diff --git a/diskimage_builder/elements/ubuntu-core/root.d/10-cache-ubuntu-image b/diskimage_builder/elements/ubuntu-core/root.d/10-cache-ubuntu-image
index 9f16abfd6..f3a36aba5 100755
--- a/diskimage_builder/elements/ubuntu-core/root.d/10-cache-ubuntu-image
+++ b/diskimage_builder/elements/ubuntu-core/root.d/10-cache-ubuntu-image
@@ -23,6 +23,7 @@ release_numbers[wily]=15.10
 release_numbers[xenial]=16.04
 release_numbers[yakkety]=16.10
 release_numbers[zesty]=17.04
+release_numbers[bionic]=18.04
 
 numeric_release=${release_numbers[$DIB_RELEASE]}
 DIB_CLOUD_IMAGES=${DIB_CLOUD_IMAGES:-http://cdimage.ubuntu.com/ubuntu-core/releases/$numeric_release/release}
diff --git a/diskimage_builder/elements/ubuntu/root.d/10-cache-ubuntu-tarball b/diskimage_builder/elements/ubuntu/root.d/10-cache-ubuntu-tarball
index 41241a5b5..d9e5d7bc0 100755
--- a/diskimage_builder/elements/ubuntu/root.d/10-cache-ubuntu-tarball
+++ b/diskimage_builder/elements/ubuntu/root.d/10-cache-ubuntu-tarball
@@ -14,7 +14,11 @@ shopt -s extglob
 
 DIB_CLOUD_IMAGES=${DIB_CLOUD_IMAGES:-http://cloud-images.ubuntu.com}
 DIB_RELEASE=${DIB_RELEASE:-trusty}
-BASE_IMAGE_FILE=${BASE_IMAGE_FILE:-$DIB_RELEASE-server-cloudimg-$ARCH-root.tar.gz}
+if [ $DIB_RELEASE != "trusty" ] && [ $DIB_RELEASE != "xenial" ]; then
+    BASE_IMAGE_FILE=${BASE_IMAGE_FILE:-$DIB_RELEASE-server-cloudimg-$ARCH.squashfs}
+else
+    BASE_IMAGE_FILE=${BASE_IMAGE_FILE:-$DIB_RELEASE-server-cloudimg-$ARCH-root.tar.gz}
+fi
 SHA256SUMS=${SHA256SUMS:-https://${DIB_CLOUD_IMAGES##http?(s)://}/$DIB_RELEASE/current/SHA256SUMS}
 CACHED_FILE=$DIB_IMAGE_CACHE/$BASE_IMAGE_FILE
 CACHED_FILE_LOCK=$DIB_LOCKFILES/$BASE_IMAGE_FILE.lock
@@ -47,7 +51,11 @@ function get_ubuntu_tarball() {
     fi
     # Extract the base image (use --numeric-owner to avoid UID/GID mismatch between
     # image tarball and host OS e.g. when building Ubuntu image on an openSUSE host)
-    sudo tar -C $TARGET_ROOT --numeric-owner -xzf $DIB_IMAGE_CACHE/$BASE_IMAGE_FILE
+    if [ $DIB_RELEASE != "trusty" ] && [ $DIB_RELEASE != "xenial" ]; then
+        sudo unsquashfs -f -d $TARGET_ROOT $DIB_IMAGE_CACHE/$BASE_IMAGE_FILE
+    else
+        sudo tar -C $TARGET_ROOT --numeric-owner -xzf $DIB_IMAGE_CACHE/$BASE_IMAGE_FILE
+    fi
 }
 
 (
diff --git a/diskimage_builder/elements/ubuntu/test-elements/bionic-build-succeeds/README.rst b/diskimage_builder/elements/ubuntu/test-elements/bionic-build-succeeds/README.rst
new file mode 100644
index 000000000..35bdfee4e
--- /dev/null
+++ b/diskimage_builder/elements/ubuntu/test-elements/bionic-build-succeeds/README.rst
@@ -0,0 +1,4 @@
+Verify we can build a ubuntu image.
+
+Note this test includes the vm element to test the bootloader install,
+and specifies to output a .qcow2
diff --git a/diskimage_builder/elements/ubuntu/test-elements/bionic-build-succeeds/element-deps b/diskimage_builder/elements/ubuntu/test-elements/bionic-build-succeeds/element-deps
new file mode 100644
index 000000000..ccdc41079
--- /dev/null
+++ b/diskimage_builder/elements/ubuntu/test-elements/bionic-build-succeeds/element-deps
@@ -0,0 +1,4 @@
+block-device-mbr
+openstack-ci-mirrors
+vm
+
diff --git a/diskimage_builder/elements/ubuntu/test-elements/bionic-build-succeeds/environment.d/10-set-distro.bash b/diskimage_builder/elements/ubuntu/test-elements/bionic-build-succeeds/environment.d/10-set-distro.bash
new file mode 100644
index 000000000..ba2fb47d2
--- /dev/null
+++ b/diskimage_builder/elements/ubuntu/test-elements/bionic-build-succeeds/environment.d/10-set-distro.bash
@@ -0,0 +1 @@
+export DIB_RELEASE=bionic
diff --git a/diskimage_builder/elements/ubuntu/test-elements/bionic-build-succeeds/test-output-formats b/diskimage_builder/elements/ubuntu/test-elements/bionic-build-succeeds/test-output-formats
new file mode 100644
index 000000000..c780936b8
--- /dev/null
+++ b/diskimage_builder/elements/ubuntu/test-elements/bionic-build-succeeds/test-output-formats
@@ -0,0 +1 @@
+tar,qcow2
\ No newline at end of file
diff --git a/playbooks/legacy/dib-dsvm-functests-python2-centos-7-image/run.yaml b/playbooks/legacy/dib-dsvm-functests-python2-centos-7-image/run.yaml
index 308201116..63dbc4517 100644
--- a/playbooks/legacy/dib-dsvm-functests-python2-centos-7-image/run.yaml
+++ b/playbooks/legacy/dib-dsvm-functests-python2-centos-7-image/run.yaml
@@ -67,8 +67,8 @@
             opensuse/build-succeeds \
             opensuse/opensuse423-build-succeeds \
             fedora/build-succeeds \
-            ubuntu/trusty-build-succeeds \
-            ubuntu/xenial-build-succeeds
+            ubuntu/xenial-build-succeeds \
+            ubuntu/bionic-build-succeeds
 
           set +u
           deactivate
diff --git a/playbooks/legacy/dib-dsvm-functests-python3-image/run.yaml b/playbooks/legacy/dib-dsvm-functests-python3-image/run.yaml
index 224b81ec1..8ef5ee2cf 100644
--- a/playbooks/legacy/dib-dsvm-functests-python3-image/run.yaml
+++ b/playbooks/legacy/dib-dsvm-functests-python3-image/run.yaml
@@ -67,8 +67,8 @@
             opensuse/build-succeeds \
             opensuse/opensuse423-build-succeeds \
             fedora/build-succeeds \
-            ubuntu/trusty-build-succeeds \
-            ubuntu/xenial-build-succeeds
+            ubuntu/xenial-build-succeeds \
+            ubuntu/bionic-build-succeeds
 
           set +u
           deactivate
diff --git a/tests/run_functests.sh b/tests/run_functests.sh
index 3344cf18a..189845f14 100755
--- a/tests/run_functests.sh
+++ b/tests/run_functests.sh
@@ -44,6 +44,7 @@ DEFAULT_SKIP_TESTS=(
     fedora/build-succeeds
     ubuntu/trusty-build-succeeds
     ubuntu/xenial-build-succeeds
+    ubuntu/bionic-build-succeeds
 
     # No longer reasonable to test upstream (lacks a mirror in infra)
     # Note this is centos6 and should probably be removed