diff --git a/magnum/drivers/common/templates/swarm/fragments/add-docker-daemon-options.sh b/magnum/drivers/common/templates/swarm/fragments/add-docker-daemon-options.sh
index b08eb3132d..b5f7393b75 100644
--- a/magnum/drivers/common/templates/swarm/fragments/add-docker-daemon-options.sh
+++ b/magnum/drivers/common/templates/swarm/fragments/add-docker-daemon-options.sh
@@ -11,3 +11,8 @@ if [ "$TLS_DISABLED" = 'False' ]; then
 fi
 
 sed -i '/^OPTIONS=/ s#\(OPTIONS='"'"'\)#\1'"$opts"'#' /etc/sysconfig/docker
+
+# NOTE(tobias-urdin): The live restore option is only for standalone daemons.
+# If its specified the swarm init will fail so we remove it here.
+# See: https://docs.docker.com/config/containers/live-restore
+sed -i 's/\ --live-restore//g' /etc/sysconfig/docker
diff --git a/releasenotes/notes/swarm-live-restore-b03ad192367abced.yaml b/releasenotes/notes/swarm-live-restore-b03ad192367abced.yaml
new file mode 100644
index 0000000000..05fbd32cbb
--- /dev/null
+++ b/releasenotes/notes/swarm-live-restore-b03ad192367abced.yaml
@@ -0,0 +1,6 @@
+---
+fixes:
+  - |
+    Fixed a bug where --live-restore was passed to Docker daemon causing the
+    swarm init to fail. Magnum now ensures the --live-restore is not passed
+    to the Docker daemon if it's default in an image.