diff --git a/build/static_binary_tarball/BUILD.bazel b/build/static_binary_tarball/BUILD.bazel
new file mode 100644
index 0000000..7308262
--- /dev/null
+++ b/build/static_binary_tarball/BUILD.bazel
@@ -0,0 +1,18 @@
+load("@io_bazel_rules_go//go:def.bzl", "go_binary", "go_library")
+
+go_library(
+    name = "go_default_library",
+    srcs = ["main.go"],
+    importpath = "source.monogon.dev/build/static_binary_tarball",
+    visibility = ["//visibility:private"],
+    deps = [
+        "//build/static_binary_tarball/spec:go_default_library",
+        "@org_golang_google_protobuf//encoding/prototext:go_default_library",
+    ],
+)
+
+go_binary(
+    name = "static_binary_tarball",
+    embed = [":go_default_library"],
+    visibility = ["//visibility:public"],
+)
diff --git a/build/static_binary_tarball/def.bzl b/build/static_binary_tarball/def.bzl
new file mode 100644
index 0000000..1b24b18
--- /dev/null
+++ b/build/static_binary_tarball/def.bzl
@@ -0,0 +1,77 @@
+#  Copyright 2020 The Monogon Project Authors.
+#
+#  SPDX-License-Identifier: Apache-2.0
+#
+#  Licensed under the Apache License, Version 2.0 (the "License");
+#  you may not use this file except in compliance with the License.
+#  You may obtain a copy of the License at
+#
+#      http://www.apache.org/licenses/LICENSE-2.0
+#
+#  Unless required by applicable law or agreed to in writing, software
+#  distributed under the License is distributed on an "AS IS" BASIS,
+#  WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+#  See the License for the specific language governing permissions and
+#  limitations under the License.
+
+load("//metropolis/node/build:def.bzl", "build_static_transition")
+
+def _static_binary_tarball_impl(ctx):
+    layer_spec = ctx.actions.declare_file(ctx.label.name + ".prototxt")
+    if len(ctx.attr.executable) != 1:
+        fail("executable arg can only contain one file/label")
+    executable_label = ctx.attr.executable[0]
+    executable = executable_label[DefaultInfo].files_to_run.executable
+    runfiles = executable_label[DefaultInfo].default_runfiles
+    files = []
+    for file in runfiles.files.to_list():
+        layer_path = file.short_path
+
+        # Weird shenanigans with external repos
+        if layer_path.startswith("../"):
+            layer_path = "external/" + layer_path[3:]
+        files.append(struct(
+            path = layer_path,
+            src = file.path,
+        ))
+    ctx.actions.write(layer_spec, proto.encode_text(struct(file = files)))
+
+    layer_out = ctx.actions.declare_file(ctx.label.name + ".tar")
+    ctx.actions.run(
+        outputs = [layer_out],
+        inputs = [layer_spec, executable] + runfiles.files.to_list(),
+        tools = [ctx.executable._container_binary],
+        executable = ctx.executable._container_binary,
+        arguments = ["-out", layer_out.path, "-spec", layer_spec.path],
+    )
+
+    return [DefaultInfo(files = depset([layer_out]), runfiles = ctx.runfiles(files = [layer_out]))]
+
+static_binary_tarball = rule(
+    implementation = _static_binary_tarball_impl,
+    doc = """
+        Build a tarball from a binary given in `executable` and its runfiles. Everything will be put under
+        /app with the same filesystem layout as if run under `bazel run`. So if your executable works under bazel run,
+        it will work when packaged with this rule with the exception of runfile manifests, which this rule currently
+        doesn't support.
+    """,
+    attrs = {
+        "executable": attr.label(
+            mandatory = True,
+            executable = True,
+            allow_single_file = True,
+            cfg = build_static_transition,
+        ),
+        "_container_binary": attr.label(
+            default = Label("//build/static_binary_tarball"),
+            cfg = "exec",
+            executable = True,
+            allow_files = True,
+        ),
+
+        # Allow for transitions to be attached to this rule.
+        "_whitelist_function_transition": attr.label(
+            default = "@bazel_tools//tools/whitelists/function_transition_whitelist",
+        ),
+    },
+)
diff --git a/build/static_binary_tarball/main.go b/build/static_binary_tarball/main.go
new file mode 100644
index 0000000..4d72f0e
--- /dev/null
+++ b/build/static_binary_tarball/main.go
@@ -0,0 +1,96 @@
+// Copyright 2020 The Monogon Project Authors.
+//
+// SPDX-License-Identifier: Apache-2.0
+//
+// Licensed under the Apache License, Version 2.0 (the "License");
+// you may not use this file except in compliance with the License.
+// You may obtain a copy of the License at
+//
+//     http://www.apache.org/licenses/LICENSE-2.0
+//
+// Unless required by applicable law or agreed to in writing, software
+// distributed under the License is distributed on an "AS IS" BASIS,
+// WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+// See the License for the specific language governing permissions and
+// limitations under the License.
+
+package main
+
+import (
+	"archive/tar"
+	"flag"
+	"io"
+	"io/ioutil"
+	"log"
+	"os"
+	"path"
+	"strings"
+
+	"google.golang.org/protobuf/encoding/prototext"
+	"source.monogon.dev/build/static_binary_tarball/spec"
+)
+
+var (
+	specPath = flag.String("spec", "", "Path to the layer specification (spec.Spec)")
+	outPath  = flag.String("out", "", "Output file path")
+)
+
+func main() {
+	flag.Parse()
+	var spec spec.Spec
+	specRaw, err := ioutil.ReadFile(*specPath)
+	if err != nil {
+		log.Fatalf("failed to open spec file: %v", err)
+	}
+	if err := prototext.Unmarshal(specRaw, &spec); err != nil {
+		log.Fatalf("failed to unmarshal spec: %v", err)
+	}
+	outFile, err := os.Create(*outPath)
+	if err != nil {
+		log.Fatalf("failed to open output: %v", err)
+	}
+	defer outFile.Close()
+	outTar := tar.NewWriter(outFile)
+	defer outTar.Close()
+	createdDirs := make(map[string]bool)
+	for _, file := range spec.File {
+		srcFile, err := os.Open(file.Src)
+		if err != nil {
+			log.Fatalf("failed to open input file: %v", err)
+		}
+		info, err := srcFile.Stat()
+		if err != nil {
+			log.Fatalf("cannot stat input file: %v", err)
+		}
+		var mode int64 = 0644
+		if info.Mode()&0111 != 0 {
+			mode = 0755
+		}
+		targetPath := path.Join("app", file.Path)
+		targetDirParts := strings.Split(path.Dir(targetPath), "/")
+		var partialDir string
+		for _, part := range targetDirParts {
+			partialDir = path.Join(partialDir, part)
+			if !createdDirs[partialDir] {
+				if err := outTar.WriteHeader(&tar.Header{
+					Typeflag: tar.TypeDir,
+					Name:     partialDir,
+					Mode:     0755,
+				}); err != nil {
+					log.Fatalf("failed to write directory: %v", err)
+				}
+				createdDirs[partialDir] = true
+			}
+		}
+		if err := outTar.WriteHeader(&tar.Header{
+			Name: targetPath,
+			Size: info.Size(),
+			Mode: mode,
+		}); err != nil {
+			log.Fatalf("failed to write header: %v", err)
+		}
+		if _, err := io.Copy(outTar, srcFile); err != nil {
+			log.Fatalf("failed to copy file into tar: %v", err)
+		}
+	}
+}
diff --git a/build/static_binary_tarball/spec/BUILD.bazel b/build/static_binary_tarball/spec/BUILD.bazel
new file mode 100644
index 0000000..e79a202
--- /dev/null
+++ b/build/static_binary_tarball/spec/BUILD.bazel
@@ -0,0 +1,23 @@
+load("@rules_proto//proto:defs.bzl", "proto_library")
+load("@io_bazel_rules_go//go:def.bzl", "go_library")
+load("@io_bazel_rules_go//proto:def.bzl", "go_proto_library")
+
+proto_library(
+    name = "spec_proto",
+    srcs = ["spec.proto"],
+    visibility = ["//visibility:public"],
+)
+
+go_proto_library(
+    name = "spec_go_proto",
+    importpath = "source.monogon.dev/build/static_binary_tarball/spec",
+    proto = ":spec_proto",
+    visibility = ["//visibility:public"],
+)
+
+go_library(
+    name = "go_default_library",
+    embed = [":spec_go_proto"],
+    importpath = "source.monogon.dev/build/static_binary_tarball/spec",
+    visibility = ["//visibility:public"],
+)
diff --git a/build/static_binary_tarball/spec/spec.proto b/build/static_binary_tarball/spec/spec.proto
new file mode 100644
index 0000000..b47d137
--- /dev/null
+++ b/build/static_binary_tarball/spec/spec.proto
@@ -0,0 +1,32 @@
+// Copyright 2020 The Monogon Project Authors.
+//
+// SPDX-License-Identifier: Apache-2.0
+//
+// Licensed under the Apache License, Version 2.0 (the "License");
+// you may not use this file except in compliance with the License.
+// You may obtain a copy of the License at
+//
+//     http://www.apache.org/licenses/LICENSE-2.0
+//
+// Unless required by applicable law or agreed to in writing, software
+// distributed under the License is distributed on an "AS IS" BASIS,
+// WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+// See the License for the specific language governing permissions and
+// limitations under the License.
+
+syntax = "proto3";
+
+package spec;
+
+// Spec is a spec of what goes into a static_binary_tarball
+message Spec {
+  repeated File file = 1;
+}
+
+// File is a single file in the tarball
+message File {
+  // src contains the path of the file on the build host
+  string src = 1;
+  // path contains the path in the tarball
+  string path = 2;
+}
\ No newline at end of file
diff --git a/metropolis/node/BUILD.bazel b/metropolis/node/BUILD.bazel
index f037cf6..b5ed532 100644
--- a/metropolis/node/BUILD.bazel
+++ b/metropolis/node/BUILD.bazel
@@ -64,6 +64,7 @@
         # Containerd preseed bundles
         "//metropolis/test/e2e/preseedtest:preseedtest.tar": "/containerd/preseed/k8s.io/preseedtest.tar",
         "//metropolis/test/e2e/k8s_cts:k8s_cts_image.tar": "/containerd/preseed/k8s.io/k8s_cts.tar",
+        "//metropolis/vm/smoketest:smoketest_container.tar": "/containerd/preseed/k8s.io/smoketest.tar",
 
         # CNI Plugins
         "@com_github_containernetworking_plugins//plugins/main/loopback": "/containerd/bin/cni/loopback",
diff --git a/metropolis/test/e2e/BUILD.bazel b/metropolis/test/e2e/BUILD.bazel
index 25a7dcd..117bbe9 100644
--- a/metropolis/test/e2e/BUILD.bazel
+++ b/metropolis/test/e2e/BUILD.bazel
@@ -36,6 +36,7 @@
         "//metropolis/proto/api:go_default_library",
         "//metropolis/test/launch:go_default_library",
         "@io_k8s_api//core/v1:go_default_library",
+        "@io_k8s_apimachinery//pkg/api/resource:go_default_library",
         "@io_k8s_apimachinery//pkg/apis/meta/v1:go_default_library",
         "@io_k8s_kubernetes//pkg/api/v1/pod:go_default_library",
         "@org_golang_google_grpc//:go_default_library",
diff --git a/metropolis/test/e2e/main_test.go b/metropolis/test/e2e/main_test.go
index 3e4ffb0..46e5c72 100644
--- a/metropolis/test/e2e/main_test.go
+++ b/metropolis/test/e2e/main_test.go
@@ -32,6 +32,7 @@
 
 	"google.golang.org/grpc"
 	corev1 "k8s.io/api/core/v1"
+	"k8s.io/apimachinery/pkg/api/resource"
 	metav1 "k8s.io/apimachinery/pkg/apis/meta/v1"
 	podv1 "k8s.io/kubernetes/pkg/api/v1/pod"
 
@@ -242,6 +243,46 @@
 					return fmt.Errorf("pod is not ready: %v", events.Items[len(events.Items)-1].Message)
 				}
 			})
+			if os.Getenv("HAVE_NESTED_KVM") != "" {
+				testEventual(t, "Pod for KVM/QEMU smoke test", ctx, smallTestTimeout, func(ctx context.Context) error {
+					runcRuntimeClass := "runc"
+					_, err := clientSet.CoreV1().Pods("default").Create(ctx, &corev1.Pod{
+						ObjectMeta: metav1.ObjectMeta{
+							Name: "vm-smoketest",
+						},
+						Spec: corev1.PodSpec{
+							Containers: []corev1.Container{{
+								Name:            "vm-smoketest",
+								ImagePullPolicy: corev1.PullNever,
+								Image:           "bazel/metropolis/vm/smoketest:smoketest_container",
+								Resources: corev1.ResourceRequirements{
+									Limits: corev1.ResourceList{
+										"devices.monogon.dev/kvm": *resource.NewQuantity(1, ""),
+									},
+								},
+							}},
+							RuntimeClassName: &runcRuntimeClass,
+							RestartPolicy:    corev1.RestartPolicyNever,
+						},
+					}, metav1.CreateOptions{})
+					return err
+				})
+				testEventual(t, "KVM/QEMU smoke test completion", ctx, smallTestTimeout, func(ctx context.Context) error {
+					pod, err := clientSet.CoreV1().Pods("default").Get(ctx, "vm-smoketest", metav1.GetOptions{})
+					if err != nil {
+						return fmt.Errorf("failed to get pod: %w", err)
+					}
+					if pod.Status.Phase == corev1.PodSucceeded {
+						return nil
+					}
+					events, err := clientSet.CoreV1().Events("default").List(ctx, metav1.ListOptions{FieldSelector: fmt.Sprintf("involvedObject.name=%s,involvedObject.namespace=default", pod.Name)})
+					if err != nil || len(events.Items) == 0 {
+						return fmt.Errorf("pod is not ready: %v", pod.Status.Phase)
+					} else {
+						return fmt.Errorf("pod is not ready: %v", events.Items[len(events.Items)-1].Message)
+					}
+				})
+			}
 		})
 	})
 
diff --git a/metropolis/vm/BUILD b/metropolis/vm/BUILD
new file mode 100644
index 0000000..e69de29
--- /dev/null
+++ b/metropolis/vm/BUILD
diff --git a/metropolis/vm/smoketest/BUILD.bazel b/metropolis/vm/smoketest/BUILD.bazel
new file mode 100644
index 0000000..7fe529d
--- /dev/null
+++ b/metropolis/vm/smoketest/BUILD.bazel
@@ -0,0 +1,43 @@
+load("@io_bazel_rules_go//go:def.bzl", "go_binary", "go_library")
+load("@io_bazel_rules_docker//container:container.bzl", "container_image")
+load("//metropolis/node/build:def.bzl", "node_initramfs")
+load("//build/static_binary_tarball:def.bzl", "static_binary_tarball")
+
+go_library(
+    name = "go_default_library",
+    srcs = ["main.go"],
+    importpath = "source.monogon.dev/metropolis/vm/smoketest",
+    visibility = ["//visibility:private"],
+)
+
+node_initramfs(
+    name = "initramfs",
+    files = {
+        "//metropolis/vm/smoketest/payload": "/init",
+    },
+)
+
+go_binary(
+    name = "smoketest",
+    data = [
+        ":initramfs",
+        "//metropolis/test/ktest:linux-testing",
+        "@qemu//:qemu-x86_64-softmmu",
+    ],
+    embed = [":go_default_library"],
+    visibility = ["//visibility:public"],
+)
+
+static_binary_tarball(
+    name = "smoketest_layer",
+    executable = ":smoketest",
+)
+
+container_image(
+    name = "smoketest_container",
+    base = "@go_image_base//image",
+    entrypoint = ["/app/metropolis/vm/smoketest/smoketest_/smoketest"],
+    tars = [":smoketest_layer"],
+    visibility = ["//visibility:public"],
+    workdir = "/app",
+)
diff --git a/metropolis/vm/smoketest/main.go b/metropolis/vm/smoketest/main.go
new file mode 100644
index 0000000..d9ff7e3
--- /dev/null
+++ b/metropolis/vm/smoketest/main.go
@@ -0,0 +1,77 @@
+// Copyright 2020 The Monogon Project Authors.
+//
+// SPDX-License-Identifier: Apache-2.0
+//
+// Licensed under the Apache License, Version 2.0 (the "License");
+// you may not use this file except in compliance with the License.
+// You may obtain a copy of the License at
+//
+//     http://www.apache.org/licenses/LICENSE-2.0
+//
+// Unless required by applicable law or agreed to in writing, software
+// distributed under the License is distributed on an "AS IS" BASIS,
+// WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+// See the License for the specific language governing permissions and
+// limitations under the License.
+
+// This is a small smoke test which will run in a container on top of Metropolis Kubernetes. It exercises Metropolis'
+// KVM device plugin,
+package main
+
+import (
+	"bytes"
+	"io/ioutil"
+	"log"
+	"net"
+	"os"
+	"os/exec"
+)
+
+func main() {
+	testSocket, err := net.Listen("unix", "@metropolis/vm/smoketest")
+	if err != nil {
+		panic(err)
+	}
+
+	testResultChan := make(chan bool)
+	go func() {
+		conn, err := testSocket.Accept()
+		if err != nil {
+			panic(err)
+		}
+		testValue, _ := ioutil.ReadAll(conn)
+		if bytes.Equal(testValue, []byte("test123")) {
+			testResultChan <- true
+		} else {
+			testResultChan <- false
+		}
+	}()
+
+	baseArgs := []string{"-nodefaults", "-no-user-config", "-nographic", "-no-reboot",
+		"-accel", "kvm", "-cpu", "host",
+		// TODO(lorenz): This explicitly doesn't use our own qboot because it cannot be built in a musl configuration.
+		// This will be fixed once we have a proper multi-target toolchain.
+		"-bios", "external/qemu/pc-bios/qboot.rom",
+		"-M", "microvm,x-option-roms=off,pic=off,pit=off,rtc=off,isa-serial=off",
+		"-kernel", "metropolis/test/ktest/linux-testing.elf",
+		"-append", "reboot=t console=hvc0 quiet",
+		"-initrd", "metropolis/vm/smoketest/initramfs.lz4",
+		"-device", "virtio-rng-device,max-bytes=1024,period=1000",
+		"-device", "virtio-serial-device,max_ports=16",
+		"-chardev", "stdio,id=con0", "-device", "virtconsole,chardev=con0",
+		"-chardev", "socket,id=test,path=metropolis/vm/smoketest,abstract=on",
+		"-device", "virtserialport,chardev=test",
+	}
+	qemuCmd := exec.Command("external/qemu/qemu-x86_64-softmmu", baseArgs...)
+	qemuCmd.Stdout = os.Stdout
+	qemuCmd.Stderr = os.Stderr
+	if err := qemuCmd.Run(); err != nil {
+		log.Fatalf("running QEMU failed: %v", err)
+	}
+	testResult := <-testResultChan
+	if testResult {
+		return
+	} else {
+		os.Exit(1)
+	}
+}
diff --git a/metropolis/vm/smoketest/payload/BUILD.bazel b/metropolis/vm/smoketest/payload/BUILD.bazel
new file mode 100644
index 0000000..52b27e1
--- /dev/null
+++ b/metropolis/vm/smoketest/payload/BUILD.bazel
@@ -0,0 +1,15 @@
+load("@io_bazel_rules_go//go:def.bzl", "go_binary", "go_library")
+
+go_library(
+    name = "go_default_library",
+    srcs = ["main.go"],
+    importpath = "source.monogon.dev/metropolis/vm/smoketest/payload",
+    visibility = ["//visibility:private"],
+    deps = ["@org_golang_x_sys//unix:go_default_library"],
+)
+
+go_binary(
+    name = "payload",
+    embed = [":go_default_library"],
+    visibility = ["//visibility:public"],
+)
diff --git a/metropolis/vm/smoketest/payload/main.go b/metropolis/vm/smoketest/payload/main.go
new file mode 100644
index 0000000..2ea6485
--- /dev/null
+++ b/metropolis/vm/smoketest/payload/main.go
@@ -0,0 +1,36 @@
+// Copyright 2020 The Monogon Project Authors.
+//
+// SPDX-License-Identifier: Apache-2.0
+//
+// Licensed under the Apache License, Version 2.0 (the "License");
+// you may not use this file except in compliance with the License.
+// You may obtain a copy of the License at
+//
+//     http://www.apache.org/licenses/LICENSE-2.0
+//
+// Unless required by applicable law or agreed to in writing, software
+// distributed under the License is distributed on an "AS IS" BASIS,
+// WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+// See the License for the specific language governing permissions and
+// limitations under the License.
+
+package main
+
+import (
+	"os"
+
+	"golang.org/x/sys/unix"
+)
+
+func main() {
+	if err := unix.Mount("devtmpfs", "/dev", "devtmpfs", 0, ""); err != nil {
+		panic(err)
+	}
+	testPort, err := os.OpenFile("/dev/vport1p1", os.O_RDWR, 0)
+	if err != nil {
+		panic(err)
+	}
+	testPort.WriteString("test123")
+	testPort.Close()
+	unix.Reboot(unix.LINUX_REBOOT_CMD_POWER_OFF)
+}