diff --git a/ironic/drivers/modules/ipxe_config.template b/ironic/drivers/modules/ipxe_config.template
index 5b6be48a2a..5fba7215ee 100644
--- a/ironic/drivers/modules/ipxe_config.template
+++ b/ironic/drivers/modules/ipxe_config.template
@@ -4,7 +4,7 @@ goto deploy
 
 :deploy
 imgfree
-kernel {% if pxe_options.ipxe_timeout > 0 %}--timeout {{ pxe_options.ipxe_timeout }} {% endif %}{{ pxe_options.deployment_aki_path }} selinux=0 troubleshoot=0 text {{ pxe_options.pxe_append_params|default("", true) }} ip=${ip}:${next-server}:${gateway}:${netmask} BOOTIF=${mac} ipa-api-url={{ pxe_options['ipa-api-url'] }} initrd=deploy_ramdisk coreos.configdrive=0 || goto deploy
+kernel {% if pxe_options.ipxe_timeout > 0 %}--timeout {{ pxe_options.ipxe_timeout }} {% endif %}{{ pxe_options.deployment_aki_path }} selinux=0 troubleshoot=0 text {{ pxe_options.pxe_append_params|default("", true) }} ip=${ip}:${next-server}:${gateway}:${netmask} BOOTIF=${mac} ipa-api-url={{ pxe_options['ipa-api-url'] }} initrd={{ pxe_options.initrd_filename|default("deploy_ramdisk", true) }} coreos.configdrive=0 || goto deploy
 
 initrd {% if pxe_options.ipxe_timeout > 0 %}--timeout {{ pxe_options.ipxe_timeout }} {% endif %}{{ pxe_options.deployment_ari_path }} || goto deploy
 boot
diff --git a/ironic/drivers/modules/pxe.py b/ironic/drivers/modules/pxe.py
index 493d5e29b7..8ce679a4f0 100644
--- a/ironic/drivers/modules/pxe.py
+++ b/ironic/drivers/modules/pxe.py
@@ -178,6 +178,8 @@ def _build_deploy_pxe_options(task, pxe_info, mode='deploy'):
         else:
             pxe_opts[option] = pxe_utils.get_path_relative_to_tftp_root(
                 pxe_info[label][1])
+    if CONF.pxe.ipxe_enabled:
+        pxe_opts['initrd_filename'] = ramdisk_label
     return pxe_opts
 
 
diff --git a/ironic/tests/unit/common/test_pxe_utils.py b/ironic/tests/unit/common/test_pxe_utils.py
index 9b16addc05..6761a3388f 100644
--- a/ironic/tests/unit/common/test_pxe_utils.py
+++ b/ironic/tests/unit/common/test_pxe_utils.py
@@ -57,6 +57,7 @@ class TestPXEUtils(db_base.DbTestCase):
             'deployment_ari_path': 'http://1.2.3.4:1234/deploy_ramdisk',
             'aki_path': 'http://1.2.3.4:1234/kernel',
             'ari_path': 'http://1.2.3.4:1234/ramdisk',
+            'initrd_filename': 'deploy_ramdisk',
         })
 
         self.ipxe_options_timeout = self.ipxe_options.copy()
@@ -73,6 +74,7 @@ class TestPXEUtils(db_base.DbTestCase):
             'username': 'fake_username',
             'password': 'fake_password'
         })
+        self.ipxe_options_boot_from_volume.pop('initrd_filename', None)
 
         self.node = object_utils.create_test_node(self.context)
 
diff --git a/ironic/tests/unit/drivers/modules/test_pxe.py b/ironic/tests/unit/drivers/modules/test_pxe.py
index fffe3d368f..fe0f364cc0 100644
--- a/ironic/tests/unit/drivers/modules/test_pxe.py
+++ b/ironic/tests/unit/drivers/modules/test_pxe.py
@@ -415,6 +415,7 @@ class PXEPrivateMethodsTestCase(db_base.DbTestCase):
             'ipxe_timeout': ipxe_timeout_in_ms,
             'ari_path': ramdisk,
             'aki_path': kernel,
+            'initrd_filename': ramdisk_label,
         }
 
         if mode == 'rescue':
@@ -431,6 +432,7 @@ class PXEPrivateMethodsTestCase(db_base.DbTestCase):
                 'password': 'fake_password'})
             expected_options.pop('deployment_aki_path')
             expected_options.pop('deployment_ari_path')
+            expected_options.pop('initrd_filename')
 
         with task_manager.acquire(self.context, self.node.uuid,
                                   shared=True) as task:
diff --git a/releasenotes/notes/bug-1749860-457292cf62e18a0e.yaml b/releasenotes/notes/bug-1749860-457292cf62e18a0e.yaml
new file mode 100644
index 0000000000..b053d153ee
--- /dev/null
+++ b/releasenotes/notes/bug-1749860-457292cf62e18a0e.yaml
@@ -0,0 +1,6 @@
+---
+fixes:
+  - |
+    Fixes rescue timeout due to incorrect kernel parameter in the iPXE script.
+    See `bug 1749860 <https://bugs.launchpad.net/ironic/+bug/1749860>`_ for
+    details.