diff --git a/0003-payload-don-t-force-host-only-mode-when-executing-dr.patch b/0003-payload-don-t-force-host-only-mode-when-executing-dr.patch
new file mode 100644
index 0000000..565927f
--- /dev/null
+++ b/0003-payload-don-t-force-host-only-mode-when-executing-dr.patch
@@ -0,0 +1,40 @@
+From 39371c289a3fd3e313322861b9d020fdc1ae9f82 Mon Sep 17 00:00:00 2001
+From: Javier Martinez Canillas <javierm@redhat.com>
+Date: Thu, 7 Mar 2019 00:02:39 +0100
+Subject: [PATCH] payload: don't force host-only mode when executing dracut
+
+When the initramfs are generated on kernel installs, dracuts default for
+enabling or disabling host-only mode is used. But when recreating them
+at the end of the installation, dracut is executed with host-only mode.
+
+This means that host-only mode can't be disabled (i.e: by installing the
+dracut-config-generic package) which is needed to create aarch64 images.
+
+Also don't force the persistent policy to be by-uuid and use whatever is
+the default, which is also the case when initrds are generated on kernel
+package installs.
+
+Resolves: rhbz#1686326
+
+Signed-off-by: Javier Martinez Canillas <javierm@redhat.com>
+---
+ pyanaconda/payload/__init__.py | 3 +--
+ 1 file changed, 1 insertion(+), 2 deletions(-)
+
+diff --git a/pyanaconda/payload/__init__.py b/pyanaconda/payload/__init__.py
+index 892b5d852..225a23e4e 100644
+--- a/pyanaconda/payload/__init__.py
++++ b/pyanaconda/payload/__init__.py
+@@ -587,8 +587,7 @@ class Payload(metaclass=ABCMeta):
+                 if use_dracut:
+                     util.execInSysroot("depmod", ["-a", kernel])
+                     util.execInSysroot("dracut",
+-                                       ["-H", "--persistent-policy", "by-uuid",
+-                                        "-f",
++                                       ["-f",
+                                         "/boot/initramfs-%s.img" % kernel,
+                                         kernel])
+                 else:
+-- 
+2.20.1
+
diff --git a/anaconda.spec b/anaconda.spec
index e32e8df..d7b7e99 100644
--- a/anaconda.spec
+++ b/anaconda.spec
@@ -5,7 +5,7 @@
 Summary: Graphical system installer
 Name:    anaconda
 Version: 30.25.3
-Release: 2%{?dist}
+Release: 3%{?dist}
 License: GPLv2+ and MIT
 URL:     http://fedoraproject.org/wiki/Anaconda
 
@@ -20,6 +20,9 @@ Source0: %{name}-%{version}.tar.bz2
 Patch1: 0001-Handle-missing-support-for-Blivet-GUI-in-the-Storage.patch
 Patch2: 0002-Add-tests-for-UnsupportedPartitioningError.patch
 
+# fix aarch64 image generation (#1686326)
+Patch3: 0003-payload-don-t-force-host-only-mode-when-executing-dr.patch
+
 # Versions of required components (done so we make sure the buildrequires
 # match the requires versions of things).
 
@@ -259,6 +262,7 @@ runtime on NFS/HTTP/FTP servers or local disks.
 %setup -q
 %patch1 -p1
 %patch2 -p1
+%patch3 -p1
 
 %build
 # use actual build-time release number, not tarball creation time release number
@@ -360,6 +364,9 @@ desktop-file-install --dir=%{buildroot}%{_datadir}/applications %{buildroot}%{_d
 %{_prefix}/libexec/anaconda/dd_*
 
 %changelog
+* Fri Mar 08 2019 Martin Kolman <mkolman@redhat.com> - 30.25.3-3
+- payload: don't force host-only mode when executing dracut (#1686326) (javierm)
+
 * Wed Mar 06 2019 Martin Kolman <mkolman@redhat.com> - 30.25.3-2
 - Handle missing support for Blivet-GUI in the Storage module (#1685645) (vponcova)
 - Add tests for UnsupportedPartitioningError (vponcova)