diff --git a/sdk_container/src/third_party/coreos-overlay/changelog/changes/2023-02-23-os-reset.md b/sdk_container/src/third_party/coreos-overlay/changelog/changes/2023-02-23-os-reset.md
new file mode 100644
index 00000000000..da4c6d1fb6e
--- /dev/null
+++ b/sdk_container/src/third_party/coreos-overlay/changelog/changes/2023-02-23-os-reset.md
@@ -0,0 +1 @@
+- Added a new `flatcar-reset` tool and boot logic for selective OS resets to reconfigure the system with Ignition while avoiding config drift ([bootengine#55](https://github.com/flatcar/bootengine/pull/55), [init#91](https://github.com/flatcar/init/pull/91))
diff --git a/sdk_container/src/third_party/coreos-overlay/coreos-base/coreos-init/coreos-init-9999.ebuild b/sdk_container/src/third_party/coreos-overlay/coreos-base/coreos-init/coreos-init-9999.ebuild
index ad49e2fc39d..70d9aae8cef 100644
--- a/sdk_container/src/third_party/coreos-overlay/coreos-base/coreos-init/coreos-init-9999.ebuild
+++ b/sdk_container/src/third_party/coreos-overlay/coreos-base/coreos-init/coreos-init-9999.ebuild
@@ -10,7 +10,7 @@ CROS_WORKON_REPO="https://github.com"
 if [[ "${PV}" == 9999 ]]; then
 	KEYWORDS="~amd64 ~arm ~arm64 ~x86"
 else
-	CROS_WORKON_COMMIT="bb97f96d36060483be2edee78acf98359ca28180" # flatcar-master
+	CROS_WORKON_COMMIT="7eaf6029c4a0df9996d027a54ac4e716aa305d58" # flatcar-master
 	KEYWORDS="amd64 arm arm64 x86"
 fi
 
diff --git a/sdk_container/src/third_party/coreos-overlay/sys-kernel/bootengine/bootengine-9999.ebuild b/sdk_container/src/third_party/coreos-overlay/sys-kernel/bootengine/bootengine-9999.ebuild
index a1fd211ebcf..8796e2274c6 100644
--- a/sdk_container/src/third_party/coreos-overlay/sys-kernel/bootengine/bootengine-9999.ebuild
+++ b/sdk_container/src/third_party/coreos-overlay/sys-kernel/bootengine/bootengine-9999.ebuild
@@ -10,7 +10,7 @@ CROS_WORKON_REPO="https://github.com"
 if [[ "${PV}" == 9999 ]]; then
 	KEYWORDS="~amd64 ~arm ~arm64 ~x86"
 else
-	CROS_WORKON_COMMIT="786e45cc6669bda7b2e51ab59c095e66f1b37f6c" # flatcar-master
+	CROS_WORKON_COMMIT="7426121a9aa88fb8e989d6fa102093605a4789e3" # flatcar-master
 	KEYWORDS="amd64 arm arm64 x86"
 fi