diff --git a/src/libostree/ostree-sysroot-deploy.c b/src/libostree/ostree-sysroot-deploy.c
index d37861b7ba..a3eb4311fc 100644
--- a/src/libostree/ostree-sysroot-deploy.c
+++ b/src/libostree/ostree-sysroot-deploy.c
@@ -2470,6 +2470,7 @@ _ostree_deployment_set_bootconfig_from_kargs (OstreeDeployment *deployment,
       _ostree_kernel_args_append_argv (kargs, override_kernel_argv);
       g_autofree char *new_options = _ostree_kernel_args_to_string (kargs);
       ostree_bootconfig_parser_set (bootconfig, "options", new_options);
+      ostree_bootconfig_parser_set (bootconfig, "ostree-kargs-override", "true");
     }
 }
 
@@ -2580,17 +2581,26 @@ sysroot_finalize_deployment (OstreeSysroot     *self,
   if (!glnx_opendirat (self->sysroot_fd, deployment_path, TRUE, &deployment_dfd, error))
     return FALSE;
 
-  /* Only use the merge if we didn't get an override */
-  if (!override_kernel_argv && merge_deployment)
+  /* If we didn't get an override in this deployment, copy kargs directly from
+   * the merge deployment. */
+  if (!override_kernel_argv)
     {
-      /* Override the bootloader arguments */
-      OstreeBootconfigParser *merge_bootconfig = ostree_deployment_get_bootconfig (merge_deployment);
-      if (merge_bootconfig)
+      OstreeBootconfigParser *merge_bootconfig = NULL;
+      gboolean kargs_overridden = FALSE;
+      if (merge_deployment)
         {
-          const char *opts = ostree_bootconfig_parser_get (merge_bootconfig, "options");
-          ostree_bootconfig_parser_set (ostree_deployment_get_bootconfig (deployment), "options", opts);
+          merge_bootconfig = ostree_deployment_get_bootconfig (merge_deployment);
+          if (merge_bootconfig)
+            {
+              /* Copy kargs from the merge deployment. */
+              const char *opts = ostree_bootconfig_parser_get (merge_bootconfig, "options");
+              ostree_bootconfig_parser_set (ostree_deployment_get_bootconfig (deployment), "options", opts);
+              kargs_overridden = g_strcmp0 (ostree_bootconfig_parser_get (merge_bootconfig, "ostree-kargs-override"),
+                                            "true") == 0;
+            }
+          if (kargs_overridden)
+            ostree_bootconfig_parser_set (ostree_deployment_get_bootconfig (deployment), "ostree-kargs-override", "true");
         }
-
     }
 
   if (merge_deployment)
diff --git a/tests/test-admin-deploy-karg.sh b/tests/test-admin-deploy-karg.sh
index aade011ce9..b41ab5858c 100755
--- a/tests/test-admin-deploy-karg.sh
+++ b/tests/test-admin-deploy-karg.sh
@@ -26,7 +26,7 @@ set -euo pipefail
 # Exports OSTREE_SYSROOT so --sysroot not needed.
 setup_os_repository "archive" "syslinux"
 
-echo "1..3"
+echo "1..7"
 
 ${CMD_PREFIX} ostree --repo=sysroot/ostree/repo pull-local --remote=testos testos-repo testos/buildmaster/x86_64-runtime
 rev=$(${CMD_PREFIX} ostree --repo=sysroot/ostree/repo rev-parse testos/buildmaster/x86_64-runtime)
@@ -61,9 +61,38 @@ echo "ok deploy --karg-proc-cmdline"
 ${CMD_PREFIX} ostree admin status
 ${CMD_PREFIX} ostree admin undeploy 0
 
-${CMD_PREFIX} ostree admin deploy  --os=testos --karg-append=APPENDARG=VALAPPEND --karg-append=APPENDARG=2NDAPPEND testos:testos/buildmaster/x86_64-runtime
+${CMD_PREFIX} ostree admin deploy --os=testos --karg-append=APPENDARG=VALAPPEND --karg-append=APPENDARG=2NDAPPEND testos:testos/buildmaster/x86_64-runtime
 assert_file_has_content sysroot/boot/loader/entries/ostree-2-testos.conf 'options.*FOO=BAR'
 assert_file_has_content sysroot/boot/loader/entries/ostree-2-testos.conf 'options.*TESTARG=TESTVALUE'
 assert_file_has_content sysroot/boot/loader/entries/ostree-2-testos.conf 'options.*APPENDARG=VALAPPEND .*APPENDARG=2NDAPPEND'
 
 echo "ok deploy --karg-append"
+
+${CMD_PREFIX} ostree admin status
+${CMD_PREFIX} ostree admin undeploy 0
+
+${CMD_PREFIX} ostree admin deploy --os=testos --karg-append=APPENDARG=VALAPPEND --karg-append=APPENDARG=2NDAPPEND testos:testos/buildmaster/x86_64-runtime
+assert_file_has_content sysroot/boot/loader/entries/ostree-2-testos.conf 'ostree-kargs-override.*true'
+
+echo "ok kargs override flag"
+
+${CMD_PREFIX} ostree admin deploy --os=testos testos:testos/buildmaster/x86_64-runtime
+assert_file_has_content sysroot/boot/loader/entries/ostree-2-testos.conf 'ostree-kargs-override.*true'
+
+echo "ok kargs override flag persists"
+
+${CMD_PREFIX} ostree admin status
+# Clear both previous deployments, to start with clean bootconfig.
+${CMD_PREFIX} ostree admin undeploy 1
+${CMD_PREFIX} ostree admin undeploy 0
+
+# Create an extra deployment to use as the merge deployment.
+${CMD_PREFIX} ostree admin deploy --os=testos testos:testos/buildmaster/x86_64-runtime
+assert_not_file_has_content sysroot/boot/loader/entries/ostree-2-testos.conf 'ostree-kargs-override'
+
+echo "ok no kargs override flag"
+
+${CMD_PREFIX} ostree admin deploy --os=testos testos:testos/buildmaster/x86_64-runtime
+assert_not_file_has_content sysroot/boot/loader/entries/ostree-2-testos.conf 'ostree-kargs-override'
+
+echo "ok no kargs override flag persists"