diff --git a/README.rst b/README.rst
index 6b509c3..3b50609 100644
--- a/README.rst
+++ b/README.rst
@@ -70,7 +70,7 @@
             virtlet:
               enabled: true
               namespace: kube-system
-              image: mirantis/virtlet:v0.8.0
+              image: mirantis/virtlet:v1.0.0
               hosts:
               - cmp01
               - cmp02
diff --git a/kubernetes/files/kube-addons/virtlet/virtlet-ds.yml b/kubernetes/files/kube-addons/virtlet/virtlet-ds.yml
index 17a73ba..45d352f 100644
--- a/kubernetes/files/kube-addons/virtlet/virtlet-ds.yml
+++ b/kubernetes/files/kube-addons/virtlet/virtlet-ds.yml
@@ -12,21 +12,10 @@
 spec:
   template:
     metadata:
-      name: virtlet
       labels:
         runtime: virtlet
+      name: virtlet
     spec:
-      hostNetwork: true
-      {%- if master.network.get('opencontrail', {}).get('enabled', False) %}
-      dnsPolicy: ClusterFirstWithHostNet
-      {%- endif %}
-      # hostPID is true to (1) enable VMs to survive virtlet container restart
-      # (to be checked) and (2) to enable the use of nsenter in init container
-      hostPID: true
-      # bootstrap procedure needs to create a configmap in kube-system namespace
-      serviceAccountName: virtlet
-
-      # only run Virtlet pods on the nodes with extraRuntime=virtlet label
       affinity:
         nodeAffinity:
           requiredDuringSchedulingIgnoredDuringExecution:
@@ -36,50 +25,28 @@
                 operator: In
                 values:
                 - virtlet
-
-      initContainers:
-      # The init container copies virtlet's flexvolume driver
-      # to the default kubelet plugin dir and ensures that
-      # the directories needed by libvirt & virtlet exist on the host
-      - name: prepare-node
-        image: {{ common.addons.virtlet.image }}
-        imagePullPolicy: IfNotPresent
-        command:
-        - /prepare-node.sh
-        volumeMounts:
-        - name: k8s-flexvolume-plugins-dir
-          mountPath: /kubelet-volume-plugins
-        - name: run
-          {%- if version|float >= 1.8 %}
-          mountPropagation: Bidirectional
-          {%- endif %}
-          mountPath: /run
-        - name: dockersock
-          mountPath: /var/run/docker.sock
-        - name: log
-          mountPath: /hostlog
-        # for ensuring that /var/lib/libvirt/images exists on node
-        - name: var-lib
-          mountPath: /host-var-lib
-        - name: dev
-          mountPath: /dev
-        securityContext:
-          privileged: true
+      containers:
+      - command:
+        - /libvirt.sh
         env:
         - name: VIRTLET_DISABLE_KVM
           valueFrom:
             configMapKeyRef:
-              name: virtlet-config
               key: disable_kvm
+              name: virtlet-config
               optional: true
-
-      containers:
-      - name: libvirt
         image: {{ common.addons.virtlet.image }}
-        # In case we inject local virtlet image we want to use it not officially available one
         imagePullPolicy: IfNotPresent
-        command:
-        - /libvirt.sh
+        name: libvirt
+        readinessProbe:
+          exec:
+            command:
+            - /bin/sh
+            - -c
+            - socat - UNIX:/var/run/libvirt/libvirt-sock-ro </dev/null
+        resources: {}
+        securityContext:
+          privileged: true
         volumeMounts:
         - mountPath: /sys/fs/cgroup
           name: cgroup
@@ -90,43 +57,89 @@
           name: boot
           readOnly: true
         - mountPath: /run
-          name: run
-          {%- if version|float >= 1.8 %}
           mountPropagation: Bidirectional
-          {%- endif %}
+          name: run
         - mountPath: /var/lib/virtlet
           name: virtlet
         - mountPath: /var/lib/libvirt
           name: libvirt
         - mountPath: /var/run/libvirt
           name: libvirt-sockets
-        # the log dir is needed here because otherwise libvirt will produce errors
-        # like this:
-        # Unable to pre-create chardev file '/var/log/vms/afd75bbb-8e97-11e7-9561-02420ac00002/cirros-vm_0.log': No such file or directory
-        - name: vms-log
-          mountPath: /var/log/vms
-        - name: dev
-          mountPath: /dev
-        securityContext:
-          privileged: true
-        env:
+        - mountPath: /var/log/vms
+          name: vms-log
+        - mountPath: /var/log/libvirt
+          name: libvirt-log
+        - mountPath: /dev
+          name: dev
+      - env:
         - name: VIRTLET_DISABLE_KVM
           valueFrom:
             configMapKeyRef:
-              name: virtlet-config
               key: disable_kvm
+              name: virtlet-config
               optional: true
-      - name: virtlet
+        - name: VIRTLET_DOWNLOAD_PROTOCOL
+          valueFrom:
+            configMapKeyRef:
+              key: download_protocol
+              name: virtlet-config
+              optional: true
+        - name: VIRTLET_LOGLEVEL
+          valueFrom:
+            configMapKeyRef:
+              key: loglevel
+              name: virtlet-config
+              optional: true
+        - name: VIRTLET_CALICO_SUBNET
+          valueFrom:
+            configMapKeyRef:
+              key: calico-subnet
+              name: virtlet-config
+              optional: true
+        - name: IMAGE_REGEXP_TRANSLATION
+          valueFrom:
+            configMapKeyRef:
+              key: image_regexp_translation
+              name: virtlet-config
+              optional: true
+        - name: VIRTLET_DISABLE_LOGGING
+          valueFrom:
+            configMapKeyRef:
+              key: disable_logging
+              name: virtlet-config
+              optional: true
+        - name: VIRTLET_SRIOV_SUPPORT
+          valueFrom:
+            configMapKeyRef:
+              key: sriov_support
+              name: virtlet-config
+              optional: true
+        - name: VIRTLET_RAW_DEVICES
+          valueFrom:
+            configMapKeyRef:
+              key: raw_devices
+              name: virtlet-config
+              optional: true
+        - name: IMAGE_TRANSLATIONS_DIR
+          value: /etc/virtlet/images
+        - name: KUBERNETES_POD_LOGS
+          value: /kubernetes-log
         image: {{ common.addons.virtlet.image }}
-        # In case we inject local virtlet image we want to use it not officially available one
         imagePullPolicy: IfNotPresent
+        name: virtlet
+        readinessProbe:
+          exec:
+            command:
+            - /bin/sh
+            - -c
+            - socat - UNIX:/run/virtlet.sock </dev/null
+        resources: {}
+        securityContext:
+          privileged: true
         volumeMounts:
         - mountPath: /run
-          name: run
-          {%- if version|float >= 1.8 %}
           mountPropagation: Bidirectional
-          {%- endif %}
-        # /boot and /lib/modules are required by supermin
+          name: run
         - mountPath: /lib/modules
           name: modules
           readOnly: true
@@ -142,12 +155,10 @@
         - mountPath: /usr/libexec/kubernetes/kubelet-plugins/volume/exec
           name: k8s-flexvolume-plugins-dir
         - mountPath: /var/lib/kubelet/pods
-          name: k8s-pods-dir
-          {%- if version|float >= 1.8 %}
           mountPropagation: Bidirectional
-          {%- endif %}
-        - name: vms-log
-          mountPath: /var/log/vms
+          name: k8s-pods-dir
+        - mountPath: /var/log/vms
+          name: vms-log
         {%- if master.network.get('opencontrail', {}).get('enabled', False) %}
         - name: contrail-log
           mountPath: /var/log/contrail
@@ -156,73 +167,62 @@
         {%- endif %}
         - mountPath: /etc/virtlet/images
           name: image-name-translations
-        - name: pods-log
-          mountPath: /kubernetes-log
-        securityContext:
-          privileged: true
-        env:
-        - name: VIRTLET_DISABLE_KVM
-          valueFrom:
-            configMapKeyRef:
-              name: virtlet-config
-              key: disable_kvm
-              optional: true
-        - name: VIRTLET_DOWNLOAD_PROTOCOL
-          valueFrom:
-            configMapKeyRef:
-              name: virtlet-config
-              key: download_protocol
-              optional: true
-        - name: VIRTLET_LOGLEVEL
-          valueFrom:
-            configMapKeyRef:
-              name: virtlet-config
-              key: loglevel
-              optional: true
-        - name: VIRTLET_CALICO_SUBNET
-          valueFrom:
-            configMapKeyRef:
-              name: virtlet-config
-              key: calico-subnet
-              optional: true
-        - name: IMAGE_REGEXP_TRANSLATION
-          valueFrom:
-            configMapKeyRef:
-              name: virtlet-config
-              key: image_regexp_translation
-              optional: true
-        - name: VIRTLET_DISABLE_LOGGING
-          valueFrom:
-            configMapKeyRef:
-              name: virtlet-config
-              key: disable_logging
-              optional: true
-        - name: VIRTLET_SRIOV_SUPPORT
-          valueFrom:
-            configMapKeyRef:
-              name: virtlet-config
-              key: sriov_support
-              optional: true
-        - name: IMAGE_TRANSLATIONS_DIR
-          value: /etc/virtlet/images
-        - name: KUBERNETES_POD_LOGS
-          value: "/kubernetes-log"
-      - name: vms
+        - mountPath: /kubernetes-log
+          name: pods-log
+      - command:
+        - /vms.sh
         image: {{ common.addons.virtlet.image }}
         imagePullPolicy: IfNotPresent
-        command:
-        - /vms.sh
+        name: vms
+        resources: {}
         volumeMounts:
         - mountPath: /var/lib/virtlet
           name: virtlet
         - mountPath: /var/lib/libvirt
           name: libvirt
-        - name: vms-log
-          mountPath: /var/log/vms
-        - name: dev
-          mountPath: /dev
+        - mountPath: /var/log/vms
+          name: vms-log
+        - mountPath: /dev
+          name: dev
+        - mountPath: /lib/modules
+          name: modules
+      {%- if master.network.get('opencontrail', {}).get('enabled', False) %}
+      dnsPolicy: ClusterFirstWithHostNet
+      {%- endif %}
+      hostNetwork: true
+      hostPID: true
+      initContainers:
+      - command:
+        - /prepare-node.sh
+        env:
+        - name: VIRTLET_DISABLE_KVM
+          valueFrom:
+            configMapKeyRef:
+              key: disable_kvm
+              name: virtlet-config
+              optional: true
+        image: {{ common.addons.virtlet.image }}
+        imagePullPolicy: IfNotPresent
+        name: prepare-node
+        resources: {}
+        securityContext:
+          privileged: true
+        volumeMounts:
+        - mountPath: /kubelet-volume-plugins
+          name: k8s-flexvolume-plugins-dir
+        - mountPath: /run
+          mountPropagation: Bidirectional
+          name: run
+        - mountPath: /var/run/docker.sock
+          name: dockersock
+        - mountPath: /hostlog
+          name: log
+        - mountPath: /host-var-lib
+          name: var-lib
+        - mountPath: /dev
+          name: dev
+      serviceAccountName: virtlet
       volumes:
-      # /dev is needed for host raw device access
       - hostPath:
           path: /dev
         name: dev
@@ -238,9 +238,6 @@
       - hostPath:
           path: /run
         name: run
-      # TODO: don't hardcode docker socket location here
-      # This will require CRI proxy installation to run
-      # in host mount namespace.
       - hostPath:
           path: /var/run/docker.sock
         name: dockersock
@@ -266,6 +263,9 @@
           path: /var/log/virtlet/vms
         name: vms-log
       - hostPath:
+          path: /var/log/libvirt
+        name: libvirt-log
+      - hostPath:
           path: /var/run/libvirt
         name: libvirt-sockets
       - hostPath:
@@ -288,12 +288,50 @@
           path: /virtlet
         name: virtlet-bin
       {%- endif %}
+  updateStrategy: {}
+status:
+  currentNumberScheduled: 0
+  desiredNumberScheduled: 0
+  numberMisscheduled: 0
+  numberReady: 0
+
+---
+apiVersion: rbac.authorization.k8s.io/v1beta1
+kind: ClusterRoleBinding
+metadata:
+  name: virtlet
+  labels:
+    addonmanager.kubernetes.io/mode: Reconcile
+roleRef:
+  apiGroup: rbac.authorization.k8s.io
+  kind: ClusterRole
+  name: virtlet
+subjects:
+- kind: ServiceAccount
+  name: virtlet
+  namespace: {{ common.addons.virtlet.namespace }}
+
+---
+apiVersion: rbac.authorization.k8s.io/v1beta1
+kind: ClusterRole
+metadata:
+  name: virtlet
+  namespace: {{ common.addons.virtlet.namespace }}
+  labels:
+    addonmanager.kubernetes.io/mode: Reconcile
+rules:
+- apiGroups:
+  - ""
+  resources:
+  - configmaps
+  verbs:
+  - create
+
 ---
 apiVersion: rbac.authorization.k8s.io/v1beta1
 kind: ClusterRole
 metadata:
   name: configmap-reader
-  namespace: {{ common.addons.virtlet.namespace }}
   labels:
     addonmanager.kubernetes.io/mode: Reconcile
 rules:
@@ -305,6 +343,23 @@
   - get
   - list
   - watch
+
+---
+apiVersion: rbac.authorization.k8s.io/v1beta1
+kind: ClusterRole
+metadata:
+  name: virtlet-userdata-reader
+  labels:
+    addonmanager.kubernetes.io/mode: Reconcile
+rules:
+- apiGroups:
+  - ""
+  resources:
+  - configmaps
+  - secrets
+  verbs:
+  - get
+
 ---
 apiVersion: rbac.authorization.k8s.io/v1beta1
 kind: ClusterRoleBinding
@@ -320,98 +375,7 @@
 - apiGroup: rbac.authorization.k8s.io
   kind: Group
   name: system:nodes
-  namespace: {{ common.addons.virtlet.namespace }}
----
-kind: ClusterRole
-apiVersion: rbac.authorization.k8s.io/v1beta1
-metadata:
-  name: virtlet-crd
-  namespace: {{ common.addons.virtlet.namespace }}
-  labels:
-    addonmanager.kubernetes.io/mode: Reconcile
-rules:
-  - apiGroups:
-      - "apiextensions.k8s.io"
-    resources:
-      - customresourcedefinitions
-    verbs:
-      - create
-  - apiGroups:
-      - "virtlet.k8s"
-    resources:
-      - virtletimagemappings
-    verbs:
-      - list
-      - get
----
-apiVersion: rbac.authorization.k8s.io/v1beta1
-kind: ClusterRoleBinding
-metadata:
-  name: virtlet-crd
-  labels:
-    addonmanager.kubernetes.io/mode: Reconcile
-roleRef:
-  apiGroup: rbac.authorization.k8s.io
-  kind: ClusterRole
-  name: virtlet-crd
-subjects:
-- kind: ServiceAccount
-  name: virtlet
-  namespace: {{ common.addons.virtlet.namespace }}
----
-apiVersion: v1
-kind: ServiceAccount
-metadata:
-  name: virtlet
-  namespace: {{ common.addons.virtlet.namespace }}
-  labels:
-    addonmanager.kubernetes.io/mode: Reconcile
----
-apiVersion: rbac.authorization.k8s.io/v1beta1
-kind: ClusterRoleBinding
-metadata:
-  name: virtlet
-  labels:
-    addonmanager.kubernetes.io/mode: Reconcile
-roleRef:
-  apiGroup: rbac.authorization.k8s.io
-  kind: ClusterRole
-  name: virtlet
-subjects:
-- kind: ServiceAccount
-  name: virtlet
-  namespace: {{ common.addons.virtlet.namespace }}
----
-kind: ClusterRole
-apiVersion: rbac.authorization.k8s.io/v1beta1
-metadata:
-  name: virtlet
-  namespace: {{ common.addons.virtlet.namespace }}
-  labels:
-    addonmanager.kubernetes.io/mode: Reconcile
-rules:
-  - apiGroups:
-      - ""
-    resources:
-      - configmaps
-    verbs:
-      - create
----
-apiVersion: rbac.authorization.k8s.io/v1beta1
-kind: ClusterRole
-metadata:
-  name: virtlet-userdata-reader
-  namespace: {{ common.addons.virtlet.namespace }}
-  labels:
-    addonmanager.kubernetes.io/mode: Reconcile
-rules:
-- apiGroups:
-  - ""
-  resources:
-  - configmaps
-  - secrets
-  verbs:
-  - get
+
 ---
 apiVersion: rbac.authorization.k8s.io/v1beta1
 kind: ClusterRoleBinding
@@ -427,6 +391,53 @@
 - kind: ServiceAccount
   name: virtlet
   namespace: {{ common.addons.virtlet.namespace }}
+
+---
+apiVersion: rbac.authorization.k8s.io/v1beta1
+kind: ClusterRole
+metadata:
+  name: virtlet-crd
+  labels:
+    addonmanager.kubernetes.io/mode: Reconcile
+rules:
+- apiGroups:
+  - apiextensions.k8s.io
+  resources:
+  - customresourcedefinitions
+  verbs:
+  - create
+- apiGroups:
+  - virtlet.k8s
+  resources:
+  - virtletimagemappings
+  verbs:
+  - list
+  - get
+
+---
+apiVersion: rbac.authorization.k8s.io/v1beta1
+kind: ClusterRoleBinding
+metadata:
+  name: virtlet-crd
+  labels:
+    addonmanager.kubernetes.io/mode: Reconcile
+roleRef:
+  apiGroup: rbac.authorization.k8s.io
+  kind: ClusterRole
+  name: virtlet-crd
+subjects:
+- kind: ServiceAccount
+  name: virtlet
+  namespace: {{ common.addons.virtlet.namespace }}
+
+---
+apiVersion: v1
+kind: ServiceAccount
+metadata:
+  name: virtlet
+  namespace: {{ common.addons.virtlet.namespace }}
+  labels:
+    addonmanager.kubernetes.io/mode: Reconcile
 ---
 apiVersion: v1
 data:
diff --git a/metadata/service/common.yml b/metadata/service/common.yml
index 4aa517c..d2fa3bb 100644
--- a/metadata/service/common.yml
+++ b/metadata/service/common.yml
@@ -58,7 +58,7 @@
         virtlet:
           enabled: False
           namespace: kube-system
-          image: mirantis/virtlet:v0.9.4
+          image: mirantis/virtlet:v1.0.0
           criproxy_version: v0.10.0
           criproxy_source: md5=52717b1f70f15558ef4bdb0e4d4948da
       cloudprovider:
diff --git a/metadata/service/master/single.yml b/metadata/service/master/single.yml
index f2d119b..8eb6b63 100644
--- a/metadata/service/master/single.yml
+++ b/metadata/service/master/single.yml
@@ -62,7 +62,7 @@
         virtlet:
           enabled: False
           namespace: kube-system
-          image: mirantis/virtlet:v0.8.0
+          image: mirantis/virtlet:v1.0.0
       token:
         admin: ${_param:kubernetes_admin_token}
         kubelet: ${_param:kubernetes_kubelet_token}
diff --git a/tests/pillar/master_cluster.sls b/tests/pillar/master_cluster.sls
index 68a0e51..9e8afa2 100644
--- a/tests/pillar/master_cluster.sls
+++ b/tests/pillar/master_cluster.sls
@@ -40,7 +40,7 @@
         hosts:
         - cmp01
         - cmp02
-        image: mirantis/virtlet:v0.8.0
+        image: mirantis/virtlet:v1.0.0
     monitoring:
       backend: prometheus
   master:
diff --git a/tests/pillar/master_contrail.sls b/tests/pillar/master_contrail.sls
index b2941b1..e86a293 100644
--- a/tests/pillar/master_contrail.sls
+++ b/tests/pillar/master_contrail.sls
@@ -37,7 +37,7 @@
       virtlet:
         enabled: true
         namespace: kube-system
-        image: mirantis/virtlet:v0.8.0
+        image: mirantis/virtlet:v1.0.0
         hosts:
         - cmp01
         - cmp02
diff --git a/tests/pillar/master_contrail4_0.sls b/tests/pillar/master_contrail4_0.sls
index 3f62f67..ec48f54 100644
--- a/tests/pillar/master_contrail4_0.sls
+++ b/tests/pillar/master_contrail4_0.sls
@@ -37,7 +37,7 @@
       virtlet:
         enabled: true
         namespace: kube-system
-        image: mirantis/virtlet:v0.8.0
+        image: mirantis/virtlet:v1.0.0
         hosts:
         - cmp01
         - cmp02
diff --git a/tests/pillar/pool_cluster.sls b/tests/pillar/pool_cluster.sls
index 152cab3..4de3614 100644
--- a/tests/pillar/pool_cluster.sls
+++ b/tests/pillar/pool_cluster.sls
@@ -16,7 +16,7 @@
       virtlet:
         enabled: true
         namespace: kube-system
-        image: mirantis/virtlet:v0.8.0
+        image: mirantis/virtlet:v1.0.0
         hosts:
         - cmp01
         - cmp02
diff --git a/tests/pillar/pool_cluster_with_domain.sls b/tests/pillar/pool_cluster_with_domain.sls
index 194e060..271d762 100644
--- a/tests/pillar/pool_cluster_with_domain.sls
+++ b/tests/pillar/pool_cluster_with_domain.sls
@@ -16,7 +16,7 @@
       virtlet:
         enabled: true
         namespace: kube-system
-        image: mirantis/virtlet:v0.8.0
+        image: mirantis/virtlet:v1.0.0
         hosts:
         - cmp01
         - cmp02
diff --git a/tests/pillar/pool_contrail4_0.sls b/tests/pillar/pool_contrail4_0.sls
index 612187f..f396906 100644
--- a/tests/pillar/pool_contrail4_0.sls
+++ b/tests/pillar/pool_contrail4_0.sls
@@ -16,7 +16,7 @@
       virtlet:
         enabled: true
         namespace: kube-system
-        image: mirantis/virtlet:v0.8.0
+        image: mirantis/virtlet:v1.0.0
         hosts:
         - cmp01
         - cmp02