diff --git a/playbooks/roles/bifrost-create-dib-image/vars/main.yml b/playbooks/roles/bifrost-create-dib-image/vars/main.yml
index ea404cf99..1c70b7d91 100644
--- a/playbooks/roles/bifrost-create-dib-image/vars/main.yml
+++ b/playbooks/roles/bifrost-create-dib-image/vars/main.yml
@@ -16,4 +16,5 @@ dib_host_required_packages:
   - dosfstools
   - e2fsprogs
   - gdisk
+  - "squashfs{% if ansible_os_family != 'Suse' %}-tools{% endif %}"
   - xfsprogs
diff --git a/releasenotes/notes/squashfs-ddbbbac856e8f9fc.yaml b/releasenotes/notes/squashfs-ddbbbac856e8f9fc.yaml
new file mode 100644
index 000000000..434d22d15
--- /dev/null
+++ b/releasenotes/notes/squashfs-ddbbbac856e8f9fc.yaml
@@ -0,0 +1,5 @@
+---
+fixes:
+  - |
+    Fixes a failure when building an Ubuntu image due to a missing
+    ``squashfs-tools`` package.