diff --git a/dracut/99kdumpbase/module-setup.sh b/dracut/99kdumpbase/module-setup.sh
index 7be4ef76..50dd67cc 100755
--- a/dracut/99kdumpbase/module-setup.sh
+++ b/dracut/99kdumpbase/module-setup.sh
@@ -44,12 +44,6 @@ depends() {
         [[ " $omit_dracutmodules " != *\ $1\ * ]] && _dep="$_dep $1"
     }
 
-    if is_squash_available; then
-        add_opt_module squash
-    else
-        dwarning "Required modules to build a squashed kdump image is missing!"
-    fi
-
     if is_wdt_active; then
         add_opt_module watchdog
     fi
diff --git a/kdump-lib.sh b/kdump-lib.sh
index ba853d94..c14e75e8 100755
--- a/kdump-lib.sh
+++ b/kdump-lib.sh
@@ -43,16 +43,6 @@ is_sme_or_sev_active()
 	journalctl -q --dmesg --grep "^Memory Encryption Features active: AMD (SME|SEV)$" >/dev/null 2>&1
 }
 
-is_squash_available()
-{
-	local _version kmodule
-
-	_version=$(_get_kdump_kernel_version)
-	for kmodule in squashfs overlay loop; do
-		modprobe -S "$_version" --dry-run $kmodule &> /dev/null || return 1
-	done
-}
-
 has_command()
 {
 	[[ -x $(command -v "$1") ]]
diff --git a/mkdumprd b/mkdumprd
index 517ce19d..366bcdb3 100644
--- a/mkdumprd
+++ b/mkdumprd
@@ -379,10 +379,9 @@ done <<< "$(kdump_read_conf)"
 handle_default_dump_target
 
 if ! have_compression_in_dracut_args; then
-	if is_squash_available; then
-		dracut_args+=("--squash-compressor" "zstd")
-	elif has_command zstd; then
-		dracut_args+=("--compress" "zstd")
+	if has_command mksquashfs; then
+		dracut_args+=(--add squash)
+		dracut_args+=(--squash-compressor zstd)
 	fi
 fi