diff --git a/tools/osbuilder/rootfs-builder/rootfs.sh b/tools/osbuilder/rootfs-builder/rootfs.sh
index d82f2e7d6d..508f08ae1b 100755
--- a/tools/osbuilder/rootfs-builder/rootfs.sh
+++ b/tools/osbuilder/rootfs-builder/rootfs.sh
@@ -16,6 +16,7 @@ AGENT_VERSION=${AGENT_VERSION:-}
 RUST_VERSION="null"
 AGENT_BIN=${AGENT_BIN:-kata-agent}
 AGENT_INIT=${AGENT_INIT:-no}
+KATA_BUILD_CC=${KATA_BUILD_CC:-no}
 KERNEL_MODULES_DIR=${KERNEL_MODULES_DIR:-""}
 OSBUILDER_VERSION="unknown"
 DOCKER_RUNTIME=${DOCKER_RUNTIME:-runc}
@@ -437,6 +438,7 @@ build_rootfs_distro()
 			--env ROOTFS_DIR="/rootfs" \
 			--env AGENT_BIN="${AGENT_BIN}" \
 			--env AGENT_INIT="${AGENT_INIT}" \
+			--env KATA_BUILD_CC="${KATA_BUILD_CC}" \
 			--env ARCH="${ARCH}" \
 			--env CI="${CI}" \
 			--env KERNEL_MODULES_DIR="${KERNEL_MODULES_DIR}" \
@@ -692,6 +694,17 @@ EOF
 		popd
 	fi
 
+	if [ "${KATA_BUILD_CC}" == "yes" ]; then
+		info "Integrate pause image inside rootfs for CC"
+		pause_repo="$(get_package_version_from_kata_yaml externals.pause.repo)"
+		pause_version="$(get_package_version_from_kata_yaml externals.pause.version)"
+		[ -n "pause_repo" ] || die "failed to get pause image repo"
+		[ -n "pause_version" ] || die "failed to get pause image version"
+
+		skopeo copy "${pause_repo}":"${pause_version}" oci:pause:"${pause_version}"
+		umoci unpack --image pause:"${pause_version}"  "${ROOTFS_DIR}/pause_bundle"
+	fi
+
 	info "Creating summary file"
 	create_summary_file "${ROOTFS_DIR}"
 }
diff --git a/tools/osbuilder/rootfs-builder/ubuntu/Dockerfile.in b/tools/osbuilder/rootfs-builder/ubuntu/Dockerfile.in
index 25d1907a6f..75420eef23 100644
--- a/tools/osbuilder/rootfs-builder/ubuntu/Dockerfile.in
+++ b/tools/osbuilder/rootfs-builder/ubuntu/Dockerfile.in
@@ -3,6 +3,17 @@
 # SPDX-License-Identifier: Apache-2.0
 
 ARG IMAGE_REGISTRY=docker.io
+
+# Install skopeo which is not included in 20.04 release
+# This can be removed when we upgrade the base to 22.04 release
+FROM ${IMAGE_REGISTRY}/golang:1.18 AS skopeo
+@SET_PROXY@
+WORKDIR /skopeo
+ARG SKOPEO_VERSION="1.9.1"
+RUN curl -fsSL "https://github.com/containers/skopeo/archive/v${SKOPEO_VERSION}.tar.gz" \
+  | tar -xzf - --strip-components=1
+RUN CGO_ENABLED=0 DISABLE_DOCS=1 make BUILDTAGS=containers_image_openpgp GO_DYN_FLAGS=
+
 FROM ${IMAGE_REGISTRY}/ubuntu:@OS_VERSION@
 @SET_PROXY@
 
@@ -27,10 +38,14 @@ RUN apt-get update && \
     multistrap \
     musl-tools \
     pkg-config \
-    protobuf-compiler
+    protobuf-compiler \
+    umoci
 
 # aarch64 requires this name -- link for all
 RUN ln -s /usr/bin/musl-gcc "/usr/bin/$(uname -m)-linux-musl-gcc"
 
+COPY --from=skopeo /skopeo/bin/skopeo /usr/local/bin/
+COPY --from=skopeo /skopeo/default-policy.json /etc/containers/policy.json
+
 @INSTALL_RUST@
 @INSTALL_AA_KBC@
diff --git a/versions.yaml b/versions.yaml
index 71691f41f0..11641bca76 100644
--- a/versions.yaml
+++ b/versions.yaml
@@ -231,6 +231,11 @@ externals:
     url: "https://github.com/seccomp/libseccomp"
     version: "2.5.1"
 
+  pause:
+    description: "Kubernetes pause container image"
+    repo: "docker://k8s.gcr.io/pause"
+    version: "3.6"
+
   runc:
     description: "OCI CLI reference runtime implementation"
     url: "https://github.com/opencontainers/runc"