diff -Nru dracut-049.orig/modules.d/99squash-live/module-setup.sh dracut-049/modules.d/99squash-live/module-setup.sh
--- dracut-049.orig/modules.d/99squash-live/module-setup.sh	2019-01-12 15:30:47.223331178 +0100
+++ dracut-049/modules.d/99squash-live/module-setup.sh	2019-01-12 17:07:25.742047276 +0100
@@ -25,6 +25,7 @@
     inst_hook pre-pivot 20 "$moddir/apply-live-updates.sh"
     inst_script "$moddir/squash-live-root.sh" "/sbin/squash-live-root"
     inst_script "$moddir/iso-scan.sh" "/sbin/iso-scan"
+    inst_script "$moddir/squash-generator.sh" $systemdutildir/system-generators/dracut-squash-generator
     # should probably just be generally included
     inst_rules 60-cdrom_id.rules
     inst_simple "$moddir/checkisomd5@.service" "/etc/systemd/system/checkisomd5@.service"
diff -Nru dracut-049.orig/modules.d/99squash-live/parse-squash-live.sh dracut-049/modules.d/99squash-live/parse-squash-live.sh
--- dracut-049.orig/modules.d/99squash-live/parse-squash-live.sh	2019-01-12 15:30:47.223331178 +0100
+++ dracut-049/modules.d/99squash-live/parse-squash-live.sh	2019-01-12 18:52:41.335714197 +0100
@@ -15,7 +15,7 @@
     liveroot=$root
 fi
 
-[ "${liveroot%%:*}" = "live" ] || return
+[ "${liveroot%%:*}" = "live" ] || return 1
 
 modprobe -q loop
 
@@ -51,7 +51,13 @@
     live:/*.[Ii][Mm][Gg]|/*.[Ii][Mm][Gg])
         [ -f "${root#live:}" ] && rootok=1 ;;
 esac
+[ "$rootok" = "1" ] || return 1
+
 info "root was $liveroot, is now $root"
 
 # make sure that init doesn't complain
 [ -z "$root" ] && root="live"
+
+wait_for_dev -n /dev/root
+
+return 0
diff -Nru dracut-049.orig/modules.d/99squash-live/squash-generator.sh dracut-049/modules.d/99squash-live/squash-generator.sh
--- dracut-049.orig/modules.d/99squash-live/squash-generator.sh	1970-01-01 01:00:00.000000000 +0100
+++ dracut-049/modules.d/99squash-live/squash-generator.sh	2019-01-12 17:08:06.813220403 +0100
@@ -0,0 +1,89 @@
+#!/bin/sh
+
+type getarg >/dev/null 2>&1 || . /lib/dracut-lib.sh
+
+[ -z "$root" ] && root=$(getarg root=)
+
+# support legacy syntax of passing liveimg and then just the base root
+if getargbool 0 rd.live.image -d -y liveimg; then
+    liveroot="live:$root"
+fi
+
+if [ "${root%%:*}" = "live" ] ; then
+    liveroot=$root
+fi
+
+[ "${liveroot%%:*}" = "live" ] || exit 0
+
+case "$liveroot" in
+    live:LABEL=*|LABEL=*) \
+        root="${root#live:}"
+        root="${root//\//\\x2f}"
+        root="live:/dev/disk/by-label/${root#LABEL=}"
+        rootok=1 ;;
+    live:CDLABEL=*|CDLABEL=*) \
+        root="${root#live:}"
+        root="${root//\//\\x2f}"
+        root="live:/dev/disk/by-label/${root#CDLABEL=}"
+        rootok=1 ;;
+    live:UUID=*|UUID=*) \
+        root="${root#live:}"
+        root="live:/dev/disk/by-uuid/${root#UUID=}"
+        rootok=1 ;;
+    live:PARTUUID=*|PARTUUID=*) \
+        root="${root#live:}"
+        root="live:/dev/disk/by-partuuid/${root#PARTUUID=}"
+        rootok=1 ;;
+    live:PARTLABEL=*|PARTLABEL=*) \
+        root="${root#live:}"
+        root="live:/dev/disk/by-partlabel/${root#PARTLABEL=}"
+        rootok=1 ;;
+    live:/*.[Ii][Ss][Oo]|/*.[Ii][Ss][Oo])
+        root="${root#live:}"
+        root="liveiso:${root}"
+        rootok=1 ;;
+    live:/dev/*)
+        rootok=1 ;;
+    live:/*.[Ii][Mm][Gg]|/*.[Ii][Mm][Gg])
+        [ -f "${root#live:}" ] && rootok=1 ;;
+esac
+
+[ "$rootok" != "1" ] && exit 0
+
+GENERATOR_DIR="$2"
+[ -z "$GENERATOR_DIR" ] && exit 1
+[ -d "$GENERATOR_DIR" ] || mkdir "$GENERATOR_DIR"
+
+getargbool 0 rd.live.overlay.readonly -d -y readonly_overlay && readonly_overlay="--readonly" || readonly_overlay=""
+getargbool 0 rd.live.overlay.overlayfs && overlayfs="yes"
+[ -e /xor_overlayfs ] && xor_overlayfs="yes"
+[ -e /xor_readonly ] && xor_readonly="--readonly"
+ROOTFLAGS="$(getarg rootflags)"
+{
+    echo "[Unit]"
+    echo "Before=initrd-root-fs.target"
+    echo "[Mount]"
+    echo "Where=/sysroot"
+    if [ "$overlayfs$xor_overlayfs" = "yes" ]; then
+        echo "What=LiveOS_rootfs"
+        if [ "$readonly_overlay$xor_readonly" = "--readonly" ]; then
+            ovlfs=lowerdir=/run/overlayfs-r:/run/rootfsbase
+        else
+            ovlfs=lowerdir=/run/rootfsbase
+        fi
+        echo "Options=${ROOTFLAGS},${ovlfs},upperdir=/run/overlayfs,workdir=/run/ovlwork"
+        echo "Type=overlay"
+        _dev=LiveOS_rootfs
+    else
+        echo "What=/dev/mapper/live-rw"
+        [ -n "$ROOTFLAGS" ] && echo "Options=${ROOTFLAGS}"
+        _dev=$'dev-mapper-live\\x2drw'
+    fi
+} > "$GENERATOR_DIR"/sysroot.mount
+
+mkdir -p "$GENERATOR_DIR/$_dev.device.d"
+{
+    echo "[Unit]"
+    echo "JobTimeoutSec=3000"
+    echo "JobRunningTimeoutSec=3000"
+} > "$GENERATOR_DIR/$_dev.device.d/timeout.conf"
diff -Nru dracut-049.orig/modules.d/99squash-live/squash-live-genrules.sh dracut-049/modules.d/99squash-live/squash-live-genrules.sh
--- dracut-049.orig/modules.d/99squash-live/squash-live-genrules.sh	2019-01-12 15:30:47.223331178 +0100
+++ dracut-049/modules.d/99squash-live/squash-live-genrules.sh	2019-01-12 18:57:20.519965163 +0100
@@ -1,16 +1,18 @@
 #!/bin/sh
-if [ "${root%%:*}" = "live" ]; then
+
+case "$root" in
+  live:/dev/*)
     {
-    printf 'KERNEL=="%s", SYMLINK+="live"\n' \
-    	${root#live:/dev/} 
-    printf 'SYMLINK=="%s", SYMLINK+="live"\n' \
-	${root#live:/dev/} 
-    } >> /etc/udev/rules.d/99-live-mount.rules
-    {
-    printf 'KERNEL=="%s", RUN+="/sbin/initqueue --settled --onetime --unique /sbin/squash-live-root $env{DEVNAME}"\n' \
-    	${root#live:/dev/} 
-    printf 'SYMLINK=="%s", RUN+="/sbin/initqueue --settled --onetime --unique /sbin/squash-live-root $env{DEVNAME}"\n' \
-	${root#live:/dev/} 
+        printf 'KERNEL=="%s", RUN+="/sbin/initqueue --settled --onetime --unique /sbin/squash-live-root %s"\n' \
+            "${root#live:/dev/}" "${root#live:}"
+        printf 'SYMLINK=="%s", RUN+="/sbin/initqueue --settled --onetime --unique /sbin/squash-live-root %s"\n' \
+            "${root#live:/dev/}" "${root#live:}"
     } >> /etc/udev/rules.d/99-live-squash.rules
-    echo '[ -e /dev/root ]' > $hookdir/initqueue/finished/squash.sh
-fi
+    wait_for_dev -n "${root#live:}"
+  ;;
+  live:*)
+    if [ -f "${root#live:}" ]; then
+        /sbin/initqueue --settled --onetime --unique /sbin/squash-live-root "${root#live:}"
+    fi
+  ;;
+esac