diff --git a/vendor.conf b/vendor.conf
index 80e8627d4..3f331692f 100644
--- a/vendor.conf
+++ b/vendor.conf
@@ -5,7 +5,7 @@ github.com/docker/infrakit cb420e3e50ea60afe58538b1d3cab1cb14059433
 github.com/golang/protobuf c9c7427a2a70d2eb3bafa0ab2dc163e45f143317
 github.com/googleapis/gax-go 8c5154c0fe5bf18cf649634d4c6df50897a32751
 github.com/mitchellh/go-ps 4fdf99ab29366514c69ccccddab5dc58b8d84062
-github.com/moby/hyperkit 70205a6d5143340299a679af259f70dfcd7cf8a4
+github.com/moby/hyperkit ffbde436bf43219808ebe24dc8f6aacdb0ab57bd
 github.com/packethost/packngo 91d54000aa56874149d348a884ba083c41d38091
 github.com/rneugeba/iso9660wrap 4606f848a055435cdef85305960b0e1bb788d506
 github.com/surma/gocpio fcb68777e7dc4ea43ffce871b552c0d073c17495
diff --git a/vendor/github.com/moby/hyperkit/go/hyperkit.go b/vendor/github.com/moby/hyperkit/go/hyperkit.go
index 1b67e0046..9fd8ea64f 100644
--- a/vendor/github.com/moby/hyperkit/go/hyperkit.go
+++ b/vendor/github.com/moby/hyperkit/go/hyperkit.go
@@ -35,6 +35,7 @@ import (
 	"path/filepath"
 	"strconv"
 	"strings"
+	"time"
 
 	"github.com/mitchellh/go-ps"
 )
@@ -212,6 +213,9 @@ func (h *HyperKit) execute(cmdline string) error {
 	if h.Console == ConsoleFile && h.StateDir == "" {
 		return fmt.Errorf("If ConsoleFile is set, StateDir must be specified")
 	}
+	if h.Console == ConsoleStdio && !isTerminal(os.Stdout) && h.StateDir == "" {
+		return fmt.Errorf("If ConsoleStdio is set but stdio is not a terminal, StateDir must be specified")
+	}
 	if h.ISOImage != "" {
 		if _, err = os.Stat(h.ISOImage); os.IsNotExist(err) {
 			return fmt.Errorf("ISO %s does not exist", h.ISOImage)
@@ -420,10 +424,10 @@ func (h *HyperKit) buildArgs(cmdline string) {
 		nextSlot++
 	}
 
-	if h.Console == ConsoleFile {
-		a = append(a, "-l", fmt.Sprintf("com1,autopty=%s/tty,log=%s/console-ring", h.StateDir, h.StateDir))
-	} else {
+	if h.Console == ConsoleStdio && isTerminal(os.Stdout) {
 		a = append(a, "-l", "com1,stdio")
+	} else if h.StateDir != "" {
+		a = append(a, "-l", fmt.Sprintf("com1,autopty=%s/tty,log=%s/console-ring", h.StateDir, h.StateDir))
 	}
 
 	kernArgs := fmt.Sprintf("kexec,%s,%s,earlyprintk=serial %s", h.Kernel, h.Initrd, cmdline)
@@ -439,14 +443,43 @@ func (h *HyperKit) execHyperKit() error {
 	cmd := exec.Command(h.HyperKit, h.Arguments...)
 	cmd.Env = os.Environ()
 
-	// Plumb in stdin/stdout/stderr. If ConsoleStdio is configured
-	// plumb them to the system streams. If a logger is specified,
-	// use it for stdout/stderr logging. Otherwise use the default
-	// /dev/null.
+	// Plumb in stdin/stdout/stderr.
+	//
+	// If ConsoleStdio is configured and we are on a terminal,
+	// just plugin stdio. If we are not on a terminal we have a
+	// StateDir (as per checks above) and have configured HyperKit
+	// to use a PTY in the statedir. In this case, we just open
+	// the PTY slave and copy it to stdout (and ignore
+	// stdin). This allows for redirecting of the VM output, used
+	// for testing.
+	//
+	// If a logger is specified, use it for stdout/stderr
+	// logging. Otherwise use the default /dev/null.
 	if h.Console == ConsoleStdio {
-		cmd.Stdin = os.Stdin
-		cmd.Stdout = os.Stdout
-		cmd.Stderr = os.Stderr
+		if isTerminal(os.Stdout) {
+			cmd.Stdin = os.Stdin
+			cmd.Stdout = os.Stdout
+			cmd.Stderr = os.Stderr
+		} else {
+			go func() {
+				ttyPath := fmt.Sprintf("%s/tty", h.StateDir)
+				var tty *os.File
+				var err error
+				for {
+					tty, err = os.OpenFile(ttyPath, os.O_RDONLY, 0)
+					if err != nil {
+						time.Sleep(10 * 1000 * 1000 * time.Nanosecond)
+						continue
+					} else {
+						break
+					}
+				}
+				saneTerminal(tty)
+				setRaw(tty)
+				io.Copy(os.Stdout, tty)
+				tty.Close()
+			}()
+		}
 	} else if h.log != nil {
 		stdoutChan := make(chan string)
 		stderrChan := make(chan string)
diff --git a/vendor/github.com/moby/hyperkit/go/pty_util_darwin.go b/vendor/github.com/moby/hyperkit/go/pty_util_darwin.go
new file mode 100644
index 000000000..559e865c8
--- /dev/null
+++ b/vendor/github.com/moby/hyperkit/go/pty_util_darwin.go
@@ -0,0 +1,70 @@
+package hyperkit
+
+/*
+Most of this code was copied and adjusted from:
+https://github.com/containerd/console
+which is under Apache License Version 2.0, January 2004
+*/
+import (
+	"os"
+	"unsafe"
+
+	"golang.org/x/sys/unix"
+)
+
+func tcget(fd uintptr, p *unix.Termios) error {
+	return ioctl(fd, unix.TIOCGETA, uintptr(unsafe.Pointer(p)))
+}
+
+func tcset(fd uintptr, p *unix.Termios) error {
+	return ioctl(fd, unix.TIOCSETA, uintptr(unsafe.Pointer(p)))
+}
+
+func ioctl(fd, flag, data uintptr) error {
+	if _, _, err := unix.Syscall(unix.SYS_IOCTL, fd, flag, data); err != 0 {
+		return err
+	}
+	return nil
+}
+
+func saneTerminal(f *os.File) error {
+	// Go doesn't have a wrapper for any of the termios ioctls.
+	var termios unix.Termios
+	if err := tcget(f.Fd(), &termios); err != nil {
+		return err
+	}
+	// Set -onlcr so we don't have to deal with \r.
+	termios.Oflag &^= unix.ONLCR
+	return tcset(f.Fd(), &termios)
+}
+
+func setRaw(f *os.File) error {
+	var termios unix.Termios
+	if err := tcget(f.Fd(), &termios); err != nil {
+		return err
+	}
+	termios = cfmakeraw(termios)
+	termios.Oflag = termios.Oflag | unix.OPOST
+	return tcset(f.Fd(), &termios)
+}
+
+// isTerminal checks if the provided file is a terminal
+func isTerminal(f *os.File) bool {
+	var termios unix.Termios
+	if tcget(f.Fd(), &termios) != nil {
+		return false
+	}
+	return true
+}
+
+func cfmakeraw(t unix.Termios) unix.Termios {
+	t.Iflag = uint64(uint32(t.Iflag) & ^uint32((unix.IGNBRK | unix.BRKINT | unix.PARMRK | unix.ISTRIP | unix.INLCR | unix.IGNCR | unix.ICRNL | unix.IXON)))
+	t.Oflag = uint64(uint32(t.Oflag) & ^uint32(unix.OPOST))
+	t.Lflag = uint64(uint32(t.Lflag) & ^(uint32(unix.ECHO | unix.ECHONL | unix.ICANON | unix.ISIG | unix.IEXTEN)))
+	t.Cflag = uint64(uint32(t.Cflag) & ^(uint32(unix.CSIZE | unix.PARENB)))
+	t.Cflag = t.Cflag | unix.CS8
+	t.Cc[unix.VMIN] = 1
+	t.Cc[unix.VTIME] = 0
+
+	return t
+}
diff --git a/vendor/github.com/moby/hyperkit/go/pty_util_fallback.go b/vendor/github.com/moby/hyperkit/go/pty_util_fallback.go
new file mode 100644
index 000000000..aff274cc5
--- /dev/null
+++ b/vendor/github.com/moby/hyperkit/go/pty_util_fallback.go
@@ -0,0 +1,24 @@
+// +build !darwin
+
+package hyperkit
+
+import (
+	"log"
+	"os"
+)
+
+func saneTerminal(f *os.File) error {
+	log.Fatal("Function not supported on your OS")
+	return nil
+}
+
+func setRaw(f *os.File) error {
+	log.Fatal("Function not supported on your OS")
+	return nil
+}
+
+// isTerminal checks if the provided file is a terminal
+func isTerminal(f *os.File) bool {
+	log.Fatal("Function not supported on your OS")
+	return false
+}
diff --git a/vendor/github.com/moby/hyperkit/go/vendor.conf b/vendor/github.com/moby/hyperkit/go/vendor.conf
index 0e9e15ee7..7ae581711 100644
--- a/vendor/github.com/moby/hyperkit/go/vendor.conf
+++ b/vendor/github.com/moby/hyperkit/go/vendor.conf
@@ -1 +1,2 @@
 github.com/mitchellh/go-ps 4fdf99ab29366514c69ccccddab5dc58b8d84062
+golang.org/x/sys b90f89a1e7a9c1f6b918820b3daa7f08488c8594