diff --git a/src/kernel-install/90-loaderentry.install b/src/kernel-install/90-loaderentry.install
index 3edefdefb4..046771169c 100644
--- a/src/kernel-install/90-loaderentry.install
+++ b/src/kernel-install/90-loaderentry.install
@@ -68,7 +68,11 @@ elif [ -r /usr/lib/kernel/cmdline ]; then
 else
     BOOT_OPTIONS="$(tr -s "$IFS" '\n' </proc/cmdline | grep -ve '^BOOT_IMAGE=' -e '^initrd=' | tr '\n' ' ')"
 fi
-BOOT_OPTIONS="${BOOT_OPTIONS% }"
+
+# Suffix with the machine ID we use, so that the machine ID remains stable,
+# even during factory reset, in the initrd (where the system's machine ID is
+# not directly accessible yet), and if the root file system is volatile.
+BOOT_OPTIONS="${BOOT_OPTIONS% } systemd.machine_id=$MACHINE_ID"
 
 if [ -r /etc/kernel/tries ]; then
     read -r TRIES </etc/kernel/tries
diff --git a/src/kernel-install/kernel-install b/src/kernel-install/kernel-install
index 8cfef3208d..e94aa79bc6 100755
--- a/src/kernel-install/kernel-install
+++ b/src/kernel-install/kernel-install
@@ -89,15 +89,13 @@ elif [ -r "/usr/lib/kernel/install.conf" ]; then
     . /usr/lib/kernel/install.conf
 fi
 
-# Prefer to use an existing machine ID from /etc/machine-info or /etc/machine-id. If we're using the machine
-# ID /etc/machine-id, try to persist it in /etc/machine-info. If no machine ID is found, try to generate
-# a new machine ID in /etc/machine-info. If that fails, use "Default".
-[ -z "$MACHINE_ID" ] && [ -r /etc/machine-info ]              && . /etc/machine-info && MACHINE_ID="$KERNEL_INSTALL_MACHINE_ID"
-[ -z "$MACHINE_ID" ] && [ -r /etc/machine-id ]                && read -r MACHINE_ID </etc/machine-id
-[ -n "$MACHINE_ID" ] && [ -z "$KERNEL_INSTALL_MACHINE_ID" ]   && echo "KERNEL_INSTALL_MACHINE_ID=$MACHINE_ID" >>/etc/machine-info
-[ -z "$MACHINE_ID" ] && NEW_MACHINE_ID="$(systemd-id128 new)" && echo "KERNEL_INSTALL_MACHINE_ID=$NEW_MACHINE_ID" >>/etc/machine-info
-[ -z "$MACHINE_ID" ] && [ -r /etc/machine-info ]              && . /etc/machine-info && MACHINE_ID="$KERNEL_INSTALL_MACHINE_ID"
-[ -z "$MACHINE_ID" ] && MACHINE_ID="Default"
+# If /etc/machine-id is initialized we'll use it, otherwise we'll use a freshly
+# generated one. If the user configured an explicit machine ID to use in
+# /etc/machine-info to use for our purpose, we'll use that instead (for
+# compatibility).
+[ -z "$MACHINE_ID" ] && [ -r /etc/machine-info ] && . /etc/machine-info && MACHINE_ID="$KERNEL_INSTALL_MACHINE_ID"
+[ -z "$MACHINE_ID" ] && [ -r /etc/machine-id ]   && read -r MACHINE_ID </etc/machine-id
+[ -z "$MACHINE_ID" ] && MACHINE_ID="$(systemd-id128 new)"
 
 [ -z "$BOOT_ROOT" ] && for suff in "$MACHINE_ID" "loader/entries"; do
     for pref in "/efi" "/boot" "/boot/efi" ; do