diff --git a/build/jam/ImageRules b/build/jam/ImageRules
index 7ca97bfc9c..f057e05a7d 100644
--- a/build/jam/ImageRules
+++ b/build/jam/ImageRules
@@ -840,6 +840,9 @@ rule AddPackagesAndRepositoryVariablesToContainerScript script : container
 	AddVariableToScript $(script) : resolvePackageDependencies
 		: $(resolvePackageDependencies) ;
 
+	AddVariableToScript $(script) : updateAllPackages
+		: $(HAIKU_UPDATE_ALL_PACKAGES) ;
+
 	# Add variable "systemPackages"  with the packages copied/updated.
 	local allPackages = [ on $(container) return $(HAIKU_PACKAGES_IN_IMAGE) ] ;
 	if $(updateOnly) && ! [ IncludeAllTargetsInContainer $(container) ] {
diff --git a/build/scripts/build_haiku_image b/build/scripts/build_haiku_image
index 0cf41a6f7e..67125190f1 100755
--- a/build/scripts/build_haiku_image
+++ b/build/scripts/build_haiku_image
@@ -16,6 +16,7 @@ set -o errexit
 # imageSize
 # imageLabel
 # resolvePackageDependencies
+# updateAllPackages
 # updateOnly
 # dontClearImage
 # isVMwareImage
@@ -269,6 +270,15 @@ if [ $isImage ]; then
 	$cd .
 fi
 
+
+# Clean out the old packages directory, if updating all packages.
+if [ -n "$updateAllPackages" ]; then
+	echo "Removing old packages ..."
+	$rm -rf "${tPrefix}system/packages"
+	$mkdir -p "${tPrefix}system/packages"
+fi
+
+
 echo "Populating image ..."
 while [ $# -gt 0 ]; do
 	. $1