diff --git a/files.coredump b/files.coredump
index 32b62d7..f78f2f1 100644
--- a/files.coredump
+++ b/files.coredump
@@ -1,8 +1,8 @@
 #
 # Please keep the list sorted (with `LC_ALL=C sort`).
 #
-%config(noreplace) %{_sysconfdir}/systemd/coredump.conf
 %dir %{_localstatedir}/lib/systemd/coredump
+%dir %{_sysconfdir}/systemd/coredump.conf.d
 %{_bindir}/coredumpctl
 %if %{without bootstrap}
 %{_datadir}/bash-completion/completions/coredumpctl
@@ -15,6 +15,7 @@
 %{_mandir}/man8/systemd-coredump@.service.8.gz
 %endif
 %{_sysctldir}/50-coredump.conf
+%{_systemd_util_dir}/coredump.conf
 %{_systemd_util_dir}/systemd-coredump
 %{_sysusersdir}/systemd-coredump.conf
 %{_unitdir}/sockets.target.wants/systemd-coredump.socket
diff --git a/files.experimental b/files.experimental
index 7b2439b..7330317 100644
--- a/files.experimental
+++ b/files.experimental
@@ -1,7 +1,7 @@
 #
 # Please keep the list sorted (with `LC_ALL=C sort`).
 #
-%config(noreplace) %{_sysconfdir}/systemd/oomd.conf
+%dir %{_sysconfdir}/systemd/oomd.conf.d
 %if %{with sd_boot}
 %dir %{_unitdir}/initrd.target.wants
 %endif
@@ -45,6 +45,7 @@
 %if %{with sd_boot}
 %{_prefix}/lib/kernel/install.d/60-ukify.install
 %endif
+%{_systemd_util_dir}/oomd.conf
 %{_systemd_util_dir}/system/initrd-root-fs.target.wants/systemd-repart.service
 %{_systemd_util_dir}/system/sysinit.target.wants/systemd-repart.service
 %if %{with sd_boot}
diff --git a/files.homed b/files.homed
index 93a0b8a..0460593 100644
--- a/files.homed
+++ b/files.homed
@@ -1,7 +1,6 @@
 #
 # Please keep the list sorted (with `LC_ALL=C sort`).
 #
-%config(noreplace) %{_sysconfdir}/systemd/homed.conf
 %{_bindir}/homectl
 %{_datadir}/bash-completion/completions/homectl
 %{_datadir}/dbus-1/interfaces/org.freedesktop.home1.Home.xml
@@ -17,6 +16,7 @@
 %{_mandir}/man8/systemd-homed.8.gz
 %{_mandir}/man8/systemd-homed.service.8.gz
 %{_pam_moduledir}/pam_systemd_home.so
+%{_systemd_util_dir}/homed.conf
 %{_systemd_util_dir}/systemd-homed
 %{_systemd_util_dir}/systemd-homework
 %{_unitdir}/systemd-homed-activate.service
diff --git a/files.journal-remote b/files.journal-remote
index 9db81f6..1acfe41 100644
--- a/files.journal-remote
+++ b/files.journal-remote
@@ -1,8 +1,8 @@
 #
 # Please keep the list sorted (with `LC_ALL=C sort`).
 #
-%config(noreplace) %{_sysconfdir}/systemd/journal-remote.conf
-%config(noreplace) %{_sysconfdir}/systemd/journal-upload.conf
+%dir %{_sysconfdir}/systemd/journal-remote.conf.d
+%dir %{_sysconfdir}/systemd/journal-upload.conf.d
 %ghost %dir %{_localstatedir}/log/journal/remote
 %{_datadir}/systemd/gatewayd
 %{_datadir}/systemd/gatewayd/browse.html
@@ -18,6 +18,8 @@
 %{_mandir}/man8/systemd-journal-remote.socket.8.gz
 %{_mandir}/man8/systemd-journal-upload.8.gz
 %{_mandir}/man8/systemd-journal-upload.service.8.gz
+%{_systemd_util_dir}/journal-remote.conf
+%{_systemd_util_dir}/journal-upload.conf
 %{_systemd_util_dir}/systemd-journal-gatewayd
 %{_systemd_util_dir}/systemd-journal-remote
 %{_systemd_util_dir}/systemd-journal-upload
diff --git a/files.network b/files.network
index e1588c4..e28d482 100644
--- a/files.network
+++ b/files.network
@@ -2,8 +2,8 @@
 # Please keep the list sorted (with `LC_ALL=C sort`).
 #
 %if %{with networkd}
-%config(noreplace) %{_sysconfdir}/systemd/networkd.conf
 %dir %{_sysconfdir}/systemd/network
+%dir %{_sysconfdir}/systemd/networkd.conf.d
 %dir %{_systemd_util_dir}/network
 %{_bindir}/networkctl
 %{_datadir}/bash-completion/completions/networkctl
@@ -36,6 +36,7 @@
 %{_systemd_util_dir}/network/80-wifi-adhoc.network
 %{_systemd_util_dir}/network/80-wifi-ap.network.example
 %{_systemd_util_dir}/network/80-wifi-station.network.example
+%{_systemd_util_dir}/networkd.conf
 %{_systemd_util_dir}/systemd-networkd
 %{_systemd_util_dir}/systemd-networkd-wait-online
 %{_sysusersdir}/systemd-network.conf
@@ -47,7 +48,7 @@
 %endif
 
 %if %{with resolved}
-%config(noreplace) %{_sysconfdir}/systemd/resolved.conf
+%dir %{_sysconfdir}/systemd/resolved.conf.d
 %{_bindir}/resolvectl
 %{_bindir}/systemd-resolve
 %{_datadir}/bash-completion/completions/resolvectl
@@ -69,6 +70,7 @@
 %{_mandir}/man8/systemd-resolved.8.gz
 %{_mandir}/man8/systemd-resolved.service.8.gz
 %{_systemd_util_dir}/resolv.conf
+%{_systemd_util_dir}/resolved.conf
 %{_systemd_util_dir}/systemd-resolved
 %{_sysusersdir}/systemd-resolve.conf
 %{_tmpfilesdir}/systemd-resolve.conf
diff --git a/files.systemd b/files.systemd
index ec5e7ab..a4b3bcf 100644
--- a/files.systemd
+++ b/files.systemd
@@ -1,10 +1,6 @@
 #
 # Please keep the list sorted (with `LC_ALL=C sort`).
 #
-%config(noreplace) %{_sysconfdir}/systemd/journald.conf
-%config(noreplace) %{_sysconfdir}/systemd/logind.conf
-%config(noreplace) %{_sysconfdir}/systemd/system.conf
-%config(noreplace) %{_sysconfdir}/systemd/user.conf
 %dir %{_binfmtdir}
 %if %{without bootstrap}
 %dir %{_datadir}/bash-completion
@@ -34,8 +30,12 @@
 %dir %{_sysconfdir}/binfmt.d
 %dir %{_sysconfdir}/sysctl.d
 %dir %{_sysconfdir}/systemd
+%dir %{_sysconfdir}/systemd/journald.conf.d
+%dir %{_sysconfdir}/systemd/logind.conf.d
 %dir %{_sysconfdir}/systemd/system
+%dir %{_sysconfdir}/systemd/system.conf.d
 %dir %{_sysconfdir}/systemd/user
+%dir %{_sysconfdir}/systemd/user.confd.d
 %dir %{_sysconfdir}/tmpfiles.d
 %dir %{_sysconfdir}/xdg/systemd
 %dir %{_sysctldir}
@@ -402,8 +402,11 @@
 %{_sysconfdir}/xdg/systemd/user
 %{_sysctldir}/99-sysctl.conf
 %{_systemd_user_env_generator_dir}/30-systemd-environment-d-generator
+%{_systemd_util_dir}/journald.conf
+%{_systemd_util_dir}/logind.conf
 %{_systemd_util_dir}/rpm/fixlet-systemd-post.sh
 %{_systemd_util_dir}/system-preset/99-default.preset
+%{_systemd_util_dir}/system.conf
 %{_systemd_util_dir}/systemd
 %{_systemd_util_dir}/systemd-binfmt
 %{_systemd_util_dir}/systemd-boot-check-no-failures
@@ -433,6 +436,7 @@
 %{_systemd_util_dir}/systemd-xdg-autostart-condition
 %{_systemd_util_dir}/user-preset/90-systemd.preset
 %{_systemd_util_dir}/user-preset/99-default.preset
+%{_systemd_util_dir}/user.conf
 %{_systemd_util_dir}/user/app.slice
 %{_systemd_util_dir}/user/background.slice
 %{_systemd_util_dir}/user/basic.target
diff --git a/files.udev b/files.udev
index c338889..c32bbb7 100644
--- a/files.udev
+++ b/files.udev
@@ -1,10 +1,6 @@
 #
 # Please keep the list sorted (with `LC_ALL=C sort`).
 #
-%config(noreplace) %{_sysconfdir}/systemd/pstore.conf
-%config(noreplace) %{_sysconfdir}/systemd/sleep.conf
-%config(noreplace) %{_sysconfdir}/systemd/timesyncd.conf
-%config(noreplace) %{_sysconfdir}/udev/iocost.conf
 %config(noreplace) %{_sysconfdir}/udev/udev.conf
 %if %{without bootstrap}
 %dir %{_libdir}/cryptsetup
@@ -17,7 +13,11 @@
 %dir %{_sysconfdir}/modules-load.d
 %endif
 %dir %{_sysconfdir}/systemd/network
+%dir %{_sysconfdir}/systemd/pstore.conf.d
+%dir %{_sysconfdir}/systemd/sleep.conf.d
+%dir %{_sysconfdir}/systemd/timesyncd.conf.d
 %dir %{_sysconfdir}/udev
+%dir %{_sysconfdir}/udev/iocost.conf.d
 %dir %{_sysconfdir}/udev/rules.d
 %dir %{_systemd_util_dir}/network
 %dir %{_systemd_util_dir}/system-sleep
@@ -146,11 +146,14 @@
 %endif
 %{_prefix}/lib/udev/fido_id
 %{_prefix}/lib/udev/iocost
+%{_prefix}/lib/udev/iocost.conf
 %{_prefix}/lib/udev/mtd_probe
 %{_prefix}/lib/udev/scsi_id
 %{_prefix}/lib/udev/v4l_id
 %{_systemd_util_dir}/network/99-default.link
 %{_systemd_util_dir}/ntp-units.d/80-systemd-timesync.list
+%{_systemd_util_dir}/pstore.conf
+%{_systemd_util_dir}/sleep.conf
 %{_systemd_util_dir}/systemd-backlight
 %{_systemd_util_dir}/systemd-battery-check
 %if %{without bootstrap}
@@ -180,6 +183,7 @@
 %{_systemd_util_dir}/systemd-veritysetup
 %endif
 %{_systemd_util_dir}/systemd-volatile-root
+%{_systemd_util_dir}/timesyncd.conf
 %if %{without bootstrap}
 %{_systemdgeneratordir}/systemd-cryptsetup-generator
 %endif
diff --git a/systemd.changes b/systemd.changes
index fe09321..bd206e7 100644
--- a/systemd.changes
+++ b/systemd.changes
@@ -1,3 +1,16 @@
+-------------------------------------------------------------------
+Thu Oct 19 13:25:01 UTC 2023 - Franck Bui <fbui@suse.com>
+
+- Ship the main configuration files in /usr/lib/
+
+  Besides the fact that shipping files in /etc is not recommended anymore, this
+  change will hopefully encourage users to customize the defaults via the mean
+  of drop-ins hence removing the risk of conflicts with downstream
+  customization.
+
+  In contrary, shipping empty directories *.conf.d/ in /etc is not a concern and
+  should suggest users to create drop-ins (bsc#1207056).
+
 -------------------------------------------------------------------
 Thu Oct 19 12:13:51 UTC 2023 - Franck Bui <fbui@suse.com>
 
diff --git a/systemd.spec b/systemd.spec
index 6a9ccec..e1f5090 100644
--- a/systemd.spec
+++ b/systemd.spec
@@ -65,6 +65,20 @@
 %bcond_with     filetriggers
 %bcond_with     split_usr
 
+# We stopped shipping main config files in /etc but we have to restore any
+# config files that might have been backed up by rpm during the migration of the
+# main config files from /etc to /usr. This needs to be done in %%posttrans
+# because the .rpmsave files are created when the *old* package version is
+# removed. This is not needed by ALP and will be dropped from Factory near the
+# end of 2024.
+%define restore_rpmsave() \
+if [ -e %{_sysconfdir}/%{1}.rpmsave ] && [ ! -e %{_sysconfdir}/%{1} ]; then \
+        echo >&2 "Restoring %{_sysconfdir}/%1. Please consider moving your customizations in a drop-in instead." \
+        echo >&2 "For more details, visit https://en.opensuse.org/Systemd#Configuration." \
+        mv -v %{_sysconfdir}/%{1}.rpmsave %{_sysconfdir}/%{1} || : \
+fi \
+%{nil}
+
 Name:           systemd%{?mini}
 URL:            http://www.freedesktop.org/wiki/Software/systemd
 Version:        254.5
@@ -814,8 +828,18 @@ install -m0755 -D %{SOURCE3} %{buildroot}/%{_systemd_util_dir}/systemd-update-he
 install -m0755 -D %{SOURCE4} %{buildroot}/%{_systemd_util_dir}/systemd-sysv-install
 %endif
 
-mkdir -p % %{buildroot}%{_sysconfdir}/systemd/network
-mkdir -p % %{buildroot}%{_sysconfdir}/systemd/nspawn
+# For some reasons, upstream refuses to add a new build option (see pr#29244)
+# for customizing the installation path of main config files. However we want to
+# store them in /usr/lib so we don't encourage users to modify them while they
+# still can serve as templates.
+for f in %{buildroot}%{_sysconfdir}/systemd/*.conf; do
+	mv $f %{buildroot}%{_systemd_util_dir}/
+done
+for f in %{buildroot}%{_sysconfdir}/udev/*.conf; do
+	# Drop-ins are currently not supported by udevd.
+	[ $(basename $f) = "udev.conf" ] && continue
+	mv $f %{buildroot}%{_prefix}/lib/udev/
+done
 
 # Install the fixlets
 mkdir -p %{buildroot}%{_systemd_util_dir}/rpm
@@ -886,6 +910,26 @@ rm -f %{buildroot}%{_environmentdir}/99-environment.conf
 # directory... oh well.
 rm -f %{buildroot}%{_sysconfdir}/init.d/README
 
+# Create *.conf.d/ directories to encourage users to create drop-ins when they
+# need to customize some setting defaults.
+mkdir -p %{buildroot}%{_sysconfdir}/systemd/coredump.conf.d
+mkdir -p %{buildroot}%{_sysconfdir}/systemd/journald.conf.d
+mkdir -p %{buildroot}%{_sysconfdir}/systemd/journal-remote.conf.d
+mkdir -p %{buildroot}%{_sysconfdir}/systemd/journal-upload.conf.d
+mkdir -p %{buildroot}%{_sysconfdir}/systemd/logind.conf.d
+mkdir -p %{buildroot}%{_sysconfdir}/systemd/networkd.conf.d
+mkdir -p %{buildroot}%{_sysconfdir}/systemd/oomd.conf.d
+mkdir -p %{buildroot}%{_sysconfdir}/systemd/pstore.conf.d
+mkdir -p %{buildroot}%{_sysconfdir}/systemd/resolved.conf.d
+mkdir -p %{buildroot}%{_sysconfdir}/systemd/sleep.conf.d
+mkdir -p %{buildroot}%{_sysconfdir}/systemd/system.conf.d
+mkdir -p %{buildroot}%{_sysconfdir}/systemd/timesyncd.conf.d
+mkdir -p %{buildroot}%{_sysconfdir}/systemd/user.confd.d
+mkdir -p %{buildroot}%{_sysconfdir}/udev/iocost.conf.d
+
+mkdir -p %{buildroot}%{_sysconfdir}/systemd/network
+mkdir -p %{buildroot}%{_sysconfdir}/systemd/nspawn
+
 # This dir must be owned (and thus created) by systemd otherwise the build
 # system will complain. This is odd since we simply own a ghost file in it...
 mkdir -p %{buildroot}%{_sysconfdir}/X11/xorg.conf.d
@@ -1049,6 +1093,12 @@ journalctl --update-catalog || :
 %systemd_postun_with_restart systemd-timedated.service
 %systemd_postun_with_restart systemd-userdbd.service
 
+%posttrans
+%restore_rpmsave systemd/journald.conf
+%restore_rpmsave systemd/logind.conf
+%restore_rpmsave systemd/system.conf
+%restore_rpmsave systemd/user.conf
+
 %pre -n udev%{?mini}
 # Units listed below can be enabled at installation accoding to their preset
 # setting.
@@ -1103,6 +1153,10 @@ fi
 
 %posttrans -n udev%{?mini}
 %regenerate_initrd_posttrans
+%restore_rpmsave systemd/pstore.conf
+%restore_rpmsave systemd/sleep.conf
+%restore_rpmsave systemd/timesyncd.conf
+%restore_rpmsave udev/iocost.conf
 
 %ldconfig_scriptlets -n libsystemd0%{?mini}
 %ldconfig_scriptlets -n libudev%{?mini}1
@@ -1133,6 +1187,9 @@ fi
 %post coredump
 %if %{without filetriggers}
 %sysusers_create systemd-coredump.conf
+
+%posttrans coredump
+%restore_rpmsave systemd/coredump.conf
 %endif
 %endif
 
@@ -1160,6 +1217,10 @@ fi
 %systemd_postun_with_restart systemd-journal-gatewayd.service
 %systemd_postun_with_restart systemd-journal-remote.service
 %systemd_postun_with_restart systemd-journal-upload.service
+
+%posttrans journal-remote
+%restore_rpmsave systemd/journal-remote.conf
+%restore_rpmsave systemd/journal-upload.conf
 %endif
 
 %if %{with networkd} || %{with resolved}
@@ -1208,6 +1269,10 @@ fi
 %ldconfig
 %systemd_postun systemd-resolved.service
 %endif
+
+%posttrans network
+%restore_rpmsave systemd/networkd.conf
+%restore_rpmsave systemd/resolved.conf
 %endif
 
 %if %{with homed}
@@ -1266,6 +1331,9 @@ fi
 %postun experimental
 %systemd_postun systemd-homed.service
 %systemd_postun systemd-oomd.service systemd-oomd.socket
+
+%posttrans experimental
+%restore_rpmsave systemd/oomd.conf
 %endif
 
 # File trigger definitions