diff --git a/README.rst b/README.rst
index c3df5f7..60ef3b4 100644
--- a/README.rst
+++ b/README.rst
@@ -71,7 +71,7 @@
             virtlet:
               enabled: true
               namespace: kube-system
-              image: mirantis/virtlet:v0.7.0
+              image: mirantis/virtlet:v0.8.0
               hosts:
               - cmp01
               - cmp02
diff --git a/kubernetes/_common.sls b/kubernetes/_common.sls
index 1610d64..b489517 100644
--- a/kubernetes/_common.sls
+++ b/kubernetes/_common.sls
@@ -83,19 +83,32 @@
     - onlyif: /bin/false
     {%- endif %}
 
+/usr/bin/dockershim:
+  file.symlink:
+    - target: /usr/bin/criproxy
+    - require:
+      - file: /usr/bin/criproxy
+
 /etc/criproxy:
   file.directory:
     - user: root
     - group: root
     - mode: 0750
 
-/etc/criproxy/kubelet.conf:
+/etc/criproxy/node.conf:
   file.managed:
-    - source: salt://kubernetes/files/virtlet/kubelet.conf
+    - user: root
+    - group: root
+    - mode: 0640
+    - contents: ''
+
+/etc/systemd/system/dockershim.service:
+  file.managed:
+    - source: salt://kubernetes/files/systemd/dockershim.service
     - template: jinja
     - user: root
     - group: root
-    - mode: 640
+    - mode: 755
 
 /etc/systemd/system/criproxy.service:
   file.managed:
@@ -105,14 +118,24 @@
     - group: root
     - mode: 755
 
+dockershim_service:
+  service.running:
+  - name: dockershim
+  - enable: True
+  - watch:
+    - file: /etc/systemd/system/dockershim.service
+    - file: /usr/bin/dockershim
+  {%- if grains.get('noservices') %}
+  - onlyif: /bin/false
+  {%- endif %}
+
 criproxy_service:
   service.running:
   - name: criproxy
   - enable: True
   - watch:
     - file: /etc/systemd/system/criproxy.service
-    - file: /etc/criproxy/kubelet.conf
-    - file: /etc/criproxy
+    - file: /etc/criproxy/node.conf
     - file: /usr/bin/criproxy
   {%- if grains.get('noservices') %}
   - onlyif: /bin/false
@@ -123,6 +146,11 @@
 /etc/criproxy:
   file.absent
 
+dockershim_service:
+  service.dead:
+  - name: dockershim
+  - enable: False
+
 criproxy_service:
   service.dead:
   - name: criproxy
diff --git a/kubernetes/files/kubelet/default.master b/kubernetes/files/kubelet/default.master
index d1f35d0..1e30e39 100644
--- a/kubernetes/files/kubelet/default.master
+++ b/kubernetes/files/kubelet/default.master
@@ -4,6 +4,7 @@
 # test_args has to be kept at the end, so they'll overwrite any prior configuration
 DAEMON_ARGS="\
 --pod-manifest-path=/etc/kubernetes/manifests \
+--address={{ master.kubelet.address }} \
 --allow-privileged={{ master.kubelet.allow_privileged }} \
 --cluster_dns={{ common.addons.dns.server }} \
 --cluster_domain={{ common.addons.dns.domain|replace('_', '-') }} \
diff --git a/kubernetes/files/kubelet/default.pool b/kubernetes/files/kubelet/default.pool
index 3ec835c..ea2f928 100644
--- a/kubernetes/files/kubelet/default.pool
+++ b/kubernetes/files/kubelet/default.pool
@@ -6,6 +6,7 @@
 --require-kubeconfig \
 --kubeconfig=/etc/kubernetes/kubelet.kubeconfig \
 --pod-manifest-path=/etc/kubernetes/manifests \
+--address={{ pool.kubelet.address }} \
 --allow-privileged={{ pool.kubelet.allow_privileged }} \
 --cluster_dns={{ common.addons.dns.server }} \
 --cluster_domain={{ common.addons.dns.domain|replace('_', '-') }} \
diff --git a/kubernetes/files/systemd/criproxy.service b/kubernetes/files/systemd/criproxy.service
index 6d91cb2..fb6dcf5 100644
--- a/kubernetes/files/systemd/criproxy.service
+++ b/kubernetes/files/systemd/criproxy.service
@@ -3,8 +3,7 @@
 
 [Service]
 ExecStart=/usr/bin/criproxy -alsologtostderr \
-          -connect docker,virtlet:/var/run/virtlet.sock \
-          -kubeletcfg /etc/criproxy/kubelet.conf \
+          -connect /var/run/dockershim.sock,virtlet:/var/run/virtlet.sock \
           -listen /var/run/criproxy.sock
 Restart=always
 StartLimitInterval=0
diff --git a/kubernetes/files/systemd/dockershim.service b/kubernetes/files/systemd/dockershim.service
new file mode 100644
index 0000000..ec02645
--- /dev/null
+++ b/kubernetes/files/systemd/dockershim.service
@@ -0,0 +1,24 @@
+[Unit]
+Description=dockershim for criproxy
+
+[Service]
+EnvironmentFile=-/etc/default/kubelet
+ExecStart=/usr/bin/dockershim \
+    $KUBE_LOGTOSTDERR \
+    $KUBE_LOG_LEVEL \
+    $KUBE_ALLOW_PRIV \
+        $KUBELET_ADDRESS \
+        $KUBELET_PORT \
+        $KUBELET_HOSTNAME \
+        $KUBELET_API_SERVER \
+        $DOCKER_ENDPOINT \
+        $CADVISOR_PORT \
+        $DAEMON_ARGS
+
+Restart=always
+StartLimitInterval=0
+RestartSec=10
+
+[Install]
+RequiredBy=criproxy.service
+
diff --git a/kubernetes/files/virtlet/kubelet.conf b/kubernetes/files/virtlet/kubelet.conf
deleted file mode 100644
index 2697cc3..0000000
--- a/kubernetes/files/virtlet/kubelet.conf
+++ /dev/null
@@ -1,150 +0,0 @@
-{%- from "kubernetes/map.jinja" import common with context %}
-{
-    "address": "0.0.0.0",
-    "allowPrivileged": true,
-    "authentication": {
-        "anonymous": {
-            "enabled": true
-        },
-        "webhook": {
-            "cacheTTL": "2m0s",
-            "enabled": false
-        },
-        "x509": {
-            "clientCAFile": ""
-        }
-    },
-    "authorization": {
-        "mode": "AlwaysAllow",
-        "webhook": {
-            "cacheAuthorizedTTL": "5m0s",
-            "cacheUnauthorizedTTL": "30s"
-        }
-    },
-    "babysitDaemons": false,
-    "cAdvisorPort": 4194,
-    "certDirectory": "/var/run/kubernetes",
-    "cgroupDriver": "cgroupfs",
-    "cgroupRoot": "",
-    "cgroupsPerQOS": true,
-{%- if common.get('cloudprovider', {}).get('enabled') %}
-    "cloudProvider": "{{ common.cloudprovider.provider }}"
-{%- if common.get('cloudprovider', {}).get('provider') == 'openstack' %}
-    "cloudConfigFile": "/etc/kubernetes/cloud-config.conf",
-{%- endif %}
-{%- else %}
-    "cloudProvider": "auto-detect",
-{%- endif %}
-
-    "clusterDNS": [
-        "10.254.0.10"
-    ],
-    "clusterDomain": "{{ common.cluster_domain|replace('_', '-') }}",
-    "cniBinDir": "/opt/cni/bin",
-    "cniConfDir": "",
-    "containerRuntime": "docker",
-    "containerized": false,
-    "contentType": "application/vnd.kubernetes.protobuf",
-    "cpuCFSQuota": true,
-    "dockerEndpoint": "unix:///var/run/docker.sock",
-    "dockerExecHandlerName": "native",
-    "enableCRI": true,
-    "enableContentionProfiling": false,
-    "enableControllerAttachDetach": true,
-    "enableCustomMetrics": false,
-    "enableDebuggingHandlers": true,
-    "enableServer": true,
-    "enforceNodeAllocatable": [
-        "pods"
-    ],
-    "eventBurst": 10,
-    "eventRecordQPS": 5,
-    "evictionHard": "memory.available<100Mi",
-    "evictionMaxPodGracePeriod": 0,
-    "evictionMinimumReclaim": "",
-    "evictionPressureTransitionPeriod": "5m0s",
-    "evictionSoft": "",
-    "evictionSoftGracePeriod": "",
-    "exitOnLockContention": false,
-    "experimentalKernelMemcgNotification": false,
-    "experimentalQOSReserved": {},
-    "featureGates": "DynamicKubeletConfig=true",
-    "fileCheckFrequency": "5s",
-    "hairpinMode": "promiscuous-bridge",
-    "healthzBindAddress": "127.0.0.1",
-    "healthzPort": 10248,
-    "hostIPCSources": [
-        "*"
-    ],
-    "hostNetworkSources": [
-        "*"
-    ],
-    "hostPIDSources": [
-        "*"
-    ],
-    "hostnameOverride": "",
-    "httpCheckFrequency": "20s",
-    "imageGCHighThresholdPercent": 90,
-    "imageGCLowThresholdPercent": 80,
-    "imageMinimumGCAge": "2m0s",
-    "imagePullProgressDeadline": "1m0s",
-    "iptablesDropBit": 15,
-    "iptablesMasqueradeBit": 14,
-    "kubeAPIBurst": 10,
-    "kubeAPIQPS": 5,
-    "kubeReserved": {},
-    "kubeletCgroups": "",
-    "lockFilePath": "",
-    "lowDiskSpaceThresholdMB": 256,
-    "makeIPTablesUtilChains": true,
-    "manifestURL": "",
-    "manifestURLHeader": "",
-    "masterServiceNamespace": "default",
-    "maxContainerCount": -1,
-    "maxOpenFiles": 1000000,
-    "maxPerPodContainerCount": 1,
-    "maxPods": 110,
-    "minimumGCAge": "0s",
-    "networkPluginDir": "/etc/cni/net.d",
-    "networkPluginMTU": 0,
-    "networkPluginName": "cni",
-    "nodeIP": "",
-    "nodeLabels": {
-        "node-role.kubernetes.io/node": "true"
-    },
-    "nodeStatusUpdateFrequency": "10s",
-    "nonMasqueradeCIDR": "10.0.0.0/8",
-    "oomScoreAdj": -999,
-    "outOfDiskTransitionFrequency": "5m0s",
-    "podCIDR": "",
-    "podInfraContainerImage": "gcr.io/google_containers/pause-amd64:3.0",
-    "podManifestPath": "/etc/kubernetes/manifests",
-    "podsPerCore": 0,
-    "port": 10250,
-    "protectKernelDefaults": false,
-    "readOnlyPort": 10255,
-    "registerNode": true,
-    "registerSchedulable": true,
-    "registerWithTaints": [],
-    "registryBurst": 10,
-    "registryPullQPS": 5,
-    "remoteImageEndpoint": "",
-    "remoteRuntimeEndpoint": "",
-    "resolvConf": "/etc/resolv.conf",
-    "rktAPIEndpoint": "localhost:15441",
-    "rktPath": "",
-    "rktStage1Image": "",
-    "rootDirectory": "/var/lib/kubelet",
-    "runtimeCgroups": "",
-    "runtimeRequestTimeout": "2m0s",
-    "seccompProfileRoot": "/var/lib/kubelet/seccomp",
-    "serializeImagePulls": true,
-    "streamingConnectionIdleTimeout": "4h0m0s",
-    "syncFrequency": "1m0s",
-    "systemCgroups": "",
-    "systemReserved": {},
-    "tlsCertFile": "",
-    "tlsPrivateKeyFile": "",
-    "volumePluginDir": "/usr/libexec/kubernetes/kubelet-plugins/volume/exec/",
-    "volumeStatsAggPeriod": "1m0s"
-}
diff --git a/metadata/service/common.yml b/metadata/service/common.yml
index b7884b4..c29d5ee 100644
--- a/metadata/service/common.yml
+++ b/metadata/service/common.yml
@@ -55,7 +55,7 @@
         virtlet:
           enabled: False
           namespace: kube-system
-          image: mirantis/virtlet:v0.7.0
+          image: mirantis/virtlet:v0.8.0
       cloudprovider:
         enabled: False
         provider: openstack
diff --git a/metadata/service/master/cluster.yml b/metadata/service/master/cluster.yml
index a33d788..bcbc69c 100644
--- a/metadata/service/master/cluster.yml
+++ b/metadata/service/master/cluster.yml
@@ -17,6 +17,7 @@
         username: ${_param:kubernetes_admin_user}
         password: ${_param:kubernetes_admin_password}
       kubelet:
+        address: ${_param:cluster_local_address}
         allow_privileged: True
       apiserver:
         address: ${_param:cluster_local_address}
diff --git a/metadata/service/master/single.yml b/metadata/service/master/single.yml
index cf71666..9ca32a3 100644
--- a/metadata/service/master/single.yml
+++ b/metadata/service/master/single.yml
@@ -17,6 +17,7 @@
         username: ${_param:kubernetes_admin_user}
         password: ${_param:kubernetes_admin_password}
       kubelet:
+        address: ${_param:cluster_local_address}
         allow_privileged: True
       apiserver:
         address: ${_param:single_address}
@@ -61,7 +62,7 @@
         virtlet:
           enabled: False
           namespace: kube-system
-          image: mirantis/virtlet:v0.7.0
+          image: mirantis/virtlet:v0.8.0
       token:
         admin: ${_param:kubernetes_admin_token}
         kubelet: ${_param:kubernetes_kubelet_token}
diff --git a/metadata/service/pool/cluster.yml b/metadata/service/pool/cluster.yml
index b529623..826a78b 100644
--- a/metadata/service/pool/cluster.yml
+++ b/metadata/service/pool/cluster.yml
@@ -27,6 +27,7 @@
       cluster_dns: 10.254.0.10
       cluster_domain: ${_param:kubernetes_cluster_domain}
       kubelet:
+        address: ${_param:cluster_local_address}
         config: /etc/kubernetes/manifests
         allow_privileged: True
         frequency: 5s
diff --git a/metadata/service/pool/single.yml b/metadata/service/pool/single.yml
index 057596b..eefb9ce 100644
--- a/metadata/service/pool/single.yml
+++ b/metadata/service/pool/single.yml
@@ -24,6 +24,7 @@
       allow_privileged: True
       cluster_domain: ${_param:kubernetes_cluster_domain}
       kubelet:
+        address: ${_param:cluster_local_address}
         config: /etc/kubernetes/manifests
         allow_privileged: True
         frequency: 5s
diff --git a/tests/pillar/master_cluster.sls b/tests/pillar/master_cluster.sls
index 513d6b1..2f40293 100644
--- a/tests/pillar/master_cluster.sls
+++ b/tests/pillar/master_cluster.sls
@@ -42,7 +42,7 @@
         hosts:
         - cmp01
         - cmp02
-        image: mirantis/virtlet:v0.7.0
+        image: mirantis/virtlet:v0.8.0
   master:
     admin:
       password: password
@@ -65,6 +65,7 @@
       - host: 10.0.175.100
         name: node040
     kubelet:
+      address: 10.0.175.100
       allow_privileged: true
     network:
       engine: calico
diff --git a/tests/pillar/master_contrail.sls b/tests/pillar/master_contrail.sls
index 862bb9a..b562e66 100644
--- a/tests/pillar/master_contrail.sls
+++ b/tests/pillar/master_contrail.sls
@@ -39,7 +39,7 @@
       virtlet:
         enabled: true
         namespace: kube-system
-        image: mirantis/virtlet:v0.7.0
+        image: mirantis/virtlet:v0.8.0
         hosts:
         - cmp01
         - cmp02
@@ -69,6 +69,7 @@
       - host: 10.0.175.100
         name: node040
     kubelet:
+      address: 10.0.175.100
       allow_privileged: true
     network:
       engine: opencontrail
diff --git a/tests/pillar/master_contrail4_0.sls b/tests/pillar/master_contrail4_0.sls
index d948e7c..fe63c4a 100644
--- a/tests/pillar/master_contrail4_0.sls
+++ b/tests/pillar/master_contrail4_0.sls
@@ -39,7 +39,7 @@
       virtlet:
         enabled: true
         namespace: kube-system
-        image: mirantis/virtlet:v0.7.0
+        image: mirantis/virtlet:v0.8.0
         hosts:
         - cmp01
         - cmp02
@@ -66,6 +66,7 @@
       - host: 127.0.0.1
         name: node040
     kubelet:
+      address: 10.0.175.100
       allow_privileged: true
     network:
       engine: opencontrail
diff --git a/tests/pillar/pool_cluster.sls b/tests/pillar/pool_cluster.sls
index b9e7840..35523bb 100644
--- a/tests/pillar/pool_cluster.sls
+++ b/tests/pillar/pool_cluster.sls
@@ -18,7 +18,7 @@
       virtlet:
         enabled: true
         namespace: kube-system
-        image: mirantis/virtlet:v0.7.0
+        image: mirantis/virtlet:v0.8.0
         hosts:
         - cmp01
         - cmp02
@@ -39,6 +39,7 @@
         - host: 127.0.0.1
     address: 0.0.0.0
     kubelet:
+      address: 127.0.0.1
       config: /etc/kubernetes/manifests
       allow_privileged: True
       frequency: 5s
diff --git a/tests/pillar/pool_cluster_with_domain.sls b/tests/pillar/pool_cluster_with_domain.sls
index 6201348..595e39e 100644
--- a/tests/pillar/pool_cluster_with_domain.sls
+++ b/tests/pillar/pool_cluster_with_domain.sls
@@ -18,7 +18,7 @@
       virtlet:
         enabled: true
         namespace: kube-system
-        image: mirantis/virtlet:v0.7.0
+        image: mirantis/virtlet:v0.8.0
         hosts:
         - cmp01
         - cmp02
@@ -40,6 +40,7 @@
         - host: 127.0.0.1
     address: 0.0.0.0
     kubelet:
+      address: 127.0.0.1
       config: /etc/kubernetes/manifests
       allow_privileged: True
       frequency: 5s
diff --git a/tests/pillar/pool_contrail4_0.sls b/tests/pillar/pool_contrail4_0.sls
index ea4426a..bdd87b7 100644
--- a/tests/pillar/pool_contrail4_0.sls
+++ b/tests/pillar/pool_contrail4_0.sls
@@ -18,7 +18,7 @@
       virtlet:
         enabled: true
         namespace: kube-system
-        image: mirantis/virtlet:v0.7.0
+        image: mirantis/virtlet:v0.8.0
         hosts:
         - cmp01
         - cmp02
@@ -39,6 +39,7 @@
         - host: 127.0.0.1
     address: 0.0.0.0
     kubelet:
+      address: 127.0.0.1
       config: /etc/kubernetes/manifests
       allow_privileged: True
       frequency: 5s