diff --git a/patches/systemvm/debian/config/etc/init.d/cloud-early-config b/patches/systemvm/debian/config/etc/init.d/cloud-early-config
index 6ffd648faeb..bdba38dee44 100755
--- a/patches/systemvm/debian/config/etc/init.d/cloud-early-config
+++ b/patches/systemvm/debian/config/etc/init.d/cloud-early-config
@@ -898,6 +898,29 @@ setup_elbvm() {
   chkconfig portmap off
 }
 
+setup_ilbvm() {
+  log_it "Setting up Internal Load Balancer system vm"
+  local hyp=$1
+  setup_common eth0 eth1
+  #eth0 = guest network, eth1=control network
+
+  cp /etc/iptables/iptables-ilbvm /etc/iptables/rules
+  if [ "$SSHONGUEST" == "true" ]
+  then
+    setup_sshd $ETH0_IP "eth0"
+  else
+    setup_sshd $ETH1_IP "eth1"
+  fi
+  
+  enable_fwding 0
+  enable_svc haproxy 1
+  enable_svc dnsmasq 0
+  enable_svc cloud-passwd-srvr 0
+  enable_svc cloud 0
+  chkconfig nfs-common off
+  chkconfig portmap off
+}
+
 setup_default() {
   cat > /etc/network/interfaces << EOF
 auto lo
@@ -948,6 +971,10 @@ start() {
          [ "$NAME" == "" ] && NAME=elb
          setup_elbvm
 	  ;;
+     ilbvm)
+         [ "$NAME" == "" ] && NAME=ilb
+         setup_ilbvm
+	  ;;
      unknown)
          [ "$NAME" == "" ] && NAME=systemvm
          setup_default;
diff --git a/patches/systemvm/debian/config/etc/iptables/iptables-ilbvm b/patches/systemvm/debian/config/etc/iptables/iptables-ilbvm
new file mode 100755
index 00000000000..8d5ca651c75
--- /dev/null
+++ b/patches/systemvm/debian/config/etc/iptables/iptables-ilbvm
@@ -0,0 +1,33 @@
+# Licensed to the Apache Software Foundation (ASF) under one
+# or more contributor license agreements.  See the NOTICE file
+# distributed with this work for additional information
+# regarding copyright ownership.  The ASF licenses this file
+# to you 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.
+
+*nat
+:PREROUTING ACCEPT [0:0]
+:POSTROUTING ACCEPT [0:0]
+:OUTPUT ACCEPT [0:0]
+COMMIT
+*filter
+:INPUT DROP [0:0]
+:FORWARD DROP [0:0]
+:OUTPUT ACCEPT [0:0]
+-A INPUT -i eth0 -m state --state RELATED,ESTABLISHED -j ACCEPT
+-A INPUT -i eth1 -m state --state RELATED,ESTABLISHED -j ACCEPT
+-A INPUT -p icmp -j ACCEPT
+-A INPUT -i lo -j ACCEPT
+-A INPUT -i eth1 -p tcp -m state --state NEW --dport 3922 -j ACCEPT
+COMMIT
+
diff --git a/patches/systemvm/debian/config/opt/cloud/bin/patchsystemvm.sh b/patches/systemvm/debian/config/opt/cloud/bin/patchsystemvm.sh
index 8816ad7c068..9cb02502ef1 100755
--- a/patches/systemvm/debian/config/opt/cloud/bin/patchsystemvm.sh
+++ b/patches/systemvm/debian/config/opt/cloud/bin/patchsystemvm.sh
@@ -135,6 +135,19 @@ elbvm_svcs() {
    echo "cloud dnsmasq cloud-passwd-srvr apache2 nfs-common portmap" > /var/cache/cloud/disabled_svcs
 }
 
+
+ilbvm_svcs() {
+   chkconfig cloud off
+   chkconfig haproxy on ; 
+   chkconfig ssh on
+   chkconfig nfs-common off
+   chkconfig portmap off
+   chkconfig keepalived off
+   chkconfig conntrackd off
+   echo "ssh haproxy" > /var/cache/cloud/enabled_svcs
+   echo "cloud dnsmasq cloud-passwd-srvr apache2 nfs-common portmap" > /var/cache/cloud/disabled_svcs
+}
+
 enable_pcihotplug() {
    sed -i -e "/acpiphp/d" /etc/modules
    sed -i -e "/pci_hotplug/d" /etc/modules
@@ -253,4 +266,14 @@ then
   fi
 fi
 
+if [ "$TYPE" == "ilbvm" ]
+then
+  ilbvm_svcs
+  if [ $? -gt 0 ]
+  then
+    printf "Failed to execute ilbvm svcs\n" >$logfile
+    exit 9
+  fi
+fi
+
 exit $?
diff --git a/plugins/network-elements/internal-loadbalancer/src/org/apache/cloudstack/network/lb/InternalLoadBalancerVMManagerImpl.java b/plugins/network-elements/internal-loadbalancer/src/org/apache/cloudstack/network/lb/InternalLoadBalancerVMManagerImpl.java
index f3736217d16..34fab30b624 100644
--- a/plugins/network-elements/internal-loadbalancer/src/org/apache/cloudstack/network/lb/InternalLoadBalancerVMManagerImpl.java
+++ b/plugins/network-elements/internal-loadbalancer/src/org/apache/cloudstack/network/lb/InternalLoadBalancerVMManagerImpl.java
@@ -236,7 +236,7 @@ InternalLoadBalancerVMManager, VirtualMachineGuru<DomainRouterVO> {
         }
 
         //FIXME - fix the type once earlyconfig and patchsystem vm scripts are fixed
-        String type = "elbvm";
+        String type = "ilbvm";
         buf.append(" type=" + type);
 
         //FIXME - change it to DEBUG level later.