diff --git a/aks-node-controller/parser/templates/containerd.toml.gtpl b/aks-node-controller/parser/templates/containerd.toml.gtpl
index 6b9d7442fdb..ecd492bee80 100644
--- a/aks-node-controller/parser/templates/containerd.toml.gtpl
+++ b/aks-node-controller/parser/templates/containerd.toml.gtpl
@@ -1,12 +1,27 @@
 version = 2
 oom_score = -999{{if getHasDataDir .KubeletConfig}}
 root = "{{.KubeletConfig.GetContainerDataDir}}"{{- end}}
+{{- if .GetIsKata }}
+[plugins."io.containerd.snapshotter.v1.erofs"]
+  default_size = "10G"
+  enable_fsverity = false
+  ovl_mount_options = []
+  max_unmerged_layers = 1
+
+[plugins."io.containerd.service.v1.diff-service"]
+  default = ["erofs", "walking"]
+
+[plugins."io.containerd.differ.v1.erofs"]
+  mkfs_options = ["-T0", "--mkfs-time", "--sort=none"]
+  enable_tar_index = false
+{{- end}}
 [plugins."io.containerd.grpc.v1.cri"]
   sandbox_image = "{{ .KubeBinaryConfig.GetPodInfraContainerImageUrl }}"
   enable_cdi = true
   [plugins."io.containerd.grpc.v1.cri".containerd]
     {{- if .GetIsKata }}
     disable_snapshot_annotations = false
+    snapshotter = "overlayfs"
     {{- end}}
     {{- if .GetEnableArtifactStreaming }}
     snapshotter = "overlaybd"
@@ -62,6 +77,7 @@ root = "{{.KubeletConfig.GetContainerDataDir}}"{{- end}}
 {{- if .GetIsKata }}
 [plugins."io.containerd.grpc.v1.cri".containerd.runtimes.kata]
   runtime_type = "io.containerd.kata.v2"
+  snapshotter = "overlayfs"
 [plugins."io.containerd.grpc.v1.cri".containerd.runtimes.katacli]
   runtime_type = "io.containerd.runc.v1"
 [plugins."io.containerd.grpc.v1.cri".containerd.runtimes.katacli.options]
@@ -74,6 +90,12 @@ root = "{{.KubeletConfig.GetContainerDataDir}}"{{- end}}
   Root = ""
   CriuPath = ""
   SystemdCgroup = false
+[plugins."io.containerd.grpc.v1.cri".containerd.runtimes.kata-preview]
+  runtime_type = "io.containerd.kata.v2"
+  privileged_without_host_devices = true
+  snapshotter = "erofs"
+  [plugins."io.containerd.grpc.v1.cri".containerd.runtimes.kata-preview.options]
+    ConfigPath = "/usr/share/defaults/kata-containers/configuration-clh-templating.toml"
 [proxy_plugins]
   [proxy_plugins.tardev]
     type = "snapshot"
diff --git a/aks-node-controller/parser/templates/containerd_no_GPU.toml.gtpl b/aks-node-controller/parser/templates/containerd_no_GPU.toml.gtpl
index 2eb27cab54c..90c52b01120 100644
--- a/aks-node-controller/parser/templates/containerd_no_GPU.toml.gtpl
+++ b/aks-node-controller/parser/templates/containerd_no_GPU.toml.gtpl
@@ -1,11 +1,26 @@
 version = 2
 oom_score = -999{{if getHasDataDir .KubeletConfig}}
 root = "{{.KubeletConfig.GetContainerDataDir}}"{{- end}}
+{{- if .GetIsKata }}
+[plugins."io.containerd.snapshotter.v1.erofs"]
+  default_size = "10G"
+  enable_fsverity = false
+  ovl_mount_options = []
+  max_unmerged_layers = 1
+
+[plugins."io.containerd.service.v1.diff-service"]
+  default = ["erofs", "walking"]
+
+[plugins."io.containerd.differ.v1.erofs"]
+  mkfs_options = ["-T0", "--mkfs-time", "--sort=none"]
+  enable_tar_index = false
+{{- end}}
 [plugins."io.containerd.grpc.v1.cri"]
   sandbox_image = "{{ .KubeBinaryConfig.GetPodInfraContainerImageUrl }}"
   [plugins."io.containerd.grpc.v1.cri".containerd]
     {{- if .GetIsKata }}
     disable_snapshot_annotations = false
+    snapshotter = "overlayfs"
     {{- end}}
     {{- if .GetEnableArtifactStreaming }}
     snapshotter = "overlaybd"
@@ -46,6 +61,7 @@ root = "{{.KubeletConfig.GetContainerDataDir}}"{{- end}}
 {{- if .GetIsKata }}
 [plugins."io.containerd.grpc.v1.cri".containerd.runtimes.kata]
   runtime_type = "io.containerd.kata.v2"
+  snapshotter = "overlayfs"
 [plugins."io.containerd.grpc.v1.cri".containerd.runtimes.katacli]
   runtime_type = "io.containerd.runc.v1"
 [plugins."io.containerd.grpc.v1.cri".containerd.runtimes.katacli.options]
@@ -58,6 +74,12 @@ root = "{{.KubeletConfig.GetContainerDataDir}}"{{- end}}
   Root = ""
   CriuPath = ""
   SystemdCgroup = false
+[plugins."io.containerd.grpc.v1.cri".containerd.runtimes.kata-preview]
+  runtime_type = "io.containerd.kata.v2"
+  privileged_without_host_devices = true
+  snapshotter = "erofs"
+  [plugins."io.containerd.grpc.v1.cri".containerd.runtimes.kata-preview.options]
+    ConfigPath = "/usr/share/defaults/kata-containers/configuration-clh-templating.toml"
 [proxy_plugins]
   [proxy_plugins.tardev]
     type = "snapshot"
diff --git a/aks-node-controller/parser/templates/containerd_v2.toml.gtpl b/aks-node-controller/parser/templates/containerd_v2.toml.gtpl
index fd11c508145..42442b8c57f 100644
--- a/aks-node-controller/parser/templates/containerd_v2.toml.gtpl
+++ b/aks-node-controller/parser/templates/containerd_v2.toml.gtpl
@@ -1,6 +1,20 @@
 version = 2
 oom_score = -999{{if getHasDataDir .KubeletConfig}}
 root = "{{.KubeletConfig.GetContainerDataDir}}"{{- end}}
+{{- if .GetIsKata }}
+[plugins."io.containerd.snapshotter.v1.erofs"]
+  default_size = "10G"
+  enable_fsverity = false
+  ovl_mount_options = []
+  max_unmerged_layers = 1
+
+[plugins."io.containerd.service.v1.diff-service"]
+  default = ["erofs", "walking"]
+
+[plugins."io.containerd.differ.v1.erofs"]
+  mkfs_options = ["-T0", "--mkfs-time", "--sort=none"]
+  enable_tar_index = false
+{{- end}}
 [plugins."io.containerd.cri.v1.images"]
 {{- if .GetEnableArtifactStreaming }}
   snapshotter = "overlaybd"
@@ -56,8 +70,15 @@ root = "{{.KubeletConfig.GetContainerDataDir}}"{{- end}}
 [plugins."io.containerd.grpc.v1.cri".containerd.runtimes.kata]
   runtime_type = "io.containerd.kata.v2"
   privileged_without_host_devices = true
+  snapshotter = "overlayfs"
   [plugins."io.containerd.grpc.v1.cri".containerd.runtimes.kata.options]
     ConfigPath = "/usr/share/defaults/kata-containers/configuration.toml"
+[plugins."io.containerd.grpc.v1.cri".containerd.runtimes.kata-preview]
+  runtime_type = "io.containerd.kata.v2"
+  privileged_without_host_devices = true
+  snapshotter = "erofs"
+  [plugins."io.containerd.grpc.v1.cri".containerd.runtimes.kata-preview.options]
+    ConfigPath = "/usr/share/defaults/kata-containers/configuration-clh-templating.toml"
 [proxy_plugins]
   [proxy_plugins.tardev]
     type = "snapshot"
diff --git a/aks-node-controller/parser/templates/containerd_v2_no_GPU.toml.gtpl b/aks-node-controller/parser/templates/containerd_v2_no_GPU.toml.gtpl
index 45a2129f743..c28dd4f560c 100644
--- a/aks-node-controller/parser/templates/containerd_v2_no_GPU.toml.gtpl
+++ b/aks-node-controller/parser/templates/containerd_v2_no_GPU.toml.gtpl
@@ -1,6 +1,20 @@
 version = 2
 oom_score = -999{{if getHasDataDir .KubeletConfig}}
 root = "{{.KubeletConfig.GetContainerDataDir}}"{{- end}}
+{{- if .GetIsKata }}
+[plugins."io.containerd.snapshotter.v1.erofs"]
+  default_size = "10G"
+  enable_fsverity = false
+  ovl_mount_options = []
+  max_unmerged_layers = 1
+
+[plugins."io.containerd.service.v1.diff-service"]
+  default = ["erofs", "walking"]
+
+[plugins."io.containerd.differ.v1.erofs"]
+  mkfs_options = ["-T0", "--mkfs-time", "--sort=none"]
+  enable_tar_index = false
+{{- end}}
 [plugins."io.containerd.cri.v1.images"]
 {{- if .GetEnableArtifactStreaming }}
   snapshotter = "overlaybd"
@@ -43,8 +57,15 @@ root = "{{.KubeletConfig.GetContainerDataDir}}"{{- end}}
 [plugins."io.containerd.grpc.v1.cri".containerd.runtimes.kata]
   runtime_type = "io.containerd.kata.v2"
   privileged_without_host_devices = true
+  snapshotter = "overlayfs"
   [plugins."io.containerd.grpc.v1.cri".containerd.runtimes.kata.options]
     ConfigPath = "/usr/share/defaults/kata-containers/configuration.toml"
+[plugins."io.containerd.grpc.v1.cri".containerd.runtimes.kata-preview]
+  runtime_type = "io.containerd.kata.v2"
+  privileged_without_host_devices = true
+  snapshotter = "erofs"
+  [plugins."io.containerd.grpc.v1.cri".containerd.runtimes.kata-preview.options]
+    ConfigPath = "/usr/share/defaults/kata-containers/configuration-clh-templating.toml"
 [proxy_plugins]
   [proxy_plugins.tardev]
     type = "snapshot"
diff --git a/pkg/agent/baker.go b/pkg/agent/baker.go
index 9451b6d13b5..c8e9ac90745 100644
--- a/pkg/agent/baker.go
+++ b/pkg/agent/baker.go
@@ -1821,12 +1821,27 @@ const (
 	containerdV1ConfigTemplate ContainerdConfigTemplate = `version = 2
 oom_score = -999{{if HasDataDir }}
 root = "{{GetDataDir}}"{{- end}}
+{{- if IsKata }}
+[plugins."io.containerd.snapshotter.v1.erofs"]
+  default_size = "10G"
+  enable_fsverity = false
+  ovl_mount_options = []
+  max_unmerged_layers = 1
+
+[plugins."io.containerd.service.v1.diff-service"]
+  default = ["erofs", "walking"]
+
+[plugins."io.containerd.differ.v1.erofs"]
+  mkfs_options = ["-T0", "--mkfs-time", "--sort=none"]
+  enable_tar_index = false
+{{- end}}
 [plugins."io.containerd.grpc.v1.cri"]
   sandbox_image = "{{GetPodInfraContainerSpec}}"
   enable_cdi = true
   [plugins."io.containerd.grpc.v1.cri".containerd]
     {{- if IsKata }}
     disable_snapshot_annotations = false
+    snapshotter = "overlayfs"
     {{- end}}
     {{- if IsArtifactStreamingEnabled }}
     snapshotter = "overlaybd"
@@ -1883,8 +1898,15 @@ root = "{{GetDataDir}}"{{- end}}
 [plugins."io.containerd.grpc.v1.cri".containerd.runtimes.kata]
   runtime_type = "io.containerd.kata.v2"
   privileged_without_host_devices = true
+  snapshotter = "overlayfs"
   [plugins."io.containerd.grpc.v1.cri".containerd.runtimes.kata.options]
     ConfigPath = "/usr/share/defaults/kata-containers/configuration.toml"
+[plugins."io.containerd.grpc.v1.cri".containerd.runtimes.kata-preview]
+  runtime_type = "io.containerd.kata.v2"
+  privileged_without_host_devices = true
+  snapshotter = "erofs"
+  [plugins."io.containerd.grpc.v1.cri".containerd.runtimes.kata-preview.options]
+    ConfigPath = "/usr/share/defaults/kata-containers/configuration-clh-templating.toml"
 [proxy_plugins]
   [proxy_plugins.tardev]
     type = "snapshot"
@@ -1901,6 +1923,20 @@ root = "{{GetDataDir}}"{{- end}}
 	containerdV2ConfigTemplate ContainerdConfigTemplate = `version = 2
 oom_score = -999{{if HasDataDir }}
 root = "{{GetDataDir}}"{{- end}}
+{{- if IsKata }}
+[plugins."io.containerd.snapshotter.v1.erofs"]
+  default_size = "10G"
+  enable_fsverity = false
+  ovl_mount_options = []
+  max_unmerged_layers = 1
+
+[plugins."io.containerd.service.v1.diff-service"]
+  default = ["erofs", "walking"]
+
+[plugins."io.containerd.differ.v1.erofs"]
+  mkfs_options = ["-T0", "--mkfs-time", "--sort=none"]
+  enable_tar_index = false
+{{- end}}
 [plugins."io.containerd.cri.v1.images"]
 {{- if IsArtifactStreamingEnabled }}
   snapshotter = "overlaybd"
@@ -1956,8 +1992,15 @@ root = "{{GetDataDir}}"{{- end}}
 [plugins."io.containerd.grpc.v1.cri".containerd.runtimes.kata]
   runtime_type = "io.containerd.kata.v2"
   privileged_without_host_devices = true
+  snapshotter = "overlayfs"
   [plugins."io.containerd.grpc.v1.cri".containerd.runtimes.kata.options]
     ConfigPath = "/usr/share/defaults/kata-containers/configuration.toml"
+[plugins."io.containerd.grpc.v1.cri".containerd.runtimes.kata-preview]
+  runtime_type = "io.containerd.kata.v2"
+  privileged_without_host_devices = true
+  snapshotter = "erofs"
+  [plugins."io.containerd.grpc.v1.cri".containerd.runtimes.kata-preview.options]
+    ConfigPath = "/usr/share/defaults/kata-containers/configuration-clh-templating.toml"
 [proxy_plugins]
   [proxy_plugins.tardev]
     type = "snapshot"
@@ -1974,6 +2017,20 @@ root = "{{GetDataDir}}"{{- end}}
 	containerdV2NoGPUConfigTemplate ContainerdConfigTemplate = `version = 2
 oom_score = -999{{if HasDataDir }}
 root = "{{GetDataDir}}"{{- end}}
+{{- if IsKata }}
+[plugins."io.containerd.snapshotter.v1.erofs"]
+  default_size = "10G"
+  enable_fsverity = false
+  ovl_mount_options = []
+  max_unmerged_layers = 1
+
+[plugins."io.containerd.service.v1.diff-service"]
+  default = ["erofs", "walking"]
+
+[plugins."io.containerd.differ.v1.erofs"]
+  mkfs_options = ["-T0", "--mkfs-time", "--sort=none"]
+  enable_tar_index = false
+{{- end}}
 [plugins."io.containerd.cri.v1.images"]
 {{- if IsArtifactStreamingEnabled }}
   snapshotter = "overlaybd"
@@ -2016,8 +2073,15 @@ root = "{{GetDataDir}}"{{- end}}
 [plugins."io.containerd.grpc.v1.cri".containerd.runtimes.kata]
   runtime_type = "io.containerd.kata.v2"
   privileged_without_host_devices = true
+  snapshotter = "overlayfs"
   [plugins."io.containerd.grpc.v1.cri".containerd.runtimes.kata.options]
     ConfigPath = "/usr/share/defaults/kata-containers/configuration.toml"
+[plugins."io.containerd.grpc.v1.cri".containerd.runtimes.kata-preview]
+  runtime_type = "io.containerd.kata.v2"
+  privileged_without_host_devices = true
+  snapshotter = "erofs"
+  [plugins."io.containerd.grpc.v1.cri".containerd.runtimes.kata-preview.options]
+    ConfigPath = "/usr/share/defaults/kata-containers/configuration-clh-templating.toml"
 [proxy_plugins]
   [proxy_plugins.tardev]
     type = "snapshot"
@@ -2027,11 +2091,26 @@ root = "{{GetDataDir}}"{{- end}}
 	containerdV1NoGPUConfigTemplate ContainerdConfigTemplate = `version = 2
 oom_score = -999{{if HasDataDir }}
 root = "{{GetDataDir}}"{{- end}}
+{{- if IsKata }}
+[plugins."io.containerd.snapshotter.v1.erofs"]
+  default_size = "10G"
+  enable_fsverity = false
+  ovl_mount_options = []
+  max_unmerged_layers = 1
+
+[plugins."io.containerd.service.v1.diff-service"]
+  default = ["erofs", "walking"]
+
+[plugins."io.containerd.differ.v1.erofs"]
+  mkfs_options = ["-T0", "--mkfs-time", "--sort=none"]
+  enable_tar_index = false
+{{- end}}
 [plugins."io.containerd.grpc.v1.cri"]
   sandbox_image = "{{GetPodInfraContainerSpec}}"
   [plugins."io.containerd.grpc.v1.cri".containerd]
     {{- if IsKata }}
     disable_snapshot_annotations = false
+    snapshotter = "overlayfs"
     {{- end}}
     {{- if IsArtifactStreamingEnabled }}
     snapshotter = "overlaybd"
@@ -2073,8 +2152,15 @@ root = "{{GetDataDir}}"{{- end}}
 [plugins."io.containerd.grpc.v1.cri".containerd.runtimes.kata]
   runtime_type = "io.containerd.kata.v2"
   privileged_without_host_devices = true
+  snapshotter = "overlayfs"
   [plugins."io.containerd.grpc.v1.cri".containerd.runtimes.kata.options]
     ConfigPath = "/usr/share/defaults/kata-containers/configuration.toml"
+[plugins."io.containerd.grpc.v1.cri".containerd.runtimes.kata-preview]
+  runtime_type = "io.containerd.kata.v2"
+  privileged_without_host_devices = true
+  snapshotter = "erofs"
+  [plugins."io.containerd.grpc.v1.cri".containerd.runtimes.kata-preview.options]
+    ConfigPath = "/usr/share/defaults/kata-containers/configuration-clh-templating.toml"
 [proxy_plugins]
   [proxy_plugins.tardev]
     type = "snapshot"