diff --git a/crates/lib/src/cli.rs b/crates/lib/src/cli.rs
index efb3df316..23bae71d9 100644
--- a/crates/lib/src/cli.rs
+++ b/crates/lib/src/cli.rs
@@ -1336,10 +1336,12 @@ async fn run_from_opt(opt: Opt) -> Result<()> {
         }
         Opt::Edit(opts) => edit(opts).await,
         Opt::UsrOverlay => {
-            let storage = &get_storage().await?;
-            match storage.kind()? {
-                BootedStorageKind::Ostree(_) => usroverlay().await,
-                BootedStorageKind::Composefs(_) => composefs_usr_overlay(),
+            use crate::store::Environment;
+            let env = Environment::detect()?;
+            match env {
+                Environment::OstreeBooted => usroverlay().await,
+                Environment::ComposefsBooted(_) => composefs_usr_overlay(),
+                _ => anyhow::bail!("usroverlay only applies on booted hosts"),
             }
         }
         Opt::Container(opts) => match opts {
diff --git a/tmt/plans/integration.fmf b/tmt/plans/integration.fmf
index fe74cc737..104f90feb 100644
--- a/tmt/plans/integration.fmf
+++ b/tmt/plans/integration.fmf
@@ -106,6 +106,13 @@ execute:
       enabled: false
       because: tmt-reboot does not work with systemd reboot in testing farm environment (see bug-soft-reboot.md)
 
+/test-23-usroverlay:
+  summary: Usroverlay
+  discover:
+    how: fmf
+    test:
+        - /tmt/tests/test-23-usroverlay
+
 /test-28-factory-reset:
   summary: Factory reset
   discover:
diff --git a/tmt/tests/booted/bootc_testlib.nu b/tmt/tests/booted/bootc_testlib.nu
new file mode 100644
index 000000000..45089a358
--- /dev/null
+++ b/tmt/tests/booted/bootc_testlib.nu
@@ -0,0 +1,14 @@
+# A simple nushell "library" for the
+
+# This is a workaround for what must be a systemd bug
+# that seems to have appeared in C10S
+# TODO diagnose and fill in here
+export def reboot [] {
+    # Sometimes systemd daemons are still running old binaries and response "Access denied" when send reboot request
+    # Force a full sync before reboot
+    sync
+    # Allow more delay for bootc to settle
+    sleep 30sec
+
+    tmt-reboot
+}
diff --git a/tmt/tests/booted/test-factory-reset.nu b/tmt/tests/booted/test-factory-reset.nu
index 32e5928da..a89b10027 100644
--- a/tmt/tests/booted/test-factory-reset.nu
+++ b/tmt/tests/booted/test-factory-reset.nu
@@ -1,5 +1,6 @@
 use std assert
 use tap.nu
+use bootc_testlib.nu
 
 def initial_build [] {
     tap begin "factory reset test"
@@ -41,16 +42,7 @@ def initial_build [] {
     # nu's cp doesn't have -T
     /usr/bin/cp -r -T $workdir_root $"($new_stateroot_path)/($workdir_root)"
 
-    # Check reset status before reboot
-    RUST_LOG=trace bootc status
-
-    # Sometimes systemd daemons are still running old binaries and response "Access denied" when send reboot request
-    # Force a full sync before reboot
-    sync
-    # Allow more delay for bootc to settle
-    sleep 30sec
-
-    tmt-reboot
+    bootc_testlib reboot
 }
 
 # The second boot; verify we're in the factory reset deployment
diff --git a/tmt/tests/booted/test-usroverlay.nu b/tmt/tests/booted/test-usroverlay.nu
new file mode 100644
index 000000000..6fb93346a
--- /dev/null
+++ b/tmt/tests/booted/test-usroverlay.nu
@@ -0,0 +1,32 @@
+# Verify that bootc usroverlay works
+use std assert
+use tap.nu
+use bootc_testlib.nu
+
+bootc status
+
+# We should start out in a non-writable state on each boot
+let is_writable = (do -i { /bin/test -w /usr } | complete | get exit_code) == 0
+assert (not $is_writable)
+
+def initial_run [] {
+    bootc usroverlay
+    let is_writable = (do -i { /bin/test -w /usr } | complete | get exit_code) == 0
+    assert ($is_writable)
+
+    bootc_testlib reboot
+}
+
+# The second boot; verify we're in the derived image
+def second_boot [] {
+    # Nothing, we already verified non-writability above
+}
+
+def main [] {
+    # See https://tmt.readthedocs.io/en/stable/stories/features.html#reboot-during-test
+    match $env.TMT_REBOOT_COUNT? {
+        null | "0" => initial_run,
+        "1" => second_boot,
+        $o => { error make { msg: $"Invalid TMT_REBOOT_COUNT ($o)" } },
+    }
+}
diff --git a/tmt/tests/test-23-usroverlay.fmf b/tmt/tests/test-23-usroverlay.fmf
new file mode 100644
index 000000000..fe273d36c
--- /dev/null
+++ b/tmt/tests/test-23-usroverlay.fmf
@@ -0,0 +1,3 @@
+summary: Execute tests for bootc usrover
+test: nu booted/test-usroverlay.nu
+duration: 30m