diff --git a/HACKING b/HACKING
index 614aa506..26137678 100644
--- a/HACKING
+++ b/HACKING
@@ -13,8 +13,10 @@ kernel version (it defaults to using the current).   The appropriate
 modules will be copied over and things should be good to go.  If you'd
 like to customize the list of modules copied in, edit /etc/dracut.conf
 and set
-  modules="foo bar baz"
+  dracutmodules="foo bar baz"
 
+Note that dracut calls functional components in modules.d "modules" 
+while kernel modules are called "drivers".
 
 Requirements:
 * udev
diff --git a/dracut b/dracut
index 69cd88ff..a255a142 100755
--- a/dracut
+++ b/dracut
@@ -45,7 +45,7 @@ while (($# > 0)); do
 	-f|--force) force=yes;;
 	-m|--modules) dracutmodules_l="$2"; shift;;
 	-o|--omit) omit_dracutmodules_l="$2"; shift;;
-	-d|--drivers) modules_l="$2"; shift;;
+	-d|--drivers) drivers_l="$2"; shift;;
 	-h|--help) usage; exit 1 ;;
 	--debug) debug="yes"; set -x;;
 	-v|--verbose) beverbose="yes";;
@@ -68,7 +68,7 @@ done
 # these options override the stuff in the config file
 [[ $dracutmodules_l ]] && dracutmodules=$dracutmodules_l
 [[ $omit_dracutmodules_l ]] && omit_dracutmodules=$omit_dracutmodules_l
-[[ $modules_l ]] && modules=$modules_l
+[[ $drivers_l ]] && drivers=$drivers_l
 
 [[ $allowlocal && -f "$(dirname $0)/dracut-functions" ]] && dsrc="$(dirname $0)" || dsrc=/usr/lib/dracut
 if [[ -f $dsrc/dracut-functions ]]; then
@@ -109,7 +109,7 @@ trap 'rm -rf "$initdir"' 0 # clean up after ourselves no matter how we die.
 # Need to be able to have non-root users read stuff (rpcbind etc)
 chmod 755 "$initdir"
 
-export initdir hookdirs dsrc dracutmodules modules debug beverbose
+export initdir hookdirs dsrc dracutmodules drivers debug beverbose
 
 # Create some directory structure first
 for d in bin sbin usr/bin usr/sbin usr/lib etc proc sys sysroot tmp dev/pts var/run; do 
diff --git a/dracut-functions b/dracut-functions
index ac22fcd6..1e3f8916 100755
--- a/dracut-functions
+++ b/dracut-functions
@@ -252,7 +252,7 @@ check_modules() {
     done
 }
 
-# install modules, and handle installing all their dependencies as well.
+# install kernel modules, and handle installing all their dependencies as well.
 instmods() {
     local mod mpargs modpath modname cmd
     local srcmods="/lib/modules/$kernel/"
diff --git a/modules.d/40network/install b/modules.d/40network/install
index 7a133489..e0ac5f58 100755
--- a/modules.d/40network/install
+++ b/modules.d/40network/install
@@ -1,6 +1,6 @@
 #!/bin/bash
 dracut_install ip dhclient hostname
-instmods ${modules:-=net}
+instmods ${drivers:-=net}
 inst "$moddir/ifup" "/sbin/ifup"
 inst "$moddir/dhclient-script" "/sbin/dhclient-script"
 instmods =networking ecb arc4
diff --git a/modules.d/90kernel-modules/install b/modules.d/90kernel-modules/install
index a0f894bf..41504357 100755
--- a/modules.d/90kernel-modules/install
+++ b/modules.d/90kernel-modules/install
@@ -1,6 +1,6 @@
 #!/bin/bash
 # FIXME: hard-coded module list of doom.
-instmods ${modules:-=ata =block sd_mod =fs}
+instmods ${drivers:-=ata =block sd_mod =fs}
 
 # Grab modules for all filesystem types we currently have mounted
 while read d mp t rest; do
diff --git a/test/dracut.conf.test b/test/dracut.conf.test
index be118255..454915fa 100644
--- a/test/dracut.conf.test
+++ b/test/dracut.conf.test
@@ -1,3 +1,3 @@
 #dracutmodules="base crypt lvm kernel-modules debug resume rootfs-block udev-rules network NFS"
 #omit_dracutmodules="plymouth"
-#modules="ata_piix ext2 sd_mod"
+#drivers="ata_piix ext2 sd_mod"