diff --git a/docker/env.go b/docker/env.go
index 571f3dee0..2a4ce6fd4 100644
--- a/docker/env.go
+++ b/docker/env.go
@@ -2,10 +2,13 @@ package docker
 
 import (
 	"fmt"
+	"io/ioutil"
 	"strings"
 
 	composeConfig "github.com/docker/libcompose/config"
 	"github.com/rancher/os/config"
+
+	log "github.com/Sirupsen/logrus"
 )
 
 type ConfigEnvironment struct {
@@ -41,6 +44,12 @@ func environmentFromCloudConfig(cfg *config.CloudConfig) map[string]string {
 		environment["no_proxy"] = cfg.Rancher.Network.NoProxy
 		environment["NO_PROXY"] = cfg.Rancher.Network.NoProxy
 	}
+	b, err := ioutil.ReadFile("/proc/version")
+	if err == nil {
+		elem := strings.Split(string(b), " ")
+		environment["KERNEL_VERSION"] = elem[2]
+		log.Debugf("Using /proc/version to set rancher.environment.KERNEL_VERSION = %s", elem[2])
+	}
 	return environment
 }
 
diff --git a/tests/assets/test_22/cloud-config.yml b/tests/assets/test_22/cloud-config.yml
index 04b7384e4..abbd95f85 100644
--- a/tests/assets/test_22/cloud-config.yml
+++ b/tests/assets/test_22/cloud-config.yml
@@ -1,6 +1,6 @@
 #cloud-config
 rancher:
   services_include:
-    kernel-headers-4.8.10-rancher: true
+    kernel-headers: true
 ssh_authorized_keys:
   - ssh-rsa AAAAB3NzaC1yc2EAAAADAQABAAABAQC85w9stZyiLQp/DkVO6fqwiShYcj1ClKdtCqgHtf+PLpJkFReSFu8y21y+ev09gsSMRRrjF7yt0pUHV6zncQhVeqsZtgc5WbELY2DOYUGmRn/CCvPbXovoBrQjSorqlBmpuPwsStYLr92Xn+VVsMNSUIegHY22DphGbDKG85vrKB8HxUxGIDxFBds/uE8FhSy+xsoyT/jUZDK6pgq2HnGl6D81ViIlKecpOpWlW3B+fea99ADNyZNVvDzbHE5pcI3VRw8u59WmpWOUgT6qacNVACl8GqpBvQk8sw7O/X9DSZHCKafeD9G5k+GYbAUz92fKWrx/lOXfUXPS3+c8dRIF
diff --git a/tests/kernel_headers_test.go b/tests/kernel_headers_test.go
index 0758d2d62..ecbef5f3c 100644
--- a/tests/kernel_headers_test.go
+++ b/tests/kernel_headers_test.go
@@ -7,5 +7,5 @@ func (s *QemuSuite) TestKernelHeaders(c *C) {
 
 	s.CheckCall(c, `
 sleep 15
-docker inspect kernel-headers-$(uname -r)`)
+docker inspect kernel-headers`)
 }