diff --git a/0001-Allow-to-set-cacheonly-from-commands-and-conf-RhBug-.patch b/0001-Allow-to-set-cacheonly-from-commands-and-conf-RhBug-.patch
new file mode 100644
index 0000000..703ad04
--- /dev/null
+++ b/0001-Allow-to-set-cacheonly-from-commands-and-conf-RhBug-.patch
@@ -0,0 +1,32 @@
+From bc11bf599ce3102656fa42b0ad0a6c7270822f30 Mon Sep 17 00:00:00 2001
+From: Jaroslav Mracek <jmracek@redhat.com>
+Date: Mon, 27 Nov 2017 14:35:32 +0100
+Subject: [PATCH 1/3] Allow to set cacheonly from commands and conf
+ (RhBug:1492036)
+
+The formal code reacts only to --cacheonly option.
+
+https://bugzilla.redhat.com/show_bug.cgi?id=1492036
+---
+ dnf/cli/cli.py | 5 ++++-
+ 1 file changed, 4 insertions(+), 1 deletion(-)
+
+diff --git a/dnf/cli/cli.py b/dnf/cli/cli.py
+index f60cdced..11fbed31 100644
+--- a/dnf/cli/cli.py
++++ b/dnf/cli/cli.py
+@@ -741,7 +741,10 @@ class Cli(object):
+             if not os.getegid() == 0:
+                 raise dnf.exceptions.Error(_('This command has to be run under the root user.'))
+ 
+-        if not demands.cacheonly:
++        if demands.cacheonly or self.base.conf.cacheonly:
++            self.base.conf.cacheonly = True
++            repos.all()._md_only_cached = True
++        else:
+             if demands.freshest_metadata:
+                 for repo in repos.iter_enabled():
+                     repo._md_expire_cache()
+-- 
+2.13.6
+
diff --git a/0002-Remove-redundant-conf-option-cacheonly.patch b/0002-Remove-redundant-conf-option-cacheonly.patch
new file mode 100644
index 0000000..8005180
--- /dev/null
+++ b/0002-Remove-redundant-conf-option-cacheonly.patch
@@ -0,0 +1,25 @@
+From 777df1098f4215edb8339a56c1807c9217715142 Mon Sep 17 00:00:00 2001
+From: Jaroslav Mracek <jmracek@redhat.com>
+Date: Mon, 27 Nov 2017 14:38:08 +0100
+Subject: [PATCH 2/3] Remove redundant conf option cacheonly
+
+The option was defined twice in "dnf.conf".
+---
+ dnf/conf/config.py | 1 -
+ 1 file changed, 1 deletion(-)
+
+diff --git a/dnf/conf/config.py b/dnf/conf/config.py
+index f0c39665..f2098fc6 100644
+--- a/dnf/conf/config.py
++++ b/dnf/conf/config.py
+@@ -778,7 +778,6 @@ class MainConf(BaseConfig):
+         # runtime only options
+         self._add_option('downloadonly', BoolOption(False, runtimeonly=True))
+         self._add_option('ignorearch', BoolOption(False))
+-        self._add_option('cacheonly', BoolOption(False))
+ 
+     @property
+     def get_reposdir(self):
+-- 
+2.13.6
+
diff --git a/0003-Remove-unnecessary-code-for-set-cacheonly.patch b/0003-Remove-unnecessary-code-for-set-cacheonly.patch
new file mode 100644
index 0000000..2be79b0
--- /dev/null
+++ b/0003-Remove-unnecessary-code-for-set-cacheonly.patch
@@ -0,0 +1,44 @@
+From aebbc222b85a7949a705360ea51b7c987126c2d8 Mon Sep 17 00:00:00 2001
+From: Jaroslav Mracek <jmracek@redhat.com>
+Date: Tue, 28 Nov 2017 09:21:40 +0100
+Subject: [PATCH 3/3] Remove unnecessary code for set cacheonly
+
+Attribute repo._md_only_cached is set on different place during
+_progress_demands().
+---
+ dnf/repo.py       | 5 -----
+ tests/test_cli.py | 2 --
+ 2 files changed, 7 deletions(-)
+
+diff --git a/dnf/repo.py b/dnf/repo.py
+index e9ce597e..75a11a47 100644
+--- a/dnf/repo.py
++++ b/dnf/repo.py
+@@ -858,11 +858,6 @@ class Repo(dnf.conf.RepoConf):
+         else:
+             return self._try_revive_by_repomd()
+ 
+-    def _configure_from_options(self, opts):
+-        if getattr(opts, 'cacheonly', None):
+-            self._md_only_cached = True
+-        super(Repo, self)._configure_from_options(opts)
+-
+     def disable(self):
+         # :api
+         self.enabled = False
+diff --git a/tests/test_cli.py b/tests/test_cli.py
+index f4ea27ee..8963783a 100644
+--- a/tests/test_cli.py
++++ b/tests/test_cli.py
+@@ -136,8 +136,6 @@ class CliTest(TestCase):
+         self.assertTrue(self.base.repos['comb'].enabled)
+         self.assertFalse(self.base.repos["comb"].gpgcheck)
+         self.assertFalse(self.base.repos["comb"].repo_gpgcheck)
+-        self.assertEqual(self.base.repos["comb"]._sync_strategy,
+-                         dnf.repo.SYNC_ONLY_CACHE)
+ 
+     def test_configure_repos_expired(self, _):
+         """Ensure that --cacheonly beats the expired status."""
+-- 
+2.13.6
+
diff --git a/dnf.spec b/dnf.spec
index b65d03a..6e7cc89 100644
--- a/dnf.spec
+++ b/dnf.spec
@@ -25,12 +25,15 @@
 
 Name:           dnf
 Version:        2.7.5
-Release:        1%{?dist}
+Release:        2%{?dist}
 Summary:        Package manager forked from Yum, using libsolv as a dependency resolver
 # For a breakdown of the licensing, see PACKAGE-LICENSING
 License:        GPLv2+ and GPLv2 and GPL
 URL:            https://github.com/rpm-software-management/dnf
 Source0:        %{url}/archive/%{version}/%{name}-%{version}.tar.gz
+Patch0:         0001-Allow-to-set-cacheonly-from-commands-and-conf-RhBug-.patch
+Patch1:         0002-Remove-redundant-conf-option-cacheonly.patch
+Patch2:         0003-Remove-unnecessary-code-for-set-cacheonly.patch
 BuildArch:      noarch
 BuildRequires:  cmake
 BuildRequires:  gettext
@@ -372,6 +375,9 @@ popd
 %endif
 
 %changelog
+* Wed Nov 29 2017 Jaroslav Mracek <jmracek@redhat.com> - 2.7.5-2
+- Fix problem with demands.cacheonly that caused problems for system-upgrade
+
 * Wed Oct 18 2017 Igor Gnatenko <ignatenko@redhat.com> - 2.7.5-1
 - Improve performance for excludes and includes handling (RHBZ #1500361)
 - Fixed problem of handling checksums for local repositories (RHBZ #1502106)