diff --git i/targets/support/bootloader-setup.sh w/targets/support/bootloader-setup.sh
index e4735782..c3c99735 100755
--- i/targets/support/bootloader-setup.sh
+++ w/targets/support/bootloader-setup.sh
@@ -264,13 +264,20 @@ case ${clst_hostarch} in
 			[ -d "$1/grub" ] || mkdir -p "$1/grub"
 
 			iacfg=$1/grub/grub.cfg
+			lbcfg=$1/grub/loopback.cfg
 			echo 'set default=0' > ${iacfg}
 			echo 'set gfxpayload=keep' >> ${iacfg}
 			echo 'set timeout=10' >> ${iacfg}
 			echo 'insmod all_video' >> ${iacfg}
 			echo '' >> ${iacfg}
+			echo '' > ${lbcfg}
 			for x in ${clst_boot_kernel}
 			do
+				echo "menuentry 'Boot LiveCD (kernel: ${x})' --class gnu-linux --class os {"  >> ${iacfg}
+				echo "	linux /boot/${x} ${default_append_line}" >> ${iacfg}
+				echo "	initrd /boot/${x}.igz" >> ${iacfg}
+				echo "}" >> ${iacfg}
+				echo "" >> ${iacfg}
 				echo "menuentry 'Boot LiveCD (kernel: ${x})' --class gnu-linux --class os {"  >> ${iacfg}
 				echo "	linux /boot/${x} ${default_append_line}" >> ${iacfg}
 				echo "	initrd /boot/${x}.igz" >> ${iacfg}
@@ -281,6 +288,16 @@ case ${clst_hostarch} in
 				echo "	initrd /boot/${x}.igz" >> ${iacfg}
 				echo "}" >> ${iacfg}
 				echo "" >> ${iacfg}
+				echo "menuentry 'Boot LiveCD (kernel: ${x})' --class gnu-linux --class os {"  >> ${lbcfg}
+				echo "	linux /boot/${x} ${default_append_line} isoboot=\$iso_path ">> ${lbcfg}
+				echo "	initrd /boot/${x}.igz" >> ${lbcfg}
+				echo "}" >> ${lbcfg}
+				echo "" >> ${lbcfg}
+				echo "menuentry 'Boot LiveCD (kernel: ${x}) (cached)' --class gnu-linux --class os {"  >> ${lbcfg}
+				echo "	linux /boot/${x} ${default_append_line} docache isoboot=\$iso_path" >> ${lbcfg}
+				echo "	initrd /boot/${x}.igz" >> ${lbcfg}
+				echo "}" >> ${lbcfg}
+				echo "" >> ${lbcfg}
 			done
 		fi
 	;;