diff --git a/dracut-functions b/dracut-functions
index a9b15ccd..3852478b 100755
--- a/dracut-functions
+++ b/dracut-functions
@@ -364,7 +364,7 @@ inst_simple() {
         inst "${_src%/*}/.${_src##*/}.hmac" "${target%/*}/.${target##*/}.hmac"
     fi
     ddebug "Installing $_src"
-    cp --sparse=always -pfL "$_src" "${initdir}/$target" 
+    cp --sparse=always -pfL "$_src" "${initdir}/$target"
 }
 
 # find symlinks linked to given library file
@@ -508,7 +508,7 @@ inst_symlink() {
     if [[ -d $_realsrc ]]; then
         inst_dir "$_realsrc"
     else
-        inst "$_realsrc" && mkdir -m 0755 -p "${_target%/*}" 
+        inst "$_realsrc" && mkdir -m 0755 -p "${_target%/*}"
     fi
     if [[ -e "${_src}" ]]; then
         ln -sfn $(convert_abs_rel "${_src}" "${_realsrc}") "$_target"
@@ -984,6 +984,7 @@ filter_kernel_modules_by_path () (
     if ! [[ $hostonly ]]; then
         _filtercmd='find "$srcmods/kernel/$1" "$srcmods/extra"'
         _filtercmd+=' "$srcmods/weak-updates" -name "*.ko" -o -name "*.ko.gz"'
+        _filtercmd+=' -o -name "*.ko.xz"'
         _filtercmd+=' 2>/dev/null'
     else
         _filtercmd='cut -d " " -f 1 </proc/modules|xargs modinfo -F filename '
@@ -996,13 +997,17 @@ filter_kernel_modules_by_path () (
                 $2 $initdir/$$.ko && echo "$_modname"
                 rm -f $initdir/$$.ko
                 ;;
+            *.ko.xz) xz -dc "$_modname" > $initdir/$$.ko
+                $2 $initdir/$$.ko && echo "$_modname"
+                rm -f $initdir/$$.ko
+                ;;
         esac
     done
 )
 find_kernel_modules_by_path () (
     if ! [[ $hostonly ]]; then
         find "$srcmods/kernel/$1" "$srcmods/extra" "$srcmods/weak-updates" \
-          -name "*.ko" -o -name "*.ko.gz" 2>/dev/null
+          -name "*.ko" -o -name "*.ko.gz" -o -name "*.ko.xz" 2>/dev/null
     else
         cut -d " " -f 1 </proc/modules \
         | xargs modinfo -F filename -k $kernel 2>/dev/null
diff --git a/modules.d/40network/module-setup.sh b/modules.d/40network/module-setup.sh
index fbf6f346..6c4ae92f 100755
--- a/modules.d/40network/module-setup.sh
+++ b/modules.d/40network/module-setup.sh
@@ -36,6 +36,7 @@ installkernel() {
                 case "$_fname" in
                     *.ko)    _fcont="$(<        $_fname)" ;;
                     *.ko.gz) _fcont="$(gzip -dc $_fname)" ;;
+                    *.ko.xz) _fcont="$(xz -dc   $_fname)" ;;
                 esac
                 [[   $_fcont =~ $_net_drivers
                 && ! $_fcont =~ iw_handler_get_spy ]] \
diff --git a/modules.d/90kernel-modules/module-setup.sh b/modules.d/90kernel-modules/module-setup.sh
index 78884289..46d85916 100755
--- a/modules.d/90kernel-modules/module-setup.sh
+++ b/modules.d/90kernel-modules/module-setup.sh
@@ -13,6 +13,7 @@ installkernel() {
                 while read _f; do case "$_f" in
                     *.ko)    [[ $(<         $_f) =~ $_blockfuncs ]] && echo "$_f" ;;
                     *.ko.gz) [[ $(gzip -dc <$_f) =~ $_blockfuncs ]] && echo "$_f" ;;
+                    *.ko.xz) [[ $(xz -dc   <$_f) =~ $_blockfuncs ]] && echo "$_f" ;;
                     esac
                 done
             }
diff --git a/modules.d/90multipath/module-setup.sh b/modules.d/90multipath/module-setup.sh
index 43f0a3db..1502f59a 100755
--- a/modules.d/90multipath/module-setup.sh
+++ b/modules.d/90multipath/module-setup.sh
@@ -40,6 +40,7 @@ installkernel() {
         while read _f; do case "$_f" in
             *.ko)    [[ $(<         $_f) =~ $_mpfuncs ]] && echo "$_f" ;;
             *.ko.gz) [[ $(gzip -dc <$_f) =~ $_mpfuncs ]] && echo "$_f" ;;
+            *.ko.xz) [[ $(xz -dc   <$_f) =~ $_mpfuncs ]] && echo "$_f" ;;
             esac
         done
     }
diff --git a/modules.d/95iscsi/module-setup.sh b/modules.d/95iscsi/module-setup.sh
index 8caaf739..560507c2 100755
--- a/modules.d/95iscsi/module-setup.sh
+++ b/modules.d/95iscsi/module-setup.sh
@@ -48,6 +48,7 @@ installkernel() {
         while read _f; do case "$_f" in
             *.ko)    [[ $(<         $_f) =~ $_iscsifuncs ]] && echo "$_f" ;;
             *.ko.gz) [[ $(gzip -dc <$_f) =~ $_iscsifuncs ]] && echo "$_f" ;;
+            *.ko.xz) [[ $(xz -dc   <$_f) =~ $_iscsifuncs ]] && echo "$_f" ;;
             esac
         done
     }