diff --git a/subcommands/targets/offline-update.go b/subcommands/targets/offline-update.go
index 71c22355..5ab6a01f 100644
--- a/subcommands/targets/offline-update.go
+++ b/subcommands/targets/offline-update.go
@@ -52,6 +52,7 @@ var (
 	ouNoApps               bool
 	ouAllowMultipleTargets bool
 	ouWave                 string
+	ouOstreeRepoSrc        string
 )
 
 func init() {
@@ -87,6 +88,8 @@ func init() {
 		"Skip fetching Target Apps")
 	offlineUpdateCmd.Flags().BoolVarP(&ouAllowMultipleTargets, "allow-multiple-targets", "", false,
 		"Allow multiple targets to be stored in the same <dst> directory")
+	offlineUpdateCmd.Flags().StringVarP(&ouOstreeRepoSrc, "ostree-repo-source", "", "",
+		"Path to the local ostree repo to be used in the offline bundle")
 	offlineUpdateCmd.MarkFlagsMutuallyExclusive("tag", "wave")
 	offlineUpdateCmd.MarkFlagsMutuallyExclusive("prod", "wave")
 	initSignCmd(offlineUpdateCmd)
@@ -169,8 +172,13 @@ Notice that multiple targets in the same directory is only supported in LmP >= v
 		ti, err := getTargetInfo(targetCustomData)
 		subcommands.DieNotNil(err)
 
-		fmt.Printf("Downloading an ostree repo from the Target's OE build %d...\n", ti.ostreeVersion)
-		subcommands.DieNotNil(downloadOstree(factory, ti.ostreeVersion, ti.hardwareID, dstDir), "Failed to download Target's ostree repo:")
+		if ouOstreeRepoSrc != "" {
+			fmt.Printf("Copying local ostree repo from %s...\n", ouOstreeRepoSrc)
+			subcommands.DieNotNil(copyOstree(ouOstreeRepoSrc, dstDir+"/ostree_repo/"), "Failed to copy local ostree repo:")
+		} else {
+			fmt.Printf("Downloading an ostree repo from the Target's OE build %d...\n", ti.ostreeVersion)
+			subcommands.DieNotNil(downloadOstree(factory, ti.ostreeVersion, ti.hardwareID, dstDir), "Failed to download Target's ostree repo:")
+		}
 		if !ouNoApps {
 			if (len(ouWave) > 0 || ouProd) && ti.fetchedApps == nil {
 				// Get the specified target from the list of factory targets to obtain the "original" tag/branch that produced
@@ -366,6 +374,64 @@ func downloadTufRepo(factory string, target string, tag string, prod bool, wave
 	return nil
 }
 
+func copyFile(src string, dst string) error {
+	srcFile, err := os.Open(src)
+	if err != nil {
+		return err
+	}
+	defer srcFile.Close()
+
+	dstFile, err := os.Create(dst)
+	if err != nil {
+		return err
+	}
+	defer dstFile.Close()
+
+	_, err = dstFile.ReadFrom(srcFile)
+	if err != nil {
+		return err
+	}
+	srcInfo, err := os.Stat(src)
+	if err != nil {
+		return err
+	}
+	return os.Chmod(dst, srcInfo.Mode())
+}
+
+func copyDirRecursive(srcDir string, dstDir string) error {
+	srcInfo, err := os.Stat(srcDir)
+	if err != nil {
+		return err
+	}
+
+	err = os.MkdirAll(dstDir, srcInfo.Mode())
+	if err != nil {
+		return err
+	}
+
+	dirEntries, err := os.ReadDir(srcDir)
+	if err != nil {
+		return err
+	}
+	for _, dirEntry := range dirEntries {
+		src := path.Join(srcDir, dirEntry.Name())
+		dst := path.Join(dstDir, dirEntry.Name())
+		if dirEntry.IsDir() {
+			err = copyDirRecursive(src, dst)
+		} else {
+			err = copyFile(src, dst)
+		}
+		if err != nil {
+			return err
+		}
+	}
+	return nil
+}
+
+func copyOstree(srcDir string, dstDir string) error {
+	return copyDirRecursive(srcDir, dstDir)
+}
+
 func downloadOstree(factory string, targetVer int, hardwareID string, dstDir string) error {
 	runName := hardwareID
 	artifactName := hardwareID + "-ostree_repo.tar.bz2"