diff --git a/.gitignore b/.gitignore
index 2f6361c..c49da20 100644
--- a/.gitignore
+++ b/.gitignore
@@ -1,3 +1,4 @@
 /dnsconfd-1.0.2.tar.gz
 /dnsconfd-1.1.2.tar.gz
 /dnsconfd-1.2.0.tar.gz
+/dnsconfd-1.7.0.tar.gz
diff --git a/dnsconfd.spec b/dnsconfd.spec
index 709dd02..d34b691 100644
--- a/dnsconfd.spec
+++ b/dnsconfd.spec
@@ -2,16 +2,14 @@
 %global selinuxtype targeted
 
 Name:           dnsconfd
-Version:        1.2.0
-Release:        2%{?dist}
+Version:        1.7.0
+Release:        1%{?dist}
 Summary:        Local DNS cache configuration daemon
 License:        MIT
 URL:            https://github.com/InfrastructureServices/dnsconfd
 Source0:        %{url}/archive/%{version}/%{name}-%{version}.tar.gz
 Source1:        dnsconfd.sysusers
 
-BuildArch:      noarch
-
 BuildRequires:  python3-devel
 BuildRequires:  python3-setuptools
 BuildRequires:  python3-setuptools
@@ -24,8 +22,11 @@ BuildRequires:  systemd-rpm-macros
 Requires:  (%{name}-selinux if selinux-policy-%{selinuxtype})
 Requires:  python3-gobject-base
 Requires:  python3-pyyaml
+Requires:  python3-systemd
+Recommends: python3-idna
 Requires:  dbus-common
 Requires:  %{name}-cache
+Requires:  polkit
 Suggests:  %{name}-unbound
 
 %?python_enable_dependency_generator
@@ -46,6 +47,27 @@ BuildRequires:       selinux-policy-devel
 %description selinux
 Dnsconfd SELinux policy module.
 
+%package micro
+Summary:  Minimized native implementation of Dnsconfd
+Requires:  %{name} = %{version}-%{release}
+Requires:  (%{name}-selinux if selinux-policy-%{selinuxtype})
+Suggests:  %{name}-unbound = %{version}-%{release}
+BuildRequires: pkgconfig(glib-2.0)
+BuildRequires: pkgconfig(gio-2.0)
+BuildRequires: pkgconfig(libcurl)
+BuildRequires: pkgconfig(check)
+BuildRequires: pkgconfig(libsystemd)
+BuildRequires: gcc
+BuildRequires: cmake
+Requires: glib2
+Requires: libcurl
+Requires: systemd-libs
+Requires: unbound-dracut
+
+%description micro
+Minimized native implementation of Dnsconfd. Able to configure
+Unbound according to NetworkManager global configuration.
+
 %package unbound
 Summary:             dnsconfd unbound module
 BuildArch:           noarch
@@ -56,6 +78,16 @@ Provides:            %{name}-cache = %{version}-%{release}
 %description unbound
 Dnsconfd management of unbound server
 
+%package dracut
+Summary:            dnsconfd dracut module
+Requires:           %{name}-micro%{?_isa} = %{version}-%{release}
+Requires:           unbound
+Requires:           dracut
+Requires:           dracut-network
+
+%description dracut
+Dnsconfd dracut module
+
 %prep
 %autosetup -n %{name}-%{version}
 
@@ -69,40 +101,52 @@ Dnsconfd management of unbound server
 make -f %{_datadir}/selinux/devel/Makefile %{modulename}.pp
 bzip2 -9 %{modulename}.pp
 
+### micro part
+
+pushd micro-dnsconfd
+%cmake
+%cmake_build
+popd
+
 %install
 %py3_install
 mkdir   -m 0755 -p %{buildroot}%{_datadir}/dbus-1/system.d/
+mkdir   -m 0755 -p %{buildroot}%{_datadir}/dbus-1/system-services/
 mkdir   -m 0755 -p %{buildroot}%{_sysconfdir}/unbound/conf.d/
 mkdir   -m 0755 -p %{buildroot}%{_unitdir}
 mkdir   -m 0755 -p %{buildroot}%{_unitdir}/unbound.service.d
-mkdir   -m 0755 -p %{buildroot}%{_unitdir}/unbound-anchor.service.d
 mkdir   -m 0755 -p %{buildroot}%{_sysconfdir}/sysconfig
-mkdir   -m 0755 -p %{buildroot}%{_sbindir}
 mkdir   -m 0755 -p %{buildroot}/%{_mandir}/man8
 mkdir   -m 0755 -p %{buildroot}/%{_mandir}/man5
 mkdir   -m 0755 -p %{buildroot}%{_datadir}/polkit-1/rules.d/
 mkdir   -m 0755 -p %{buildroot}%{_rundir}/dnsconfd
 mkdir   -m 0755 -p %{buildroot}%{_tmpfilesdir}
+mkdir   -m 0755 -p %{buildroot}%{_prefix}/lib/dracut/modules.d/99dnsconfd
+mkdir   -m 0755 -p %{buildroot}%{_libexecdir}
 
 install -m 0644 -p distribution/com.redhat.dnsconfd.conf %{buildroot}%{_datadir}/dbus-1/system.d/com.redhat.dnsconfd.conf
+install -m 0644 -p distribution/com.redhat.dnsconfd.service %{buildroot}%{_datadir}/dbus-1/system-services/com.redhat.dnsconfd.service
 install -m 0644 -p distribution/dnsconfd.sysconfig %{buildroot}%{_sysconfdir}/sysconfig/dnsconfd
+install -m 0644 -p distribution/micro-dnsconfd.sysconfig %{buildroot}%{_sysconfdir}/sysconfig/micro-dnsconfd
 install -m 0644 -p distribution/dnsconfd.service %{buildroot}%{_unitdir}/dnsconfd.service
+install -m 0644 -p distribution/micro-dnsconfd.service %{buildroot}%{_unitdir}/micro-dnsconfd.service
 install -m 0644 -p distribution/dnsconfd.conf %{buildroot}%{_sysconfdir}/dnsconfd.conf
 install -m 0644 -p distribution/dnsconfd.rules %{buildroot}%{_datadir}/polkit-1/rules.d/dnsconfd.rules
 install -m 0644 -p distribution/dnsconfd-tmpfiles.conf %{buildroot}%{_tmpfilesdir}/%{name}.conf
 install -m 0644 -p distribution/dnsconfd-unbound-tmpfiles.conf %{buildroot}%{_tmpfilesdir}/%{name}-unbound.conf
+install -m 0755 -p distribution/dracut_module/module-setup.sh %{buildroot}%{_prefix}/lib/dracut/modules.d/99dnsconfd
+install -m 0755 -p distribution/dnsconfd-prepare.sh %{buildroot}%{_libexecdir}/dnsconfd-prepare
+install -m 0755 -p distribution/dnsconfd-prepare.sh %{buildroot}%{_libexecdir}/dnsconfd-cleanup
+install -m 0644 -p distribution/dracut_module/*.conf %{buildroot}%{_prefix}/lib/dracut/modules.d/99dnsconfd
 
 touch %{buildroot}%{_rundir}/dnsconfd/unbound.conf
 chmod 0644 %{buildroot}%{_rundir}/dnsconfd/unbound.conf
 
 # hook to inform us about unbound stop
 install -m 0644 -p distribution/dnsconfd.service.d-unbound.conf %{buildroot}%{_unitdir}/unbound.service.d/dnsconfd.conf
-install -m 0644 -p distribution/dnsconfd.service.d-unbound-anchor.conf %{buildroot}%{_unitdir}/unbound-anchor.service.d/dnsconfd.conf
 
 install -m 0644 -p distribution/unbound-dnsconfd.conf %{buildroot}%{_sysconfdir}/unbound/conf.d/unbound.conf
 
-mv %{buildroot}%{_bindir}/dnsconfd %{buildroot}%{_sbindir}/dnsconfd
-
 install -D -m 0644 %{modulename}.pp.bz2 %{buildroot}%{_datadir}/selinux/packages/%{selinuxtype}/%{modulename}.pp.bz2
 
 install -m 0644 -p distribution/dnsconfd.8 %{buildroot}/%{_mandir}/man8/dnsconfd.8
@@ -113,6 +157,17 @@ install -m 0644 -p distribution/dnsconfd.conf.5 %{buildroot}/%{_mandir}/man5/dns
 
 install -p -D -m 0644 distribution/dnsconfd.sysusers %{buildroot}%{_sysusersdir}/dnsconfd.conf
 
+### micro part
+
+pushd micro-dnsconfd
+%cmake_install
+popd
+
+%check
+pushd micro-dnsconfd
+%ctest
+popd
+
 %pre selinux
 %selinux_relabel_pre -s %{selinuxtype}
 
@@ -144,33 +199,47 @@ fi
 
 %files
 %license LICENSE
-%{_sbindir}/dnsconfd
+%{_bindir}/dnsconfd
 %{python3_sitelib}/dnsconfd/
 %{python3_sitelib}/dnsconfd-%{version}*
 %{_datadir}/dbus-1/system.d/com.redhat.dnsconfd.conf
+%{_datadir}/dbus-1/system-services/com.redhat.dnsconfd.service
 %config(noreplace) %{_sysconfdir}/sysconfig/dnsconfd
 %config(noreplace) %{_sysconfdir}/dnsconfd.conf
 %{_unitdir}/dnsconfd.service
+%{_libexecdir}/dnsconfd-prepare
+%{_libexecdir}/dnsconfd-cleanup
 %{_mandir}/man8/dnsconfd*.8*
 %{_mandir}/man5/dnsconfd.conf.5*
-%ghost %{_sysusersdir}/dnsconfd.conf
-%doc README.md
+%{_sysusersdir}/dnsconfd.conf
+%doc README.md docs/com.redhat.dnsconfd.md
 %{_datadir}/polkit-1/rules.d/dnsconfd.rules
 %dir %attr(755,dnsconfd,dnsconfd) %{_rundir}/dnsconfd
 %{_tmpfilesdir}/%{name}.conf
 
+%files micro
+%{_bindir}/micro-dnsconfd
+%{_unitdir}/micro-dnsconfd.service
+%config(noreplace) %{_sysconfdir}/sysconfig/micro-dnsconfd
+
 %files selinux
 %{_datadir}/selinux/packages/%{selinuxtype}/%{modulename}.pp.*
 %ghost %verify(not md5 size mode mtime) %{_sharedstatedir}/selinux/%{selinuxtype}/active/modules/200/%{modulename}
 
 %files unbound
 %{_unitdir}/unbound.service.d/dnsconfd.conf
-%{_unitdir}/unbound-anchor.service.d/dnsconfd.conf
 %config(noreplace) %attr(644,unbound,unbound) %{_sysconfdir}/unbound/conf.d/unbound.conf
 %attr(644,dnsconfd,dnsconfd) %{_rundir}/dnsconfd/unbound.conf
 %{_tmpfilesdir}/dnsconfd-unbound.conf
 
+%files dracut
+%{_prefix}/lib/dracut/modules.d/99dnsconfd
+
 %changelog
+* Thu Feb 13 2025 Tomas Korbar <tkorbar@redhat.com> - 1.7.0-1
+- Rebase to 1.7.0
+- Resolves: RHEL-79172
+
 * Tue Oct 29 2024 Troy Dawson <tdawson@redhat.com> - 1.2.0-2
 - Bump release for October 2024 mass rebuild:
   Resolves: RHEL-64018
diff --git a/sources b/sources
index 400789a..deda12c 100644
--- a/sources
+++ b/sources
@@ -1 +1 @@
-SHA512 (dnsconfd-1.2.0.tar.gz) = 1429260566e3972fa72774e20e6ca811ff1b78635e7c5b97c63be988daebcbe3b6fbd2c5a7a0938861e497103a571d953ae48f1e7a8333ef737c12b3171f2601
+SHA512 (dnsconfd-1.7.0.tar.gz) = 06769045f3c98f1093c35b9013f55826361861050687acc31ec06b1a9491e36390f05ce05adfb6c7cacd28d88eb741c96dd7311fc12a358999d9ca8b04de625d