diff --git a/.github/workflows/kata-deploy-push.yaml b/.github/workflows/kata-deploy-push.yaml
index 090f89195e..bdd0aeb2bd 100644
--- a/.github/workflows/kata-deploy-push.yaml
+++ b/.github/workflows/kata-deploy-push.yaml
@@ -25,6 +25,7 @@ jobs:
           - rootfs-image
           - rootfs-initrd
           - virtiofsd
+          - nydus
     steps:
       - uses: actions/checkout@v2
       - name: Install docker
diff --git a/.github/workflows/kata-deploy-test.yaml b/.github/workflows/kata-deploy-test.yaml
index e0d6afd7c1..746f94c9b2 100644
--- a/.github/workflows/kata-deploy-test.yaml
+++ b/.github/workflows/kata-deploy-test.yaml
@@ -44,6 +44,7 @@ jobs:
           - cloud-hypervisor
           - firecracker
           - kernel
+          - nydus
           - qemu
           - rootfs-image
           - rootfs-initrd
diff --git a/.github/workflows/release.yaml b/.github/workflows/release.yaml
index 544d50fb4e..b5f585937e 100644
--- a/.github/workflows/release.yaml
+++ b/.github/workflows/release.yaml
@@ -13,6 +13,7 @@ jobs:
           - cloud-hypervisor
           - firecracker
           - kernel
+          - nydus
           - qemu
           - rootfs-image
           - rootfs-initrd
diff --git a/VERSION b/VERSION
index 4a36342fca..cb2b00e4f7 100644
--- a/VERSION
+++ b/VERSION
@@ -1 +1 @@
-3.0.0
+3.0.1
diff --git a/src/runtime/virtcontainers/nydusd.go b/src/runtime/virtcontainers/nydusd.go
index 177e3044d1..56cd263cff 100644
--- a/src/runtime/virtcontainers/nydusd.go
+++ b/src/runtime/virtcontainers/nydusd.go
@@ -167,6 +167,7 @@ func (nd *nydusd) args() ([]string, error) {
 		logLevel = "debug"
 	}
 	args := []string{
+		"virtiofs", "--hybrid-mode",
 		"--log-level", logLevel,
 		"--apisock", nd.apiSockPath,
 		"--sock", nd.sockPath,
diff --git a/src/runtime/virtcontainers/nydusd_test.go b/src/runtime/virtcontainers/nydusd_test.go
index 34e0111ac4..481866ffcc 100644
--- a/src/runtime/virtcontainers/nydusd_test.go
+++ b/src/runtime/virtcontainers/nydusd_test.go
@@ -99,13 +99,13 @@ func TestNydusdArgs(t *testing.T) {
 		apiSockPath: "/var/lib/api.sock",
 		debug:       true,
 	}
-	expected := "--log-level debug --apisock /var/lib/api.sock --sock /var/lib/vhost-user.sock"
+	expected := "virtiofs --hybrid-mode --log-level debug --apisock /var/lib/api.sock --sock /var/lib/vhost-user.sock"
 	args, err := nd.args()
 	assert.NoError(err)
 	assert.Equal(expected, strings.Join(args, " "))
 
 	nd.debug = false
-	expected = "--log-level info --apisock /var/lib/api.sock --sock /var/lib/vhost-user.sock"
+	expected = "virtiofs --hybrid-mode --log-level info --apisock /var/lib/api.sock --sock /var/lib/vhost-user.sock"
 	args, err = nd.args()
 	assert.NoError(err)
 	assert.Equal(expected, strings.Join(args, " "))
diff --git a/tools/packaging/kata-deploy/kata-cleanup/base/kata-cleanup.yaml b/tools/packaging/kata-deploy/kata-cleanup/base/kata-cleanup.yaml
index 9302495a0c..90f2c698c8 100644
--- a/tools/packaging/kata-deploy/kata-cleanup/base/kata-cleanup.yaml
+++ b/tools/packaging/kata-deploy/kata-cleanup/base/kata-cleanup.yaml
@@ -18,7 +18,7 @@ spec:
           katacontainers.io/kata-runtime: cleanup
       containers:
       - name: kube-kata-cleanup
-        image: quay.io/kata-containers/kata-deploy:3.0.0
+        image: quay.io/kata-containers/kata-deploy:3.0.1
         imagePullPolicy: Always
         command: [ "bash", "-c", "/opt/kata-artifacts/scripts/kata-deploy.sh reset" ]
         env:
diff --git a/tools/packaging/kata-deploy/kata-deploy/base/kata-deploy.yaml b/tools/packaging/kata-deploy/kata-deploy/base/kata-deploy.yaml
index 7dadc094fe..408de3e248 100644
--- a/tools/packaging/kata-deploy/kata-deploy/base/kata-deploy.yaml
+++ b/tools/packaging/kata-deploy/kata-deploy/base/kata-deploy.yaml
@@ -16,7 +16,7 @@ spec:
       serviceAccountName: kata-label-node
       containers:
       - name: kube-kata
-        image: quay.io/kata-containers/kata-deploy:3.0.0
+        image: quay.io/kata-containers/kata-deploy:3.0.1
         imagePullPolicy: Always
         lifecycle:
           preStop:
diff --git a/tools/packaging/kata-deploy/local-build/Makefile b/tools/packaging/kata-deploy/local-build/Makefile
index d68d101832..078a679d85 100644
--- a/tools/packaging/kata-deploy/local-build/Makefile
+++ b/tools/packaging/kata-deploy/local-build/Makefile
@@ -24,6 +24,7 @@ all-parallel: $(MK_DIR)/dockerbuild/install_yq.sh
 all: serial-targets \
 	firecracker-tarball \
 	kernel-tarball \
+	nydus-tarball \
 	qemu-tarball \
 	shim-v2-tarball \
 	virtiofsd-tarball
@@ -49,6 +50,8 @@ kernel-tarball:
 kernel-experimental-tarball:
 	${MAKE} $@-build
 
+nydus-tarball:
+	${MAKE} $@-build
 
 qemu-tarball:
 	${MAKE} $@-build
diff --git a/tools/packaging/kata-deploy/local-build/kata-deploy-binaries.sh b/tools/packaging/kata-deploy/local-build/kata-deploy-binaries.sh
index e1e7250788..3e36d710db 100755
--- a/tools/packaging/kata-deploy/local-build/kata-deploy-binaries.sh
+++ b/tools/packaging/kata-deploy/local-build/kata-deploy-binaries.sh
@@ -27,6 +27,7 @@ readonly kernel_builder="${static_build_dir}/kernel/build.sh"
 readonly qemu_builder="${static_build_dir}/qemu/build-static-qemu.sh"
 readonly shimv2_builder="${static_build_dir}/shim-v2/build.sh"
 readonly virtiofsd_builder="${static_build_dir}/virtiofsd/build.sh"
+readonly nydus_builder="${static_build_dir}/nydus/build.sh"
 
 readonly rootfs_builder="${repo_root_dir}/tools/packaging/guest-image/build_image.sh"
 
@@ -73,6 +74,7 @@ options:
 	firecracker
 	kernel
 	kernel-experimental
+	nydus
 	qemu
 	rootfs-image
 	rootfs-initrd
@@ -151,6 +153,17 @@ install_virtiofsd() {
 	sudo install -D --owner root --group root --mode 0744 virtiofsd/virtiofsd "${destdir}/opt/kata/libexec/virtiofsd"
 }
 
+# Install static nydus asset
+install_nydus() {
+	info "build static nydus"
+	"${nydus_builder}"
+	info "Install static nydus"
+	mkdir -p "${destdir}/opt/kata/libexec/"
+	ls -tl . || true
+	ls -tl nydus-static || true
+	sudo install -D --owner root --group root --mode 0744 nydus-static/nydusd "${destdir}/opt/kata/libexec/nydusd"
+}
+
 #Install all components that are not assets
 install_shimv2() {
 	GO_VERSION="$(yq r ${versions_yaml} languages.golang.meta.newest-version)"
@@ -177,6 +190,7 @@ handle_build() {
 		install_image
 		install_initrd
 		install_kernel
+		install_nydus
 		install_qemu
 		install_shimv2
 		install_virtiofsd
@@ -188,6 +202,8 @@ handle_build() {
 
 	kernel) install_kernel ;;
 
+	nydus) install_nydus ;;
+
 	kernel-experimental) install_experimental_kernel;;
 
 	qemu) install_qemu ;;
@@ -234,6 +250,7 @@ main() {
 		firecracker
 		kernel
 		kernel-experimental
+		nydus
 		qemu
 		rootfs-image
 		rootfs-initrd
diff --git a/tools/packaging/static-build/nydus/build.sh b/tools/packaging/static-build/nydus/build.sh
new file mode 100755
index 0000000000..97686642ab
--- /dev/null
+++ b/tools/packaging/static-build/nydus/build.sh
@@ -0,0 +1,41 @@
+#!/usr/bin/env bash
+#
+# Copyright (c) 2022 Ant Group
+#
+# SPDX-License-Identifier: Apache-2.0
+
+set -o errexit
+set -o nounset
+set -o pipefail
+
+script_dir="$(cd "$(dirname "${BASH_SOURCE[0]}")" && pwd)"
+
+source "${script_dir}/../../scripts/lib.sh"
+
+ARCH=${ARCH:-$(arch_to_golang "$(uname -m)")}
+
+nydus_url="${nydus_url:-}"
+nydus_version="${nydus_version:-}"
+
+info "Get nydus information from runtime versions.yaml"
+[ -n "$nydus_url" ] || nydus_url=$(get_from_kata_deps "externals.nydus.url")
+[ -n "$nydus_url" ] || die "failed to get nydus url"
+[ -n "$nydus_version" ] || nydus_version=$(get_from_kata_deps "externals.nydus.version")
+[ -n "$nydus_version" ] || die "failed to get nydus version"
+
+nydus_tarball_url="${nydus_url}/releases/download"
+
+file_name="nydus-static-${nydus_version}-linux-${ARCH}.tgz"
+download_url="${nydus_tarball_url}/${nydus_version}/${file_name}"
+
+info "Download nydus version: ${nydus_version} from ${download_url}"
+curl -o ${file_name} -L $download_url
+
+sha256sum="${file_name}.sha256sum"
+sha256sum_url="${nydus_tarball_url}/${nydus_version}/${sha256sum}"
+
+info "Download nydus ${sha256sum} from ${sha256sum_url}"
+curl -o ${sha256sum} -L $sha256sum_url
+
+sha256sum -c ${sha256sum}
+tar zxvf ${file_name}
diff --git a/versions.yaml b/versions.yaml
index c0be81c376..56aa353a3b 100644
--- a/versions.yaml
+++ b/versions.yaml
@@ -240,12 +240,12 @@ externals:
   nydus:
     description: "Nydus image acceleration service"
     url: "https://github.com/dragonflyoss/image-service"
-    version: "v2.1.0-alpha.4"
+    version: "v2.1.1"
 
   nydus-snapshotter:
     description: "Snapshotter for Nydus image acceleration service"
     url: "https://github.com/containerd/nydus-snapshotter"
-    version: "v0.2.3"
+    version: "v0.3.3"
 
   ovmf:
     description: "Firmware, implementation of UEFI for virtual machines."