diff --git a/kiwi/boot/image/builtin_kiwi.py b/kiwi/boot/image/builtin_kiwi.py
index 1e8a3b4..8ac574a 100644
--- a/kiwi/boot/image/builtin_kiwi.py
+++ b/kiwi/boot/image/builtin_kiwi.py
@@ -95,9 +95,15 @@ class BootImageKiwi(BootImageBase):
             Defaults.get_profile_file(self.boot_root_directory)
         )
         self.setup.import_description()
-        self.setup.import_overlay_files(
-            follow_links=True
-        )
+        if self.runtime_config.get_custom_hw_systemflag():
+            self.setup.import_overlay_files(
+                follow_links=False
+            )
+        else:
+            self.setup.import_overlay_files(
+                follow_links=True
+            )
+
         if self.runtime_config.get_custom_hw_systemflag():
             self.setup.setup_groups()
             self.setup.setup_users()
-- 
2.23.0