diff --git a/meta/classes/rootfs.bbclass b/meta/classes/rootfs.bbclass
index aa3f6baa..0a1e64e5 100644
--- a/meta/classes/rootfs.bbclass
+++ b/meta/classes/rootfs.bbclass
@@ -73,12 +73,15 @@ rootfs_do_qemu() {
     fi
 }
 
-BOOTSTRAP_SRC = "${DEPLOY_DIR_BOOTSTRAP}/${ROOTFS_DISTRO}-host_${DISTRO}-${DISTRO_ARCH}"
-BOOTSTRAP_SRC:${ROOTFS_ARCH} = "${DEPLOY_DIR_BOOTSTRAP}/${ROOTFS_DISTRO}-${ROOTFS_ARCH}"
+BOOTSTRAP_SRC = "${DEPLOY_DIR_BOOTSTRAP}/${ROOTFS_DISTRO}-host_${DISTRO}-${DISTRO_ARCH}.tar.zst"
+BOOTSTRAP_SRC:${ROOTFS_ARCH} = "${DEPLOY_DIR_BOOTSTRAP}/${ROOTFS_DISTRO}-${ROOTFS_ARCH}.tar.zst"
 
 rootfs_prepare[weight] = "25"
 rootfs_prepare(){
-    sudo cp -Trpfx --reflink=auto '${BOOTSTRAP_SRC}/' '${ROOTFSDIR}'
+    sudo tar -xf "${BOOTSTRAP_SRC}" -C "${ROOTFSDIR}" --exclude="./dev/console"
+
+    # setup chroot
+    sudo "${ROOTFSDIR}/chroot-setup.sh" "setup" "${ROOTFSDIR}"
 }
 
 ROOTFS_CONFIGURE_COMMAND += "rootfs_configure_isar_apt"
@@ -227,7 +230,7 @@ cache_deb_src() {
     # Note: ISAR updates the apt state information(apt-get update) only once during bootstrap and
     # relies on that through out the build. Copy that state information instead of apt-get update
     # which generates a new state from upstream.
-    sudo cp -Trpn --reflink=auto "${BOOTSTRAP_SRC}/var/lib/apt/lists/" "${ROOTFSDIR}/var/lib/apt/lists/"
+    sudo tar -xf "${BOOTSTRAP_SRC}" ./var/lib/apt/lists --one-top-level="${ROOTFSDIR}"
 
     deb_dl_dir_import ${ROOTFSDIR} ${ROOTFS_BASE_DISTRO}-${BASE_DISTRO_CODENAME}
     debsrc_download ${ROOTFSDIR} ${ROOTFS_BASE_DISTRO}-${BASE_DISTRO_CODENAME}
diff --git a/meta/recipes-core/isar-bootstrap/isar-bootstrap.inc b/meta/recipes-core/isar-bootstrap/isar-bootstrap.inc
index 0855875b..4e0ffc0d 100644
--- a/meta/recipes-core/isar-bootstrap/isar-bootstrap.inc
+++ b/meta/recipes-core/isar-bootstrap/isar-bootstrap.inc
@@ -162,7 +162,6 @@ do_bootstrap() {
 
         # setup chroot
         install -v -m755 "${WORKDIR}/chroot-setup.sh" "${ROOTFSDIR}/chroot-setup.sh"
-        "${ROOTFSDIR}/chroot-setup.sh" "setup" "${ROOTFSDIR}"
 
         # update APT
         mount -o bind,private /dev ${ROOTFSDIR}/dev
@@ -196,8 +195,12 @@ do_bootstrap() {
         mountpoint -q "${ROOTFSDIR}/base-apt" && \
             umount "${ROOTFSDIR}/base-apt"
 
+        # Compress rootfs for compatibility
+        lopts="--one-file-system --exclude=var/cache/apt/archives"
+        tar --zstd -cf "${WORKDIR}/rootfs.tar.zst" $lopts -C "${ROOTFSDIR}" .
+
         # Finalize debootstrap by setting the link in deploy
-        ln -Tfsr "${ROOTFSDIR}" "${DEPLOY_ISAR_BOOTSTRAP}"
+        ln -Tfsr "${WORKDIR}/rootfs.tar.zst" "${DEPLOY_ISAR_BOOTSTRAP}.tar.zst"
 EOSUDO
     deb_dl_dir_export "${ROOTFSDIR}" "${BOOTSTRAP_BASE_DISTRO}-${BASE_DISTRO_CODENAME}"
 
@@ -213,19 +216,17 @@ SSTATEPOSTINSTFUNCS += "bootstrap_sstate_finalize"
 
 bootstrap_sstate_prepare() {
     # this runs in SSTATE_BUILDDIR, which will be deleted automatically
-    lopts="--one-file-system --exclude=var/cache/apt/archives"
-    sudo tar -C $(dirname "${ROOTFSDIR}") -cpSf bootstrap.tar $lopts $(basename "${ROOTFSDIR}")
-    sudo chown $(id -u):$(id -g) bootstrap.tar
+    sudo cp -a "${WORKDIR}/rootfs.tar.zst" ./bootstrap.tar.zst
+    sudo chown $(id -u):$(id -g) bootstrap.tar.zst
 }
 
 bootstrap_sstate_finalize() {
     # this runs in SSTATE_INSTDIR
-    # - after building the bootstrap, the tar won't be there, but we also don't need to unpack
-    # - after restoring from cache, there will be a tar which we unpack and then delete
-    if [ -f bootstrap.tar ]; then
-        sudo tar -C $(dirname "${ROOTFSDIR}") -xpf bootstrap.tar
-        sudo ln -Tfsr "${ROOTFSDIR}" "${DEPLOY_ISAR_BOOTSTRAP}"
-        rm bootstrap.tar
+    # we should restore symlinks after using tar
+    if [ -f bootstrap.tar.zst ]; then
+        mv bootstrap.tar.zst "${WORKDIR}/rootfs.tar.zst"
+        sudo ln -Tfsr "${WORKDIR}/rootfs.tar.zst" \
+                      "${DEPLOY_ISAR_BOOTSTRAP}.tar.zst"
     fi
 }
 
diff --git a/meta/recipes-core/isar-mmdebstrap/isar-mmdebstrap.inc b/meta/recipes-core/isar-mmdebstrap/isar-mmdebstrap.inc
index c41dd3a1..f1ad891b 100644
--- a/meta/recipes-core/isar-mmdebstrap/isar-mmdebstrap.inc
+++ b/meta/recipes-core/isar-mmdebstrap/isar-mmdebstrap.inc
@@ -11,7 +11,6 @@ inherit deb-dl-dir
 
 FILESEXTRAPATHS:append = ":${LAYERDIR_core}/recipes-core/isar-bootstrap/files"
 
-ROOTFSDIR = "${WORKDIR}/rootfs"
 DISTRO_BOOTSTRAP_BASE_PACKAGES = "locales,apt,usrmerge"
 BOOTSTRAP_TMPDIR = "${WORKDIR}/tempdir"
 
@@ -73,9 +72,6 @@ do_bootstrap() {
     fi
     E="${@ isar_export_proxies(d)}"
 
-    sudo rm -rf --one-file-system "${ROOTFSDIR}"
-    mkdir -p "${ROOTFSDIR}"
-
     if [ "${ISAR_USE_CACHED_BASE_REPO}" = "1" ]; then
         base_apt_tmp="$(mktemp -d /tmp/isar-base-aptXXXXXXXXXX)"
         bootstrap_list="${WORKDIR}/sources.list.d/base-apt.list"
@@ -181,18 +177,9 @@ do_bootstrap() {
                    "${WORKDIR}/rootfs.tar.zst" \
                    "$bootstrap_list"
 
-    sudo -E -s <<'EOSUDO'
-        set -e
-
-        tar -xf "${WORKDIR}/rootfs.tar.zst" -C "${ROOTFSDIR}" --exclude="./dev/console"
-
-        # setup chroot
-        install -v -m755 "${WORKDIR}/chroot-setup.sh" "${ROOTFSDIR}/chroot-setup.sh"
-        "${ROOTFSDIR}/chroot-setup.sh" "setup" "${ROOTFSDIR}"
+    # Finalize bootstrap by setting the link in deploy
+    sudo ln -Tfsr "${WORKDIR}/rootfs.tar.zst" "${DEPLOY_ISAR_BOOTSTRAP}.tar.zst"
 
-        # Finalize bootstrap by setting the link in deploy
-        ln -Tfsr "${ROOTFSDIR}" "${DEPLOY_ISAR_BOOTSTRAP}"
-EOSUDO
     if [ "${ISAR_USE_CACHED_BASE_REPO}" != "1" ]; then
         deb_dl_dir_export "${WORKDIR}/dl_dir" "${BOOTSTRAP_BASE_DISTRO}-${BASE_DISTRO_CODENAME}"
         sudo rm -rf --one-file-system "${WORKDIR}/dl_dir"
@@ -206,7 +193,7 @@ SSTATEPOSTINSTFUNCS += "bootstrap_sstate_finalize"
 
 bootstrap_sstate_prepare() {
     # this runs in SSTATE_BUILDDIR, which will be deleted automatically
-    sudo cp -a "$(dirname "${ROOTFSDIR}")/rootfs.tar.zst" ./bootstrap.tar.zst
+    sudo cp -a "${WORKDIR}/rootfs.tar.zst" ./bootstrap.tar.zst
     sudo chown $(id -u):$(id -g) bootstrap.tar.zst
 }
 
@@ -214,8 +201,8 @@ bootstrap_sstate_finalize() {
     # this runs in SSTATE_INSTDIR
     # we should restore symlinks after using tar
     if [ -f bootstrap.tar.zst ]; then
-        mv bootstrap.tar.zst "$(dirname "${ROOTFSDIR}")/rootfs.tar.zst"
-        sudo ln -Tfsr "$(dirname "${ROOTFSDIR}")/rootfs.tar.zst" \
+        mv bootstrap.tar.zst "${WORKDIR}/rootfs.tar.zst"
+        sudo ln -Tfsr "${WORKDIR}/rootfs.tar.zst" \
                       "${DEPLOY_ISAR_BOOTSTRAP}.tar.zst"
     fi
 }