diff --git a/cluster/gce/config-default.sh b/cluster/gce/config-default.sh
index 566c4c75d48..8307780fc0e 100755
--- a/cluster/gce/config-default.sh
+++ b/cluster/gce/config-default.sh
@@ -79,22 +79,30 @@ fi
 # you are updating the os image versions, update this variable.
 # Also please update corresponding image for node e2e at:
 # https://github.com/kubernetes/kubernetes/blob/master/test/e2e_node/jenkins/image-config.yaml
-GCI_VERSION=${KUBE_GCI_VERSION:-cos-beta-73-11647-64-0}
+GCI_VERSION=${KUBE_GCI_VERSION:-cos-73-11647-163-0}
 MASTER_IMAGE=${KUBE_GCE_MASTER_IMAGE:-}
 MASTER_IMAGE_PROJECT=${KUBE_GCE_MASTER_PROJECT:-cos-cloud}
 NODE_IMAGE=${KUBE_GCE_NODE_IMAGE:-${GCI_VERSION}}
 NODE_IMAGE_PROJECT=${KUBE_GCE_NODE_PROJECT:-cos-cloud}
 NODE_SERVICE_ACCOUNT=${KUBE_GCE_NODE_SERVICE_ACCOUNT:-default}
+
+# KUBELET_TEST_ARGS are extra arguments passed to kubelet.
+KUBELET_TEST_ARGS=${KUBE_KUBELET_EXTRA_ARGS:-}
 CONTAINER_RUNTIME=${KUBE_CONTAINER_RUNTIME:-docker}
 CONTAINER_RUNTIME_ENDPOINT=${KUBE_CONTAINER_RUNTIME_ENDPOINT:-}
 CONTAINER_RUNTIME_NAME=${KUBE_CONTAINER_RUNTIME_NAME:-}
 LOAD_IMAGE_COMMAND=${KUBE_LOAD_IMAGE_COMMAND:-}
+if [[ "${CONTAINER_RUNTIME}" == "containerd" ]]; then
+  CONTAINER_RUNTIME_NAME=${KUBE_CONTAINER_RUNTIME_NAME:-containerd}
+  CONTAINER_RUNTIME_ENDPOINT=${KUBE_CONTAINER_RUNTIME_ENDPOINT:-unix:///run/containerd/containerd.sock}
+  LOAD_IMAGE_COMMAND=${KUBE_LOAD_IMAGE_COMMAND:-ctr -n=k8s.io images import}
+  KUBELET_TEST_ARGS="${KUBELET_TEST_ARGS} --runtime-cgroups=/system.slice/containerd.service"
+fi
+
 # MASTER_EXTRA_METADATA is the extra instance metadata on master instance separated by commas.
 MASTER_EXTRA_METADATA=${KUBE_MASTER_EXTRA_METADATA:-${KUBE_EXTRA_METADATA:-}}
 # MASTER_EXTRA_METADATA is the extra instance metadata on node instance separated by commas.
 NODE_EXTRA_METADATA=${KUBE_NODE_EXTRA_METADATA:-${KUBE_EXTRA_METADATA:-}}
-# KUBELET_TEST_ARGS are extra arguments passed to kubelet.
-KUBELET_TEST_ARGS=${KUBE_KUBELET_EXTRA_ARGS:-}
 
 NETWORK=${KUBE_GCE_NETWORK:-default}
 # Enable network deletion by default (for kube-down), unless we're using 'default' network.
diff --git a/cluster/gce/config-test.sh b/cluster/gce/config-test.sh
index aaeaab6ad0e..0e31f5be5c4 100755
--- a/cluster/gce/config-test.sh
+++ b/cluster/gce/config-test.sh
@@ -86,17 +86,25 @@ ALLOWED_NOTREADY_NODES="${ALLOWED_NOTREADY_NODES:-$(($(get-num-nodes) / 100))}"
 # you are updating the os image versions, update this variable.
 # Also please update corresponding image for node e2e at:
 # https://github.com/kubernetes/kubernetes/blob/master/test/e2e_node/jenkins/image-config.yaml
-GCI_VERSION=${KUBE_GCI_VERSION:-cos-beta-73-11647-64-0}
+GCI_VERSION=${KUBE_GCI_VERSION:-cos-73-11647-163-0}
 MASTER_IMAGE=${KUBE_GCE_MASTER_IMAGE:-}
 MASTER_IMAGE_PROJECT=${KUBE_GCE_MASTER_PROJECT:-cos-cloud}
 NODE_IMAGE=${KUBE_GCE_NODE_IMAGE:-${GCI_VERSION}}
 NODE_IMAGE_PROJECT=${KUBE_GCE_NODE_PROJECT:-cos-cloud}
 NODE_SERVICE_ACCOUNT=${KUBE_GCE_NODE_SERVICE_ACCOUNT:-default}
+
 CONTAINER_RUNTIME=${KUBE_CONTAINER_RUNTIME:-docker}
 CONTAINER_RUNTIME_ENDPOINT=${KUBE_CONTAINER_RUNTIME_ENDPOINT:-}
 CONTAINER_RUNTIME_NAME=${KUBE_CONTAINER_RUNTIME_NAME:-}
 LOAD_IMAGE_COMMAND=${KUBE_LOAD_IMAGE_COMMAND:-}
 GCI_DOCKER_VERSION=${KUBE_GCI_DOCKER_VERSION:-}
+if [[ "${CONTAINER_RUNTIME}" == "containerd" ]]; then
+  CONTAINER_RUNTIME_NAME=${KUBE_CONTAINER_RUNTIME_NAME:-containerd}
+  CONTAINER_RUNTIME_ENDPOINT=${KUBE_CONTAINER_RUNTIME_ENDPOINT:-unix:///run/containerd/containerd.sock}
+  LOAD_IMAGE_COMMAND=${KUBE_LOAD_IMAGE_COMMAND:-ctr -n=k8s.io images import}
+  KUBELET_TEST_ARGS="${KUBELET_TEST_ARGS:-} --runtime-cgroups=/system.slice/containerd.service"
+fi
+
 # MASTER_EXTRA_METADATA is the extra instance metadata on master instance separated by commas.
 MASTER_EXTRA_METADATA=${KUBE_MASTER_EXTRA_METADATA:-${KUBE_EXTRA_METADATA:-}}
 # MASTER_EXTRA_METADATA is the extra instance metadata on node instance separated by commas.
diff --git a/cluster/gce/gci/configure-helper.sh b/cluster/gce/gci/configure-helper.sh
index 94cc3b70e0d..db17722a25d 100644
--- a/cluster/gce/gci/configure-helper.sh
+++ b/cluster/gce/gci/configure-helper.sh
@@ -2877,6 +2877,73 @@ function ensure-bootstrap-kubectl-auth {
   fi
 }
 
+function setup-containerd {
+  echo "Generate containerd config"
+  local config_path="${CONTAINERD_CONFIG_PATH:-"/etc/containerd/config.toml"}"
+  mkdir -p "$(dirname "${config_path}")"
+  local cni_template_path="${KUBE_HOME}/cni.template"
+  cat > "${cni_template_path}" <<EOF
+{
+  "name": "k8s-pod-network",
+  "cniVersion": "0.3.1",
+  "plugins": [
+    {
+      "type": "ptp",
+      "mtu": 1460,
+      "ipam": {
+        "type": "host-local",
+        "subnet": "{{.PodCIDR}}",
+        "routes": [
+          {
+            "dst": "0.0.0.0/0"
+          }
+        ]
+      }
+    },
+    {
+      "type": "portmap",
+      "capabilities": {
+        "portMappings": true
+      }
+    }
+  ]
+}
+EOF
+  if [[ "${KUBERNETES_MASTER:-}" != "true" ]]; then
+    if [[ "${NETWORK_POLICY_PROVIDER:-"none"}" != "none" || "${ENABLE_NETD:-}" == "true" ]]; then
+      # Use Kubernetes cni daemonset on node if network policy provider is specified
+      # or netd is enabled.
+      cni_template_path=""
+    fi
+  fi
+  # Reuse docker group for containerd.
+  local containerd_gid="$(cat /etc/group | grep ^docker: | cut -d: -f 3)"
+  cat > "${config_path}" <<EOF
+# Kubernetes doesn't use containerd restart manager.
+disabled_plugins = ["restart"]
+
+[debug]
+  level = "${CONTAINERD_LOG_LEVEL:-"info"}"
+
+[grpc]
+  gid = ${containerd_gid}
+
+[plugins.cri]
+  stream_server_address = "127.0.0.1"
+  max_container_log_line_size = ${CONTAINERD_MAX_CONTAINER_LOG_LINE:-262144}
+[plugins.cri.cni]
+  bin_dir = "${KUBE_HOME}/bin"
+  conf_dir = "/etc/cni/net.d"
+  conf_template = "${cni_template_path}"
+[plugins.cri.registry.mirrors."docker.io"]
+  endpoint = ["https://mirror.gcr.io","https://registry-1.docker.io"]
+EOF
+  chmod 644 "${config_path}"
+
+  echo "Restart containerd to load the config change"
+  systemctl restart containerd
+}
+
 ########### Main Function ###########
 function main() {
   echo "Start to configure instance for kubernetes"
@@ -2964,9 +3031,12 @@ function main() {
   fi
 
   override-kubectl
+  container_runtime="${CONTAINER_RUNTIME:-docker}"
   # Run the containerized mounter once to pre-cache the container image.
-  if [[ "${CONTAINER_RUNTIME:-docker}" == "docker" ]]; then
+  if [[ "${container_runtime}" == "docker" ]]; then
     assemble-docker-flags
+  elif [[ "${container_runtime}" == "containerd" ]]; then
+    setup-containerd
   fi
   start-kubelet
 
diff --git a/cluster/gce/util.sh b/cluster/gce/util.sh
index 52fa484c23a..f3b0804c06d 100755
--- a/cluster/gce/util.sh
+++ b/cluster/gce/util.sh
@@ -782,8 +782,8 @@ function construct-linux-kubelet-flags {
   if [[ -n "${NODE_TAINTS:-}" ]]; then
     flags+=" --register-with-taints=${NODE_TAINTS}"
   fi
-  if [[ -n "${CONTAINER_RUNTIME:-}" ]]; then
-    flags+=" --container-runtime=${CONTAINER_RUNTIME}"
+  if [[ "${CONTAINER_RUNTIME:-}" != "docker" ]]; then
+    flags+=" --container-runtime=remote"
   fi
   if [[ -n "${CONTAINER_RUNTIME_ENDPOINT:-}" ]]; then
     flags+=" --container-runtime-endpoint=${CONTAINER_RUNTIME_ENDPOINT}"