diff --git a/debian/changelog b/debian/changelog
index 7ab5f93c..3b6a43fe 100644
--- a/debian/changelog
+++ b/debian/changelog
@@ -7,6 +7,14 @@ livecd-rootfs (25.04.20) UNRELEASED; urgency=medium
   * In ubuntu-server builds, install the first kernel in the base layer, not
     the "ga" kernel (which may not be installed at all, as is the case in e.g.
     the arm64+largemem builds).
+  * Again in ubuntu-server builds, configure LAYERFS_PATH in the kernel layer
+    and ensure the initrd is freshly regenerated in that layer. LAYERFS_PATH
+    was being set to the layer below the kernel layer, which meant that the
+    live session did not get access to all the modules in the case that the
+    kernel had not been installed in the base layer, which in turn means that
+    installs fail. (LP: #2100148)
+  * While we're at it, delete any initrd from any other layer than a kernel
+    layer, as they just waste space on the ISO.
 
  -- Michael Hudson-Doyle <michael.hudson@ubuntu.com>  Thu, 27 Feb 2025 11:41:22 +1300
 
diff --git a/live-build/ubuntu-server/hooks/02-installer-bits.chroot_early b/live-build/ubuntu-server/hooks/02-installer-bits.chroot_early
deleted file mode 100755
index c659c8e3..00000000
--- a/live-build/ubuntu-server/hooks/02-installer-bits.chroot_early
+++ /dev/null
@@ -1,21 +0,0 @@
-#!/bin/bash -ex
-# vi: ts=4 noexpandtab
-
-case $PASS in
-    ubuntu-server-minimal.ubuntu-server.installer.*)
-        exit 0
-        ;;
-    ubuntu-server-minimal.ubuntu-server.installer)
-        ;;
-    *)
-        exit 0
-        ;;
-esac
-
-cat <<EOF > /etc/initramfs-tools/conf.d/casperize.conf
-export CASPER_GENERATE_UUID=1
-EOF
-
-cat <<EOF > /etc/initramfs-tools/conf.d/default-layer.conf
-LAYERFS_PATH=${PASS}.squashfs
-EOF
diff --git a/live-build/ubuntu-server/hooks/03-initramfs-enforcement.chroot b/live-build/ubuntu-server/hooks/03-initramfs-enforcement.chroot
new file mode 100755
index 00000000..076aac29
--- /dev/null
+++ b/live-build/ubuntu-server/hooks/03-initramfs-enforcement.chroot
@@ -0,0 +1,37 @@
+#!/bin/bash -ex
+# vi: ts=4 noexpandtab
+
+# In a kernel layer, we need a freshly updated initrd (to ensure it
+# has been casperized with an appropriate config). A binary hook will
+# pull this out to be a separate build artifact to eventually end up
+# in /casper on the generated ISO.
+
+# In all lower layers, having an initrd just wastes space, as curtin
+# will always call update-initramfs after the layer has been copied to
+# the target system.
+
+# The netboot "layers" are not made into squashfses so there's no need
+# to do anything in those.
+
+case $PASS in
+    ubuntu-server-minimal.ubuntu-server.installer.*.*)
+        exit 0
+        ;;
+    ubuntu-server-minimal.ubuntu-server.installer.*)
+        ;;
+    *)
+        rm -f /boot/initrd.img*
+        exit 0
+        ;;
+esac
+
+
+cat <<EOF > /etc/initramfs-tools/conf.d/casperize.conf
+export CASPER_GENERATE_UUID=1
+EOF
+cat <<EOF > /etc/initramfs-tools/conf.d/default-layer.conf
+LAYERFS_PATH=${PASS}.squashfs
+EOF
+# As this hook has deleted the initrds from lower layers we need to
+# pass -c -k all to update-initramfs here (-u will do nothing)
+update-initramfs -c -k all