diff --git a/Makefile b/Makefile
index 009a6ba..044ffb9 100644
--- a/Makefile
+++ b/Makefile
@@ -26,6 +26,7 @@ TAGS	:= ctags
 PROGRAM	:= kvm
 
 GUEST_INIT := guest/init
+GUEST_INIT_S2 := guest/init_stage2
 
 OBJS	+= builtin-balloon.o
 OBJS	+= builtin-debug.o
@@ -207,7 +208,7 @@ WARNINGS += -Wwrite-strings
 
 CFLAGS	+= $(WARNINGS)
 
-all: arch_support_check $(PROGRAM) $(GUEST_INIT)
+all: arch_support_check $(PROGRAM) $(GUEST_INIT) $(GUEST_INIT_S2)
 
 arch_support_check:
 	$(UNSUPP_ERR)
@@ -224,6 +225,10 @@ $(GUEST_INIT): guest/init.c
 	$(E) "  LINK    " $@
 	$(Q) $(CC) -static guest/init.c -o $@
 
+$(GUEST_INIT_S2): guest/init_stage2.c
+	$(E) "  LINK    " $@
+	$(Q) $(CC) -static guest/init_stage2.c -o $@
+
 $(DEPS):
 
 %.d: %.c
@@ -286,7 +291,7 @@ x86/bios/bios-rom.h: x86/bios/bios.bin.elf
 	$(E) "  NM      " $@
 	$(Q) cd x86/bios && sh gen-offsets.sh > bios-rom.h && cd ..
 
-check: $(PROGRAM)
+check: all
 	$(MAKE) -C tests
 	./$(PROGRAM) run tests/pit/tick.bin
 	./$(PROGRAM) run -d tests/boot/boot_test.iso -p "init=init"
@@ -300,7 +305,7 @@ clean:
 	$(Q) rm -f x86/bios/bios-rom.h
 	$(Q) rm -f tests/boot/boot_test.iso
 	$(Q) rm -rf tests/boot/rootfs/
-	$(Q) rm -f $(DEPS) $(OBJS) $(PROGRAM) $(GUEST_INIT)
+	$(Q) rm -f $(DEPS) $(OBJS) $(PROGRAM) $(GUEST_INIT) $(GUEST_INIT_S2)
 	$(Q) rm -f cscope.*
 	$(Q) rm -f $(KVM_INCLUDE)/common-cmds.h
 	$(Q) rm -f KVMTOOLS-VERSION-FILE
diff --git a/builtin-run.c b/builtin-run.c
index 7969901..724be87 100644
--- a/builtin-run.c
+++ b/builtin-run.c
@@ -703,6 +703,31 @@ void kvm_run_help(void)
 	usage_with_options(run_usage, options);
 }
 
+static int kvm_custom_stage2(void)
+{
+	char tmp[PATH_MAX], dst[PATH_MAX], *src;
+	const char *rootfs;
+	int r;
+
+	src = realpath("guest/init_stage2", NULL);
+	if (src == NULL)
+		return -ENOMEM;
+
+	if (image_filename[0] == NULL)
+		rootfs = "default";
+	else
+		rootfs = image_filename[0];
+
+	snprintf(tmp, PATH_MAX, "%s%s/virt/init_stage2", kvm__get_dir(), rootfs);
+	remove(tmp);
+
+	snprintf(dst, PATH_MAX, "/host/%s", src);
+	r = symlink(dst, tmp);
+	free(src);
+
+	return r;
+}
+
 int kvm_cmd_run(int argc, const char **argv, const char *prefix)
 {
 	static char real_cmdline[2048], default_name[20];
@@ -869,6 +894,8 @@ int kvm_cmd_run(int argc, const char **argv, const char *prefix)
 			strcat(real_cmdline, " init=/virt/init");
 			if (!no_dhcp)
 				strcat(real_cmdline, "  ip=dhcp");
+			if (kvm_custom_stage2())
+				die("Failed linking stage 2 of init.");
 		}
 	} else if (!strstr(real_cmdline, "root=")) {
 		strlcat(real_cmdline, " root=/dev/vda rw ", sizeof(real_cmdline));
diff --git a/guest/init.c b/guest/init.c
index 8975023..032a261 100644
--- a/guest/init.c
+++ b/guest/init.c
@@ -1,6 +1,6 @@
 /*
- * This is a simple init for shared rootfs guests. It brings up critical
- * mountpoints and then launches /bin/sh.
+ * This is a simple init for shared rootfs guests. This part should be limited
+ * to doing mounts and running stage 2 of the init process.
  */
 #include <sys/mount.h>
 #include <string.h>
@@ -30,15 +30,7 @@ int main(int argc, char *argv[])
 
 	do_mounts();
 
-        /* get session leader */
-        setsid();
-
-        /* set controlling terminal */
-        ioctl (0, TIOCSCTTY, 1);
-
-	puts("Starting '/bin/sh'...");
-
-	run_process("/bin/sh");
+	run_process("/virt/init_stage2");
 
 	printf("Init failed: %s\n", strerror(errno));
 
diff --git a/guest/init_stage2.c b/guest/init_stage2.c
new file mode 100644
index 0000000..af615a0
--- /dev/null
+++ b/guest/init_stage2.c
@@ -0,0 +1,34 @@
+/*
+ * This is a stage 2 of the init. This part should do all the heavy
+ * lifting such as setting up the console and calling /bin/sh.
+ */
+#include <sys/mount.h>
+#include <string.h>
+#include <unistd.h>
+#include <stdio.h>
+#include <errno.h>
+
+static int run_process(char *filename)
+{
+	char *new_argv[] = { filename, NULL };
+	char *new_env[] = { "TERM=linux", NULL };
+
+	return execve(filename, new_argv, new_env);
+}
+
+int main(int argc, char *argv[])
+{
+	/* get session leader */
+	setsid();
+
+	/* set controlling terminal */
+	ioctl(0, TIOCSCTTY, 1);
+
+	puts("Starting '/bin/sh'...");
+
+	run_process("/bin/sh");
+
+	printf("Init failed: %s\n", strerror(errno));
+
+	return 0;
+}