
+Patch4: 2233-dmsquash-live-restore-compatibility.patch
 
 # Fix: dracut --kmoddir fails on paths with traling /
 # https://bugzilla.redhat.com/show_bug.cgi?id=2173100
@@ -332,6 +333,7 @@ echo 'dracut_rescue_image="yes"' > $RPM_BUILD_ROOT%{dracutlibdir}/dracut.conf.d/
 %{dracutlibdir}/modules.d/90mdraid
 %{dracutlibdir}/modules.d/90multipath
 %{dracutlibdir}/modules.d/90nvdimm
+%{dracutlibdir}/modules.d/90overlayfs
 %{dracutlibdir}/modules.d/90ppcmac
 %{dracutlibdir}/modules.d/90qemu
 %{dracutlibdir}/modules.d/91crypt-gpg
@@ -453,6 +455,10 @@ echo 'dracut_rescue_image="yes"' > $RPM_BUILD_ROOT%{dracutlibdir}/dracut.conf.d/
 %{_prefix}/lib/kernel/install.d/51-dracut-rescue.install
 
 %changelog
+* Thu Mar 09 2023 Pavel Valena <pvalena@redhat.com> - 059-4
+- fix(dmsquash-live): restore compatibility with earlier releases
+- Re-add overlayfs module (drop patch 1934)
+
 * Fri Feb 24 2023 Pavel Valena <pvalena@redhat.com> - 059-3
 - fix(dracut.sh): handle --kmoddir with trailing /