diff --git a/ironic/common/pxe_utils.py b/ironic/common/pxe_utils.py
index 40ad982176..1849aaa7d6 100644
--- a/ironic/common/pxe_utils.py
+++ b/ironic/common/pxe_utils.py
@@ -1001,8 +1001,10 @@ def build_kickstart_config_options(task):
     manager_utils.add_secret_token(node, pregenerated=True)
     node.save()
     params['liveimg_url'] = node.instance_info['image_url']
+    if node.driver_internal_info.get('is_source_a_path', False):
+        # Record a value so it matches as the template opts in.
+        params['is_source_a_path'] = 'true'
     params['agent_token'] = node.driver_internal_info['agent_secret_token']
-
     heartbeat_url = '%s/v1/heartbeat/%s' % (
         deploy_utils.get_ironic_api_url().rstrip('/'),
         node.uuid
diff --git a/ironic/drivers/modules/ks.cfg.template b/ironic/drivers/modules/ks.cfg.template
index 825ea38c8c..ca799953a4 100644
--- a/ironic/drivers/modules/ks.cfg.template
+++ b/ironic/drivers/modules/ks.cfg.template
@@ -15,11 +15,24 @@ zerombr
 clearpart --all --initlabel
 autopart
 
-# Downloading and installing OS image using liveimg section is mandatory
-# in a *default* ironic configuration. Users (infrastructure operators)
+# Downloading and installing OS image using "liveimg" section is the
+# default mode of operation for an OpenStack-integrated Ironic
+# deployment where Glance is in use. Users (infrastructure operators)
 # may choose to customize this pattern, or use release specific kickstart
 # configurations which may already point to a mirror.
+#
+# An alternative is "url", which points to a repository of files used for
+# the deploy, similar to mounting an ISO media and exposing the files.
+
+{% if 'is_source_a_path' in ks_options -%}
+url --url {{ks_options.liveimg_url }}
+
+# If packages are not selected, a URL based auto-deployment fails.
+%packages --ignoremissing
+%end
+{% else -%}
 liveimg --url {{ ks_options.liveimg_url }}
+{% endif -%}
 
 # Following %pre and %onerror sections are mandatory
 %pre
diff --git a/ironic/tests/unit/common/test_pxe_utils.py b/ironic/tests/unit/common/test_pxe_utils.py
index 037ad7449f..f9d7818305 100644
--- a/ironic/tests/unit/common/test_pxe_utils.py
+++ b/ironic/tests/unit/common/test_pxe_utils.py
@@ -1608,6 +1608,27 @@ class PXEBuildKickstartConfigOptionsTestCase(db_base.DbTestCase):
             self.assertTrue(params['ks_options'].pop('agent_token'))
             self.assertEqual(expected, params['ks_options'])
 
+    @mock.patch.object(deploy_utils, 'get_ironic_api_url', autospec=True)
+    def test_build_kickstart_config_options_pxe_source_path(self,
+                                                            api_url_mock):
+        api_url_mock.return_value = 'http://ironic-api'
+        d_info = self.node.driver_internal_info
+        d_info['is_source_a_path'] = True
+        self.node.driver_internal_info = d_info
+        self.node.save()
+        with task_manager.acquire(self.context, self.node.uuid,
+                                  shared=True) as task:
+            expected = {}
+            expected['liveimg_url'] = task.node.instance_info['image_url']
+            expected['config_drive'] = ''
+            expected['heartbeat_url'] = (
+                'http://ironic-api/v1/heartbeat/%s' % task.node.uuid
+            )
+            expected['is_source_a_path'] = 'true'
+            params = pxe_utils.build_kickstart_config_options(task)
+            self.assertTrue(params['ks_options'].pop('agent_token'))
+            self.assertEqual(expected, params['ks_options'])
+
     @mock.patch('ironic.common.utils.render_template', autospec=True)
     def test_prepare_instance_kickstart_config_not_anaconda_boot(self,
                                                                  render_mock):
diff --git a/releasenotes/notes/adds-kickstart-auto-url-in-template-9f716c244adff159.yaml b/releasenotes/notes/adds-kickstart-auto-url-in-template-9f716c244adff159.yaml
new file mode 100644
index 0000000000..df7e0bdcf5
--- /dev/null
+++ b/releasenotes/notes/adds-kickstart-auto-url-in-template-9f716c244adff159.yaml
@@ -0,0 +1,5 @@
+---
+features:
+  - |
+    Adds an automatic switch to ``url`` for the kickstart template when
+    the source is a URL path as opposed to a ``stage2`` ramdisk.