diff --git a/charts/latest/blob-csi-driver-v0.0.0.tgz b/charts/latest/blob-csi-driver-v0.0.0.tgz
index 046171f22..9833a8921 100644
Binary files a/charts/latest/blob-csi-driver-v0.0.0.tgz and b/charts/latest/blob-csi-driver-v0.0.0.tgz differ
diff --git a/charts/latest/blob-csi-driver/templates/csi-blob-node.yaml b/charts/latest/blob-csi-driver/templates/csi-blob-node.yaml
index 7cdd28211..7d4f7680a 100644
--- a/charts/latest/blob-csi-driver/templates/csi-blob-node.yaml
+++ b/charts/latest/blob-csi-driver/templates/csi-blob-node.yaml
@@ -111,7 +111,7 @@ spec:
             - name: host-home-kubernetes-bin
               mountPath: /host/home/kubernetes/bin
 {{- end }}
-{{- if eq .Values.linux.distro "gardenlinux" }}
+{{- if or (eq .Values.linux.distro "gardenlinux") (eq .Values.linux.distro "flatcar") }}
             - name: host-var-bin
               mountPath: /host/var/bin
 {{- end }}
@@ -300,7 +300,7 @@ spec:
           hostPath:
             path: /home/kubernetes/bin
 {{- end }}
-{{- if eq .Values.linux.distro "gardenlinux" }}
+{{- if or (eq .Values.linux.distro "gardenlinux") (eq .Values.linux.distro "flatcar") }}
         - name: host-var-bin
           hostPath:
             path: /var/bin
diff --git a/pkg/blobfuse-proxy/init.sh b/pkg/blobfuse-proxy/init.sh
index af4487c02..1e714fbe2 100755
--- a/pkg/blobfuse-proxy/init.sh
+++ b/pkg/blobfuse-proxy/init.sh
@@ -39,7 +39,7 @@ echo "Linux distribution: $DISTRIBUTION, Arch: $ARCH"
 
 # install blobfuse-proxy and blobfuse/blobfuse2 if needed
 case "${DISTRIBUTION}" in
-  "rhcos" | "rhel" | "cos" | "gardenlinux")
+  "rhcos" | "rhel" | "cos" | "gardenlinux" | "flatcar")
     . ./blobfuse-proxy/install-proxy-rhcos.sh
     ;;
   *)
diff --git a/pkg/blobfuse-proxy/install-proxy-rhcos.sh b/pkg/blobfuse-proxy/install-proxy-rhcos.sh
index 1fdbacedb..7c55803f9 100644
--- a/pkg/blobfuse-proxy/install-proxy-rhcos.sh
+++ b/pkg/blobfuse-proxy/install-proxy-rhcos.sh
@@ -16,19 +16,19 @@
 
 set -xe
 
-BIN_PATH=${BIN_PATH:-/usr/local/bin}
-if [ "${DISTRIBUTION}" = "cos" ]; then
-  echo "set BIN_PATH to /home/kubernetes/bin"
-  BIN_PATH="/home/kubernetes/bin"
-fi
-if [ "${DISTRIBUTION}" = "gardenlinux" ]; then
-  echo "set BIN_PATH to /var/bin"
-  BIN_PATH="/var/bin"
-fi
-if [ "${CUSTOM_BIN_PATH}" != "" ]; then
-  echo "set BIN_PATH to ${CUSTOM_BIN_PATH}"
-  BIN_PATH="${CUSTOM_BIN_PATH}"
+if [ -z "${CUSTOM_BIN_PATH:-}" ] ; then
+  case "${DISTRIBUTION}" in
+    "cos")
+      BIN_PATH="/home/kubernetes/bin" ;;
+    "gardenlinux" | "flatcar")
+      BIN_PATH="/var/bin" ;;
+    *)
+      BIN_PATH=${BIN_PATH:-/usr/local/bin} ;;
+  esac
+else
+  BIN_PATH="/${CUSTOM_BIN_PATH#/}"
 fi
+echo "set BIN_PATH to ${BIN_PATH}"
 
 #copy blobfuse2 binary to BIN_PATH/blobfuse2
 updateBlobfuse2="true"
@@ -50,6 +50,15 @@ if [ "$updateBlobfuse2" = "true" ];then
   echo "copy blobfuse2...."
   cp /usr/bin/blobfuse2 /host${BIN_PATH}/blobfuse2 --force
   chmod 755 /host${BIN_PATH}/blobfuse2
+  if [ "$DISTRIBUTION" = "flatcar" ] ; then
+    find /usr/ -name 'libfuse.so.*' -exec cp '{}' /host${BIN_PATH} \;
+    mv /host${BIN_PATH}/blobfuse2 /host${BIN_PATH}/blobfuse2.bin
+    {
+      echo '#!/usr/bin/bash'
+      echo "LD_LIBRARY_PATH='${BIN_PATH}' exec ${BIN_PATH}/blobfuse2.bin \"\${@}\""
+    } >/host${BIN_PATH}/blobfuse2
+    chmod 755 /host${BIN_PATH}/blobfuse2
+  fi
 fi
 
 if [ "${INSTALL_BLOBFUSE_PROXY}" = "true" ];then
@@ -74,8 +83,9 @@ if [ "${INSTALL_BLOBFUSE_PROXY}" = "true" ];then
   echo "change from /usr/bin/blobfuse-proxy to ${BIN_PATH}/blobfuse-proxy in blobfuse-proxy.service"
   sed -i "s|/usr/bin/blobfuse-proxy|${BIN_PATH}/blobfuse-proxy|g" /blobfuse-proxy/blobfuse-proxy.service
   if [ "${BIN_PATH}" != "/usr/local/bin" ]; then
-    echo "add Environment=\"PATH=${BIN_PATH}:$PATH\" in blobfuse-proxy.service"
-    sed -i "/Delegate=yes/a Environment=\"PATH=${BIN_PATH}:\$PATH\"" /blobfuse-proxy/blobfuse-proxy.service
+    echo "add \"PATH=${BIN_PATH}:\$PATH\" in blobfuse-proxy.service ExecStart."
+    sed "s,^ExecStart[[:space:]]*=\\(.*\\)\$,ExecStart=/usr/bin/bash -c \"PATH=${BIN_PATH}:\$PATH \\1\"," \
+      /blobfuse-proxy/blobfuse-proxy.service
   fi
   if [ -f "/host/etc/systemd/system/blobfuse-proxy.service" ];then
     old=$(sha256sum /host/etc/systemd/system/blobfuse-proxy.service | awk '{print $1}')
diff --git a/pkg/blobfuse-proxy/server/server.go b/pkg/blobfuse-proxy/server/server.go
index 9730c83dd..ab7c4bf96 100644
--- a/pkg/blobfuse-proxy/server/server.go
+++ b/pkg/blobfuse-proxy/server/server.go
@@ -150,6 +150,11 @@ func getBlobfuseVersion() BlobfuseVersion {
 		return BlobfuseV2
 	}
 
+	if strings.EqualFold(osinfo.Distro, "flatcar") {
+		klog.V(2).Info("proxy default using blobfuse V2 for mounting on Flatcar Container Linux")
+		return BlobfuseV2
+	}
+
 	klog.V(2).Info("proxy default using blobfuse V1 for mounting")
 	return BlobfuseV1
 }