diff --git a/lib/src/cli.rs b/lib/src/cli.rs
index d791f512..4a994ca3 100644
--- a/lib/src/cli.rs
+++ b/lib/src/cli.rs
@@ -320,6 +320,7 @@ pub(crate) enum ContainerImageOpts {
 
         /// Source image reference, e.g. ostree-remote-image:someremote:registry:quay.io/exampleos/exampleos@sha256:abcd...
         /// This conflicts with `--image`.
+        /// This conflicts with `--image`. Supports `registry:`, `docker://`, `oci:`, `oci-archive:`, `containers-storage:`, and `dir:`
         #[clap(long, required_unless_present = "image")]
         imgref: Option<String>,
 
diff --git a/lib/src/container/mod.rs b/lib/src/container/mod.rs
index 54c6f965..078831ef 100644
--- a/lib/src/container/mod.rs
+++ b/lib/src/container/mod.rs
@@ -58,6 +58,8 @@ pub enum Transport {
     OciArchive,
     /// Local container storage (`containers-storage:`)
     ContainerStorage,
+    /// Local directory (`dir:`)
+    Dir,
 }
 
 /// Combination of a remote image reference and transport.
@@ -104,6 +106,7 @@ impl TryFrom<&str> for Transport {
             Self::OCI_STR => Self::OciDir,
             Self::OCI_ARCHIVE_STR => Self::OciArchive,
             Self::CONTAINERS_STORAGE_STR => Self::ContainerStorage,
+            Self::LOCAL_DIRECTORY_STR => Self::Dir,
             o => return Err(anyhow!("Unknown transport '{}'", o)),
         })
     }
@@ -113,6 +116,7 @@ impl Transport {
     const OCI_STR: &str = "oci";
     const OCI_ARCHIVE_STR: &str = "oci-archive";
     const CONTAINERS_STORAGE_STR: &str = "containers-storage";
+    const LOCAL_DIRECTORY_STR: &str = "dir";
     const REGISTRY_STR: &str = "registry";
 
     /// Retrieve an identifier that can then be re-parsed from [`Transport::try_from::<&str>`].
@@ -122,6 +126,7 @@ impl Transport {
             Transport::OciDir => Self::OCI_STR,
             Transport::OciArchive => Self::OCI_ARCHIVE_STR,
             Transport::ContainerStorage => Self::CONTAINERS_STORAGE_STR,
+            Transport::Dir => Self::LOCAL_DIRECTORY_STR,
         }
     }
 }
@@ -242,6 +247,7 @@ impl std::fmt::Display for Transport {
             Self::OciArchive => "oci-archive:",
             Self::OciDir => "oci:",
             Self::ContainerStorage => "containers-storage:",
+            Self::Dir => "dir:",
         };
         f.write_str(s)
     }
@@ -514,6 +520,10 @@ mod tests {
         let ir: ImageReference = "oci:somedir".try_into().unwrap();
         assert_eq!(ir.transport, Transport::OciDir);
         assert_eq!(ir.name, "somedir");
+
+        let ir: ImageReference = "dir:/some/dir/blah".try_into().unwrap();
+        assert_eq!(ir.transport, Transport::Dir);
+        assert_eq!(ir.name, "some/dir/blah");
     }
 
     #[test]