Index: fstools-2016-01-10/libfstools/overlay.c
===================================================================
--- fstools-2016-01-10.orig/libfstools/overlay.c	2016-07-01 15:28:10.675297806 +0530
+++ fstools-2016-01-10/libfstools/overlay.c	2016-07-01 15:32:40.471299290 +0530
@@ -344,6 +344,7 @@
 int mount_overlay(struct volume *v)
 {
 	char *mp;
+	struct stat st;
 
 	if (!v)
 		return -1;
@@ -371,7 +372,12 @@
 		}
 	case FS_STATE_PENDING:
 		ULOG_INFO("overlay filesystem has not been fully initialized yet\n");
-		overlay_delete("/tmp/overlay", true);
+		//For configuration preservati, Sysupgrade in Coconut will extract
+		//the config tarball will be extracted before reboot. So, to support
+		//that, delete overlay only if the tarball is present.
+		if (stat("/tmp/overlay/sysupgrade.tgz", &st) != -1) {
+			overlay_delete("/tmp/overlay", true);
+		}
 		break;
 	case FS_STATE_READY:
 		break;