diff --git a/overlay.d/05core/usr/lib/dracut/modules.d/40ignition-ostree/ignition-ostree-delete-etc-services.service b/overlay.d/05core/usr/lib/dracut/modules.d/40ignition-ostree/ignition-ostree-delete-etc-services.service
new file mode 100644
index 0000000000..906e0d2e7a
--- /dev/null
+++ b/overlay.d/05core/usr/lib/dracut/modules.d/40ignition-ostree/ignition-ostree-delete-etc-services.service
@@ -0,0 +1,20 @@
+[Unit]
+Description=Delete /etc Service Enablements
+DefaultDependencies=false
+ConditionKernelCommandLine=|ostree
+ConditionPathExists=|/run/ostree-live
+
+# Really, we don't really expect mount points for /etc, so we could just order
+# after initrd-root-fs.target, but meh... doesn't hurt to pretend we support
+# that.
+After=ignition-mount.service
+
+# But *before* any user-specified enablement
+Before=ignition-files.service
+
+[Service]
+Type=oneshot
+RemainAfterExit=yes
+# use glob instead of nuking /etc/systemd/system itself so that we don't end up
+# recreating it from the initrd as unlabeled for RHCOS
+ExecStart=/usr/bin/sh -c "rm -rf /sysroot/etc/systemd/system/*"
diff --git a/overlay.d/05core/usr/lib/dracut/modules.d/40ignition-ostree/module-setup.sh b/overlay.d/05core/usr/lib/dracut/modules.d/40ignition-ostree/module-setup.sh
index 307ecb8541..c3ed713952 100755
--- a/overlay.d/05core/usr/lib/dracut/modules.d/40ignition-ostree/module-setup.sh
+++ b/overlay.d/05core/usr/lib/dracut/modules.d/40ignition-ostree/module-setup.sh
@@ -68,4 +68,6 @@ install() {
     inst_script "$moddir/coreos-growpart" /usr/libexec/coreos-growpart
 
     inst_script "$moddir/coreos-relabel" /usr/bin/coreos-relabel
+
+    install_ignition_unit ignition-ostree-delete-etc-services.service
 }