diff --git a/test/cases/ostree-iot-qcow2.sh b/test/cases/ostree-iot-qcow2.sh
new file mode 100644
index 00000000000..5d96bb2946c
--- /dev/null
+++ b/test/cases/ostree-iot-qcow2.sh
@@ -0,0 +1,658 @@
+#!/bin/bash
+set -euo pipefail
+
+# Provision the software under test.
+/usr/libexec/osbuild-composer-test/provision.sh none
+
+source /usr/libexec/tests/osbuild-composer/shared_lib.sh
+
+# Get OS data.
+source /etc/os-release
+ARCH=$(uname -m)
+
+
+# Start libvirtd and test it.
+greenprint "🚀 Starting libvirt daemon"
+sudo systemctl start libvirtd
+sudo virsh list --all > /dev/null
+
+# Install and start firewalld
+greenprint "🔧 Install and start firewalld"
+sudo dnf install -y firewalld
+sudo systemctl enable --now firewalld
+
+# Set a customized dnsmasq configuration for libvirt so we always get the
+# same address on bootup.
+sudo tee /tmp/integration.xml > /dev/null << EOF
+<network>
+  <name>integration</name>
+  <uuid>1c8fe98c-b53a-4ca4-bbdb-deb0f26b3579</uuid>
+  <forward mode='nat'>
+    <nat>
+      <port start='1024' end='65535'/>
+    </nat>
+  </forward>
+  <bridge name='integration' zone='trusted' stp='on' delay='0'/>
+  <mac address='52:54:00:36:46:ef'/>
+  <ip address='192.168.100.1' netmask='255.255.255.0'>
+    <dhcp>
+      <range start='192.168.100.2' end='192.168.100.254'/>
+      <host mac='34:49:22:B0:83:30' name='vm-bios' ip='192.168.100.50'/>
+      <host mac='34:49:22:B0:83:31' name='vm-uefi' ip='192.168.100.51'/>
+    </dhcp>
+  </ip>
+</network>
+EOF
+if ! sudo virsh net-info integration > /dev/null 2>&1; then
+    sudo virsh net-define /tmp/integration.xml
+fi
+if [[ $(sudo virsh net-info integration | grep 'Active' | awk '{print $2}') == 'no' ]]; then
+    sudo virsh net-start integration
+fi
+
+# Allow anyone in the wheel group to talk to libvirt.
+greenprint "🚪 Allowing users in wheel group to talk to libvirt"
+sudo tee /etc/polkit-1/rules.d/50-libvirt.rules > /dev/null << EOF
+polkit.addRule(function(action, subject) {
+    if (action.id == "org.libvirt.unix.manage" &&
+        subject.isInGroup("adm")) {
+            return polkit.Result.YES;
+    }
+});
+EOF
+
+# Set up variables.
+TEST_UUID=$(uuidgen)
+IMAGE_KEY="edge-${TEST_UUID}"
+BIOS_GUEST_ADDRESS=192.168.100.50
+UEFI_GUEST_ADDRESS=192.168.100.51
+PROD_REPO_URL=http://192.168.100.1/repo
+PROD_REPO=/var/www/html/repo
+STAGE_REPO_ADDRESS=192.168.200.1
+STAGE_REPO_URL="http://${STAGE_REPO_ADDRESS}:8080/repo/"
+ARTIFACTS="${ARTIFACTS:-/tmp/artifacts}"
+CONTAINER_TYPE=iot-container
+CONTAINER_FILENAME=container.tar
+IOT_QCOW2_IMAGE_TYPE=iot-qcow2-image
+IOT_QCOW2_IMAGE_FILENAME=image.qcow2
+EDGE_USER_PASSWORD=foobar
+
+# Set up temporary files.
+TEMPDIR=$(mktemp -d)
+BLUEPRINT_FILE=${TEMPDIR}/blueprint.toml
+COMPOSE_START=${TEMPDIR}/compose-start-${IMAGE_KEY}.json
+COMPOSE_INFO=${TEMPDIR}/compose-info-${IMAGE_KEY}.json
+
+# SSH setup.
+SSH_OPTIONS=(-o StrictHostKeyChecking=no -o UserKnownHostsFile=/dev/null -o ConnectTimeout=5)
+SSH_DATA_DIR=$(/usr/libexec/osbuild-composer-test/gen-ssh.sh)
+SSH_KEY=${SSH_DATA_DIR}/id_rsa
+SSH_KEY_PUB=$(cat "${SSH_KEY}".pub)
+
+case "${ID}-${VERSION_ID}" in
+    "fedora-"*)
+        OSTREE_REF="fedora/${VERSION_ID}/${ARCH}/iot"
+        OS_VARIANT="fedora-unknown"
+        OSTREE_OSNAME="fedora-iot"
+        SYSROOT_RO="true"
+        CUSTOM_DIRS_FILES="true"
+        ;;
+    *)
+        echo "unsupported distro: ${ID}-${VERSION_ID}"
+        exit 1;;
+esac
+
+
+# Get the compose log.
+get_compose_log () {
+    COMPOSE_ID=$1
+    LOG_FILE=${ARTIFACTS}/osbuild-${ID}-${VERSION_ID}-${COMPOSE_ID}.log
+
+    # Download the logs.
+    sudo composer-cli compose log "$COMPOSE_ID" | tee "$LOG_FILE" > /dev/null
+}
+
+# Get the compose metadata.
+get_compose_metadata () {
+    COMPOSE_ID=$1
+    METADATA_FILE=${ARTIFACTS}/osbuild-${ID}-${VERSION_ID}-${COMPOSE_ID}.json
+
+    # Download the metadata.
+    sudo composer-cli compose metadata "$COMPOSE_ID" > /dev/null
+
+    # Find the tarball and extract it.
+    TARBALL=$(basename "$(find . -maxdepth 1 -type f -name "*-metadata.tar")")
+    sudo tar -xf "$TARBALL" -C "${TEMPDIR}"
+    sudo rm -f "$TARBALL"
+
+    # Move the JSON file into place.
+    sudo cat "${TEMPDIR}"/"${COMPOSE_ID}".json | jq -M '.' | tee "$METADATA_FILE" > /dev/null
+}
+
+# Build ostree image.
+build_image() {
+    blueprint_name=$1
+    image_type=$2
+
+    # Get worker unit file so we can watch the journal.
+    WORKER_UNIT=$(sudo systemctl list-units | grep -o -E "osbuild.*worker.*\.service")
+    sudo journalctl -af -n 1 -u "${WORKER_UNIT}" &
+    WORKER_JOURNAL_PID=$!
+    # Stop watching the worker journal when exiting.
+    trap 'sudo pkill -P ${WORKER_JOURNAL_PID}' EXIT
+
+    # Start the compose.
+    greenprint "🚀 Starting compose"
+    if [ $# -eq 3 ]; then
+        repo_url=$3
+        sudo composer-cli --json compose start-ostree --ref "$OSTREE_REF" --url "$repo_url" "$blueprint_name" "$image_type" | tee "$COMPOSE_START"
+    elif [ $# -eq 4 ]; then
+        repo_url=$3
+        parent_ref=$4
+        sudo composer-cli --json compose start-ostree --ref "$OSTREE_REF" --parent "$parent_ref" --url "$repo_url" "$blueprint_name" "$image_type" | tee "$COMPOSE_START"
+    else
+        sudo composer-cli --json compose start-ostree --ref "$OSTREE_REF" "$blueprint_name" "$image_type" | tee "$COMPOSE_START"
+    fi
+    COMPOSE_ID=$(get_build_info ".build_id" "$COMPOSE_START")
+
+    # Wait for the compose to finish.
+    greenprint "⏱ Waiting for compose to finish: ${COMPOSE_ID}"
+    while true; do
+        sudo composer-cli --json compose info "${COMPOSE_ID}" | tee "$COMPOSE_INFO" > /dev/null
+        COMPOSE_STATUS=$(get_build_info ".queue_status" "$COMPOSE_INFO")
+
+        # Is the compose finished?
+        if [[ $COMPOSE_STATUS != RUNNING ]] && [[ $COMPOSE_STATUS != WAITING ]]; then
+            break
+        fi
+
+        # Wait 30 seconds and try again.
+        sleep 5
+    done
+
+    # Capture the compose logs from osbuild.
+    greenprint "💬 Getting compose log and metadata"
+    get_compose_log "$COMPOSE_ID"
+    get_compose_metadata "$COMPOSE_ID"
+
+    # Kill the journal monitor immediately and remove the trap
+    sudo pkill -P ${WORKER_JOURNAL_PID}
+    trap - EXIT
+
+    # Did the compose finish with success?
+    if [[ $COMPOSE_STATUS != FINISHED ]]; then
+        echo "Something went wrong with the compose. 😢"
+        exit 1
+    fi
+}
+
+# Wait for the ssh server up to be.
+wait_for_ssh_up () {
+    SSH_STATUS=$(sudo ssh "${SSH_OPTIONS[@]}" -i "${SSH_KEY}" admin@"${1}" '/bin/bash -c "echo -n READY"')
+    if [[ $SSH_STATUS == READY ]]; then
+        echo 1
+    else
+        echo 0
+    fi
+}
+
+# Clean up our mess.
+clean_up () {
+    greenprint "🧼 Cleaning up"
+
+    # Clear vm
+    if [[ $(sudo virsh domstate "${IMAGE_KEY}-uefi") == "running" ]]; then
+        sudo virsh destroy "${IMAGE_KEY}-uefi"
+    fi
+    sudo virsh undefine "${IMAGE_KEY}-uefi" --nvram
+    # Remove qcow2 file.
+    sudo rm -f "$LIBVIRT_IMAGE_PATH"
+
+    # Remove any status containers if exist
+    sudo podman ps -a -q --format "{{.ID}}" | sudo xargs --no-run-if-empty podman rm -f
+    # Remove all images
+    sudo podman rmi -f -a
+
+    # Remove prod repo
+    sudo rm -rf "$PROD_REPO"
+
+    # Remomve tmp dir.
+    sudo rm -rf "$TEMPDIR"
+
+    # Stop prod repo http service
+    sudo systemctl disable --now httpd
+}
+
+# Test result checking
+check_result () {
+    greenprint "🎏 Checking for test result"
+    if [[ $RESULTS == 1 ]]; then
+        greenprint "💚 Success"
+    else
+        greenprint "❌ Failed"
+        clean_up
+        exit 1
+    fi
+}
+
+###########################################################
+##
+## Prepare edge prod and stage repo
+##
+###########################################################
+greenprint "🔧 Prepare edge prod repo"
+# Start prod repo web service
+# osbuild-composer-tests have mod_ssl as a dependency. The package installs
+# an example configuration which automatically enabled httpd on port 443, but
+# that one is already in use. Remove the default configuration as it is useless
+# anyway.
+sudo rm -f /etc/httpd/conf.d/ssl.conf
+sudo systemctl enable --now httpd.service
+
+# Have a clean prod repo
+sudo rm -rf "$PROD_REPO"
+sudo mkdir -p "$PROD_REPO"
+sudo ostree --repo="$PROD_REPO" init --mode=archive
+sudo ostree --repo="$PROD_REPO" remote add --no-gpg-verify edge-stage "$STAGE_REPO_URL"
+
+# Prepare stage repo network
+greenprint "🔧 Prepare stage repo network"
+sudo podman network inspect edge >/dev/null 2>&1 || sudo podman network create --driver=bridge --subnet=192.168.200.0/24 --gateway=192.168.200.254 edge
+
+##########################################################
+##
+## Build iot-container image and start it in podman
+##
+##########################################################
+
+# Write a blueprint for ostree image.
+tee "$BLUEPRINT_FILE" > /dev/null << EOF
+name = "container"
+description = "A base iot-container image"
+version = "0.0.1"
+modules = []
+groups = []
+
+[[packages]]
+name = "python3"
+version = "*"
+
+[[packages]]
+name = "sssd"
+version = "*"
+EOF
+
+greenprint "📄 container blueprint"
+cat "$BLUEPRINT_FILE"
+
+# Prepare the blueprint for the compose.
+greenprint "📋 Preparing container blueprint"
+sudo composer-cli blueprints push "$BLUEPRINT_FILE"
+sudo composer-cli blueprints depsolve container
+
+# Build container image.
+build_image container "${CONTAINER_TYPE}"
+
+# Download the image
+greenprint "📥 Downloading the container image"
+sudo composer-cli compose image "${COMPOSE_ID}" > /dev/null
+
+# Clear stage repo running env
+greenprint "🧹 Clearing stage repo running env"
+# Remove any status containers if exist
+sudo podman ps -a -q --format "{{.ID}}" | sudo xargs --no-run-if-empty podman rm -f
+# Remove all images
+sudo podman rmi -f -a
+
+# Deal with stage repo image
+greenprint "🗜 Starting container"
+IMAGE_FILENAME="${COMPOSE_ID}-${CONTAINER_FILENAME}"
+sudo podman pull "oci-archive:${IMAGE_FILENAME}"
+sudo podman images
+# Run edge stage repo
+greenprint "🛰 Running edge stage repo"
+# Get image id to run image
+EDGE_IMAGE_ID=$(sudo podman images --filter "dangling=true" --format "{{.ID}}")
+sudo podman run -d --name rhel-edge --network edge --ip "$STAGE_REPO_ADDRESS" "$EDGE_IMAGE_ID"
+# Clear image file
+sudo rm -f "$IMAGE_FILENAME"
+
+# Wait for container to be running
+until [ "$(sudo podman inspect -f '{{.State.Running}}' rhel-edge)" == "true" ]; do
+    sleep 1;
+done;
+
+# Sync edge content
+greenprint "📡 Sync content from stage repo"
+sudo ostree --repo="$PROD_REPO" pull --mirror edge-stage "$OSTREE_REF"
+
+# Clean compose and blueprints.
+greenprint "🧽 Clean up container blueprint and compose"
+sudo composer-cli compose delete "${COMPOSE_ID}" > /dev/null
+sudo composer-cli blueprints delete container > /dev/null
+
+############################################################
+##
+## Build edge-raw-image
+##
+############################################################
+
+# Write a blueprint for raw image.
+tee "$BLUEPRINT_FILE" > /dev/null << EOF
+name = "iot-qcow2"
+description = "A iot-qcow2 image"
+version = "0.0.1"
+modules = []
+groups = []
+
+[[customizations.user]]
+name = "admin"
+description = "Administrator account"
+password = "\$6\$GRmb7S0p8vsYmXzH\$o0E020S.9JQGaHkszoog4ha4AQVs3sk8q0DvLjSMxoxHBKnB2FBXGQ/OkwZQfW/76ktHd0NX5nls2LPxPuUdl."
+key = "${SSH_KEY_PUB}"
+home = "/home/admin/"
+groups = ["wheel"]
+
+[[customizations.directories]]
+path = "/etc/custom_dir/dir1"
+user = 1020
+group = 1020
+mode = "0770"
+ensure_parents = true
+
+[[customizations.files]]
+path = "/etc/systemd/system/custom.service"
+data = "[Unit]\nDescription=Custom service\n[Service]\nType=oneshot\nRemainAfterExit=yes\nExecStart=/usr/bin/false\n[Install]\nWantedBy=multi-user.target\n"
+
+[[customizations.files]]
+path = "/etc/custom_file.txt"
+data = "image builder is the best\n"
+
+[[customizations.directories]]
+path = "/etc/systemd/system/custom.service.d"
+
+[[customizations.files]]
+path = "/etc/systemd/system/custom.service.d/override.conf"
+data = "[Service]\nExecStart=\nExecStart=/usr/bin/cat /etc/custom_file.txt\n"
+
+[[customizations.directories]]
+path = "/etc/systemd/system-preset"
+
+[[customizations.files]]
+path = "/etc/systemd/system-preset/30-test.preset"
+data = "enable custom.service\n"
+EOF
+
+greenprint "📄 iot-qcow2-image blueprint"
+cat "$BLUEPRINT_FILE"
+
+# Prepare the blueprint for the compose.
+greenprint "📋 Preparing raw image blueprint"
+sudo composer-cli blueprints push "$BLUEPRINT_FILE"
+sudo composer-cli blueprints depsolve iot-qcow2
+
+# Build raw image.
+# Test --url arg following by URL with tailling slash for bz#1942029
+build_image iot-qcow2 "${IOT_QCOW2_IMAGE_TYPE}" "${PROD_REPO_URL}/"
+
+# Download the image
+greenprint "📥 Downloading the iot-qcow2-image"
+sudo composer-cli compose image "${COMPOSE_ID}" > /dev/null
+ISO_FILENAME="${COMPOSE_ID}-${IOT_QCOW2_IMAGE_FILENAME}"
+
+# Clean compose and blueprints.
+greenprint "🧹 Clean up iot-qcow2-image blueprint and compose"
+sudo composer-cli compose delete "${COMPOSE_ID}" > /dev/null
+sudo composer-cli blueprints delete iot-qcow2 > /dev/null
+
+sudo cp "${ISO_FILENAME}" /var/lib/libvirt/images/
+LIBVIRT_IMAGE_PATH=/var/lib/libvirt/images/${ISO_FILENAME}
+
+##################################################################
+##
+## Install and test edge vm with edge-raw-image (UEFI)
+##
+##################################################################
+# Prepare qcow2 file for UEFI
+sudo cp "${ISO_FILENAME}" /var/lib/libvirt/images/
+# Ensure SELinux is happy with our new images.
+greenprint "👿 Running restorecon on image directory"
+sudo restorecon -Rv /var/lib/libvirt/images/
+
+sudo virt-install --name="${IMAGE_KEY}-uefi"\
+               --disk path="${LIBVIRT_IMAGE_PATH}",format=qcow2 \
+               --ram 3072 \
+               --vcpus 2 \
+               --network network=integration,mac=34:49:22:B0:83:31 \
+               --os-type linux \
+               --import \
+               --os-variant ${OS_VARIANT} \
+               --boot uefi \
+               --nographics \
+               --noautoconsole \
+               --wait=-1 \
+               --noreboot
+
+# Start VM.
+greenprint "💻 Start UEFI VM"
+sudo virsh start "${IMAGE_KEY}-uefi"
+
+# Check for ssh ready to go.
+greenprint "🛃 Checking for SSH is ready to go"
+for _ in $(seq 0 30); do
+    RESULTS="$(wait_for_ssh_up $UEFI_GUEST_ADDRESS)"
+    if [[ $RESULTS == 1 ]]; then
+        echo "SSH is ready now! 🥳"
+        break
+    fi
+    sleep 10
+done
+
+# With new ostree-libs-2022.6-3, edge vm needs to reboot twice to make the /sysroot readonly
+sudo ssh "${SSH_OPTIONS[@]}" -i "${SSH_KEY}" "admin@${UEFI_GUEST_ADDRESS}" 'nohup sudo systemctl reboot &>/dev/null & exit'
+# Sleep 10 seconds here to make sure vm restarted already
+sleep 10
+for _ in $(seq 0 30); do
+    RESULTS="$(wait_for_ssh_up $UEFI_GUEST_ADDRESS)"
+    if [[ $RESULTS == 1 ]]; then
+        echo "SSH is ready now! 🥳"
+        break
+    fi
+    sleep 10
+done
+
+# Check image installation result
+check_result
+
+greenprint "🕹 Get ostree install commit value"
+INSTALL_HASH=$(curl "${PROD_REPO_URL}/refs/heads/${OSTREE_REF}")
+
+# Add instance IP address into /etc/ansible/hosts
+sudo tee "${TEMPDIR}"/inventory > /dev/null << EOF
+[ostree_guest]
+${UEFI_GUEST_ADDRESS}
+
+[ostree_guest:vars]
+ansible_python_interpreter=/usr/bin/python3
+ansible_user=admin
+ansible_private_key_file=${SSH_KEY}
+ansible_ssh_common_args="-o StrictHostKeyChecking=no -o UserKnownHostsFile=/dev/null"
+ansible_become=yes
+ansible_become_method=sudo
+ansible_become_pass=${EDGE_USER_PASSWORD}
+EOF
+
+# Test IoT/Edge OS
+sudo ansible-playbook -v -i "${TEMPDIR}"/inventory \
+    -e image_type="${OSTREE_OSNAME}" \
+    -e edge_type=iot-qcow2-image \
+    -e ostree_commit="${INSTALL_HASH}" \
+    -e sysroot_ro="$SYSROOT_RO" \
+    -e test_custom_dirs_files="$CUSTOM_DIRS_FILES" \
+    /usr/share/tests/osbuild-composer/ansible/check_ostree.yaml || RESULTS=0
+check_result
+
+##################################################################
+##
+## Upgrade and test edge vm with iot-qcow2-image (UEFI)
+##
+##################################################################
+
+# Write a blueprint for ostree image.
+# NB: no ssh key in the upgrade commit because there is no home dir
+tee "$BLUEPRINT_FILE" > /dev/null << EOF
+name = "upgrade"
+description = "An upgrade iot-container image"
+version = "0.0.2"
+modules = []
+groups = []
+
+[[packages]]
+name = "python3"
+version = "*"
+
+[[packages]]
+name = "sssd"
+version = "*"
+
+[[packages]]
+name = "wget"
+version = "*"
+
+[[customizations.directories]]
+path = "/etc/custom_dir/dir1"
+user = 1020
+group = 1020
+mode = "0770"
+ensure_parents = true
+
+[[customizations.files]]
+path = "/etc/systemd/system/custom.service"
+data = "[Unit]\nDescription=Custom service\n[Service]\nType=oneshot\nRemainAfterExit=yes\nExecStart=/usr/bin/false\n[Install]\nWantedBy=multi-user.target\n"
+
+[[customizations.files]]
+path = "/etc/custom_file.txt"
+data = "image builder is the best\n"
+
+[[customizations.directories]]
+path = "/etc/systemd/system/custom.service.d"
+
+[[customizations.files]]
+path = "/etc/systemd/system/custom.service.d/override.conf"
+data = "[Service]\nExecStart=\nExecStart=/usr/bin/cat /etc/custom_file.txt\n"
+
+[customizations.services]
+enabled = ["custom.service"]
+EOF
+
+greenprint "📄 upgrade blueprint"
+cat "$BLUEPRINT_FILE"
+
+# Prepare the blueprint for the compose.
+greenprint "📋 Preparing upgrade blueprint"
+sudo composer-cli blueprints push "$BLUEPRINT_FILE"
+sudo composer-cli blueprints depsolve upgrade
+
+# Build upgrade image.
+build_image upgrade  "${CONTAINER_TYPE}" "$PROD_REPO_URL"
+
+# Download the image
+greenprint "📥 Downloading the upgrade image"
+sudo composer-cli compose image "${COMPOSE_ID}" > /dev/null
+
+# Clear stage repo running env
+greenprint "🧹 Clearing stage repo running env"
+# Remove any status containers if exist
+sudo podman ps -a -q --format "{{.ID}}" | sudo xargs --no-run-if-empty podman rm -f
+# Remove all images
+sudo podman rmi -f -a
+
+# Deal with stage repo container
+greenprint "🗜 Extracting image"
+IMAGE_FILENAME="${COMPOSE_ID}-${CONTAINER_FILENAME}"
+sudo podman pull "oci-archive:${IMAGE_FILENAME}"
+sudo podman images
+# Clear image file
+sudo rm -f "$IMAGE_FILENAME"
+
+# Run edge stage repo
+greenprint "🛰 Running edge stage repo"
+# Get image id to run image
+EDGE_IMAGE_ID=$(sudo podman images --filter "dangling=true" --format "{{.ID}}")
+sudo podman run -d --name rhel-edge --network edge --ip "$STAGE_REPO_ADDRESS" "$EDGE_IMAGE_ID"
+# Wait for container to be running
+until [ "$(sudo podman inspect -f '{{.State.Running}}' rhel-edge)" == "true" ]; do
+    sleep 1;
+done;
+
+# Pull upgrade to prod mirror
+greenprint "⛓ Pull upgrade to prod mirror"
+sudo ostree --repo="$PROD_REPO" pull --mirror edge-stage "$OSTREE_REF"
+sudo ostree --repo="$PROD_REPO" static-delta generate "$OSTREE_REF"
+sudo ostree --repo="$PROD_REPO" summary -u
+
+# Get ostree commit value.
+greenprint "🕹 Get ostree upgrade commit value"
+UPGRADE_HASH=$(curl "${PROD_REPO_URL}/refs/heads/${OSTREE_REF}")
+
+# Clean compose and blueprints.
+greenprint "🧽 Clean up upgrade blueprint and compose"
+sudo composer-cli compose delete "${COMPOSE_ID}" > /dev/null
+sudo composer-cli blueprints delete upgrade > /dev/null
+
+greenprint "Replacing default remote"
+sudo ssh "${SSH_OPTIONS[@]}" -i "${SSH_KEY}" admin@${UEFI_GUEST_ADDRESS} "echo ${EDGE_USER_PASSWORD} |sudo -S ostree remote delete ${OSTREE_OSNAME}"
+sudo ssh "${SSH_OPTIONS[@]}" -i "${SSH_KEY}" admin@${UEFI_GUEST_ADDRESS} "echo ${EDGE_USER_PASSWORD} |sudo -S ostree remote add --no-gpg-verify ${OSTREE_OSNAME} ${PROD_REPO_URL}"
+
+# Upgrade image/commit.
+greenprint "🗳 Upgrade ostree image/commit"
+sudo ssh "${SSH_OPTIONS[@]}" -i "${SSH_KEY}" admin@${UEFI_GUEST_ADDRESS} "echo ${EDGE_USER_PASSWORD} |sudo -S rpm-ostree upgrade"
+sudo ssh "${SSH_OPTIONS[@]}" -i "${SSH_KEY}" admin@${UEFI_GUEST_ADDRESS} "echo ${EDGE_USER_PASSWORD} |nohup sudo -S systemctl reboot &>/dev/null & exit"
+
+# Sleep 10 seconds here to make sure vm restarted already
+sleep 10
+
+# Check for ssh ready to go.
+greenprint "🛃 Checking for SSH is ready to go"
+# shellcheck disable=SC2034  # Unused variables left for readability
+for _ in $(seq 0 30); do
+    RESULTS="$(wait_for_ssh_up $UEFI_GUEST_ADDRESS)"
+    if [[ $RESULTS == 1 ]]; then
+        echo "SSH is ready now! 🥳"
+        break
+    fi
+    sleep 10
+done
+
+# Check ostree upgrade result
+check_result
+
+# Add instance IP address into /etc/ansible/hosts
+sudo tee "${TEMPDIR}"/inventory > /dev/null << EOF
+[ostree_guest]
+${UEFI_GUEST_ADDRESS}
+
+[ostree_guest:vars]
+ansible_python_interpreter=/usr/bin/python3
+ansible_user=admin
+ansible_private_key_file=${SSH_KEY}
+ansible_ssh_common_args="-o StrictHostKeyChecking=no -o UserKnownHostsFile=/dev/null"
+ansible_become=yes
+ansible_become_method=sudo
+ansible_become_pass=${EDGE_USER_PASSWORD}
+EOF
+
+# Test IoT/Edge OS
+sudo ansible-playbook -v -i "${TEMPDIR}"/inventory \
+    -e image_type="${OSTREE_OSNAME}" \
+    -e edge_type=iot-qcow2-image \
+    -e ostree_commit="${UPGRADE_HASH}" \
+    -e sysroot_ro="$SYSROOT_RO" \
+    -e test_custom_dirs_files="$CUSTOM_DIRS_FILES" \
+    /usr/share/tests/osbuild-composer/ansible/check_ostree.yaml || RESULTS=0
+check_result
+
+# Final success clean up
+clean_up
+
+exit 0
diff --git a/test/cases/ostree-simplified-installer.sh b/test/cases/ostree-simplified-installer.sh
index db8185e2ef0..c3858c56ac9 100755
--- a/test/cases/ostree-simplified-installer.sh
+++ b/test/cases/ostree-simplified-installer.sh
@@ -125,7 +125,21 @@ SYSROOT_RO="false"
 ANSIBLE_USER="admin"
 FDO_USER_ONBOARDING="false"
 
+IMAGE_TYPE=redhat
+
 case "${ID}-${VERSION_ID}" in
+    "fedora-38")
+        OSTREE_REF="fedora/38/${ARCH}/iot"
+        PARENT_REF="fedora/38/${ARCH}/iot"
+        OS_VARIANT="fedora-unknown"
+        CONTAINER_TYPE="iot-container"
+        INSTALLER_TYPE="iot-simplified-installer"
+        REF_PREFIX="fedora-iot"
+        SYSROOT_RO="true"
+        IMAGE_TYPE="fedora"
+        ANSIBLE_USER=fdouser
+        FDO_USER_ONBOARDING="true"
+        ;;
     "rhel-8"* )
         OSTREE_REF="rhel/8/${ARCH}/edge"
         PARENT_REF="rhel/8/${ARCH}/edge"
@@ -173,8 +187,16 @@ if [[ "$FDO_USER_ONBOARDING" == "true" ]]; then
 fdouser ALL=(ALL) NOPASSWD: ALL
 EOF
     sudo /usr/local/bin/yq -iy '.service_info.files |= [{path: "/etc/sudoers.d/fdouser", source_path: "/tmp/fdouser"}]' /etc/fdo/aio/configs/serviceinfo_api_server.yml
-    sudo systemctl restart fdo-aio
 fi
+
+if [[ "${ID}" == "fedora" ]]; then
+    # Fedora iot-simplified-installer only has /dev/vda3, details https://github.com/osbuild/osbuild-composer/issues/3527
+    echo "Change vda4 to vda3 for fedora in serviceinfo config file"
+    sudo sed -i 's/vda4/vda3/' /etc/fdo/aio/configs/serviceinfo_api_server.yml
+fi
+
+sudo systemctl restart fdo-aio
+
 # Wait for fdo server to be running
 until [ "$(curl -X POST http://${FDO_SERVER_ADDRESS}:8080/ping)" == "pong" ]; do
     sleep 1;
@@ -366,18 +388,15 @@ version = "*"
 [[packages]]
 name = "sssd"
 version = "*"
+EOF
 
+# Fedora does not have kernel-rt
+if [[ "$ID" != "fedora" ]]; then
+    tee -a "$BLUEPRINT_FILE" >> /dev/null << EOF
 [customizations.kernel]
 name = "${KERNEL_RT_PKG}"
-
-[[customizations.user]]
-name = "admin"
-description = "Administrator account"
-password = "\$6\$GRmb7S0p8vsYmXzH\$o0E020S.9JQGaHkszoog4ha4AQVs3sk8q0DvLjSMxoxHBKnB2FBXGQ/OkwZQfW/76ktHd0NX5nls2LPxPuUdl."
-key = "${SSH_KEY_PUB}"
-home = "/home/admin/"
-groups = ["wheel"]
 EOF
+fi
 
 greenprint "📄 container blueprint"
 cat "$BLUEPRINT_FILE"
@@ -434,11 +453,11 @@ modules = []
 groups = []
 
 [[customizations.user]]
-name = "simple"
+name = "admin"
 description = "Administrator account"
 password = "\$6\$GRmb7S0p8vsYmXzH\$o0E020S.9JQGaHkszoog4ha4AQVs3sk8q0DvLjSMxoxHBKnB2FBXGQ/OkwZQfW/76ktHd0NX5nls2LPxPuUdl."
 key = "${SSH_KEY_PUB}"
-home = "/home/simple/"
+home = "/home/admin/"
 groups = ["wheel"]
 
 [customizations]
@@ -508,7 +527,7 @@ for _ in $(seq 0 30); do
 done
 
 # With new ostree-libs-2022.6-3, edge vm needs to reboot twice to make the /sysroot readonly
-sudo ssh "${SSH_OPTIONS[@]}" -i "${SSH_KEY}" "simple@${EDGE_GUEST_ADDRESS}" "echo ${EDGE_USER_PASSWORD} |nohup sudo -S systemctl reboot &>/dev/null & exit"
+sudo ssh "${SSH_OPTIONS[@]}" -i "${SSH_KEY}" "admin@${EDGE_GUEST_ADDRESS}" "echo ${EDGE_USER_PASSWORD} |nohup sudo -S systemctl reboot &>/dev/null & exit"
 # Sleep 10 seconds here to make sure vm restarted already
 sleep 10
 for _ in $(seq 0 30); do
@@ -532,7 +551,7 @@ ${EDGE_GUEST_ADDRESS}
 
 [ostree_guest:vars]
 ansible_python_interpreter=/usr/bin/python3
-ansible_user=simple
+ansible_user=admin
 ansible_private_key_file=${SSH_KEY}
 ansible_ssh_common_args="-o StrictHostKeyChecking=no -o UserKnownHostsFile=/dev/null"
 ansible_become=yes
@@ -542,7 +561,7 @@ EOF
 
 # Test IoT/Edge OS
 sudo ansible-playbook -v -i "${TEMPDIR}"/inventory \
-    -e image_type=redhat \
+    -e image_type=${IMAGE_TYPE} \
     -e ostree_commit="${INSTALL_HASH}" \
     -e skip_rollback_test="true" \
     -e edge_type=edge-simplified-installer \
@@ -575,11 +594,11 @@ groups = []
 installation_device = "/dev/vda"
 
 [[customizations.user]]
-name = "simple"
+name = "admin"
 description = "Administrator account"
 password = "\$6\$GRmb7S0p8vsYmXzH\$o0E020S.9JQGaHkszoog4ha4AQVs3sk8q0DvLjSMxoxHBKnB2FBXGQ/OkwZQfW/76ktHd0NX5nls2LPxPuUdl."
 key = "${SSH_KEY_PUB}"
-home = "/home/simple/"
+home = "/home/admin/"
 groups = ["wheel"]
 
 [customizations.fdo]
@@ -705,7 +724,7 @@ ${EDGE_GUEST_ADDRESS}
 
 [ostree_guest:vars]
 ansible_python_interpreter=/usr/bin/python3
-ansible_user=simple
+ansible_user=admin
 ansible_private_key_file=${SSH_KEY}
 ansible_ssh_common_args="-o StrictHostKeyChecking=no -o UserKnownHostsFile=/dev/null"
 ansible_become=yes 
@@ -715,7 +734,7 @@ EOF
 
 # Test IoT/Edge OS
 sudo ansible-playbook -v -i "${TEMPDIR}"/inventory \
-    -e image_type=redhat \
+    -e image_type=${IMAGE_TYPE} \
     -e ostree_commit="${INSTALL_HASH}" \
     -e skip_rollback_test="true" \
     -e edge_type=edge-simplified-installer \
@@ -751,6 +770,14 @@ groups = []
 [customizations]
 installation_device = "/dev/vda"
 
+[[customizations.user]]
+name = "admin"
+description = "Administrator account"
+password = "\$6\$GRmb7S0p8vsYmXzH\$o0E020S.9JQGaHkszoog4ha4AQVs3sk8q0DvLjSMxoxHBKnB2FBXGQ/OkwZQfW/76ktHd0NX5nls2LPxPuUdl."
+key = "${SSH_KEY_PUB}"
+home = "/home/admin/"
+groups = ["wheel"]
+
 [customizations.fdo]
 manufacturing_server_url="http://${FDO_SERVER_ADDRESS}:8080"
 diun_pub_key_hash="${DIUN_PUB_KEY_HASH}"
@@ -886,11 +913,11 @@ fi
 
 # Test IoT/Edge OS
 sudo ansible-playbook -v -i "${TEMPDIR}"/inventory \
-    -e image_type=redhat \
+    -e image_type=${IMAGE_TYPE} \
     -e ostree_commit="${INSTALL_HASH}" \
-    -e skip_rollback_test="true" \
     -e edge_type=edge-simplified-installer \
     -e fdo_credential="true" \
+    -e skip_rollback_test="true" \
     -e sysroot_ro="$SYSROOT_RO" \
     /usr/share/tests/osbuild-composer/ansible/check_ostree.yaml || RESULTS=0
 check_result
@@ -919,9 +946,6 @@ version = "*"
 name = "wget"
 version = "*"
 
-[customizations.kernel]
-name = "${KERNEL_RT_PKG}"
-
 [[customizations.user]]
 name = "admin"
 description = "Administrator account"
@@ -930,6 +954,14 @@ home = "/home/admin/"
 groups = ["wheel"]
 EOF
 
+# Fedora does not have kernel-rt
+if [[ "$ID" != "fedora" ]]; then
+    tee -a "$BLUEPRINT_FILE" >> /dev/null << EOF
+[customizations.kernel]
+name = "${KERNEL_RT_PKG}"
+EOF
+fi
+
 greenprint "📄 rebase blueprint"
 cat "$BLUEPRINT_FILE"
 
@@ -1023,7 +1055,7 @@ EOF
 
 # Test IoT/Edge OS
 sudo ansible-playbook -v -i "${TEMPDIR}"/inventory \
-    -e image_type=redhat \
+    -e image_type=${IMAGE_TYPE} \
     -e ostree_commit="${REBASE_HASH}" \
     -e skip_rollback_test="true" \
     -e edge_type=edge-simplified-installer \
@@ -1183,7 +1215,7 @@ EOF
 
 # Test IoT/Edge OS
 sudo ansible-playbook -v -i "${TEMPDIR}"/inventory \
-    -e image_type=redhat \
+    -e image_type=${IMAGE_TYPE} \
     -e ostree_commit="${INSTALL_HASH}" \
     -e skip_rollback_test="true" \
     -e edge_type=edge-simplified-installer \
@@ -1324,7 +1356,7 @@ EOF
 
 # Test IoT/Edge OS
 sudo ansible-playbook -v -i "${TEMPDIR}"/inventory \
-    -e image_type=redhat \
+    -e image_type=${IMAGE_TYPE} \
     -e ostree_commit="${UPGRADE_HASH}" \
     -e skip_rollback_test="true" \
     -e edge_type=edge-simplified-installer \