diff --git a/pyanaconda/modules/storage/bootloader/bootloader.py b/pyanaconda/modules/storage/bootloader/bootloader.py
index 2ca6f0778fa..4ec52f0d46e 100644
--- a/pyanaconda/modules/storage/bootloader/bootloader.py
+++ b/pyanaconda/modules/storage/bootloader/bootloader.py
@@ -486,7 +486,9 @@ def install_bootloader_with_tasks(self, payload_type, kernel_versions):
             ),
             InstallBootloaderTask(
                 storage=self.storage,
-                mode=self.bootloader_mode
+                mode=self.bootloader_mode,
+                payload_type=payload_type,
+                sysroot=conf.target.system_root
             ),
             CreateBLSEntriesTask(
                 storage=self.storage,
diff --git a/pyanaconda/modules/storage/bootloader/installation.py b/pyanaconda/modules/storage/bootloader/installation.py
index f058b904ca4..74d61baba75 100644
--- a/pyanaconda/modules/storage/bootloader/installation.py
+++ b/pyanaconda/modules/storage/bootloader/installation.py
@@ -20,6 +20,7 @@
 from blivet import arch
 from blivet.devices import BTRFSDevice
 from pyanaconda.core.constants import PAYLOAD_TYPE_RPM_OSTREE, PAYLOAD_LIVE_TYPES
+from pyanaconda.modules.payloads.payload.rpm_ostree.util import have_bootupd
 from pyanaconda.modules.storage.bootloader import BootLoaderError
 
 from pyanaconda.core.util import execInSysroot
@@ -152,11 +153,13 @@ def run(self):
 class InstallBootloaderTask(Task):
     """Installation task for the bootloader."""
 
-    def __init__(self, storage, mode):
+    def __init__(self, storage, mode, payload_type, sysroot):
         """Create a new task."""
         super().__init__()
         self._storage = storage
         self._mode = mode
+        self._payload_type = payload_type
+        self._sysroot = sysroot
 
     @property
     def name(self):
@@ -185,6 +188,10 @@ def run(self):
             log.debug("The bootloader installation is skipped.")
             return
 
+        if self._payload_type == PAYLOAD_TYPE_RPM_OSTREE and have_bootupd(self._sysroot):
+            log.debug("Will not install regular bootloader for ostree with bootupd")
+            return
+
         log.debug("Installing the boot loader.")
 
         try:
@@ -302,7 +309,9 @@ def run(self):
 
         InstallBootloaderTask(
             self._storage,
-            self._mode
+            self._mode,
+            self._payload_type,
+            self._sysroot
         ).run()
 
 
diff --git a/tests/unit_tests/pyanaconda_tests/modules/storage/test_module_bootloader.py b/tests/unit_tests/pyanaconda_tests/modules/storage/test_module_bootloader.py
index 2acde48eebc..1f91a1771ec 100644
--- a/tests/unit_tests/pyanaconda_tests/modules/storage/test_module_bootloader.py
+++ b/tests/unit_tests/pyanaconda_tests/modules/storage/test_module_bootloader.py
@@ -33,6 +33,7 @@
 from tests.unit_tests.pyanaconda_tests import patch_dbus_publish_object, check_dbus_property, \
     reset_boot_loader_factory, check_task_creation_list, check_task_creation
 
+from pyanaconda.core.util import mkdirChain as make_directories, touch
 from pyanaconda.modules.storage import platform
 from pyanaconda.modules.storage.bootloader import BootLoaderFactory
 from pyanaconda.modules.storage.bootloader.base import BootLoader
@@ -45,7 +46,7 @@
 
 from pyanaconda.modules.storage.bootloader.image import LinuxBootLoaderImage
 from pyanaconda.core.constants import BOOTLOADER_SKIPPED, BOOTLOADER_LOCATION_PARTITION, \
-    PAYLOAD_TYPE_RPM_OSTREE, PAYLOAD_TYPE_LIVE_IMAGE
+    PAYLOAD_TYPE_RPM_OSTREE, PAYLOAD_TYPE_LIVE_IMAGE, PAYLOAD_TYPE_DNF
 from pyanaconda.modules.common.constants.objects import BOOTLOADER
 from pyanaconda.modules.storage.bootloader import BootloaderModule
 from pyanaconda.modules.storage.bootloader.bootloader_interface import BootloaderInterface
@@ -395,15 +396,55 @@ def test_install(self):
         bootloader = Mock()
         storage = Mock(bootloader=bootloader)
 
-        InstallBootloaderTask(storage, BootloaderMode.DISABLED).run()
-        bootloader.write.assert_not_called()
+        with tempfile.TemporaryDirectory() as sysroot:
+            InstallBootloaderTask(
+                storage,
+                BootloaderMode.DISABLED,
+                PAYLOAD_TYPE_DNF,
+                sysroot
+            ).run()
+            bootloader.write.assert_not_called()
 
-        InstallBootloaderTask(storage, BootloaderMode.SKIPPED).run()
-        bootloader.write.assert_not_called()
+            InstallBootloaderTask(
+                storage,
+                BootloaderMode.SKIPPED,
+                PAYLOAD_TYPE_DNF,
+                sysroot
+            ).run()
+            bootloader.write.assert_not_called()
 
-        InstallBootloaderTask(storage, BootloaderMode.ENABLED).run()
-        bootloader.prepare.assert_called_once()
-        bootloader.write.assert_called_once()
+            InstallBootloaderTask(
+                storage,
+                BootloaderMode.ENABLED,
+                PAYLOAD_TYPE_DNF,
+                sysroot
+            ).run()
+            bootloader.prepare.assert_called_once()
+            bootloader.write.assert_called_once()
+
+            bootloader.prepare.reset_mock()
+            bootloader.write.reset_mock()
+            InstallBootloaderTask(
+                storage,
+                BootloaderMode.ENABLED,
+                PAYLOAD_TYPE_RPM_OSTREE,
+                sysroot
+            ).run()
+            bootloader.prepare.assert_called_once()
+            bootloader.write.assert_called_once()
+
+            bootloader.prepare.reset_mock()
+            bootloader.write.reset_mock()
+            make_directories(sysroot + "/usr/bin")
+            touch(sysroot + "/usr/bin/bootupctl")
+            InstallBootloaderTask(
+                storage,
+                BootloaderMode.ENABLED,
+                PAYLOAD_TYPE_RPM_OSTREE,
+                sysroot
+            ).run()
+            bootloader.prepare.assert_not_called()
+            bootloader.write.assert_not_called()
 
     @patch('pyanaconda.modules.storage.bootloader.utils.execWithRedirect')
     def test_create_bls_entries(self, exec_mock):
@@ -664,7 +705,9 @@ def test_fix_btrfs(self, configure, install, conf):
         )
         install.assert_called_once_with(
             storage,
-            BootloaderMode.ENABLED
+            BootloaderMode.ENABLED,
+            PAYLOAD_TYPE_LIVE_IMAGE,
+            sysroot
         )
 
     @patch('pyanaconda.modules.storage.bootloader.installation.conf')