diff --git a/0032-revert-dracut-init.sh-add-module-to-mods_to_load-bef.patch b/0032-revert-dracut-init.sh-add-module-to-mods_to_load-bef.patch
new file mode 100644
index 0000000..16ced21
--- /dev/null
+++ b/0032-revert-dracut-init.sh-add-module-to-mods_to_load-bef.patch
@@ -0,0 +1,73 @@
+From 7a580a481f8b2d2df60a5e7b9da5c4a11ed9ecbf Mon Sep 17 00:00:00 2001
+From: Philipp Rudo <prudo@redhat.com>
+Date: Mon, 26 Aug 2024 15:58:54 +0200
+Subject: [PATCH 32/35] revert(dracut-init.sh): add module to mods_to_load
+ before checking dependencies
+
+Commit d0f8fde5 ("fix(dracut-init.sh): add module to mods_to_load before
+checking dependencies") introduced a regression. When dracut is in
+"auto" mode, i.e. '--modules auto' or no --modules is provided, the
+expected behavior is that all modules that return 0 in their check()
+function are included. Except for the ones where the dependencies cannot
+be installed. The commit however, caused those modules to be included
+without their dependencies. Thus revert the commit.
+
+This reverts commit d0f8fde5668cfd7fda1d15824e268b4949b4fd04.
+
+Reported-by: Jo Zzsi <jozzsicsataban@gmail.com>
+Signed-off-by: Philipp Rudo <prudo@redhat.com>
+
+(cherry picked from commit bddbb11bbbfc405317a6fbd53bb189b575d46da2)
+
+Resolves: RHEL-43460
+---
+ dracut-init.sh | 12 ++++++------
+ 1 file changed, 6 insertions(+), 6 deletions(-)
+
+diff --git a/dracut-init.sh b/dracut-init.sh
+index 5d5fc081..756a0a75 100755
+--- a/dracut-init.sh
++++ b/dracut-init.sh
+@@ -915,9 +915,6 @@ check_mount() {
+         fi
+     fi
+ 
+-    [[ " $mods_to_load " == *\ $_mod\ * ]] \
+-        || mods_to_load+=" $_mod "
+-
+     for _moddep in $(module_depends "$_mod" "$_moddir"); do
+         # handle deps as if they were manually added
+         [[ " $dracutmodules " == *\ $_mod\ * ]] \
+@@ -936,6 +933,9 @@ check_mount() {
+         fi
+     done
+ 
++    [[ " $mods_to_load " == *\ $_mod\ * ]] \
++        || mods_to_load+=" $_mod "
++
+     return 0
+ }
+ 
+@@ -992,9 +992,6 @@ check_module() {
+         fi
+     fi
+ 
+-    [[ " $mods_to_load " == *\ $_mod\ * ]] \
+-        || mods_to_load+=" $_mod "
+-
+     for _moddep in $(module_depends "$_mod" "$_moddir"); do
+         # handle deps as if they were manually added
+         [[ " $dracutmodules " == *\ $_mod\ * ]] \
+@@ -1013,6 +1010,9 @@ check_module() {
+         fi
+     done
+ 
++    [[ " $mods_to_load " == *\ $_mod\ * ]] \
++        || mods_to_load+=" $_mod "
++
+     return 0
+ }
+ 
+-- 
+2.42.0
+
diff --git a/0033-fix-squash-remove-cyclic-dependency.patch b/0033-fix-squash-remove-cyclic-dependency.patch
new file mode 100644
index 0000000..8ee18e9
--- /dev/null
+++ b/0033-fix-squash-remove-cyclic-dependency.patch
@@ -0,0 +1,313 @@
+From 7e1598536003caf9c6b68e9a4eaf3cef8bfcfeb9 Mon Sep 17 00:00:00 2001
+From: Philipp Rudo <prudo@redhat.com>
+Date: Mon, 26 Aug 2024 15:23:41 +0200
+Subject: [PATCH 33/35] fix(squash): remove cyclic dependency
+
+With commit d0f8fde5 ("fix(dracut-init.sh): add module to mods_to_load
+before checking dependencies") reverted 99squash can no longer rely on
+dracut_module_included working as expected in its check() and depends()
+function. Solve this problem by breaking up the cyclic dependency
+between 99squash and 95squash-{squashfs,erofs} as the commit was
+originally introduced to allow this cyclic dependency.
+
+This requires to move all code shared by 95squash-{squashfs,erofs} from
+99squash to a new 99squash-lib module and update the dependencies
+accordingly. In addition update the checks in dracut.sh to check for
+99squash-lib as 99squash is no longer guaranteed to be included.
+Finally make sure that 99squash-lib isn't included without a back
+end.
+
+While at it improve and align the error messages in 99squash and
+99squash-lib.
+
+Signed-off-by: Philipp Rudo <prudo@redhat.com>
+(cherry picked from commit d5783635950e38cccf334e7163db79f280650fa2)
+
+Resolves: RHEL-43460
+---
+ dracut.sh                                     |   6 +-
+ modules.d/95squash-erofs/module-setup.sh      |   2 +-
+ modules.d/95squash-squashfs/module-setup.sh   |   2 +-
+ .../{99squash => 99squash-lib}/init-squash.sh |   0
+ modules.d/99squash-lib/module-setup.sh        | 101 ++++++++++++++++++
+ modules.d/99squash/module-setup.sh            |  80 +-------------
+ 6 files changed, 110 insertions(+), 81 deletions(-)
+ rename modules.d/{99squash => 99squash-lib}/init-squash.sh (100%)
+ create mode 100755 modules.d/99squash-lib/module-setup.sh
+
+diff --git a/dracut.sh b/dracut.sh
+index 68bdf33b..71568fe0 100755
+--- a/dracut.sh
++++ b/dracut.sh
+@@ -1911,7 +1911,7 @@ if [[ $kernel_only != yes ]]; then
+     fi
+ fi
+ 
+-dracut_module_included "squash" && mkdir -p "$squashdir"
++dracut_module_included "squash-lib" && mkdir -p "$squashdir"
+ 
+ _isize=0 #initramfs size
+ modules_loaded=" "
+@@ -2276,9 +2276,9 @@ if [[ $do_strip == yes ]] && ! [[ $DRACUT_FIPS_MODE ]]; then
+     dinfo "*** Stripping files done ***"
+ fi
+ 
+-if dracut_module_included "squash"; then
++if dracut_module_included "squash-lib"; then
+     dinfo "*** Squashing the files inside the initramfs ***"
+-    DRACUT_SQUASH_POST_INST=1 module_install "squash"
++    DRACUT_SQUASH_POST_INST=1 module_install "squash-lib"
+     rm -rf "$squashdir"
+     dinfo "*** Squashing the files inside the initramfs done ***"
+ 
+diff --git a/modules.d/95squash-erofs/module-setup.sh b/modules.d/95squash-erofs/module-setup.sh
+index d763a902..a6e7ad0b 100755
+--- a/modules.d/95squash-erofs/module-setup.sh
++++ b/modules.d/95squash-erofs/module-setup.sh
+@@ -8,7 +8,7 @@ check() {
+ }
+ 
+ depends() {
+-    echo "squash"
++    echo "squash-lib"
+     return 0
+ }
+ 
+diff --git a/modules.d/95squash-squashfs/module-setup.sh b/modules.d/95squash-squashfs/module-setup.sh
+index 83973700..d15586da 100755
+--- a/modules.d/95squash-squashfs/module-setup.sh
++++ b/modules.d/95squash-squashfs/module-setup.sh
+@@ -8,7 +8,7 @@ check() {
+ }
+ 
+ depends() {
+-    echo "squash"
++    echo "squash-lib"
+     return 0
+ }
+ 
+diff --git a/modules.d/99squash/init-squash.sh b/modules.d/99squash-lib/init-squash.sh
+similarity index 100%
+rename from modules.d/99squash/init-squash.sh
+rename to modules.d/99squash-lib/init-squash.sh
+diff --git a/modules.d/99squash-lib/module-setup.sh b/modules.d/99squash-lib/module-setup.sh
+new file mode 100755
+index 00000000..6a0b6f85
+--- /dev/null
++++ b/modules.d/99squash-lib/module-setup.sh
+@@ -0,0 +1,101 @@
++#!/bin/bash
++
++check() {
++    require_kernel_modules loop overlay || return 1
++
++    return 255
++}
++
++depends() {
++    echo "systemd-initrd"
++
++    return 0
++}
++
++squash_get_handler() {
++    local _module _handler
++    local -a _modules=(squash-squashfs squash-erofs)
++
++    for _module in "${_modules[@]}"; do
++        if dracut_module_included "$_module"; then
++            _handler="$_module"
++            break
++        fi
++    done
++
++    if [[ -z $_handler ]]; then
++        dfatal "Cannot include squash-lib directly. It requires one of: ${_modules[*]}"
++        return 1
++    fi
++
++    echo "$_handler"
++}
++
++squash_install() {
++    local _busybox _dir
++
++    # verify that there is a valid handler before doing anything
++    squash_get_handler > /dev/null || return 1
++
++    _busybox=$(find_binary busybox)
++
++    # Create mount points for squash loader and basic directories
++    mkdir -p "$initdir"/squash
++    for _dir in squash usr/bin usr/sbin usr/lib; do
++        mkdir -p "$squashdir/$_dir"
++        [[ $_dir == usr/* ]] && ln_r "/$_dir" "${_dir#usr}"
++    done
++
++    # Install required modules and binaries for the squash image init script.
++    if [[ $_busybox ]]; then
++        module_install "busybox"
++    else
++        DRACUT_RESOLVE_DEPS=1 inst_multiple sh mount modprobe mkdir switch_root grep umount
++
++        # libpthread workaround: pthread_cancel wants to dlopen libgcc_s.so
++        inst_libdir_file -o "libgcc_s.so*"
++
++        # FIPS workaround for Fedora/RHEL: libcrypto needs libssl when FIPS is enabled
++        [[ $DRACUT_FIPS_MODE ]] && inst_libdir_file -o "libssl.so*"
++    fi
++
++    hostonly="" instmods "loop" "overlay"
++    dracut_kernel_post
++
++    # Install squash image init script.
++    inst_simple "$moddir"/init-squash.sh /init
++
++    # make sure that library links are correct and up to date for squash loader
++    build_ld_cache
++}
++
++squash_installpost() {
++    local _file _handler
++
++    _handler=$(squash_get_handler)
++    [[ -n $_handler ]] || return 1
++
++    DRACUT_SQUASH_POST_INST=1 module_install "$_handler"
++
++    # Rescue the dracut spec files so dracut rebuild and lsinitrd can work
++    for _file in "$initdir"/usr/lib/dracut/*; do
++        [[ -f $_file ]] || continue
++        DRACUT_RESOLVE_DEPS=1 dstdir=$squashdir inst "$_file" "${_file#"$initdir"}"
++    done
++
++    # Remove everything that got squashed into the image
++    for _file in "$initdir"/*; do
++        [[ $_file == "$squashdir" ]] && continue
++        rm -rf "$_file"
++    done
++    mv "$squashdir"/* "$initdir"
++}
++
++install() {
++
++    if [[ $DRACUT_SQUASH_POST_INST ]]; then
++        squash_installpost
++    else
++        dstdir="$squashdir" squash_install
++    fi
++}
+diff --git a/modules.d/99squash/module-setup.sh b/modules.d/99squash/module-setup.sh
+index 56f70774..c48ba2c5 100755
+--- a/modules.d/99squash/module-setup.sh
++++ b/modules.d/99squash/module-setup.sh
+@@ -1,102 +1,30 @@
+ #!/bin/bash
+ 
+ check() {
+-    require_kernel_modules loop overlay || return 1
+-
+     return 255
+ }
+ 
+ depends() {
+-    local _handler
+-
+-    _handler=$(squash_get_handler) || return 1
+-
+-    echo "systemd-initrd $_handler"
+-    return 0
+-}
+-
+-squash_get_handler() {
+     local _module _handler
++    local -a _modules=(squash-squashfs squash-erofs)
+ 
+-    for _module in squash-squashfs squash-erofs; do
++    for _module in "${_modules[@]}"; do
+         if dracut_module_included "$_module"; then
+             _handler="$_module"
+             break
+         fi
+     done
+ 
+-    if [ -z "$_handler" ]; then
++    if [[ -z $_handler ]]; then
+         if check_module "squash-squashfs"; then
+             _handler="squash-squashfs"
+         elif check_module "squash-erofs"; then
+             _handler="squash-erofs"
+         else
+-            dfatal "No valid handler for found"
++            dfatal "Cannot find valid handler for squash. It requires one of: ${_modules[*]}"
+             return 1
+         fi
+     fi
+ 
+     echo "$_handler"
+ }
+-
+-squash_install() {
+-    local _busybox _dir
+-    _busybox=$(find_binary busybox)
+-
+-    # Create mount points for squash loader and basic directories
+-    mkdir -p "$initdir"/squash
+-    for _dir in squash usr/bin usr/sbin usr/lib; do
+-        mkdir -p "$squashdir/$_dir"
+-        [[ $_dir == usr/* ]] && ln_r "/$_dir" "${_dir#usr}"
+-    done
+-
+-    # Install required modules and binaries for the squash image init script.
+-    if [[ $_busybox ]]; then
+-        module_install "busybox"
+-    else
+-        DRACUT_RESOLVE_DEPS=1 inst_multiple sh mount modprobe mkdir switch_root grep umount
+-
+-        # libpthread workaround: pthread_cancel wants to dlopen libgcc_s.so
+-        inst_libdir_file -o "libgcc_s.so*"
+-
+-        # FIPS workaround for Fedora/RHEL: libcrypto needs libssl when FIPS is enabled
+-        [[ $DRACUT_FIPS_MODE ]] && inst_libdir_file -o "libssl.so*"
+-    fi
+-
+-    hostonly="" instmods "loop" "overlay"
+-    dracut_kernel_post
+-
+-    # Install squash image init script.
+-    inst_simple "$moddir"/init-squash.sh /init
+-
+-    # make sure that library links are correct and up to date for squash loader
+-    build_ld_cache
+-}
+-
+-squash_installpost() {
+-    local _file
+-
+-    DRACUT_SQUASH_POST_INST=1 module_install "$(squash_get_handler)"
+-
+-    # Rescue the dracut spec files so dracut rebuild and lsinitrd can work
+-    for _file in "$initdir"/usr/lib/dracut/*; do
+-        [[ -f $_file ]] || continue
+-        DRACUT_RESOLVE_DEPS=1 dstdir=$squashdir inst "$_file" "${_file#"$initdir"}"
+-    done
+-
+-    # Remove everything that got squashed into the image
+-    for _file in "$initdir"/*; do
+-        [[ $_file == "$squashdir" ]] && continue
+-        rm -rf "$_file"
+-    done
+-    mv "$squashdir"/* "$initdir"
+-}
+-
+-install() {
+-
+-    if [[ $DRACUT_SQUASH_POST_INST ]]; then
+-        squash_installpost
+-    else
+-        dstdir="$squashdir" squash_install
+-    fi
+-}
+-- 
+2.42.0
+
diff --git a/0034-fix-dracut.sh-exit-when-installing-the-squash-loader.patch b/0034-fix-dracut.sh-exit-when-installing-the-squash-loader.patch
new file mode 100644
index 0000000..6b6a3e6
--- /dev/null
+++ b/0034-fix-dracut.sh-exit-when-installing-the-squash-loader.patch
@@ -0,0 +1,38 @@
+From 8fe64408bd8349e28b7257f93880527a93c63fa2 Mon Sep 17 00:00:00 2001
+From: Philipp Rudo <prudo@redhat.com>
+Date: Tue, 27 Aug 2024 12:14:40 +0200
+Subject: [PATCH 34/35] fix(dracut.sh): exit when installing the squash loader
+ fails
+
+The postinstall phase in 99squash-lib can fail, e.g. when 99squash-lib
+is added without one of the required back ends. Usually this isn't fatal
+and simply results in a "normal" initrd, i.e. one without squashed
+image, being created. Nevertheless, a user needs to explicitly add one
+of the required modules for the code to be triggered.  So it is better
+to fail with an error rather than giving the user something he didn't
+ask for.
+
+Signed-off-by: Philipp Rudo <prudo@redhat.com>
+(cherry picked from commit 8909d892a7a055ae95be45416e6fbf1b833ff426)
+
+Resolves: RHEL-43460
+---
+ dracut.sh | 2 +-
+ 1 file changed, 1 insertion(+), 1 deletion(-)
+
+diff --git a/dracut.sh b/dracut.sh
+index 71568fe0..3d73fe43 100755
+--- a/dracut.sh
++++ b/dracut.sh
+@@ -2278,7 +2278,7 @@ fi
+ 
+ if dracut_module_included "squash-lib"; then
+     dinfo "*** Squashing the files inside the initramfs ***"
+-    DRACUT_SQUASH_POST_INST=1 module_install "squash-lib"
++    DRACUT_SQUASH_POST_INST=1 module_install "squash-lib" || exit 1
+     rm -rf "$squashdir"
+     dinfo "*** Squashing the files inside the initramfs done ***"
+ 
+-- 
+2.42.0
+
diff --git a/0035-fix-squash-lib-harden-against-empty-initdir.patch b/0035-fix-squash-lib-harden-against-empty-initdir.patch
new file mode 100644
index 0000000..5d36886
--- /dev/null
+++ b/0035-fix-squash-lib-harden-against-empty-initdir.patch
@@ -0,0 +1,40 @@
+From 85235ab58df8343a1a0314333b360648a5d0f452 Mon Sep 17 00:00:00 2001
+From: Philipp Rudo <prudo@redhat.com>
+Date: Mon, 26 Aug 2024 15:29:01 +0200
+Subject: [PATCH 35/35] fix(squash-lib): harden against empty $initdir
+
+The postinstall phase of 99squash-lib has the potential to delete the
+whole rootfs if $initdir is empty. This should(tm) never happen.
+Nevertheless as the consequences are so devastating it is better to
+double check.
+
+Signed-off-by: Philipp Rudo <prudo@redhat.com>
+(cherry picked from commit 6b089c70761c81a7b82a1bfba5f2c1faef7e972f)
+
+Resolves: RHEL-43460
+---
+ modules.d/99squash-lib/module-setup.sh | 8 ++++++++
+ 1 file changed, 8 insertions(+)
+
+diff --git a/modules.d/99squash-lib/module-setup.sh b/modules.d/99squash-lib/module-setup.sh
+index 6a0b6f85..be3d3dc0 100755
+--- a/modules.d/99squash-lib/module-setup.sh
++++ b/modules.d/99squash-lib/module-setup.sh
+@@ -72,6 +72,14 @@ squash_install() {
+ squash_installpost() {
+     local _file _handler
+ 
++    # this shouldn't happen but...
++    # ...better safe than deleting your rootfs
++    if [[ -z $initdir ]]; then
++        #shellcheck disable=SC2016
++        dfatal '$initdir not set. Something went terribly wrong.'
++        exit 1
++    fi
++
+     _handler=$(squash_get_handler)
+     [[ -n $_handler ]] || return 1
+ 
+-- 
+2.42.0
+
diff --git a/dracut.spec b/dracut.spec
index 33f33db..13d4502 100644
--- a/dracut.spec
+++ b/dracut.spec
@@ -8,7 +8,7 @@
 
 Name: dracut
 Version: 102
-Release: 2%{?dist}
+Release: 3%{?dist}
 
 Summary: Initramfs generator using udev
 
@@ -115,6 +115,18 @@ Patch30: 0030-fix-nfs-include-also-entries-from-usr-lib-passwd-gro.patch
 # fix(dracut-functions): avoid awk in get_maj_min()
 # Author: Daniel McIlvaney <damcilva@microsoft.com>
 Patch31: 0031-fix-dracut-functions-avoid-awk-in-get_maj_min.patch
+# revert(dracut-init.sh): add module to mods_to_load before checking dependencies
+# Author: Philipp Rudo <prudo@redhat.com>
+Patch32: 0032-revert-dracut-init.sh-add-module-to-mods_to_load-bef.patch
+# fix(squash): remove cyclic dependency
+# Author: Philipp Rudo <prudo@redhat.com>
+Patch33: 0033-fix-squash-remove-cyclic-dependency.patch
+# fix(dracut.sh): exit when installing the squash loader fails
+# Author: Philipp Rudo <prudo@redhat.com>
+Patch34: 0034-fix-dracut.sh-exit-when-installing-the-squash-loader.patch
+# fix(squash-lib): harden against empty $initdir
+# Author: Philipp Rudo <prudo@redhat.com>
+Patch35: 0035-fix-squash-lib-harden-against-empty-initdir.patch
 
 # Please use source-git to work with this spec file:
 # HowTo: https://packit.dev/source-git/work-with-source-git
@@ -511,6 +523,7 @@ echo 'dracut_rescue_image="yes"' > $RPM_BUILD_ROOT%{dracutlibdir}/dracut.conf.d/
 
 %files squash
 %{dracutlibdir}/modules.d/99squash
+%{dracutlibdir}/modules.d/99squash-lib
 %{dracutlibdir}/modules.d/95squash-erofs
 %{dracutlibdir}/modules.d/95squash-squashfs
 
@@ -522,6 +535,13 @@ echo 'dracut_rescue_image="yes"' > $RPM_BUILD_ROOT%{dracutlibdir}/dracut.conf.d/
 %{_prefix}/lib/kernel/install.d/51-dracut-rescue.install
 
 %changelog
+* Wed Aug 28 2024 Pavel Valena <pvalena@redhat.com> - 102-3
+- revert(dracut-init.sh): add module to mods_to_load before checking dependencies
+- fix(squash): remove cyclic dependency
+- fix(dracut.sh): exit when installing the squash loader fails
+- fix(squash-lib): harden against empty $initdir
+  Resolves: RHEL-43460
+
 * Mon Aug 19 2024 Pavel Valena <pvalena@redhat.com> - 102-2
 - fix(nfs): set correct ownership and permissions for statd directory
 - fix(resume): do not include resume if swap is on netdevice