diff --git a/build/jam/HaikuImage b/build/jam/HaikuImage
index 84c47615b4..8fda57f08b 100644
--- a/build/jam/HaikuImage
+++ b/build/jam/HaikuImage
@@ -588,10 +588,7 @@ AddTargetVariableToScript $(script) : <build>makebootable ;
 AddTargetVariableToScript $(script) : <build>rc ;
 AddTargetVariableToScript $(script) : <build>resattr ;
 AddTargetVariableToScript $(script) : <build>unzip ;
-#AddTargetVariableToScript $(script) : $(HAIKU_IMAGE) : imagePath ;
-	# causes a cyclic dependency
-AddVariableToScript $(script) : imagePath
-	: [ FDirName $(HAIKU_IMAGE_DIR) $(HAIKU_IMAGE_NAME) ] ;
+AddTargetVariableToScript $(script) : <build>vmdkheader ;
 AddVariableToScript $(script) : sourceDirsToCopy
 	: $(HAIKU_INSTALL_SOURCE_DIRS) ;
 
@@ -607,12 +604,10 @@ CreateHaikuImageCopyFilesScript $(HAIKU_IMAGE_COPY_FILES_SCRIPT) ;
 CreateHaikuImageUnzipFilesScript $(HAIKU_IMAGE_UNZIP_FILES_SCRIPT) ;
 
 # Convenience wrapper rule around BuildHaikuImage.
-rule _BuildHaikuImage
+rule _BuildHaikuImage image : isImage : isVMwareImage
 {
-	# _BuildHaikuImage <image target> : <isImage> ;
+	# _BuildHaikuImage <image target> : <isImage> : <isVMwareImage> ;
 	#
-	local image = $(1) ;
-	local isImage = $(2) ;
 
 	# build the image
 	# HAIKU_IMAGE_EARLY_USER_SCRIPTS, HAIKU_IMAGE_LATE_USER_SCRIPTS can be
@@ -625,6 +620,7 @@ rule _BuildHaikuImage
 		$(HAIKU_IMAGE_UNZIP_FILES_SCRIPT)
 		$(HAIKU_IMAGE_LATE_USER_SCRIPTS)
 		: $(isImage)
+		: $(isVMwareImage)
 	;
 
 	# remove the scripts we have generated
@@ -641,18 +637,17 @@ _BuildHaikuImage $(HAIKU_IMAGE) : true ;
 NotFile haiku-image ;
 Depends haiku-image : $(HAIKU_IMAGE) ;
 
+
 # install Haiku into a directory
 NotFile install-haiku ;
 _BuildHaikuImage install-haiku : 0 ;
 
 
-#pragma mark - Build The VMWare Image
-
+# build the VMware image
 HAIKU_VMWARE_IMAGE_NAME ?= haiku.vmdk ;
 HAIKU_VMWARE_IMAGE ?= $(HAIKU_VMWARE_IMAGE_NAME) ;
 MakeLocate $(HAIKU_VMWARE_IMAGE) : $(HAIKU_IMAGE_DIR) ;
 
-BuildVMWareImage $(HAIKU_VMWARE_IMAGE) : $(HAIKU_IMAGE)
-	: $(HAIKU_IMAGE_SIZE) ;
+_BuildHaikuImage $(HAIKU_VMWARE_IMAGE) : true : true ;
 NotFile haiku-vmware-image ;
 Depends haiku-vmware-image : $(HAIKU_VMWARE_IMAGE) ;
diff --git a/build/jam/ImageRules b/build/jam/ImageRules
index cc231b7fbc..1c79ebb153 100644
--- a/build/jam/ImageRules
+++ b/build/jam/ImageRules
@@ -624,9 +624,9 @@ rule CreateHaikuImageUnzipFilesScript script
 	CreateContainerUnzipFilesScript $(HAIKU_IMAGE_CONTAINER_NAME) : $(script) ;
 }
 
-rule BuildHaikuImage haikuImage : scripts : isImage
+rule BuildHaikuImage haikuImage : scripts : isImage : isVMwareImage
 {
-	# BuildHaikuImage <haiku image> : <scripts> : <is image> ;
+	# BuildHaikuImage <haiku image> : <scripts> : <is image> : <isVMwareImage> ;
 
 	if $(isImage) = 1 || $(isImage) = true {
 		IS_IMAGE on $(haikuImage) = 1 ;
@@ -634,6 +634,12 @@ rule BuildHaikuImage haikuImage : scripts : isImage
 		IS_IMAGE on $(haikuImage) = "" ;
 	}
 
+	if $(isVMwareImage) = 1 || $(isVMwareImage) = true {
+		IS_VMWARE_IMAGE on $(haikuImage) = 1 ;
+	} else {
+		IS_VMWARE_IMAGE on $(haikuImage) = "" ;
+	}
+
 	local mainScript = build_haiku_image ;
 	SEARCH on $(mainScript) = [ FDirName $(HAIKU_TOP) build scripts ] ;
 
@@ -643,7 +649,9 @@ rule BuildHaikuImage haikuImage : scripts : isImage
 
 actions BuildHaikuImage1
 {
+	export imagePath="$(1)"
 	export isImage="$(IS_IMAGE)"
+	export isVMwareImage="$(IS_VMWARE_IMAGE)"
 	$(2[1]) $(2[2-])
 }
 
diff --git a/build/scripts/build_haiku_image b/build/scripts/build_haiku_image
index 6a03fd623a..bf286954da 100755
--- a/build/scripts/build_haiku_image
+++ b/build/scripts/build_haiku_image
@@ -12,6 +12,7 @@
 # sourceDirsToCopy
 # updateOnly
 # dontClearImage
+# isVMwareImage
 # 
 # bfsShell
 # copyattr
@@ -20,6 +21,7 @@
 # resattr
 # rc
 # unzip
+# vmdkheader
 #
 if [ $# -gt 0 ]; then
 	. $1
@@ -93,15 +95,30 @@ unzipFile()
 # create the image and mount it
 if [ $isImage ]; then
 	echo
+
+	imageOffsetFlags=
+	if [ $isVMwareImage ]; then
+		imageOffsetFlags="--start-offset 65536"
+	fi
+
 	if [ ! $updateOnly ]; then
 		echo "Creating image ..."
-		if [ ! -e $imagePath -o ! "$dontClearImage" ]; then
-			dd if=/dev/zero of=$imagePath bs=1048576 count=$imageSize
+
+		ddFlags=		
+		if [ $isVMwareImage ]; then
+			rm -f $imagePath
+			$vmdkheader -h 64k -i${imageSize}M $imagePath || exit 1
+			ddFlags="conv=notrunc oflag=append"
+			dontClearImage=
 		fi
-		$bfsShell --initialize $imagePath Haiku
-		$makebootable $imagePath
+
+		if [ ! -e $imagePath -o ! "$dontClearImage" ]; then
+			dd if=/dev/zero of=$imagePath bs=1048576 count=$imageSize $ddFlags
+		fi
+		$bfsShell --initialize $imageOffsetFlags $imagePath Haiku
+		$makebootable $imageOffsetFlags $imagePath
 	fi
-	$bfsShell -n $imagePath > /dev/null &
+	$bfsShell -n $imageOffsetFlags $imagePath > /dev/null &
 	sleep 1
 fi