diff --git a/changelog/bugfixes/2024-03-25-disable-user-configdrive-on-openstack.md b/changelog/bugfixes/2024-03-25-disable-user-configdrive-on-openstack.md
new file mode 100644
index 00000000000..bcf885c871f
--- /dev/null
+++ b/changelog/bugfixes/2024-03-25-disable-user-configdrive-on-openstack.md
@@ -0,0 +1 @@
+- Disabled user-configdrive.service on OpenStack when config drive is used, which caused the hostname to be overwritten. The coreos-cloudinit.service unit already runs on OpenStack if the system is not configured via ignition. ([Flatcar#1385](https://github.com/flatcar/Flatcar/issues/1385))
diff --git a/sdk_container/src/third_party/coreos-overlay/coreos-base/coreos-cloudinit/coreos-cloudinit-9999.ebuild b/sdk_container/src/third_party/coreos-overlay/coreos-base/coreos-cloudinit/coreos-cloudinit-9999.ebuild
index a9aebf08bec..2e0da6c5329 100644
--- a/sdk_container/src/third_party/coreos-overlay/coreos-base/coreos-cloudinit/coreos-cloudinit-9999.ebuild
+++ b/sdk_container/src/third_party/coreos-overlay/coreos-base/coreos-cloudinit/coreos-cloudinit-9999.ebuild
@@ -12,7 +12,7 @@ inherit cros-workon systemd toolchain-funcs udev coreos-go
 if [[ "${PV}" == 9999 ]]; then
 	KEYWORDS="~amd64 ~arm64"
 else
-	CROS_WORKON_COMMIT="a7bc5f0050ab3493807ec69977cda26b882b4aad" # flatcar-master
+	CROS_WORKON_COMMIT="f78b9f7b484497c610c8a159aa971234d384d215" # flatcar-master
 	KEYWORDS="amd64 arm64"
 fi