diff --git a/playbooks/install.yaml b/playbooks/install.yaml
index 0fbc3c87d..1c76512f2 100644
--- a/playbooks/install.yaml
+++ b/playbooks/install.yaml
@@ -8,7 +8,7 @@
     - { role: bifrost-prep-for-install, when: skip_install is not defined }
     - bifrost-ironic-install
     - { role: bifrost-create-dib-image, dib_imagename: "{{ http_boot_folder }}/ipa", build_ramdisk: false, dib_os_element: "{{ ipa_dib_os_element|default('debian') }}", dib_elements: "ironic-agent {{ ipa_extra_dib_elements | default('') }}", when: create_ipa_image | bool == true }
-    - { role: bifrost-create-dib-image, dib_imagename: "{{ deploy_image }}", dib_imagetype: "qcow2", dib_elements: "vm serial-console simple-init {{ extra_dib_elements|default('') }}", when: create_image_via_dib == true and transform_boot_image == false }
+    - { role: bifrost-create-dib-image, dib_imagename: "{{ deploy_image }}", dib_imagetype: "qcow2", dib_elements: "vm serial-console {{ dib_init_element|default('simple-init') }} {{ extra_dib_elements|default('') }}", when: create_image_via_dib == true and transform_boot_image == false }
   environment:
     http_proxy: "{{ lookup('env','http_proxy') }}"
     https_proxy: "{{ lookup('env','https_proxy') }}"
diff --git a/playbooks/roles/bifrost-create-dib-image/README.md b/playbooks/roles/bifrost-create-dib-image/README.md
index 72d6a588e..33a549fb7 100644
--- a/playbooks/roles/bifrost-create-dib-image/README.md
+++ b/playbooks/roles/bifrost-create-dib-image/README.md
@@ -39,7 +39,16 @@ dib_os_element: "ubuntu"
 dib_elements is a space-separated list of elements that will be
 added to the resulting disk image.
 
-dib_elements: "vm serial-console simple-init"
+dib_elements: "vm serial-console"
+
+dib_init_element is used to set the init tool that will be used to provision
+the installed OS. This is an argument that is passed to
+[diskimage-builder](http://docs.openstack.org/developer/diskimage-builder/)
+which generates a deployable image of the OS defined in 'dib_os_element'. By
+default we use 'simple-init'. You can modify this to use other init tools, for
+example: cloud-init (see below)
+
+dib_init_element: simple-init
 
 dib_packages is a comma-separated list of packages to be installed
 on the resulting disk image.
@@ -81,6 +90,14 @@ for further information.
 | --ramdisk-element   | dib_rdelement    | element name         |
 | -t                  | dib_installtype  | source or package    |
 
+Using cloud-init
+----------------
+
+By default, bifrost uses the 'simple-init' dib element, which will disable
+cloud-init. If you have cloud-init enabled in your image(Ubuntu/Fedora) and you
+wish to allow configdrive to work with it, you set 'dib_init_element' to
+['cloud-init-datasources'](http://docs.openstack.org/developer/diskimage-builder/elements/cloud-init-datasources/README.html).
+
 Dependencies
 ------------
 
diff --git a/playbooks/roles/bifrost-create-dib-image/defaults/main.yml b/playbooks/roles/bifrost-create-dib-image/defaults/main.yml
index 83ec8ad79..108402afd 100644
--- a/playbooks/roles/bifrost-create-dib-image/defaults/main.yml
+++ b/playbooks/roles/bifrost-create-dib-image/defaults/main.yml
@@ -1,5 +1,6 @@
 ---
 dib_os_element: "debian"
+dib_init_element: "simple-init"
 dib_env_vars:
   http_proxy: "{{ lookup('env','http_proxy') }}"
   https_proxy: "{{ lookup('env','https_proxy') }}"