diff --git a/common/cmd_fdt.c b/common/cmd_fdt.c
index 0593bad024..288a5c4382 100644
--- a/common/cmd_fdt.c
+++ b/common/cmd_fdt.c
@@ -450,7 +450,8 @@ int do_fdt (cmd_tbl_t * cmdtp, int flag, int argc, char *argv[])
 			initrd_end = simple_strtoul(argv[3], NULL, 16);
 		}
 
-		fdt_chosen(working_fdt, initrd_start, initrd_end, 1);
+		fdt_chosen(working_fdt, 1);
+		fdt_initrd(working_fdt, initrd_start, initrd_end, 1);
 	}
 	/* resize the fdt */
 	else if (strncmp(argv[1], "re", 2) == 0) {
diff --git a/common/fdt_support.c b/common/fdt_support.c
index a7773aba07..8ceeb0faa9 100644
--- a/common/fdt_support.c
+++ b/common/fdt_support.c
@@ -165,7 +165,7 @@ int fdt_initrd(void *fdt, ulong initrd_start, ulong initrd_end, int force)
 	return 0;
 }
 
-int fdt_chosen(void *fdt, ulong initrd_start, ulong initrd_end, int force)
+int fdt_chosen(void *fdt, int force)
 {
 	int   nodeoffset;
 	int   err;
@@ -215,8 +215,6 @@ int fdt_chosen(void *fdt, ulong initrd_start, ulong initrd_end, int force)
 		}
 	}
 
-	fdt_initrd(fdt, initrd_start, initrd_end, force);
-
 #ifdef CONFIG_OF_STDOUT_VIA_ALIAS
 	path = fdt_getprop(fdt, nodeoffset, "linux,stdout-path", NULL);
 	if ((path == NULL) || force)
diff --git a/include/fdt.h b/include/fdt.h
index 48ccfd9100..c51212e05b 100644
--- a/include/fdt.h
+++ b/include/fdt.h
@@ -57,4 +57,6 @@ struct fdt_property {
 #define FDT_V16_SIZE	FDT_V3_SIZE
 #define FDT_V17_SIZE	(FDT_V16_SIZE + sizeof(uint32_t))
 
+/* adding a ramdisk needs 0x44 bytes in version 2008.10 */
+#define FDT_RAMDISK_OVERHEAD	0x80
 #endif /* _FDT_H */
diff --git a/include/fdt_support.h b/include/fdt_support.h
index 424c3c6b7e..ceaadc2bef 100644
--- a/include/fdt_support.h
+++ b/include/fdt_support.h
@@ -28,7 +28,7 @@
 
 #include <fdt.h>
 
-int fdt_chosen(void *fdt, ulong initrd_start, ulong initrd_end, int force);
+int fdt_chosen(void *fdt, int force);
 int fdt_initrd(void *fdt, ulong initrd_start, ulong initrd_end, int force);
 void do_fixup_by_path(void *fdt, const char *path, const char *prop,
 		      const void *val, int len, int create);
diff --git a/lib_ppc/bootm.c b/lib_ppc/bootm.c
index 348421fd30..38266e1da2 100644
--- a/lib_ppc/bootm.c
+++ b/lib_ppc/bootm.c
@@ -145,8 +145,7 @@ int do_bootm_linux(int flag, int argc, char *argv[], bootm_headers_t *images)
 	 * if the user wants it (the logic is in the subroutines).
 	 */
 	if (of_size) {
-		/* pass in dummy initrd info, we'll fix up later */
-		if (fdt_chosen(of_flat_tree, images->rd_start, images->rd_end, 0) < 0) {
+		if (fdt_chosen(of_flat_tree, 0) < 0) {
 			puts ("ERROR: ");
 			puts ("/chosen node create failed");
 			puts (" - must RESET the board to recover.\n");
@@ -169,6 +168,8 @@ int do_bootm_linux(int flag, int argc, char *argv[], bootm_headers_t *images)
 			goto error;
 		of_size = ret;
 
+		if ((of_flat_tree) && (initrd_start && initrd_end))
+			of_size += FDT_RAMDISK_OVERHEAD;
 		/* Create a new LMB reservation */
 		lmb_reserve(lmb, (ulong)of_flat_tree, of_size);
 	}