diff --git a/nixos/modules/installer/cd-dvd/channel.nix b/nixos/modules/installer/cd-dvd/channel.nix
index 92164d65e53..2f91cd39881 100644
--- a/nixos/modules/installer/cd-dvd/channel.nix
+++ b/nixos/modules/installer/cd-dvd/channel.nix
@@ -39,7 +39,8 @@ in
         echo "unpacking the NixOS/Nixpkgs sources..."
         mkdir -p /nix/var/nix/profiles/per-user/root
         ${config.nix.package.out}/bin/nix-env -p /nix/var/nix/profiles/per-user/root/channels \
-          -i ${channelSources} --quiet --option build-use-substitutes false
+          -i ${channelSources} --quiet --option build-use-substitutes false \
+          ${optionalString config.boot.initrd.systemd.enable "--option sandbox false"} # There's an issue with pivot_root
         mkdir -m 0700 -p /root/.nix-defexpr
         ln -s /nix/var/nix/profiles/per-user/root/channels /root/.nix-defexpr/channels
         mkdir -m 0755 -p /var/lib/nixos
diff --git a/nixos/modules/profiles/installation-device.nix b/nixos/modules/profiles/installation-device.nix
index 3c503fba2a3..a8601a9e2c0 100644
--- a/nixos/modules/profiles/installation-device.nix
+++ b/nixos/modules/profiles/installation-device.nix
@@ -99,6 +99,10 @@ with lib;
         stdenvNoCC # for runCommand
         busybox
         jq # for closureInfo
+        # For boot.initrd.systemd
+        makeInitrdNGTool
+        systemdStage1
+        systemdStage1Network
       ];
 
     # Show all debug messages from the kernel but don't log refused packets
diff --git a/nixos/modules/system/boot/systemd/initrd.nix b/nixos/modules/system/boot/systemd/initrd.nix
index 2ec521a9844..fbccd0c4c89 100644
--- a/nixos/modules/system/boot/systemd/initrd.nix
+++ b/nixos/modules/system/boot/systemd/initrd.nix
@@ -479,6 +479,21 @@ in {
           ''systemctl --no-block switch-root /sysroot "''${NEW_INIT}"''
         ];
       };
+
+      services.panic-on-fail = {
+        wantedBy = ["emergency.target"];
+        unitConfig = {
+          DefaultDependencies = false;
+          ConditionKernelCommandLine = [
+            "|boot.panic_on_fail"
+            "|stage1panic"
+          ];
+        };
+        script = ''
+          echo c > /proc/sysrq-trigger
+        '';
+        serviceConfig.Type = "oneshot";
+      };
     };
 
     boot.kernelParams = lib.mkIf (config.boot.resumeDevice != "") [ "resume=${config.boot.resumeDevice}" ];
diff --git a/nixos/tests/all-tests.nix b/nixos/tests/all-tests.nix
index ad426fcf4e0..923464a0c9a 100644
--- a/nixos/tests/all-tests.nix
+++ b/nixos/tests/all-tests.nix
@@ -235,6 +235,7 @@ in
   input-remapper = handleTest ./input-remapper.nix {};
   inspircd = handleTest ./inspircd.nix {};
   installer = handleTest ./installer.nix {};
+  installer-systemd-stage-1 = handleTest ./installer-systemd-stage-1.nix {};
   invoiceplane = handleTest ./invoiceplane.nix {};
   iodine = handleTest ./iodine.nix {};
   ipfs = handleTest ./ipfs.nix {};
diff --git a/nixos/tests/installer-systemd-stage-1.nix b/nixos/tests/installer-systemd-stage-1.nix
new file mode 100644
index 00000000000..a8b418626e6
--- /dev/null
+++ b/nixos/tests/installer-systemd-stage-1.nix
@@ -0,0 +1,33 @@
+{ system ? builtins.currentSystem
+, config ? {}
+, pkgs ? import ../.. { inherit system config; }
+}:
+
+{
+  # Some of these tests don't work with systemd stage 1 yet. Uncomment
+  # them when fixed.
+  inherit (import ./installer.nix { inherit system config pkgs; systemdStage1 = true; })
+    # bcache
+    # btrfsSimple
+    # btrfsSubvolDefault
+    # btrfsSubvols
+    # encryptedFSWithKeyfile
+    # grub1
+    # luksroot
+    # luksroot-format1
+    # luksroot-format2
+    # lvm
+    separateBoot
+    separateBootFat
+    simple
+    simpleLabels
+    simpleProvided
+    simpleSpecialised
+    simpleUefiGrub
+    simpleUefiGrubSpecialisation
+    simpleUefiSystemdBoot
+    # swraid
+    # zfsroot
+    ;
+
+}
diff --git a/nixos/tests/installer.nix b/nixos/tests/installer.nix
index ea2b2d04ed1..d8187d8e019 100644
--- a/nixos/tests/installer.nix
+++ b/nixos/tests/installer.nix
@@ -1,6 +1,7 @@
 { system ? builtins.currentSystem,
   config ? {},
-  pkgs ? import ../.. { inherit system config; }
+  pkgs ? import ../.. { inherit system config; },
+  systemdStage1 ? false
 }:
 
 with import ../lib/testing-python.nix { inherit system pkgs; };
@@ -23,6 +24,8 @@ let
         # To ensure that we can rebuild the grub configuration on the nixos-rebuild
         system.extraDependencies = with pkgs; [ stdenvNoCC ];
 
+        ${optionalString systemdStage1 "boot.initrd.systemd.enable = true;"}
+
         ${optionalString (bootLoader == "grub") ''
           boot.loader.grub.version = ${toString grubVersion};
           ${optionalString (grubVersion == 1) ''
@@ -290,6 +293,8 @@ let
           virtualisation.cores = 8;
           virtualisation.memorySize = 1536;
 
+          boot.initrd.systemd.enable = systemdStage1;
+
           # Use a small /dev/vdb as the root disk for the
           # installer. This ensures the target disk (/dev/vda) is
           # the same during and after installation.