diff --git a/pkg/pillar/hypervisor/kvm.go b/pkg/pillar/hypervisor/kvm.go
index cb025147ecf..e8446b7bba5 100644
--- a/pkg/pillar/hypervisor/kvm.go
+++ b/pkg/pillar/hypervisor/kvm.go
@@ -17,6 +17,7 @@ import (
 	"github.com/lf-edge/eve/pkg/pillar/agentlog"
 	"github.com/lf-edge/eve/pkg/pillar/containerd"
 	"github.com/lf-edge/eve/pkg/pillar/types"
+	fileutils "github.com/lf-edge/eve/pkg/pillar/utils/file"
 	uuid "github.com/satori/go.uuid"
 	"github.com/sirupsen/logrus"
 )
@@ -72,7 +73,9 @@ const qemuConfTemplate = `# This file is automatically generated by domainmgr
   kernel-irqchip = "on"
 {{- end -}}
 {{- if .DomainConfig.BootLoader }}
+  {{- if ne .VirtualizationMode "FML" }}
   firmware = "{{.DomainConfig.BootLoader}}"
+  {{- end }}
 {{- end -}}
 {{- if .DomainConfig.Kernel }}
   kernel = "{{.DomainConfig.Kernel}}"
@@ -85,7 +88,7 @@ const qemuConfTemplate = `# This file is automatically generated by domainmgr
 {{- end -}}
 {{- if .DomainConfig.ExtraArgs }}
   append = "{{.DomainConfig.ExtraArgs}}"
-{{ end }}
+{{- end }}
 {{if ne .Machine "virt" }}
 [global]
   driver = "kvm-pit"
@@ -109,7 +112,22 @@ const qemuConfTemplate = `# This file is automatically generated by domainmgr
 [device]
   driver = "intel-iommu"
   caching-mode = "on"
-{{ end }}
+{{- end }}
+
+{{- if eq .VirtualizationMode "FML" }}
+
+[drive "drive-ovmf-code"]
+  if = "pflash"
+  format = "raw"
+  readonly = "on"
+  file = "{{.DomainConfig.BootLoader}}"
+
+[drive "drive-ovmf-vars"]
+  if = "pflash"
+  format = "raw"
+  file = "{{.DomainConfig.BootLoaderSettingsFile}}"
+{{- end }}
+
 [realtime]
   mlock = "off"
 
@@ -621,12 +639,56 @@ func vmmOverhead(domainName string, domainUUID uuid.UUID, domainRAMSize int64, v
 	return overhead, nil
 }
 
-func (ctx kvmContext) Setup(status types.DomainStatus, config types.DomainConfig,
+func getOVMFSettingsFile(domainName string) string {
+	return types.OVMFSettingsDir + "/" + domainName + "_ovmf_vars.bin"
+}
+
+func prepareOVMFSettings(domainName string) (string, error) {
+	// Create the OVMF settings directory if it does not exist
+	if err := os.MkdirAll(types.OVMFSettingsDir, 0755); err != nil {
+		return "", logError("failed to create OVMF settings directory: %v", err)
+	}
+	// Create a copy of the ovmf_vars.bin file in <domainName>_ovmf_vars.bin
+	ovmfSettingsFile := getOVMFSettingsFile(domainName)
+	if _, err := os.Stat(ovmfSettingsFile); os.IsNotExist(err) {
+		if err := fileutils.CopyFile(types.OVMFSettingsTemplate, ovmfSettingsFile); err != nil {
+			return "", logError("failed to copy ovmf_vars.bin file: %v", err)
+		}
+	}
+	// Set the RW permissions for the OVMF settings file
+	if err := os.Chmod(ovmfSettingsFile, 0666); err != nil {
+		return "", logError("failed to set RW permissions for ovmf_vars.bin file: %v", err)
+	}
+	return ovmfSettingsFile, nil
+}
+
+func cleanupOVMFSettings(domainName string) error {
+	ovmfVarsFile := getOVMFSettingsFile(domainName)
+	if _, err := os.Stat(ovmfVarsFile); err == nil {
+		if err := os.Remove(ovmfVarsFile); err != nil {
+			return logError("failed to remove ovmf_vars.bin file: %v", err)
+		}
+	}
+	return nil
+}
+
+// Setup sets up kvm
+func (ctx KvmContext) Setup(status types.DomainStatus, config types.DomainConfig,
 	aa *types.AssignableAdapters, globalConfig *types.ConfigItemValueMap, file *os.File) error {
 
 	diskStatusList := status.DiskStatusList
 	domainName := status.DomainName
 	domainUUID := status.UUIDandVersion.UUID
+
+	// Before we start building the domain config, we need to prepare the OVMF settings
+	if config.VirtualizationMode == types.FML {
+		ovmfSettingsFile, err := prepareOVMFSettings(domainName)
+		if err != nil {
+			return logError("failed to setup OVMF settings for domain %s: %v", status.DomainName, err)
+		}
+		config.BootLoaderSettingsFile = ovmfSettingsFile
+	}
+
 	// first lets build the domain config
 	if err := ctx.CreateDomConfig(domainName, config, status, diskStatusList, aa, file); err != nil {
 		return logError("failed to build domain config: %v", err)
@@ -679,11 +741,16 @@ func (ctx kvmContext) Setup(status types.DomainStatus, config types.DomainConfig
 
 func (ctx kvmContext) CreateDomConfig(domainName string, config types.DomainConfig, status types.DomainStatus,
 	diskStatusList []types.DiskStatus, aa *types.AssignableAdapters, file *os.File) error {
+	virtualizationMode := ""
+	if config.VirtualizationMode == types.FML {
+		virtualizationMode = "FML"
+	}
 	tmplCtx := struct {
-		Machine string
+		Machine            string
+		VirtualizationMode string
 		types.DomainConfig
 		types.DomainStatus
-	}{ctx.devicemodel, config, status}
+	}{ctx.devicemodel, virtualizationMode, config, status}
 	tmplCtx.DomainConfig.Memory = (config.Memory + 1023) / 1024
 	tmplCtx.DomainConfig.DisplayName = domainName
 
@@ -973,6 +1040,14 @@ func (ctx kvmContext) Cleanup(domainName string) error {
 		return fmt.Errorf("error waiting for Qmp absent for domain %s: %v", domainName, err)
 	}
 
+	// Cleanup OVMF settings
+	// XXX it should be a check for FML mode based on some config/status option. But we have
+	// only domain name here. So we check if the OVMF settings file exists.
+	if _, err := os.Stat(getOVMFSettingsFile(domainName)); err == nil {
+		if err := cleanupOVMFSettings(domainName); err != nil {
+			return fmt.Errorf("failed to cleanup OVMF settings for domain %s: %v", domainName, err)
+		}
+	}
 	return nil
 }
 
diff --git a/pkg/pillar/types/domainmgrtypes.go b/pkg/pillar/types/domainmgrtypes.go
index f26c755de79..687ad8111e8 100644
--- a/pkg/pillar/types/domainmgrtypes.go
+++ b/pkg/pillar/types/domainmgrtypes.go
@@ -195,15 +195,16 @@ func (config DomainConfig) LogKey() string {
 // StorageConfigList. For example, a Target of "kernel" means to set/override
 // the Kernel attribute below.
 type VmConfig struct {
-	Kernel     string // default ""
-	Ramdisk    string // default ""
-	Memory     int    // in kbytes; Rounded up to Mbytes for xen
-	MaxMem     int    // in kbytes; Default equal to 'Memory', so no ballooning for xen
-	VCpus      int    // default 1
-	MaxCpus    int    // default VCpus
-	RootDev    string // default "/dev/xvda1"
-	ExtraArgs  string // added to bootargs
-	BootLoader string // default ""
+	Kernel                 string // default ""
+	Ramdisk                string // default ""
+	Memory                 int    // in kbytes; Rounded up to Mbytes for xen
+	MaxMem                 int    // in kbytes; Default equal to 'Memory', so no ballooning for xen
+	VCpus                  int    // default 1
+	MaxCpus                int    // default VCpus
+	RootDev                string // default "/dev/xvda1"
+	ExtraArgs              string // added to bootargs
+	BootLoader             string // default ""
+	BootLoaderSettingsFile string // used to pass bootloader settings file, for example OVMF_VARS.fd
 	// For CPU pinning
 	CPUs string // default "", list of "1,2"
 	// Needed for device passthru
diff --git a/pkg/pillar/types/locationconsts.go b/pkg/pillar/types/locationconsts.go
index c45b8ccfbd9..4d9737a581c 100644
--- a/pkg/pillar/types/locationconsts.go
+++ b/pkg/pillar/types/locationconsts.go
@@ -97,6 +97,11 @@ const (
 
 	// ContainerdContentDir - path to containerd`s content store
 	ContainerdContentDir = SealedDirName + "/containerd/io.containerd.content.v1.content"
+
+	// OVMFSettingsDir - directory for OVMF settings, they are stored in per-domain files
+	OVMFSettingsDir = PersistDir + "/ovmf"
+	// OVMFSettingsTemplate - template file for OVMF settings
+	OVMFSettingsTemplate = "/usr/lib/xen/boot/ovmf_vars.bin"
 )
 
 var (