diff --git a/iso/builder/build-debug.sh b/iso/builder/build-debug.sh
index 0529ad9..ced2407 100644
--- a/iso/builder/build-debug.sh
+++ b/iso/builder/build-debug.sh
@@ -27,10 +27,8 @@ done
 . "${BUILDER_DIR}/VERSIONS"
 export PATH="$PATH:/usr/local/go/bin"
 
-# Use lz4 for mksquashfs — much faster than xz, size difference is negligible for RAM-loaded modloop.
-mkdir -p /etc/mkinitfs
-grep -q 'MKSQUASHFS_OPTS' /etc/mkinitfs/mkinitfs.conf 2>/dev/null || \
-    echo 'MKSQUASHFS_OPTS="-comp lz4 -Xhc"' >> /etc/mkinitfs/mkinitfs.conf
+# NOTE: lz4 compression for modloop is disabled — Alpine initramfs may not support lz4 squashfs.
+# Default xz compression is used until lz4 support is confirmed.
 
 echo "=== bee debug ISO build ==="
 echo "Alpine: ${ALPINE_VERSION}, Go: ${GO_VERSION}"
diff --git a/iso/builder/mkimg.bee_debug.sh b/iso/builder/mkimg.bee_debug.sh
index 0bf6174..1d906aa 100644
--- a/iso/builder/mkimg.bee_debug.sh
+++ b/iso/builder/mkimg.bee_debug.sh
@@ -11,7 +11,7 @@ profile_bee_debug() {
     output_format="iso"
     kernel_flavors="lts"
     kernel_addons=""
-    initfs_cmdline="modules=loop,squashfs,sd-mod,usb-storage quiet"
+    initfs_cmdline="modules=loop,squashfs,sd-mod,usb-storage modloop=/boot/modloop-lts quiet"
     initfs_features="ata base cdrom ext4 mmc nvme raid scsi squashfs usb virtio nfit"
     grub_mod="all_video disk part_gpt part_msdos linux normal configfile search search_label efi_gop fat iso9660 cat echo ls test true help gzio multiboot2 efi_uga"
     syslinux_serial="0 115200"
diff --git a/iso/builder/setup-builder.sh b/iso/builder/setup-builder.sh
index e593f70..0918bb3 100644
--- a/iso/builder/setup-builder.sh
+++ b/iso/builder/setup-builder.sh
@@ -123,10 +123,7 @@ if [ ! -f "${HOME}/.abuild/abuild.conf" ]; then
     fi
 fi
 
-# --- mkinitfs: use lz4 compression for faster modloop builds ---
-mkdir -p /etc/mkinitfs
-grep -q 'MKSQUASHFS_OPTS' /etc/mkinitfs/mkinitfs.conf 2>/dev/null || \
-    echo 'MKSQUASHFS_OPTS="-comp lz4 -Xhc"' >> /etc/mkinitfs/mkinitfs.conf
+# NOTE: lz4 compression for modloop is disabled — Alpine initramfs may not support lz4 squashfs.
 
 echo ""
 echo "=== builder setup complete ==="