diff --git a/package/base-files/files/sbin/sysupgrade b/package/base-files/files/sbin/sysupgrade
index 6b3fb0666f6..a11e17615c4 100755
--- a/package/base-files/files/sbin/sysupgrade
+++ b/package/base-files/files/sbin/sysupgrade
@@ -237,8 +237,6 @@ include /lib/upgrade
 create_backup_archive() {
 	local conf_tar="$1"
 
-	local umount_etcbackup_dir=0
-
 	[ "$(rootfs_type)" = "tmpfs" ] && {
 		echo "Cannot save config while running from ramdisk." >&2
 		ask_bool 0 "Abort" && exit
@@ -248,41 +246,31 @@ create_backup_archive() {
 	run_hooks "$CONFFILES" $sysupgrade_init_conffiles
 	ask_bool 0 "Edit config file list" && vi "$CONFFILES"
 
-	if [ "$SAVE_INSTALLED_PKGS" -eq 1 ]; then
-		echo "${INSTALLED_PACKAGES}" >> "$CONFFILES"
-		mkdir -p "$ETCBACKUP_DIR"
-		# Avoid touching filesystem on each backup
-		RAMFS="$(mktemp -d -t sysupgrade.XXXXXX)"
-		mkdir -p "$RAMFS/upper" "$RAMFS/work"
-		mount -t overlay overlay -o lowerdir=$ETCBACKUP_DIR,upperdir=$RAMFS/upper,workdir=$RAMFS/work $ETCBACKUP_DIR &&
-			umount_etcbackup_dir=1 || {
-				echo "Cannot mount '$ETCBACKUP_DIR' as tmpfs to avoid touching disk while saving the list of installed packages." >&2
-				ask_bool 0 "Abort" && exit
-			}
-
-		# Format: pkg-name<TAB>{rom,overlay,unknown}
-		# rom is used for pkgs in /rom, even if updated later
-		find /usr/lib/opkg/info -name "*.control" \( \
-			\( -exec test -f /rom/{} \; -exec echo {} rom \; \) -o \
-			\( -exec test -f /overlay/upper/{} \; -exec echo {} overlay \; \) -o \
-			\( -exec echo {} unknown \; \) \
-			\) | sed -e 's,.*/,,;s/\.control /\t/' > ${INSTALLED_PACKAGES}
-	fi
-
 	v "Saving config files..."
 	[ "$VERBOSE" -gt 1 ] && TAR_V="v" || TAR_V=""
 	sed -i -e 's,^/,,' "$CONFFILES"
-	tar c${TAR_V}zf "$conf_tar" -C / -T "$CONFFILES"
+	{
+		# Part of archive with installed packages info
+		if [ "$SAVE_INSTALLED_PKGS" -eq 1 ]; then
+			# Format: pkg-name<TAB>{rom,overlay,unknown}
+			# rom is used for pkgs in /rom, even if updated later
+			tar_print_member "$INSTALLED_PACKAGES" "$(find /usr/lib/opkg/info -name "*.control" \( \
+				\( -exec test -f /rom/{} \; -exec echo {} rom \; \) -o \
+				\( -exec test -f /overlay/upper/{} \; -exec echo {} overlay \; \) -o \
+				\( -exec echo {} unknown \; \) \
+				\) | sed -e 's,.*/,,;s/\.control /\t/')"
+		fi
+
+		# Rest of archive with config files and ending padding
+		tar c${TAR_V} -C / -T "$CONFFILES"
+	} | gzip > "$conf_tar"
+
 	local err=$?
 	if [ "$err" -ne 0 ]; then
 		echo "Failed to create the configuration backup."
 		rm -f "$conf_tar"
 	fi
 
-	[ "$umount_etcbackup_dir" -eq 1 ] && {
-		umount "$ETCBACKUP_DIR"
-		rm -rf "$RAMFS"
-	}
 	rm -f "$CONFFILES"
 
 	return "$err"