diff --git a/build/jam/HaikuImage b/build/jam/HaikuImage
index efd0563d09..cd7dfc2667 100644
--- a/build/jam/HaikuImage
+++ b/build/jam/HaikuImage
@@ -461,6 +461,7 @@ AddTargetVariableToScript $(script) : <build>fs_shell_command : fsShellCommand ;
 AddTargetVariableToScript $(script) : <build>copyattr ;
 AddTargetVariableToScript $(script) : <build>create_image : createImage ;
 AddTargetVariableToScript $(script) : <build>makebootable ;
+AddTargetVariableToScript $(script) : <build>package ;
 AddTargetVariableToScript $(script) : <build>rc ;
 AddTargetVariableToScript $(script) : <build>resattr ;
 AddTargetVariableToScript $(script) : <build>unzip ;
@@ -475,6 +476,16 @@ if $(optionalPackageDescriptions) {
 		: optionalPackageDescriptions ;
 }
 
+# add a variable "packages" with the packages copied/updated
+local container = $(HAIKU_IMAGE_CONTAINER_NAME) ;
+local packages = [ on $(container) return $(HAIKU_PACKAGES_IN_IMAGE) ] ;
+if [ on $(container) return $(HAIKU_CONTAINER_UPDATE_ONLY) ]
+	&& ! [ IncludeAllTargetsInContainer $(container) ] {
+	packages = [ FilterContainerUpdateTargets $(packages)
+		: HAIKU_INCLUDE_IN_IMAGE ] ;
+}
+
+AddTargetVariableToScript $(script) : $(packages) : packages ;
 
 # create the other scripts
 HAIKU_IMAGE_MAKE_DIRS_SCRIPT = <HaikuImage>haiku.image-make-dirs ;
diff --git a/build/jam/ImageRules b/build/jam/ImageRules
index 11eff03b2c..cabfbbb5d9 100644
--- a/build/jam/ImageRules
+++ b/build/jam/ImageRules
@@ -883,6 +883,9 @@ rule AddBootModuleSymlinksToHaikuImage targets
 
 rule AddPackageFilesToHaikuImage location : packages
 {
+	HAIKU_PACKAGES_IN_IMAGE on $(HAIKU_IMAGE_CONTAINER_NAME)
+		= [ on $(HAIKU_IMAGE_CONTAINER_NAME) return $(HAIKU_PACKAGES_IN_IMAGE) ]
+			$(packages) ;
 	AddFilesToHaikuImage $(location) packages : $(packages) ;
 }
 
diff --git a/build/scripts/build_haiku_image b/build/scripts/build_haiku_image
index 1025c4bf7b..727e1fb9af 100755
--- a/build/scripts/build_haiku_image
+++ b/build/scripts/build_haiku_image
@@ -6,6 +6,7 @@ set -o errexit
 # outputDir
 # tmpDir
 # addBuildCompatibilityLibDir
+# packages - a list of the hpkg packages copied/updated
 # The following are only for image types:
 # installDir
 # isImage
@@ -20,6 +21,7 @@ set -o errexit
 #
 # addattr
 # copyattr
+# package
 # rc
 # rmAttrs
 # unzip
@@ -158,7 +160,7 @@ stripDebugInfo()
 
 extractFile()
 {
-	# extractFile <archive> <directory>
+	# extractFile <archive> <directory> <extractedSubDir>
 	archiveFile=$1
 	targetExtractedDir=$2
 	extractedSubDir=$3
@@ -177,11 +179,17 @@ extractFile()
 			tar -C "$extractDir" -xf "$archiveFile"
 			;;
 		*.hpkg)
-			echo "Adding package $archiveFile ..."
-			cp "$archiveFile" "$extractDir"
+			echo "Extracting $archiveFile ..."
+			if [ -n "$extractedSubDir" ]; then
+				$package extract -C "$extractDir" "$archiveFile" \
+					"$extractedSubDir"
+			else
+				$package extract -C "$extractDir" "$archiveFile"
+			fi
 			;;
 		*)
-			echo "Unhandled archive extension in build_haiku_image extractFile()"
+			echo "Unhandled archive extension in build_haiku_image" \
+				"extractFile()"
 			exit 1
 			;;
 	esac
@@ -210,7 +218,8 @@ extractFile()
 		fi
 	fi
 
-	$cp -r "${sPrefix}$extractDir/$extractedSubDir/." "${tPrefix}$targetExtractedDir"
+	$cp -r "${sPrefix}$extractDir/$extractedSubDir/." \
+		"${tPrefix}$targetExtractedDir"
 
 	$rmAttrs -rf "$extractDir"
 }
@@ -277,6 +286,14 @@ while [ $# -gt 0 ]; do
 done
 
 
+# install default settings for packages
+for packageFile in $packages; do
+	if $package list -p $packageFile | egrep '^settings/' > /dev/null; then
+		extractFile $packageFile common/settings settings
+	fi
+done
+
+
 # install MIME database
 # TODO: It should be possible to do that in the build system too.