diff --git a/test/cases/000_build/000_formats/011_kernel+squashfs/test.sh b/test/cases/000_build/000_formats/011_kernel+squashfs/test.sh
new file mode 100644
index 000000000..76a2ee210
--- /dev/null
+++ b/test/cases/000_build/000_formats/011_kernel+squashfs/test.sh
@@ -0,0 +1,24 @@
+#!/bin/sh
+# SUMMARY: Check that kernel+initrd output format is generated
+# LABELS:
+
+set -e
+
+# Source libraries. Uncomment if needed/defined
+#. "${RT_LIB}"
+. "${RT_PROJECT_ROOT}/_lib/lib.sh"
+
+NAME=check
+
+clean_up() {
+	rm -f ${NAME}*
+}
+
+trap clean_up EXIT
+
+linuxkit build -format kernel+squashfs -name "${NAME}" ../test.yml
+[ -f "${NAME}-kernel" ] || exit 1
+[ -f "${NAME}-squashfs.img" ] || exit 1
+[ -f "${NAME}-cmdline" ] || exit 1
+
+exit 0
diff --git a/test/cases/010_platforms/000_qemu/000_run_kernel/test.sh b/test/cases/010_platforms/000_qemu/000_run_kernel+initrd/test.sh
similarity index 100%
rename from test/cases/010_platforms/000_qemu/000_run_kernel/test.sh
rename to test/cases/010_platforms/000_qemu/000_run_kernel+initrd/test.sh
diff --git a/test/cases/010_platforms/000_qemu/000_run_kernel/test.yml b/test/cases/010_platforms/000_qemu/000_run_kernel+initrd/test.yml
similarity index 100%
rename from test/cases/010_platforms/000_qemu/000_run_kernel/test.yml
rename to test/cases/010_platforms/000_qemu/000_run_kernel+initrd/test.yml
diff --git a/test/cases/010_platforms/000_qemu/005_run_kernel+squashfs/test.sh b/test/cases/010_platforms/000_qemu/005_run_kernel+squashfs/test.sh
new file mode 100644
index 000000000..69f28091a
--- /dev/null
+++ b/test/cases/010_platforms/000_qemu/005_run_kernel+squashfs/test.sh
@@ -0,0 +1,24 @@
+#!/bin/sh
+# SUMMARY: Check that the kernel+squashfs image boots in qemu
+# LABELS:
+
+set -e
+
+# Source libraries. Uncomment if needed/defined
+#. "${RT_LIB}"
+. "${RT_PROJECT_ROOT}/_lib/lib.sh"
+
+NAME=qemu-squashfs
+
+clean_up() {
+	rm -rf ${NAME}-*
+}
+trap clean_up EXIT
+
+linuxkit build -format kernel+squashfs -name "${NAME}" test.yml
+[ -f "${NAME}-kernel" ] || exit 1
+[ -f "${NAME}-squashfs.img" ] || exit 1
+[ -f "${NAME}-cmdline" ]|| exit 1
+linuxkit run qemu -squashfs "${NAME}" | grep -q "Welcome to LinuxKit"
+
+exit 0
diff --git a/test/cases/010_platforms/000_qemu/005_run_kernel+squashfs/test.yml b/test/cases/010_platforms/000_qemu/005_run_kernel+squashfs/test.yml
new file mode 100644
index 000000000..73fc5ea85
--- /dev/null
+++ b/test/cases/010_platforms/000_qemu/005_run_kernel+squashfs/test.yml
@@ -0,0 +1,13 @@
+kernel:
+  image: linuxkit/kernel:4.14.34
+  cmdline: "console=ttyS0 console=ttyAMA0"
+init:
+  - linuxkit/init:v0.3
+  - linuxkit/runc:v0.3
+onboot:
+  - name: poweroff
+    image: linuxkit/poweroff:5740687bf0a6a0480922c0f59b3a4ca77c866cae
+    command: ["/bin/sh", "/poweroff.sh", "10"]
+trust:
+  org:
+    - linuxkit
diff --git a/test/cases/010_platforms/010_hyperkit/000_run_kernel/test.exp b/test/cases/010_platforms/010_hyperkit/000_run_kernel+initrd/test.exp
similarity index 100%
rename from test/cases/010_platforms/010_hyperkit/000_run_kernel/test.exp
rename to test/cases/010_platforms/010_hyperkit/000_run_kernel+initrd/test.exp
diff --git a/test/cases/010_platforms/010_hyperkit/000_run_kernel/test.sh b/test/cases/010_platforms/010_hyperkit/000_run_kernel+initrd/test.sh
similarity index 100%
rename from test/cases/010_platforms/010_hyperkit/000_run_kernel/test.sh
rename to test/cases/010_platforms/010_hyperkit/000_run_kernel+initrd/test.sh
diff --git a/test/cases/010_platforms/010_hyperkit/000_run_kernel/test.yml b/test/cases/010_platforms/010_hyperkit/000_run_kernel+initrd/test.yml
similarity index 100%
rename from test/cases/010_platforms/010_hyperkit/000_run_kernel/test.yml
rename to test/cases/010_platforms/010_hyperkit/000_run_kernel+initrd/test.yml
diff --git a/test/cases/010_platforms/010_hyperkit/005_run_kernel+squashfs/test.exp b/test/cases/010_platforms/010_hyperkit/005_run_kernel+squashfs/test.exp
new file mode 100755
index 000000000..30e8e6c69
--- /dev/null
+++ b/test/cases/010_platforms/010_hyperkit/005_run_kernel+squashfs/test.exp
@@ -0,0 +1,31 @@
+#!/usr/bin/env expect
+spawn linuxkit run hyperkit -squashfs hyperkit-squashfs
+set pid [exp_pid]
+set timeout 30
+
+expect {
+    timeout {
+        puts "FAILED boot"
+        exec kill -9 $pid
+        exit 1
+    }
+    "Welcome to LinuxKit" {
+        puts "SUCCESS boot"
+    }
+}
+expect {
+    timeout {
+        puts "FAILED poweroff"
+        exec kill -9 $pid
+        exit 1
+    }
+    "Power down" {
+        puts "SUCCESS poweroff"
+    }
+    eof {
+        puts "SUCCESS poweroff"
+    }
+}
+set waitval [wait -i $spawn_id]
+set exval [lindex $waitval 3]
+exit $exval
diff --git a/test/cases/010_platforms/010_hyperkit/005_run_kernel+squashfs/test.sh b/test/cases/010_platforms/010_hyperkit/005_run_kernel+squashfs/test.sh
new file mode 100644
index 000000000..ef7d328ca
--- /dev/null
+++ b/test/cases/010_platforms/010_hyperkit/005_run_kernel+squashfs/test.sh
@@ -0,0 +1,24 @@
+#!/bin/sh
+# SUMMARY: Check that the kernel+squashfs image boots on hyperkit
+# LABELS:
+
+set -e
+
+# Source libraries. Uncomment if needed/defined
+#. "${RT_LIB}"
+. "${RT_PROJECT_ROOT}/_lib/lib.sh"
+
+NAME=hyperkit-squashfs
+
+clean_up() {
+	rm -rf ${NAME}-*
+}
+trap clean_up EXIT
+
+linuxkit build -format kernel+squashfs -name "${NAME}" test.yml
+[ -f "${NAME}-kernel" ] || exit 1
+[ -f "${NAME}-squashfs.img" ] || exit 1
+[ -f "${NAME}-cmdline" ]|| exit 1
+./test.exp
+
+exit 0
diff --git a/test/cases/010_platforms/010_hyperkit/005_run_kernel+squashfs/test.yml b/test/cases/010_platforms/010_hyperkit/005_run_kernel+squashfs/test.yml
new file mode 100644
index 000000000..b670bb951
--- /dev/null
+++ b/test/cases/010_platforms/010_hyperkit/005_run_kernel+squashfs/test.yml
@@ -0,0 +1,13 @@
+kernel:
+  image: linuxkit/kernel:4.14.34
+  cmdline: "console=ttyS0"
+init:
+  - linuxkit/init:v0.3
+  - linuxkit/runc:v0.3
+onboot:
+  - name: poweroff
+    image: linuxkit/poweroff:5740687bf0a6a0480922c0f59b3a4ca77c866cae
+    command: ["/bin/sh", "/poweroff.sh", "10"]
+trust:
+  org:
+    - linuxkit