diff --git a/fs/iso9660/Config.in b/fs/iso9660/Config.in
index 111158b..e300fdb 100644
--- a/fs/iso9660/Config.in
+++ b/fs/iso9660/Config.in
@@ -2,11 +2,23 @@ config BR2_TARGET_ROOTFS_ISO9660
 	bool "iso image"
 	depends on (BR2_i386 || BR2_x86_64)
 	depends on BR2_LINUX_KERNEL
-	select BR2_TARGET_ROOTFS_CPIO
+	select BR2_LINUX_KERNEL_INSTALL_TARGET \
+	       if (!BR2_TARGET_ROOTFS_ISO9660_INITRD && !BR2_TARGET_ROOTFS_INITRAMFS)
 	select BR2_TARGET_GRUB
 	select BR2_TARGET_GRUB_FS_ISO9660
 	help
-	  Build a bootable iso9660 image
+	  Build a bootable ISO9660 image. By default, the root
+	  filesystem is directly packed as the ISO9660 filesystem,
+	  which means the root filesystem will be read-only. It
+	  requires ISO9660 filesystem support and CDROM support in the
+	  kernel.
+
+	  However, if BR2_TARGET_ROOTFS_INITRAMFS or
+	  BR2_TARGET_ROOTFS_ISO9660_INITRD have been enabled, the
+	  ISO9660 filesystem will only contain a kernel image and
+	  optionally an external initrd image. In this case, the
+	  filesystem being in RAM, it will be read/write. No ISO9660
+	  or CDROM support is needed in the kernel.
 
 if BR2_TARGET_ROOTFS_ISO9660
 
@@ -19,6 +31,17 @@ config BR2_TARGET_ROOTFS_ISO9660_BOOT_MENU
 	  automatically be replaced by the path to the kernel and
 	  initrd images respectively.
 
+config BR2_TARGET_ROOTFS_ISO9660_INITRD
+	bool "Use initrd"
+	default y
+	select BR2_TARGET_ROOTFS_CPIO
+	help
+	  Enable this option to have the root filesystem bundled as an
+	  initrd/initramfs rather than directly as the ISO9660
+	  filesystem. With this option enabled, the ISO9660 will only
+	  contain a kernel image, an initrd image (unless an initramfs
+	  linked into the kernel is used) and the bootloader.
+
 endif
 
 comment "iso image needs a Linux kernel to be built"
diff --git a/fs/iso9660/iso9660.mk b/fs/iso9660/iso9660.mk
index 2a8a447..a3572e2 100644
--- a/fs/iso9660/iso9660.mk
+++ b/fs/iso9660/iso9660.mk
@@ -4,49 +4,104 @@
 #
 ################################################################################
 
-ROOTFS_ISO9660_TARGET_DIR = $(BUILD_DIR)/iso9660
+#
+# We need to handle three cases:
+#
+#  1. The ISO9660 filesystem will really be the real root filesystem
+#     itself. This is when BR2_TARGET_ROOTFS_ISO9660_INITRD is
+#     disabled.
+#
+#  2. The ISO9660 filesystem will be a filesystem with just a kernel
+#     image, initrd and grub. This is when
+#     BR2_TARGET_ROOTFS_ISO9660_INITRD is enabled, but
+#     BR2_TARGET_ROOTFS_INITRAMFS is disabled.
+#
+#  3. The ISO9660 filesystem will be a filesystem with just a kernel
+#     image and grub. This is like (2), except that the initrd is
+#     built into the kernel image. This is when
+#     BR2_TARGET_ROOTFS_INITRAMFS is enabled (regardless of the value
+#     of BR2_TARGET_ROOTFS_ISO9660_INITRD).
+
 ROOTFS_ISO9660_BOOT_MENU = $(call qstrip,$(BR2_TARGET_ROOTFS_ISO9660_BOOT_MENU))
 
-ROOTFS_ISO9660_DEPENDENCIES = grub host-cdrkit host-fakeroot linux rootfs-cpio
+ROOTFS_ISO9660_DEPENDENCIES = grub host-cdrkit host-fakeroot linux
+
+ifeq ($(BR2_TARGET_ROOTFS_ISO9660_INITRD),y)
+ROOTFS_ISO9660_USE_INITRD = YES
+endif
+
+ifeq ($(BR2_TARGET_ROOTFS_INITRAMFS),y)
+ROOTFS_ISO9660_USE_INITRD = YES
+endif
+
+ifeq ($(ROOTFS_ISO9660_USE_INITRD),YES)
+ROOTFS_ISO9660_TARGET_DIR = $(BUILD_DIR)/iso9660
+else
+ROOTFS_ISO9660_TARGET_DIR = $(TARGET_DIR)
+endif
+
+define ROOTFS_ISO9660_PREPARATION
+	$(INSTALL) -D -m 0644 $(GRUB_DIR)/stage2/stage2_eltorito \
+		$(ROOTFS_ISO9660_TARGET_DIR)/boot/grub/stage2_eltorito
+	$(INSTALL) -D -m 0644 $(ROOTFS_ISO9660_BOOT_MENU) \
+		$(ROOTFS_ISO9660_TARGET_DIR)/boot/grub/menu.lst
+	$(SED) "s%__KERNEL_PATH__%/boot/$(LINUX_IMAGE_NAME)%" \
+		$(ROOTFS_ISO9660_TARGET_DIR)/boot/grub/menu.lst
+endef
+
+ROOTFS_ISO9660_PRE_GEN_HOOKS += ROOTFS_ISO9660_PREPARATION
 
+# Splash screen disabling
 ifeq ($(BR2_TARGET_GRUB_SPLASH),)
-define ROOTFS_ISO9660_SPLASHSCREEN
+define ROOTFS_ISO9660_DISABLE_SPLASHSCREEN
 	$(SED) '/^splashimage/d' $(ROOTFS_ISO9660_TARGET_DIR)/boot/grub/menu.lst
 endef
-else
-define ROOTFS_ISO9660_SPLASHSCREEN
+ROOTFS_ISO9660_PRE_GEN_HOOKS += ROOTFS_ISO9660_DISABLE_SPLASHSCREEN
+endif
+
+define ROOTFS_ISO9660_DISABLE_EXTERNAL_INITRD
+	$(SED) '/__INITRD_PATH__/d'  $(ROOTFS_ISO9660_TARGET_DIR)/boot/grub/menu.lst
+endef
+
+ifeq ($(ROOTFS_ISO9660_USE_INITRD),YES)
+
+# Copy splashscreen to temporary filesystem
+ifeq ($(BR2_TARGET_GRUB_SPLASH),y)
+define ROOTFS_ISO9660_INSTALL_SPLASHSCREEN
 	$(INSTALL) -D -m 0644 boot/grub/splash.xpm.gz \
 		$(ROOTFS_ISO9660_TARGET_DIR)/boot/grub/splash.xpm.gz
 endef
+ROOTFS_ISO9660_PRE_GEN_HOOKS += ROOTFS_ISO9660_INSTALL_SPLASHSCREEN
 endif
 
-ifeq ($(BR2_TARGET_ROOTFS_INITRAMFS),y)
-define ROOTFS_ISO9660_INITRD
-	$(SED) '/__INITRD_PATH__/d'  $(ROOTFS_ISO9660_TARGET_DIR)/boot/grub/menu.lst
+# Copy the kernel to temporary filesystem
+define ROOTFS_ISO9660_COPY_KERNEL
+	$(INSTALL) -D -m 0644 $(LINUX_IMAGE_PATH) \
+		$(ROOTFS_ISO9660_TARGET_DIR)/boot/$(LINUX_IMAGE_NAME)
 endef
-else
-define ROOTFS_ISO9660_INITRD
+
+ROOTFS_ISO9660_PRE_GEN_HOOKS += ROOTFS_ISO9660_COPY_KERNEL
+
+# Copy initrd to temporary filesystem if needed
+ifeq ($(BR2_TARGET_ROOTFS_INITRAMFS),)
+ROOTFS_ISO9660_DEPENDENCIES += rootfs-cpio
+define ROOTFS_ISO9660_COPY_INITRD
 	$(INSTALL) -D -m 0644 $(BINARIES_DIR)/rootfs.cpio$(ROOTFS_CPIO_COMPRESS_EXT) \
 		$(ROOTFS_ISO9660_TARGET_DIR)/boot/initrd
 	$(SED) "s%__INITRD_PATH__%/boot/initrd%" \
 		$(ROOTFS_ISO9660_TARGET_DIR)/boot/grub/menu.lst
 endef
+ROOTFS_ISO9660_PRE_GEN_HOOKS += ROOTFS_ISO9660_COPY_INITRD
+else
+ROOTFS_ISO9660_PRE_GEN_HOOKS += ROOTFS_ISO9660_DISABLE_EXTERNAL_INITRD
 endif
 
-define ROOTFS_ISO9660_PREPARATION
-	$(INSTALL) -D -m 0644 $(GRUB_DIR)/stage2/stage2_eltorito \
-		$(ROOTFS_ISO9660_TARGET_DIR)/boot/grub/stage2_eltorito
-	$(INSTALL) -D -m 0644 $(ROOTFS_ISO9660_BOOT_MENU) \
-		$(ROOTFS_ISO9660_TARGET_DIR)/boot/grub/menu.lst
-	$(INSTALL) -D -m 0644 $(LINUX_IMAGE_PATH) \
-		$(ROOTFS_ISO9660_TARGET_DIR)/boot/$(LINUX_IMAGE_NAME)
-	$(SED) "s%__KERNEL_PATH__%/boot/$(LINUX_IMAGE_NAME)%" \
-		$(ROOTFS_ISO9660_TARGET_DIR)/boot/grub/menu.lst
-	$(ROOTFS_ISO9660_SPLASHSCREEN)
-	$(ROOTFS_ISO9660_INITRD)
-endef
+else # BR2_TARGET_ROOTFS_ISO9660_INITRD
+
+ROOTFS_ISO9660_PRE_GEN_HOOKS += ROOTFS_ISO9660_DISABLE_EXTERNAL_INITRD
+
+endif # BR2_TARGET_ROOTFS_ISO9660_INITRD
 
-ROOTFS_ISO9660_PRE_GEN_HOOKS += ROOTFS_ISO9660_PREPARATION
 
 define ROOTFS_ISO9660_CMD
 	$(HOST_DIR)/usr/bin/genisoimage -J -R -b boot/grub/stage2_eltorito \
@@ -54,10 +109,12 @@ define ROOTFS_ISO9660_CMD
 		-o $@ $(ROOTFS_ISO9660_TARGET_DIR)
 endef
 
+ifeq ($(ROOTFS_ISO9660_USE_INITRD),YES)
 define ROOTFS_ISO9660_REMOVE_TEMPDIR
 	$(RM) -rf $(ROOTFS_ISO9660_TARGET_DIR)
 endef
 
 ROOTFS_ISO9660_POST_GEN_HOOKS += ROOTFS_ISO9660_REMOVE_TEMPDIR
+endif
 
 $(eval $(call ROOTFS_TARGET,iso9660))
diff --git a/fs/iso9660/menu.lst b/fs/iso9660/menu.lst
index 8e8309f..eb1ecef 100644
--- a/fs/iso9660/menu.lst
+++ b/fs/iso9660/menu.lst
@@ -12,7 +12,7 @@ foreground 	000000
 background 	cccccc
 
 title		Buildroot ISO9660 image
-kernel		__KERNEL_PATH__
+kernel		__KERNEL_PATH__ root=/dev/sr0
 initrd		__INITRD_PATH__
 
 title		Hard Drive (first partition)
