diff --git a/SPECS/dracut/dracut.spec b/SPECS/dracut/dracut.spec
index 094504a57f5..b790e6b469d 100644
--- a/SPECS/dracut/dracut.spec
+++ b/SPECS/dracut/dracut.spec
@@ -4,7 +4,7 @@
 Summary:        dracut to create initramfs
 Name:           dracut
 Version:        059
-Release:        14%{?dist}
+Release:        15%{?dist}
 # The entire source code is GPLv2+
 # except install/* which is LGPLv2+
 License:        GPLv2+ AND LGPLv2+
@@ -134,9 +134,9 @@ install -m 0644 dracut.conf.d/fips.conf.example %{buildroot}%{_sysconfdir}/dracu
 install -m 0644 %{SOURCE3} %{buildroot}%{_sysconfdir}/dracut.conf.d/50-megaraid.conf
 install -m 0644 %{SOURCE6} %{buildroot}%{_sysconfdir}/dracut.conf.d/00-defaults.conf
 
-mkdir -p %{buildroot}%{_libdir}/dracut/modules.d/20overlayfs/
-install -p -m 0755 %{SOURCE4} %{buildroot}%{_libdir}/dracut/modules.d/20overlayfs/
-install -p -m 0755 %{SOURCE5} %{buildroot}%{_libdir}/dracut/modules.d/20overlayfs/
+mkdir -p %{buildroot}%{dracutlibdir}/modules.d/20overlayfs/
+install -p -m 0755 %{SOURCE4} %{buildroot}%{dracutlibdir}/modules.d/20overlayfs/
+install -p -m 0755 %{SOURCE5} %{buildroot}%{dracutlibdir}/modules.d/20overlayfs/
 
 touch %{buildroot}%{_var}/opt/%{name}/log/%{name}.log
 ln -srv %{buildroot}%{_var}/opt/%{name}/log/%{name}.log %{buildroot}%{_var}/log/
@@ -156,6 +156,7 @@ ln -srv %{buildroot}%{_bindir}/%{name} %{buildroot}%{_sbindir}/%{name}
 %dir %{dracutlibdir}/modules.d
 %{dracutlibdir}/modules.d/*
 %exclude %{_libdir}/kernel
+%exclude %{dracutlibdir}/modules.d/20overlayfs
 %{_libdir}/%{name}/%{name}-init.sh
 %{_datadir}/pkgconfig/%{name}.pc
 %{dracutlibdir}/%{name}-functions.sh
@@ -206,8 +207,8 @@ ln -srv %{buildroot}%{_bindir}/%{name} %{buildroot}%{_sbindir}/%{name}
 %defattr(-,root,root,0755)
 
 %files overlayfs
-%dir %{_libdir}/dracut/modules.d/20overlayfs
-%{_libdir}/dracut/modules.d/20overlayfs/*
+%dir %{dracutlibdir}/modules.d/20overlayfs
+%{dracutlibdir}/modules.d/20overlayfs/*
 
 %{_bindir}/%{name}-catimages
 %dir /boot/%{name}
@@ -215,6 +216,9 @@ ln -srv %{buildroot}%{_bindir}/%{name} %{buildroot}%{_sbindir}/%{name}
 %dir %{_sharedstatedir}/%{name}/overlay
 
 %changelog
+* Fri Mar 22 2024 Lanze Liu <lanzeliu@microsoft.com> - 059-15
+- Exclude overlayfs module from main dracut package
+
 * Wed Mar 06 2024 Chris Gunn <chrisgun@microsoft.com> - 059-14
 - Move defaults to /etc/dracut.conf.d/00-defaults.conf file
 - Add VM guest drivers to default config