diff --git a/libselinux.changes b/libselinux.changes
index 96bae57..496afd0 100644
--- a/libselinux.changes
+++ b/libselinux.changes
@@ -1,3 +1,8 @@
+-------------------------------------------------------------------
+Mon Sep  8 08:25:11 UTC 2014 - jsegitz@suse.com
+
+- updated selinux-ready script to handle initrd files compressed with xz
+
 -------------------------------------------------------------------
 Sun May 18 00:15:17 UTC 2014 - crrodriguez@opensuse.org
 
diff --git a/selinux-ready b/selinux-ready
index 278276d..667c95e 100644
--- a/selinux-ready
+++ b/selinux-ready
@@ -97,9 +97,9 @@ check_mkinitrd()
 		return 2
 	fi
 
-	cp /boot/$INITRD $TD/i.cpio.gz 2>/dev/null
+	cp /boot/$INITRD $TD/ 2>/dev/null
 
-	if ! [ -f "$TD/i.cpio.gz" ];then
+	if ! [ -f "$TD/$INITRD" ];then
 		printf "\tcheck_mkinitrd: ERR. Error while copying initrd file.'\n"
 		return 2
 	fi
@@ -109,11 +109,30 @@ check_mkinitrd()
 	cd $TD
 	mkdir initrd-extracted
 	cd initrd-extracted
-	gunzip -c $TD/i.cpio.gz | cpio -i --force-local --no-absolute-filenames 2>/dev/null
-	grep -E -- $MCMD boot/* 2>&1 >/dev/null
-	FLG1=$?
-	grep -E -- load_policy boot/* 2>&1 >/dev/null
-	FLG2=$?
+	INITRD_FORMAT=$(file $TD/$INITRD | awk -F' ' '{print $2}')
+  case $INITRD_FORMAT in
+  'XZ' )
+    xz -d -c $TD/$INITRD | cpio -i --force-local --no-absolute-filenames 2>/dev/null ;;
+  'gzip' )
+    gzip -d -c $TD/$INITRD | cpio -i --force-local --no-absolute-filenames 2>/dev/null ;;
+  * )
+		printf "\tcheck_mkinitrd: ERR. Error while extracting initrd file.'\n"
+    return 2
+  esac
+  if [ -d boot ]; then 
+    grep -E -- $MCMD boot/* 2>&1 >/dev/null
+    FLG1=$?
+    grep -E -- load_policy boot/* 2>&1 >/dev/null
+    FLG2=$?
+  else
+    # looks like we're using dracut/systemd. We can only check if libselinux1
+    # exists
+    if [ -f lib64/libselinux.so.1 ]; then
+      # if this exists 
+      FLG1=0
+      FLG2=0
+    fi
+  fi
 	popd 2>&1>/dev/null
 
 	if [ $FLG1 == 0 -a $FLG2 == 0 ];then