diff --git a/virtme/commands/run.py b/virtme/commands/run.py
index 04a778b..0d0b0cd 100644
--- a/virtme/commands/run.py
+++ b/virtme/commands/run.py
@@ -1156,6 +1156,12 @@ def do_script(shellcmd: str, show_boot_console=False) -> None:
     if args.user:
         kernelargs.append("virtme_user=%s" % args.user)
 
+    # If we are running as root on the host pass this information to the guest
+    # (this can be useful to properly support running virtme-ng instances
+    # inside docker)
+    if os.geteuid() == 0:
+        kernelargs.append("virtme_root_user=1")
+
     initrdpath: Optional[str]
 
     if need_initramfs:
diff --git a/virtme/guest/virtme-init b/virtme/guest/virtme-init
index d8cd707..ee92a72 100755
--- a/virtme/guest/virtme-init
+++ b/virtme/guest/virtme-init
@@ -36,6 +36,13 @@ done
 # Setup kernel modules
 kver="`uname -r`"
 
+# Make sure to always have /lib/modules, otherwise we won't be able to
+# configure kmod support properly (this can happen in some container
+# environments, such as docker).
+if [[ ! -d /lib/modules ]]; then
+    mkdir -p /lib/modules
+fi
+
 if [[ -n "$virtme_root_mods" ]]; then
     # /lib/modules is already set up
     true
@@ -330,10 +337,12 @@ echo "                                                |___/ "
 echo "   kernel version: $(uname -mr)"
 echo ""
 
-# Set up a basic environment
-install -d -m 0755 /tmp/roothome
-export HOME=/tmp/roothome
-mount --bind /tmp/roothome /root
+# Set up a basic environment (unless virtme-ng is running as root on the host)
+if [[ ! -n "${virtme_root_user}" ]]; then
+    install -d -m 0755 /tmp/roothome
+    export HOME=/tmp/roothome
+    mount --bind /tmp/roothome /root
+fi
 
 # $XDG_RUNTIME_DIR defines the base directory relative to which user-specific
 # non-essential runtime files and other file objects (such as sockets, named
diff --git a/virtme_ng/run.py b/virtme_ng/run.py
index 33f00aa..409e1a0 100644
--- a/virtme_ng/run.py
+++ b/virtme_ng/run.py
@@ -766,7 +766,7 @@ def _get_virtme_overlay_rwdir(self, args):
         else:
             self.virtme_param["overlay_rwdir"] = " ".join(
                 f"--overlay-rwdir {d}"
-                for d in ("/etc", "/home", "/opt", "/srv", "/usr", "/var")
+                for d in ("/etc", "/lib", "/home", "/opt", "/srv", "/usr", "/var")
             )
         # Add user-specified overlays.
         for item in args.overlay_rwdir: