diff --git a/tools/osbuilder/rootfs-builder/rootfs.sh b/tools/osbuilder/rootfs-builder/rootfs.sh
index 76ba3d5a50..6e07f1d3c7 100755
--- a/tools/osbuilder/rootfs-builder/rootfs.sh
+++ b/tools/osbuilder/rootfs-builder/rootfs.sh
@@ -20,7 +20,7 @@ MEASURED_ROOTFS=${MEASURED_ROOTFS:-no}
 KERNEL_MODULES_DIR=${KERNEL_MODULES_DIR:-""}
 OSBUILDER_VERSION="unknown"
 DOCKER_RUNTIME=${DOCKER_RUNTIME:-runc}
-# this GOPATH is for installing yq from install_yq.sh
+# GOPATH is used as a fallback location for yq (see scripts/lib.sh)
 export GOPATH=${GOPATH:-${HOME}/go}
 LIBC=${LIBC:-musl}
 # The kata agent enables seccomp feature.
@@ -415,9 +415,6 @@ compare_versions()
 
 check_env_variables()
 {
-	# this will be mounted to container for using yq on the host side.
-	GOPATH_LOCAL="${GOPATH%%:*}"
-
 	[[ "${AGENT_INIT}" == "yes" ]] || [[ "${AGENT_INIT}" == "no" ]] || die "AGENT_INIT(${AGENT_INIT}) is invalid (must be yes or no)"
 	[[ "${AGENT_POLICY}" == "yes" ]] || [[ "${AGENT_POLICY}" == "no" ]] || die "AGENT_POLICY(${AGENT_POLICY}) is invalid (must be yes or no)"
 
@@ -548,19 +545,18 @@ build_rootfs_distro()
 			engine_run_args+=" -v $(dirname "${GUEST_HOOKS_TARBALL}"):$(dirname "${GUEST_HOOKS_TARBALL}")"
 		fi
 
-		engine_run_args+=" -v ${GOPATH_LOCAL}:${GOPATH_LOCAL} --env GOPATH=${GOPATH_LOCAL}"
+		# Install yq to /usr/local/bin inside the container instead of relying on
+		# a host GOPATH bind-mount (ci/install_yq.sh).
+		engine_run_args+=" --env INSTALL_IN_GOPATH=false"
 
 		engine_run_args+=" $(docker_extra_args "${distro}")"
 
 		# Relabel volumes so SELinux allows access (see docker-run(1))
 		if command -v selinuxenabled > /dev/null && selinuxenabled ; then
-			SRC_VOL=("${GOPATH_LOCAL}")
-
 			for volume_dir in "${script_dir}" \
 					  "${ROOTFS_DIR}" \
 					  "${script_dir}/../scripts" \
-					  "${kernel_mod_dir}" \
-					  "${SRC_VOL[@]}"; do
+					  "${kernel_mod_dir}"; do
 				chcon -Rt svirt_sandbox_file_t "${volume_dir}"
 			done
 		fi
diff --git a/tools/osbuilder/scripts/lib.sh b/tools/osbuilder/scripts/lib.sh
index 00982b237d..1e17cb48cd 100644
--- a/tools/osbuilder/scripts/lib.sh
+++ b/tools/osbuilder/scripts/lib.sh
@@ -272,12 +272,14 @@ get_package_version_from_kata_yaml()
 	local yq_path="$1"
 	local yq_version
 	local yq_args
+	local yq
 
 	# shellcheck disable=SC2154
-	typeset -r yq=$(command -v yq || command -v "${GOPATH}/bin/yq" || echo "${GOPATH}/bin/yq")
-	if [[ ! -f "${yq}" ]]; then
+	yq=$(command -v yq || command -v "${GOPATH}/bin/yq" || true)
+	if [[ -z "${yq}" ]] || [[ ! -f "${yq}" ]]; then
 		# shellcheck source=/dev/null
 		source "${yq_file}"
+		yq=$(command -v yq || command -v "${GOPATH}/bin/yq") || die "yq not found after running install_yq.sh"
 	fi
 
 	yq_version=$(${yq} -V)