diff --git a/src/runtime/virtcontainers/fs_share_linux.go b/src/runtime/virtcontainers/fs_share_linux.go
index 2e80bfcc96..e7296bf4e7 100644
--- a/src/runtime/virtcontainers/fs_share_linux.go
+++ b/src/runtime/virtcontainers/fs_share_linux.go
@@ -11,6 +11,7 @@ import (
 	"context"
 	"encoding/hex"
 	"fmt"
+	"io/fs"
 	"os"
 	"path/filepath"
 	"sync"
@@ -239,23 +240,43 @@ func (f *FilesystemShare) ShareFile(ctx context.Context, c *Container, m *Mount)
 	if !caps.IsFsSharingSupported() {
 		f.Logger().Debug("filesystem sharing is not supported, files will be copied")
 
-		fileInfo, err := os.Stat(m.Source)
-		if err != nil {
-			return nil, err
+		var ignored bool
+		srcRoot := filepath.Clean(m.Source)
+
+		walk := func(srcPath string, d fs.DirEntry, err error) error {
+
+			if err != nil {
+				return err
+			}
+
+			info, err := d.Info()
+			if err != nil {
+				return err
+			}
+
+			if !(info.Mode().IsRegular() || info.Mode().IsDir() || (info.Mode()&os.ModeSymlink) == os.ModeSymlink) {
+				f.Logger().WithField("ignored-file", srcPath).Debug("Ignoring non-regular file as FS sharing not supported")
+				if srcPath == srcRoot {
+					// Ignore the mount if this is not a regular file (excludes socket, device, ...) as it cannot be handled by
+					// a simple copy. But this should not be treated as an error, only as a limitation.
+					ignored = true
+					return filepath.SkipDir
+				}
+				return nil
+			}
+
+			dstPath := filepath.Join(guestPath, srcPath[len(srcRoot):])
+
+			return f.sandbox.agent.copyFile(ctx, srcPath, dstPath)
 		}
 
-		// Ignore the mount if this is not a regular file (excludes
-		// directory, socket, device, ...) as it cannot be handled by
-		// a simple copy. But this should not be treated as an error,
-		// only as a limitation.
-		if !fileInfo.Mode().IsRegular() {
-			f.Logger().WithField("ignored-file", m.Source).Debug("Ignoring non-regular file as FS sharing not supported")
+		if err := filepath.WalkDir(srcRoot, walk); err != nil {
+			c.Logger().WithField("failed-file", m.Source).Debugf("failed to copy file to sandbox: %v", err)
+			return nil, err
+		}
+		if ignored {
 			return nil, nil
 		}
-
-		if err := f.sandbox.agent.copyFile(ctx, m.Source, guestPath); err != nil {
-			return nil, err
-		}
 	} else {
 		// These mounts are created in the shared dir
 		mountDest := filepath.Join(getMountPath(f.sandbox.ID()), filename)
diff --git a/src/runtime/virtcontainers/kata_agent.go b/src/runtime/virtcontainers/kata_agent.go
index c8221b1602..275433f62f 100644
--- a/src/runtime/virtcontainers/kata_agent.go
+++ b/src/runtime/virtcontainers/kata_agent.go
@@ -10,6 +10,7 @@ import (
 	"encoding/json"
 	"errors"
 	"fmt"
+	"io/ioutil"
 	"os"
 	"path/filepath"
 	"strconv"
@@ -2119,40 +2120,57 @@ func (k *kataAgent) setGuestDateTime(ctx context.Context, tv time.Time) error {
 func (k *kataAgent) copyFile(ctx context.Context, src, dst string) error {
 	var st unix.Stat_t
 
-	err := unix.Stat(src, &st)
+	err := unix.Lstat(src, &st)
 	if err != nil {
 		return fmt.Errorf("Could not get file %s information: %v", src, err)
 	}
 
-	b, err := os.ReadFile(src)
-	if err != nil {
-		return fmt.Errorf("Could not read file %s: %v", src, err)
+	cpReq := &grpc.CopyFileRequest{
+		Path:     dst,
+		DirMode:  uint32(DirMode),
+		FileMode: st.Mode,
+		Uid:      int32(st.Uid),
+		Gid:      int32(st.Gid),
 	}
 
-	fileSize := int64(len(b))
+	var b []byte
+
+	switch sflag := st.Mode & unix.S_IFMT; sflag {
+	case unix.S_IFREG:
+		var err error
+		// TODO: Support incrementail file copying instead of loading whole file into memory
+		b, err = ioutil.ReadFile(src)
+		if err != nil {
+			return fmt.Errorf("Could not read file %s: %v", src, err)
+		}
+		cpReq.FileSize = int64(len(b))
+
+	case unix.S_IFDIR:
+
+	case unix.S_IFLNK:
+		symlink, err := os.Readlink(src)
+		if err != nil {
+			return fmt.Errorf("Could not read symlink %s: %v", src, err)
+		}
+		cpReq.Data = []byte(symlink)
+
+	default:
+		return fmt.Errorf("Unsupported file type: %o", sflag)
+	}
 
 	k.Logger().WithFields(logrus.Fields{
 		"source": src,
 		"dest":   dst,
 	}).Debugf("Copying file from host to guest")
 
-	cpReq := &grpc.CopyFileRequest{
-		Path:     dst,
-		DirMode:  uint32(DirMode),
-		FileMode: uint32(st.Mode),
-		FileSize: fileSize,
-		Uid:      int32(st.Uid),
-		Gid:      int32(st.Gid),
-	}
-
 	// Handle the special case where the file is empty
-	if fileSize == 0 {
-		_, err = k.sendReq(ctx, cpReq)
+	if cpReq.FileSize == 0 {
+		_, err := k.sendReq(ctx, cpReq)
 		return err
 	}
 
 	// Copy file by parts if it's needed
-	remainingBytes := fileSize
+	remainingBytes := cpReq.FileSize
 	offset := int64(0)
 	for remainingBytes > 0 {
 		bytesToCopy := int64(len(b))