diff --git a/provider/bootc_image_builder/bootc_image_build_utils.py b/provider/bootc_image_builder/bootc_image_build_utils.py
index 5d369fbd46..73f3f70163 100644
--- a/provider/bootc_image_builder/bootc_image_build_utils.py
+++ b/provider/bootc_image_builder/bootc_image_build_utils.py
@@ -838,6 +838,21 @@ def cleanup_aws_ami_and_snapshot(params):
     aws_utils.delete_aws_ami_snapshot_id(params)
 
 
+def convert_vhd_to_qcow2(params):
+    """
+    Convert vhd disk format into qcow2
+
+    @param params: one dictionary wrapping various parameter
+    """
+    original_image_path = params.get('vm_disk_image_path')
+    converted_image_path = original_image_path.replace("vhd", "qcow2")
+    LOG.debug(f"converted vhd to qcow2 output is : {converted_image_path}")
+
+    convert_cmd = f"qemu-img convert -p -f vpc  -O qcow2 {original_image_path} {converted_image_path}"
+    process.run(convert_cmd, shell=True, verbose=True, ignore_status=False)
+    return converted_image_path
+
+
 def get_baseurl_from_repo_file(repo_file_path):
     """
     One method to get compose url from current repository file
diff --git a/virttools/tests/cfg/bootc_image_builder/bootc_disk_image_build.cfg b/virttools/tests/cfg/bootc_image_builder/bootc_disk_image_build.cfg
index 5bd0b929cd..7723e9ffc8 100644
--- a/virttools/tests/cfg/bootc_image_builder/bootc_disk_image_build.cfg
+++ b/virttools/tests/cfg/bootc_image_builder/bootc_disk_image_build.cfg
@@ -60,7 +60,7 @@
             container_url = "localhost/bootc:eln"
             local_container = "yes"
             build_container = "registry.stage.redhat.io/rhel9/rhel-bootc:rhel-9.4"
-            rhel_9.5_nightly_bib:
+            rhel_9.5_nightly_bib, upstream_bib:
                 build_container = "registry.stage.redhat.io/rhel9/rhel-bootc:rhel-9.5"
             rhel_10.0_bib:
                 build_container = "registry.stage.redhat.io/rhel10-beta/rhel-bootc:rhel-10.0-beta"
@@ -158,3 +158,8 @@
             disk_image_type = "raw"
             output_sub_folder = "image"
             output_name = "disk.raw"
+        - vhd:
+            disk_image_type = "vhd"
+            output_sub_folder = "vpc"
+            output_name = "disk.vhd"
+            only upstream_bib
diff --git a/virttools/tests/cfg/bootc_image_builder/bootc_disk_image_install.cfg b/virttools/tests/cfg/bootc_image_builder/bootc_disk_image_install.cfg
index 800f6f1fad..0c1b0a0685 100644
--- a/virttools/tests/cfg/bootc_image_builder/bootc_disk_image_install.cfg
+++ b/virttools/tests/cfg/bootc_image_builder/bootc_disk_image_install.cfg
@@ -67,7 +67,7 @@
             container_url = "localhost/bootc:eln"
             local_container = "yes"
             build_container = "registry.stage.redhat.io/rhel9/rhel-bootc:rhel-9.4"
-            rhel_9.5_nightly_bib:
+            rhel_9.5_nightly_bib, upstream_bib:
                 build_container = "registry.stage.redhat.io/rhel9/rhel-bootc:rhel-9.5"
                 fips_enable = "yes"
             rhel_10.0_bib:
@@ -168,3 +168,8 @@
             disk_image_type = "raw"
             output_sub_folder = "image"
             output_name = "disk.raw"
+        - vhd:
+            disk_image_type = "vhd"
+            output_sub_folder = "vpc"
+            output_name = "disk.vhd"
+            only upstream_bib
diff --git a/virttools/tests/src/bootc_image_builder/bootc_disk_image_install.py b/virttools/tests/src/bootc_image_builder/bootc_disk_image_install.py
index 419555403a..117805a78d 100644
--- a/virttools/tests/src/bootc_image_builder/bootc_disk_image_install.py
+++ b/virttools/tests/src/bootc_image_builder/bootc_disk_image_install.py
@@ -45,6 +45,10 @@ def update_bib_env_info(params, test):
     params.update({'vm_disk_image_path': full_path_dest})
     params.update({'vm_name_bootc': disk_name})
 
+    if params.get("disk_image_type") == "vhd":
+        converted_image_from_vhd_qcow2 = bib_utils.convert_vhd_to_qcow2(params)
+        params.update({'vm_disk_image_path': converted_image_from_vhd_qcow2})
+
     iso_install_path = os.path.join(libvirt_base_folder, f"{disk_name}_{firmware}.qcow2")
     params.update({'iso_install_path': iso_install_path})
     cleanup_files.append(iso_install_path)
@@ -128,7 +132,7 @@ def run(test, params, env):
         update_bib_env_info(params, test)
         if disk_image_type in ["vmdk"]:
             bib_utils.create_and_start_vmware_vm(params)
-        elif disk_image_type in ["qcow2", "raw", "anaconda-iso"]:
+        elif disk_image_type in ["qcow2", "raw", "anaconda-iso", "vhd"]:
             bib_utils.create_qemu_vm(params, env, test)
         elif disk_image_type in ["ami"]:
             if len(aws_config_dict) != 0: