diff --git a/docker/ironic/ironic-conductor/Dockerfile.j2 b/docker/ironic/ironic-conductor/Dockerfile.j2
index 1a4a41eb62..21cf20f1d1 100644
--- a/docker/ironic/ironic-conductor/Dockerfile.j2
+++ b/docker/ironic/ironic-conductor/Dockerfile.j2
@@ -100,10 +100,12 @@ LABEL maintainer="{{ maintainer }}" name="{{ image_name }}" build-date="{{ build
         ] %}
         {% if distro_python_version.startswith('3') %}
         {% set ironic_conductor_packages = ironic_conductor_packages + [
+            'python3-systemd',
             'systemd-udev',
         ] %}
         {% else %}
         {% set ironic_conductor_packages = ironic_conductor_packages + [
+            'systemd-python',
             'systemd',
         ] %}
         {% endif %}
@@ -117,6 +119,7 @@ LABEL maintainer="{{ maintainer }}" name="{{ image_name }}" build-date="{{ build
             'openssh-client',
             'parted',
             'psmisc',
+            'python-systemd',
             'qemu-utils',
             'shellinabox',
             'udev',
diff --git a/releasenotes/notes/add-python3-systemd-for-ironic-source-9a6883496e101da9.yaml b/releasenotes/notes/add-python3-systemd-for-ironic-source-9a6883496e101da9.yaml
new file mode 100644
index 0000000000..c1ed377f2f
--- /dev/null
+++ b/releasenotes/notes/add-python3-systemd-for-ironic-source-9a6883496e101da9.yaml
@@ -0,0 +1,6 @@
+---
+fixes:
+  - |
+    Adds python3-systemd package to ironic-conductor source based
+    container to allow the Ansible deploy interface to function
+    correctly. Fixes bug #1861427