diff --git a/kiwi/builder/live.py b/kiwi/builder/live.py
index 7f09082b..20adc239 100644
--- a/kiwi/builder/live.py
+++ b/kiwi/builder/live.py
@@ -189,6 +189,8 @@ class LiveImageBuilder:
             working_directory=self.root_dir
         )
 
+        self.system_setup.setup_selinux_file_contexts()
+
         # prepare dracut initrd call
         self.boot_image.prepare()
 
@@ -251,6 +253,9 @@ class LiveImageBuilder:
             'mount_options': self.xml_state.get_fs_mount_option_list(),
             'create_options': self.xml_state.get_fs_create_option_list()
         }
+
+        self.system_setup.setup_selinux_file_contexts()
+
         filesystem_setup = FileSystemSetup(
             self.xml_state, self.root_dir
         )
diff --git a/test/unit/builder/live_test.py b/test/unit/builder/live_test.py
index 4773f735..c661caed 100644
--- a/test/unit/builder/live_test.py
+++ b/test/unit/builder/live_test.py
@@ -227,6 +227,10 @@ class TestLiveImageBuilder:
 
         self.setup.import_cdroot_files.assert_called_once_with('temp_media_dir')
 
+        assert self.setup.setup_selinux_file_contexts.call_args_list == [
+            call(), call()
+        ]
+
         assert kiwi.builder.live.FileSystem.new.call_args_list == [
             call(
                 device_provider=self.loop, name='ext4',