diff -Nru cloud-initramfs-tools-0.31ubuntu1/debian/changelog cloud-initramfs-tools-0.32ubuntu1/debian/changelog
--- cloud-initramfs-tools-0.31ubuntu1/debian/changelog	2016-11-02 19:55:39.000000000 +0000
+++ cloud-initramfs-tools-0.32ubuntu1/debian/changelog	2016-11-14 17:25:10.000000000 +0000
@@ -1,3 +1,12 @@
+cloud-initramfs-tools (0.32ubuntu1) zesty; urgency=medium
+
+  * overlayroot: fix overlayroot=crypt with newer initramfs-tools
+    (LP: #1634310)
+  * overlayroot: support random seed from systemd
+    systemd-random-seed.service
+
+ -- Scott Moser <smoser@ubuntu.com>  Mon, 14 Nov 2016 12:25:10 -0500
+
 cloud-initramfs-tools (0.31ubuntu1) zesty; urgency=medium
 
   * cloud-initramfs-dyn-netconf: Further adjustments to support
diff -Nru cloud-initramfs-tools-0.31ubuntu1/overlayroot/scripts/init-bottom/overlayroot cloud-initramfs-tools-0.32ubuntu1/overlayroot/scripts/init-bottom/overlayroot
--- cloud-initramfs-tools-0.31ubuntu1/overlayroot/scripts/init-bottom/overlayroot	2016-09-23 21:00:21.000000000 +0000
+++ cloud-initramfs-tools-0.32ubuntu1/overlayroot/scripts/init-bottom/overlayroot	2016-11-14 17:23:43.000000000 +0000
@@ -46,6 +46,17 @@
 root_ro=/media/root-ro
 ROOTMNT=${rootmnt} # use global name to indicate created outside this
 OVERLAYROOT_DEBUG=0
+# PERSIST_DIR will persist after pivot-root.  It is used for log file
+# and for the mktemp-made password file in crypt.
+PERSIST_DIR=/run/initramfs
+if [ ! -d "$PERSIST_DIR" -a -d /dev/.initramfs ]; then
+	PERSIST_DIR="/dev/.initramfs"
+fi
+if [ ! -d "$PERSIST_DIR" ]; then
+	mkdir -p "$PERSIST_DIR" ||
+		echo "WARNING: $MYTAG: failed to create ${PERSIST_DIR}" 1>&2
+fi
+LOG_FILE="${PERSIST_DIR}/${MYTAG}.log"
 
 log() {
 	"log_${1}_msg" "$MYTAG: $2";
@@ -67,16 +78,8 @@
 	echo "$MYTAG:" "$@"
 }
 _debug() {
-	local d
-	if [ -z "$DEBUG_DIR" ]; then
-		for d in /run/initramfs /dev/.initramfs; do
-			[ -d "$d" ] && DEBUG_DIR="$d" && break
-		done
-		[ -z "$DEBUG_DIR" ] && DEBUG_BUSTED=1 && DEBUG_DIR="busted" &&
-			log_warn "debug is busted. no debug dir"
-	fi
 	if [ "${DEBUG_BUSTED:-0}" ]; then
-		{ echo "$@" >> "${DEBUG_DIR}/${MYTAG}.log"; } 2>/dev/null ||
+		{ echo "$@" >> "$LOG_FILE"; } 2>/dev/null ||
 			{ DEBUG_BUSTED=1; log_warn "debug is busted"; }
 	fi
 }
@@ -153,11 +156,16 @@
 	local fstype="ext4" pass="" mapname="secure" mkfs="1" dev=""
 	local timeout=0
 	local entropy_sources="/proc/sys/kernel/random/boot_id /proc/sys/kernel/random/uuid /dev/urandom"
-	local seed=
+	local seed="" rootseed="$ROOTMNT/var/lib/urandom/random-seed"
+	if [ ! -f "$rootseed" -a -f "$ROOTMNT/var/lib/systemd/random-seed" ]; then
+		rootseed="$ROOTMNT/var/lib/systemd/random-seed"
+	fi
 	# Seed the psuedo random number generator with available seeds
-	for seed in "/.random-seed" "${ROOTMNT}/var/lib/urandom/random-seed"; do
-		[ -f "${seed}" ] && cat "${seed}" > /dev/urandom ||
-			{ debug "missing rng seed [${seed}]"; }
+	for seed in "/.random-seed" "$rootseed"; do
+		[ -f "${seed}" ] ||
+			{ debug "missing rng seed [${seed}]"; continue; }
+		cat "${seed}" > /dev/urandom ||
+			debug "failed seeding /dev/urandom from $seed"
 	done
 	# this does necessary crypto setup and sets _RET
 	# to the appropriate block device (ie /dev/mapper/secure)
@@ -214,16 +222,17 @@
 		[ "$mkfs" = "0" ] &&
 			{ log_fail "mkfs=0, but no password provided"; return 1; }
 		entropy_sources="$entropy_sources $dev"
-		local pass_file=$(mktemp /dev/.initramfs/${MYTAG}.XXXXXX) ||
+		local pass_file=""
+		pass_file=$(mktemp "${PERSIST_DIR}/${MYTAG}.XXXXXX") ||
 			{ log_fail "failed creation of password file"; return 1; }
-		stat -L /dev/* /proc/* /sys/* >${pass_file} 2>&1 ||
+		stat -L /dev/* /proc/* /sys/* >"${pass_file}" 2>&1 ||
 			{ log_warn "could not seed with stat entropy [$entropy_sources]"; }
-		head -c 4096 $entropy_sources >> ${pass_file} ||
+		head -c 4096 $entropy_sources >> "${pass_file}" ||
 			{ log_fail "failed reading entropy [$entropy_sources]"; return 1; }
-		pass=$(sha512sum ${pass_file}) ||
+		pass=$(sha512sum "${pass_file}") ||
 			{ log_fail "failed generation of password"; return 1; }
 		pass=${pass%% *}
-		printf "%s" "${pass}" > ${pass_file}
+		printf "%s" "${pass}" > "${pass_file}"
 	fi
 
 	log_warn "setting up new luks device at $dev"
@@ -519,9 +528,9 @@
 	# assumes that name in /proc/filesystems and module name are the same.
 	local m="" driver="" tab='	'
 	for m in "$@"; do
-    	grep -q "${tab}$m$" /proc/filesystems && driver="$m" && 
+		grep -q "${tab}$m$" /proc/filesystems && driver="$m" && 
 			{ debug "/proc/filesystems support for '$m'"; break; }
-    done
+	done
 	if [ -z "$driver" ]; then
 		for m in "$@"; do
 			if modprobe -qb "$m"; then