diff --git a/README.md b/README.md
index 073c1c0..93b2091 100644
--- a/README.md
+++ b/README.md
@@ -93,6 +93,7 @@ For extensions that are not part of the GitHub Release or which you want to cust
 | `k3s` | released |
 | `rke2` | released |
 | `keepalived` | build script |
+| `ollama` | released |
 
 
 ### Consuming the published images
@@ -380,6 +381,42 @@ storage:
       overwrite: true
 ```
 
+#### Ollama
+
+The ollama sysext can be configured by using the following snippet:
+
+```
+variant: flatcar
+version: 1.0.0
+storage:
+  files:
+    - path: /opt/extensions/ollama/ollama-0.3.9-x86-64.raw
+      contents:
+        source: https://github.com/flatcar/sysext-bakery/releases/download/latest/ollama-0.3.9-x86-64.raw
+    - path: /etc/sysupdate.ollama.d/ollama.conf
+      contents:
+        source: https://github.com/flatcar/sysext-bakery/releases/download/latest/ollama.conf
+  links:
+    - target: /opt/extensions/ollama/ollama-0.3.9-x86-64.raw
+      path: /etc/extensions/ollama.raw
+      hard: false
+systemd:
+  units:
+    - name: ollama.service
+      enabled: true
+      dropins:
+        - name: 10-ollama-env-override.conf
+          contents: |
+            [Service]
+            Environment=HOME="/var/lib/ollama"
+            Environment=OLLAMA_MODELS="/var/lib/ollama/models"
+            Environment=OLLAMA_RUNNERS_DIR="/var/lib/ollama/runners"
+```
+
+Note that this configuration can be customized in terms of where Ollama is configured to store its models, configuration and runtime libraries by changing the `HOME`, `OLLAMA_MODELS` and `OLLAMA_RUNNERS_DIR`.
+
+Please refer to the [Ollama documentation for further details](https://github.com/ollama/ollama/tree/main/docs).
+
 ### Creating a custom Docker sysext image
 
 The Docker releases publish static binaries including containerd and the only missing piece are the systemd units.
diff --git a/create_ollama_sysext.sh b/create_ollama_sysext.sh
new file mode 100755
index 0000000..e68ba26
--- /dev/null
+++ b/create_ollama_sysext.sh
@@ -0,0 +1,77 @@
+#!/usr/bin/env bash
+set -euo pipefail
+
+export ARCH="${ARCH-x86-64}"
+SCRIPTFOLDER="$(dirname "$(readlink -f "$0")")"
+
+if [ $# -lt 2 ] || [ "$1" = "-h" ] || [ "$1" = "--help" ]; then
+  echo "Usage: $0 VERSION SYSEXTNAME"
+  echo "The script will download ollama release binaries (e.g., for v0.3.9) and create a sysext squashfs image with the name SYSEXTNAME.raw in the current folder."
+  echo "A temporary directory named SYSEXTNAME in the current folder will be created and deleted again."
+  echo "All files in the sysext image will be owned by root."
+  echo "To use arm64 pass 'ARCH=arm64' as environment variable (current value is '${ARCH}')."
+  "${SCRIPTFOLDER}"/bake.sh --help
+  exit 1
+fi
+
+VERSION="$1"
+SYSEXTNAME="$2"
+
+if [ "${ARCH}" = "x86_64" ] || [ "${ARCH}" = "x86-64" ]; then
+  ARCH="amd64"
+elif [ "${ARCH}" = "aarch64" ]; then
+  ARCH="arm64"
+fi
+
+VERSION="v${VERSION#v}"
+
+TARBALL="ollama-linux-${ARCH}.tgz"
+SHASUM="sha256sum.txt"
+
+TARBALL_URL="https://github.com/ollama/ollama/releases/download/${VERSION}/${TARBALL}"
+SHASUM_URL="https://github.com/ollama/ollama/releases/download/${VERSION}/${SHASUM}"
+
+rm -rf "${SYSEXTNAME}"
+
+TMP_DIR="${SYSEXTNAME}/tmp"
+mkdir -p "${TMP_DIR}"
+
+curl --parallel --fail --silent --show-error --location \
+  --output "${TMP_DIR}/${TARBALL}" "${TARBALL_URL}" \
+  --output "${TMP_DIR}/${SHASUM}" "${SHASUM_URL}"
+
+pushd "${TMP_DIR}" > /dev/null
+grep "${TARBALL}$" "${SHASUM}" | sha256sum -c -
+popd  > /dev/null
+
+mkdir -p "${SYSEXTNAME}/usr/local"
+
+tar --force-local -xf "${TMP_DIR}/${TARBALL}" -C "${SYSEXTNAME}/usr/local"
+chmod +x "${SYSEXTNAME}/usr/local/bin/ollama"
+
+mkdir -p "${SYSEXTNAME}/usr/lib/systemd/system"
+cat > "${SYSEXTNAME}/usr/lib/systemd/system/ollama.service" <<-'EOF'
+[Unit]
+Description=Ollama
+Documentation=https://github.com/ollama/ollama/tree/main/docs
+Wants=network-online.target
+After=network-online.target
+
+[Service]
+Environment="HOME=/var/lib/ollama"
+Environment="OLLAMA_MODELS=/var/lib/ollama/models"
+Environment="OLLAMA_RUNNERS_DIR=/var/lib/ollama/runners"
+ExecStart=/usr/local/bin/ollama serve
+Restart=always
+
+[Install]
+WantedBy=multi-user.target
+EOF
+
+mkdir -p "${SYSEXTNAME}"/usr/lib/systemd/system/multi-user.target.d
+{ echo "[Unit]"; echo "Upholds=ollama.service"; } > "${SYSEXTNAME}"/usr/lib/systemd/system/multi-user.target.d/10-ollama.conf
+
+rm -rf "${TMP_DIR}"
+
+RELOAD=1 "${SCRIPTFOLDER}"/bake.sh "${SYSEXTNAME}"
+rm -rf "${SYSEXTNAME}"
diff --git a/release_build_versions.txt b/release_build_versions.txt
index eb0e801..a105c33 100644
--- a/release_build_versions.txt
+++ b/release_build_versions.txt
@@ -29,3 +29,5 @@ k3s-v1.29.2+k3s1
 rke2-v1.29.2+rke2r1
 
 nvidia_runtime-v1.16.1
+
+ollama-0.3.9