diff --git a/SPECS/dracut/0014-fix-systemd-pcrphase-in-hostonly-mode-do-not-try-to-include-systemd-pcrphase.patch b/SPECS/dracut/0014-fix-systemd-pcrphase-in-hostonly-mode-do-not-try-to-include-systemd-pcrphase.patch
new file mode 100644
index 00000000000..1531e2a6663
--- /dev/null
+++ b/SPECS/dracut/0014-fix-systemd-pcrphase-in-hostonly-mode-do-not-try-to-include-systemd-pcrphase.patch
@@ -0,0 +1,57 @@
+From 96d153fe927987ce31a1f876b7eeea6fe9cee06a Mon Sep 17 00:00:00 2001
+From: Laszlo Gombos <laszlo.gombos@gmail.com>
+Date: Thu, 30 May 2024 10:06:04 -0400
+Subject: [PATCH] fix(systemd-pcrphase): in hostonly mode do not try to include
+ systemd-pcrphase
+
+---
+ modules.d/01systemd-pcrphase/module-setup.sh | 11 +++++------
+ 1 file changed, 5 insertions(+), 6 deletions(-)
+
+diff --git a/modules.d/01systemd-pcrphase/module-setup.sh b/modules.d/01systemd-pcrphase/module-setup.sh
+index eb8520799..922711709 100755
+--- a/modules.d/01systemd-pcrphase/module-setup.sh
++++ b/modules.d/01systemd-pcrphase/module-setup.sh
+@@ -4,7 +4,6 @@
+ 
+ # Prerequisite check(s) for module.
+ check() {
+-
+     # If the binary(s) requirements are not fulfilled the module can't be installed.
+     # systemd-255 renamed the binary, check for old and new location.
+     if ! require_binaries "$systemdutildir"/systemd-pcrphase \
+@@ -12,23 +11,24 @@ check() {
+         return 1
+     fi
+ 
+-    return 0
++    if [[ $hostonly ]]; then
++        return 255
++    fi
+ 
++    return 0
+ }
+ 
+ # Module dependency requirements.
+ depends() {
+-
+     # This module has external dependency on other module(s).
+     echo systemd tpm2-tss
++
+     # Return 0 to include the dependent module(s) in the initramfs.
+     return 0
+-
+ }
+ 
+ # Install the required file(s) and directories for the module in the initramfs.
+ install() {
+-
+     inst_multiple -o \
+         "$systemdutildir"/systemd-pcrphase \
+         "$systemdutildir"/systemd-pcrextend \
+@@ -43,5 +43,4 @@ install() {
+             "$systemdsystemconfdir/systemd-pcrphase-initrd.service.d/*.conf" \
+             "$systemdsystemconfdir"/initrd.target.wants/systemd-pcrphase-initrd.service
+     fi
+-
+ }
diff --git a/SPECS/dracut/0015-fix-systemd-pcrphase-make-tpm2-tss-an-optional-dependency.patch b/SPECS/dracut/0015-fix-systemd-pcrphase-make-tpm2-tss-an-optional-dependency.patch
new file mode 100644
index 00000000000..8f89fddc973
--- /dev/null
+++ b/SPECS/dracut/0015-fix-systemd-pcrphase-make-tpm2-tss-an-optional-dependency.patch
@@ -0,0 +1,32 @@
+From a2193b71f7be75f719eec29faacae36ab25e9147 Mon Sep 17 00:00:00 2001
+From: Laszlo Gombos <laszlo.gombos@gmail.com>
+Date: Fri, 5 Jul 2024 14:17:00 -0400
+Subject: [PATCH] fix(systemd-pcrphase): make tpm2-tss an optional dependency
+
+---
+ modules.d/01systemd-pcrphase/module-setup.sh | 12 +++++++++++-
+ 1 file changed, 11 insertions(+), 1 deletion(-)
+
+diff --git a/modules.d/01systemd-pcrphase/module-setup.sh b/modules.d/01systemd-pcrphase/module-setup.sh
+index 922711709..3016d7e44 100755
+--- a/modules.d/01systemd-pcrphase/module-setup.sh
++++ b/modules.d/01systemd-pcrphase/module-setup.sh
+@@ -21,7 +21,17 @@ check() {
+ # Module dependency requirements.
+ depends() {
+     # This module has external dependency on other module(s).
+-    echo systemd tpm2-tss
++
++    local deps
++    deps="systemd"
++
++    # optional dependencies
++    module="tpm2-tss"
++    module_check $module > /dev/null 2>&1
++    if [[ $? == 255 ]]; then
++        deps+=" $module"
++    fi
++    echo "$deps"
+ 
+     # Return 0 to include the dependent module(s) in the initramfs.
+     return 0
diff --git a/SPECS/dracut/dracut.spec b/SPECS/dracut/dracut.spec
index 2b7812a5929..2b9b86aea26 100644
--- a/SPECS/dracut/dracut.spec
+++ b/SPECS/dracut/dracut.spec
@@ -4,7 +4,7 @@
 Summary:        dracut to create initramfs
 Name:           dracut
 Version:        102
-Release:        5%{?dist}
+Release:        6%{?dist}
 # The entire source code is GPLv2+
 # except install/* which is LGPLv2+
 License:        GPLv2+ AND LGPLv2+
@@ -34,6 +34,8 @@ Patch:          0006-dracut.sh-validate-instmods-calls.patch
 Patch:          0011-Remove-reference-to-kernel-module-zlib-in-fips-module.patch
 Patch:          0012-fix-dracut-functions-avoid-awk-in-get_maj_min.patch
 Patch:          0013-revert-fix-crypt-unlock-encrypted-devices-by-default.patch
+Patch:          0014-fix-systemd-pcrphase-in-hostonly-mode-do-not-try-to-include-systemd-pcrphase.patch
+Patch:          0015-fix-systemd-pcrphase-make-tpm2-tss-an-optional-dependency.patch
 
 BuildRequires:  bash
 BuildRequires:  kmod-devel
@@ -288,6 +290,9 @@ ln -srv %{buildroot}%{_bindir}/%{name} %{buildroot}%{_sbindir}/%{name}
 %dir %{_sharedstatedir}/%{name}/overlay
 
 %changelog
+* Thu Oct 10 2024 Thien Trung Vuong <tvuong@microsoft.com> - 102-6
+- Add patch to make tpm2-tss an optional dependency for systemd-pcrphase
+
 * Sun Oct 06 2024 Jon Slobodzian <joslobo@microsoft.com> - 102-5
 - Bump version to build with latest systemd