diff --git a/Dockerfile b/Dockerfile
index 9a97bfcc4..f7a57b6bc 100644
--- a/Dockerfile
+++ b/Dockerfile
@@ -13,10 +13,14 @@ RUN protoc -I/usr/local/include -I./proto --go_out=plugins=grpc:proto proto/api.
 WORKDIR /trustd
 COPY ./internal/app/trustd/proto ./proto
 RUN protoc -I/usr/local/include -I./proto --go_out=plugins=grpc:proto proto/api.proto
+WORKDIR /init
+COPY ./internal/app/init/proto ./proto
+RUN protoc -I/usr/local/include -I./proto --go_out=plugins=grpc:proto proto/api.proto
 
 FROM scratch AS proto
 COPY --from=proto-build /osd/proto/api.pb.go /internal/app/osd/proto/
 COPY --from=proto-build /trustd/proto/api.pb.go /internal/app/trustd/proto/
+COPY --from=proto-build /init/proto/api.pb.go /internal/app/init/proto/
 
 # The base provides a common image to build the Talos source code.
 
diff --git a/cmd/osctl/pkg/client/client.go b/cmd/osctl/pkg/client/client.go
index 381ae4023..240971bb5 100644
--- a/cmd/osctl/pkg/client/client.go
+++ b/cmd/osctl/pkg/client/client.go
@@ -19,6 +19,7 @@ import (
 
 	"github.com/golang/protobuf/ptypes/empty"
 	"github.com/talos-systems/talos/cmd/osctl/pkg/client/config"
+	initproto "github.com/talos-systems/talos/internal/app/init/proto"
 	"github.com/talos-systems/talos/internal/app/osd/proto"
 	"github.com/talos-systems/talos/internal/pkg/proc"
 	"google.golang.org/grpc"
@@ -37,8 +38,9 @@ type Credentials struct {
 // Client implements the proto.OSDClient interface. It serves as the
 // concrete type with the required methods.
 type Client struct {
-	conn   *grpc.ClientConn
-	client proto.OSDClient
+	conn       *grpc.ClientConn
+	client     proto.OSDClient
+	initClient initproto.InitClient
 }
 
 // NewDefaultClientCredentials initializes ClientCredentials using default paths
@@ -101,6 +103,7 @@ func NewClient(port int, clientcreds *Credentials) (c *Client, err error) {
 	}
 
 	c.client = proto.NewOSDClient(c.conn)
+	c.initClient = initproto.NewInitClient(c.conn)
 
 	return c, nil
 }
@@ -180,7 +183,7 @@ func (c *Client) Reset() (err error) {
 // Reboot implements the proto.OSDClient interface.
 func (c *Client) Reboot() (err error) {
 	ctx := context.Background()
-	_, err = c.client.Reboot(ctx, &empty.Empty{})
+	_, err = c.initClient.Reboot(ctx, &empty.Empty{})
 	if err != nil {
 		return
 	}
@@ -191,7 +194,7 @@ func (c *Client) Reboot() (err error) {
 // Shutdown implements the proto.OSDClient interface.
 func (c *Client) Shutdown() (err error) {
 	ctx := context.Background()
-	_, err = c.client.Shutdown(ctx, &empty.Empty{})
+	_, err = c.initClient.Shutdown(ctx, &empty.Empty{})
 	if err != nil {
 		return
 	}
diff --git a/internal/app/init/internal/reg/reg.go b/internal/app/init/internal/reg/reg.go
new file mode 100644
index 000000000..c5fb9e02e
--- /dev/null
+++ b/internal/app/init/internal/reg/reg.go
@@ -0,0 +1,64 @@
+/* This Source Code Form is subject to the terms of the Mozilla Public
+ * License, v. 2.0. If a copy of the MPL was not distributed with this
+ * file, You can obtain one at http://mozilla.org/MPL/2.0/. */
+
+package reg
+
+import (
+	"context"
+	"sync/atomic"
+
+	"github.com/golang/protobuf/ptypes/empty"
+	"github.com/talos-systems/talos/internal/app/init/proto"
+	"github.com/talos-systems/talos/pkg/userdata"
+	"google.golang.org/grpc"
+)
+
+// Registrator is the concrete type that implements the factory.Registrator and
+// proto.Init interfaces.
+type Registrator struct {
+	Data *userdata.UserData
+
+	ShutdownCh chan struct{}
+	RebootCh   chan struct{}
+
+	rebootCalled uint32
+}
+
+// NewRegistrator builds new Registrator instance
+func NewRegistrator(data *userdata.UserData) *Registrator {
+	return &Registrator{
+		Data:       data,
+		ShutdownCh: make(chan struct{}),
+		RebootCh:   make(chan struct{}),
+	}
+}
+
+// Register implements the factory.Registrator interface.
+func (r *Registrator) Register(s *grpc.Server) {
+	proto.RegisterInitServer(s, r)
+}
+
+// Reboot implements the proto.InitServer interface.
+func (r *Registrator) Reboot(ctx context.Context, in *empty.Empty) (reply *proto.RebootReply, err error) {
+	reply = &proto.RebootReply{}
+
+	// make sure channel is closed only once (and initiate either reboot or shutdown)
+	if atomic.CompareAndSwapUint32(&r.rebootCalled, 0, 1) {
+		close(r.RebootCh)
+	}
+
+	return
+}
+
+// Shutdown implements the proto.InitServer interface.
+func (r *Registrator) Shutdown(ctx context.Context, in *empty.Empty) (reply *proto.ShutdownReply, err error) {
+	reply = &proto.ShutdownReply{}
+
+	// make sure channel is closed only once (and initiate either reboot or shutdown)
+	if atomic.CompareAndSwapUint32(&r.rebootCalled, 0, 1) {
+		close(r.ShutdownCh)
+	}
+
+	return
+}
diff --git a/internal/app/init/main.go b/internal/app/init/main.go
index 55fecc500..e4ec9a490 100644
--- a/internal/app/init/main.go
+++ b/internal/app/init/main.go
@@ -17,6 +17,7 @@ import (
 	criconstants "github.com/containerd/cri/pkg/constants"
 	"github.com/pkg/errors"
 	"github.com/talos-systems/talos/internal/app/init/internal/platform"
+	"github.com/talos-systems/talos/internal/app/init/internal/reg"
 	"github.com/talos-systems/talos/internal/app/init/internal/rootfs"
 	"github.com/talos-systems/talos/internal/app/init/internal/rootfs/mount"
 	"github.com/talos-systems/talos/internal/app/init/pkg/network"
@@ -24,6 +25,7 @@ import (
 	ctrdrunner "github.com/talos-systems/talos/internal/app/init/pkg/system/runner/containerd"
 	"github.com/talos-systems/talos/internal/app/init/pkg/system/services"
 	"github.com/talos-systems/talos/internal/pkg/constants"
+	"github.com/talos-systems/talos/internal/pkg/grpc/factory"
 	"github.com/talos-systems/talos/pkg/userdata"
 
 	"golang.org/x/sys/unix"
@@ -192,6 +194,23 @@ func root() (err error) {
 	svcs := system.Services(data)
 	defer svcs.Shutdown()
 
+	// Instantiate internal init API
+	api := reg.NewRegistrator(data)
+	server := factory.NewServer(api)
+	listener, err := factory.NewListener(
+		factory.Network("unix"),
+		factory.SocketPath(constants.InitSocketPath),
+	)
+	if err != nil {
+		panic(err)
+	}
+	defer server.Stop()
+
+	go func() {
+		// nolint: errcheck
+		server.Serve(listener)
+	}()
+
 	// Start containerd.
 	svcs.Start(&services.Containerd{})
 
@@ -199,13 +218,20 @@ func root() (err error) {
 	go startKubernetesServices(startupErrCh, data)
 
 	select {
+	case <-api.ShutdownCh:
+		log.Printf("poweroff via API received")
+		// poweroff, proceed to shutdown but mark as poweroff
+		rebootFlag = unix.LINUX_REBOOT_CMD_POWER_OFF
 	case <-poweroffCh:
+		log.Printf("poweroff via ACPI")
 		// poweroff, proceed to shutdown but mark as poweroff
 		rebootFlag = unix.LINUX_REBOOT_CMD_POWER_OFF
 	case err = <-startupErrCh:
 		panic(err)
 	case <-termCh:
 		log.Printf("SIGTERM received, rebooting...")
+	case <-api.RebootCh:
+		log.Printf("reboot via API received, rebooting...")
 	}
 
 	return nil
@@ -315,21 +341,21 @@ func sync() {
 		unix.Sync()
 	}()
 
-	log.Printf("Waiting for sync...")
+	log.Printf("waiting for sync...")
 
 	for i := 29; i >= 0; i-- {
 		select {
 		case <-syncdone:
-			log.Printf("Sync done")
+			log.Printf("sync done")
 			return
 		case <-time.After(time.Second):
 		}
 		if i != 0 {
-			log.Printf("Waiting %d more seconds for sync to finish", i)
+			log.Printf("waiting %d more seconds for sync to finish", i)
 		}
 	}
 
-	log.Printf("Sync hasn't completed in time, aborting...")
+	log.Printf("sync hasn't completed in time, aborting...")
 }
 
 func reboot() {
diff --git a/internal/app/init/pkg/system/services/osd.go b/internal/app/init/pkg/system/services/osd.go
index 7679b68ff..7615def98 100644
--- a/internal/app/init/pkg/system/services/osd.go
+++ b/internal/app/init/pkg/system/services/osd.go
@@ -62,6 +62,7 @@ func (o *OSD) Runner(data *userdata.UserData) (runner.Runner, error) {
 		{Type: "bind", Destination: "/etc/kubernetes", Source: "/etc/kubernetes", Options: []string{"bind", "rw"}},
 		{Type: "bind", Destination: "/etc/ssl", Source: "/etc/ssl", Options: []string{"bind", "ro"}},
 		{Type: "bind", Destination: "/var/log", Source: "/var/log", Options: []string{"rbind", "rw"}},
+		{Type: "bind", Destination: "/var/lib/init", Source: "/var/lib/init", Options: []string{"rbind", "rw"}},
 	}
 
 	env := []string{}
diff --git a/internal/app/init/proto/api.proto b/internal/app/init/proto/api.proto
new file mode 100644
index 000000000..651bd6449
--- /dev/null
+++ b/internal/app/init/proto/api.proto
@@ -0,0 +1,20 @@
+
+syntax = "proto3";
+
+package proto;
+
+import "google/protobuf/empty.proto";
+
+// The Init service definition.
+service Init {
+  rpc Reboot(google.protobuf.Empty) returns (RebootReply) {}
+  rpc Shutdown(google.protobuf.Empty) returns (ShutdownReply) {}
+}
+
+
+// The response message containing the reboot status.
+message RebootReply {}
+
+// The response message containing the shutdown status.
+message ShutdownReply {}
+
diff --git a/internal/app/osd/internal/reg/init_client.go b/internal/app/osd/internal/reg/init_client.go
new file mode 100644
index 000000000..97c72a9c7
--- /dev/null
+++ b/internal/app/osd/internal/reg/init_client.go
@@ -0,0 +1,44 @@
+/* This Source Code Form is subject to the terms of the Mozilla Public
+ * License, v. 2.0. If a copy of the MPL was not distributed with this
+ * file, You can obtain one at http://mozilla.org/MPL/2.0/. */
+
+package reg
+
+import (
+	"context"
+
+	"github.com/golang/protobuf/ptypes/empty"
+	"github.com/talos-systems/talos/internal/app/init/proto"
+	"github.com/talos-systems/talos/internal/pkg/constants"
+	"google.golang.org/grpc"
+)
+
+// InitServiceClient is a gRPC client for init service API
+type InitServiceClient struct {
+	proto.InitClient
+}
+
+// NewInitServiceClient initializes new client and connects to init
+func NewInitServiceClient() (*InitServiceClient, error) {
+	conn, err := grpc.Dial("unix:"+constants.InitSocketPath,
+		grpc.WithInsecure(),
+	)
+
+	if err != nil {
+		return nil, err
+	}
+
+	return &InitServiceClient{
+		InitClient: proto.NewInitClient(conn),
+	}, nil
+}
+
+// Reboot executes init Reboot() API
+func (c *InitServiceClient) Reboot(ctx context.Context, empty *empty.Empty) (*proto.RebootReply, error) {
+	return c.InitClient.Reboot(ctx, empty)
+}
+
+// Shutdown executes init Shutdown() API
+func (c *InitServiceClient) Shutdown(ctx context.Context, empty *empty.Empty) (*proto.ShutdownReply, error) {
+	return c.InitClient.Shutdown(ctx, empty)
+}
diff --git a/internal/app/osd/internal/reg/reg.go b/internal/app/osd/internal/reg/reg.go
index 286a3b60c..39b38708a 100644
--- a/internal/app/osd/internal/reg/reg.go
+++ b/internal/app/osd/internal/reg/reg.go
@@ -27,6 +27,7 @@ import (
 	"github.com/talos-systems/talos/internal/app/init/pkg/system/events"
 	"github.com/talos-systems/talos/internal/app/init/pkg/system/runner"
 	containerdrunner "github.com/talos-systems/talos/internal/app/init/pkg/system/runner/containerd"
+	initproto "github.com/talos-systems/talos/internal/app/init/proto"
 	"github.com/talos-systems/talos/internal/app/osd/proto"
 	filechunker "github.com/talos-systems/talos/internal/pkg/chunker/file"
 	"github.com/talos-systems/talos/internal/pkg/constants"
@@ -41,12 +42,16 @@ import (
 // Registrator is the concrete type that implements the factory.Registrator and
 // proto.OSDServer interfaces.
 type Registrator struct {
+	// every Init service API is proxied via OSD
+	*InitServiceClient
+
 	Data *userdata.UserData
 }
 
 // Register implements the factory.Registrator interface.
 func (r *Registrator) Register(s *grpc.Server) {
 	proto.RegisterOSDServer(s, r)
+	initproto.RegisterInitServer(s, r)
 }
 
 // Kubeconfig implements the proto.OSDServer interface. The admin kubeconfig is
@@ -240,26 +245,6 @@ func (r *Registrator) Reset(ctx context.Context, in *empty.Empty) (reply *proto.
 	return reply, nil
 }
 
-// Reboot implements the proto.OSDServer interface.
-func (r *Registrator) Reboot(ctx context.Context, in *empty.Empty) (reply *proto.RebootReply, err error) {
-	reply = &proto.RebootReply{}
-
-	// nolint: errcheck
-	defer unix.Reboot(int(unix.LINUX_REBOOT_CMD_RESTART))
-
-	return
-}
-
-// Shutdown implements the proto.OSDServer interface.
-func (r *Registrator) Shutdown(ctx context.Context, in *empty.Empty) (reply *proto.ShutdownReply, err error) {
-	reply = &proto.ShutdownReply{}
-
-	// nolint: errcheck
-	defer unix.Reboot(unix.LINUX_REBOOT_CMD_POWER_OFF)
-
-	return
-}
-
 // Dmesg implements the proto.OSDServer interface. The klogctl syscall is used
 // to read from the ring buffer at /proc/kmsg by taking the
 // SYSLOG_ACTION_READ_ALL action. This action reads all messages remaining in
diff --git a/internal/app/osd/main.go b/internal/app/osd/main.go
index 312965d04..bc72f8f30 100644
--- a/internal/app/osd/main.go
+++ b/internal/app/osd/main.go
@@ -38,9 +38,17 @@ func main() {
 		log.Fatalf("credentials: %v", err)
 	}
 
+	initClient, err := reg.NewInitServiceClient()
+	if err != nil {
+		log.Fatalf("init client: %v", err)
+	}
+
 	log.Println("Starting osd")
-	err = factory.Listen(
-		&reg.Registrator{Data: data},
+	err = factory.ListenAndServe(
+		&reg.Registrator{
+			Data:              data,
+			InitServiceClient: initClient,
+		},
 		factory.Port(constants.OsdPort),
 		factory.ServerOptions(
 			grpc.Creds(
diff --git a/internal/app/osd/proto/api.proto b/internal/app/osd/proto/api.proto
index ab52baa1c..7948ac13c 100644
--- a/internal/app/osd/proto/api.proto
+++ b/internal/app/osd/proto/api.proto
@@ -6,16 +6,16 @@ package proto;
 import "google/protobuf/empty.proto";
 
 // The OSD service definition.
+//
+// OSD Service also implements all the API of Init Service
 service OSD {
   rpc Dmesg(google.protobuf.Empty) returns (Data) {}
   rpc Kubeconfig(google.protobuf.Empty) returns (Data) {}
   rpc Logs(LogsRequest) returns (stream Data) {}
   rpc Processes(ProcessesRequest) returns (ProcessesReply) {}
-  rpc Reboot(google.protobuf.Empty) returns (RebootReply) {}
   rpc Reset(google.protobuf.Empty) returns (ResetReply) {}
   rpc Restart(RestartRequest) returns (RestartReply) {}
   rpc Routes(google.protobuf.Empty) returns (RoutesReply) {}
-  rpc Shutdown(google.protobuf.Empty) returns (ShutdownReply) {}
   rpc Stats(StatsRequest) returns (StatsReply) {}
   rpc Top(google.protobuf.Empty) returns (TopReply) {}
   rpc DF(google.protobuf.Empty) returns (DFReply) {}
@@ -61,15 +61,9 @@ message RestartRequest {
 // The response message containing the restart status.
 message RestartReply {}
 
-// The response message containing the shutdown status.
-message ShutdownReply {}
-
 // The response message containing the restart status.
 message ResetReply {}
 
-// The response message containing the restart status.
-message RebootReply {}
-
 // The request message containing the process name.
 message LogsRequest {
   string namespace = 1;
diff --git a/internal/app/trustd/main.go b/internal/app/trustd/main.go
index 5d2c1f297..b963c235b 100644
--- a/internal/app/trustd/main.go
+++ b/internal/app/trustd/main.go
@@ -46,7 +46,7 @@ func main() {
 		data.Services.Trustd.Password,
 	)
 
-	err = factory.Listen(
+	err = factory.ListenAndServe(
 		&reg.Registrator{Data: data.Security.OS},
 		factory.Port(constants.TrustdPort),
 		factory.ServerOptions(
diff --git a/internal/pkg/constants/constants.go b/internal/pkg/constants/constants.go
index 7c391fc98..6b6853cda 100644
--- a/internal/pkg/constants/constants.go
+++ b/internal/pkg/constants/constants.go
@@ -99,6 +99,9 @@ const (
 
 	// TalosConfigEnvVar is the environment variable for setting the Talos configuration file path.
 	TalosConfigEnvVar = "TALOSCONFIG"
+
+	// InitSocketPath is the path to file socket of init API
+	InitSocketPath = "/var/lib/init/init.sock"
 )
 
 // See https://linux.die.net/man/3/klogctl
diff --git a/internal/pkg/grpc/factory/factory.go b/internal/pkg/grpc/factory/factory.go
index 84d4ec2f5..4fc0e2c09 100644
--- a/internal/pkg/grpc/factory/factory.go
+++ b/internal/pkg/grpc/factory/factory.go
@@ -7,6 +7,8 @@ package factory
 import (
 	"crypto/tls"
 	"net"
+	"os"
+	"path/filepath"
 	"strconv"
 
 	"github.com/pkg/errors"
@@ -22,6 +24,7 @@ type Registrator interface {
 // Options is the functional options struct.
 type Options struct {
 	Port          int
+	SocketPath    string
 	Network       string
 	Config        *tls.Config
 	ServerOptions []grpc.ServerOption
@@ -37,6 +40,13 @@ func Port(o int) Option {
 	}
 }
 
+// SocketPath sets the listen unix file socket path of the server.
+func SocketPath(o string) Option {
+	return func(args *Options) {
+		args.SocketPath = o
+	}
+}
+
 // Network sets the network type of the listener.
 func Network(o string) Option {
 	return func(args *Options) {
@@ -61,7 +71,8 @@ func ServerOptions(o ...grpc.ServerOption) Option {
 // NewDefaultOptions initializes the Options struct with default values.
 func NewDefaultOptions(setters ...Option) *Options {
 	opts := &Options{
-		Network: "tcp",
+		Network:    "tcp",
+		SocketPath: "/run/factory/factory.sock",
 	}
 
 	for _, setter := range setters {
@@ -71,38 +82,54 @@ func NewDefaultOptions(setters ...Option) *Options {
 	return opts
 }
 
-// Listen configures TLS for mutual authtentication by loading the CA into a
-// CertPool and configuring the server's policy for TLS Client Authentication.
-// Once TLS is configured, the gRPC options are built to make use of the TLS
-// configuration and the receiver (Server) is registered to the gRPC server.
-// Finally the gRPC server is started.
-func Listen(r Registrator, setters ...Option) (err error) {
+// NewServer builds grpc server and binds it to the Registrator
+func NewServer(r Registrator, setters ...Option) *grpc.Server {
 	opts := NewDefaultOptions(setters...)
 
-	if opts.Network == "tcp" && opts.Port == 0 {
-		return errors.Errorf("a port is required for TCP listener")
-	}
-
 	server := grpc.NewServer(opts.ServerOptions...)
 	r.Register(server)
 
+	return server
+}
+
+// NewListener builds listener for grpc server
+func NewListener(setters ...Option) (net.Listener, error) {
+	opts := NewDefaultOptions(setters...)
+
+	if opts.Network == "tcp" && opts.Port == 0 {
+		return nil, errors.New("a port is required for TCP listener")
+	}
+
 	var address string
 	switch opts.Network {
 	case "unix":
-		address = "/run/factory/factory.sock"
+		address = opts.SocketPath
+
+		// make any dirs on the path to the listening socket
+		if err := os.MkdirAll(filepath.Dir(address), 0700); err != nil {
+			return nil, errors.Wrap(err, "error creating containing directory for the file socket")
+		}
 	case "tcp":
 		address = ":" + strconv.Itoa(opts.Port)
 	default:
-		return errors.Errorf("unknown network: %s", opts.Network)
-	}
-	listener, err := net.Listen(opts.Network, address)
-	if err != nil {
-		return
-	}
-	err = server.Serve(listener)
-	if err != nil {
-		return
+		return nil, errors.Errorf("unknown network: %s", opts.Network)
 	}
 
-	return nil
+	return net.Listen(opts.Network, address)
+}
+
+// ListenAndServe configures TLS for mutual authtentication by loading the CA into a
+// CertPool and configuring the server's policy for TLS Client Authentication.
+// Once TLS is configured, the gRPC options are built to make use of the TLS
+// configuration and the receiver (Server) is registered to the gRPC server.
+// Finally the gRPC server is started.
+func ListenAndServe(r Registrator, setters ...Option) (err error) {
+	server := NewServer(r, setters...)
+	listener, err := NewListener(setters...)
+
+	if err != nil {
+		return err
+	}
+
+	return server.Serve(listener)
 }