diff --git a/installers/60-lxd-production.conf b/installers/60-lxd-production.conf
new file mode 100644
index 0000000..1d1194f
--- /dev/null
+++ b/installers/60-lxd-production.conf
@@ -0,0 +1,25 @@
+#   Copyright 2020 Canonical Ltd.
+#
+#   Licensed under the Apache License, Version 2.0 (the "License");
+#   you may not use this file except in compliance with the License.
+#   You may obtain a copy of the License at
+#
+#       http://www.apache.org/licenses/LICENSE-2.0
+#
+#   Unless required by applicable law or agreed to in writing, software
+#   distributed under the License is distributed on an "AS IS" BASIS,
+#   WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+#   See the License for the specific language governing permissions and
+#   limitations under the License.
+
+# Sysctl values for LXD in production
+fs.inotify.max_queued_events=1048576
+fs.inotify.max_user_instances=1048576
+fs.inotify.max_user_watches=1048576
+vm.max_map_count=262144
+kernel.dmesg_restrict=1
+net.ipv4.neigh.default.gc_thresh3=8192
+net.ipv6.neigh.default.gc_thresh3=8192
+net.core.bpf_jit_limit=3000000000
+kernel.keys.maxkeys=2000
+kernel.keys.maxbytes=2000000
diff --git a/installers/full_install_osm.sh b/installers/full_install_osm.sh
index d40782f..9e4132c 100755
--- a/installers/full_install_osm.sh
+++ b/installers/full_install_osm.sh
@@ -229,15 +229,21 @@
 }
 
 function install_lxd() {
-    sudo apt-get update
-    sudo apt-get install -y lxd
-    newgrp lxd
-    lxd init --auto
-    lxd waitready
-    lxc network create lxdbr0 ipv4.address=auto ipv4.nat=true ipv6.address=none ipv6.nat=false
+    # Apply sysctl production values for optimal performance
+    sudo cp /usr/share/osm-devops/installers/60-lxd-production.conf /etc/sysctl.d/60-lxd-production.conf
+    sudo sysctl --system
+
+    # Install LXD snap
+    sudo apt-get remove --purge -y liblxc1 lxc-common lxcfs lxd lxd-client
+    sudo snap install lxd --channel=3.0/stable
+
+    # Configure LXD
+    sudo usermod -a -G lxd `whoami`
+    cat /usr/share/osm-devops/installers/lxd-preseed.conf | sg lxd -c "lxd init --preseed"
+    sg lxd -c "lxd waitready"
     DEFAULT_INTERFACE=$(route -n | awk '$1~/^0.0.0.0/ {print $8}')
     DEFAULT_MTU=$(ip addr show $DEFAULT_INTERFACE | perl -ne 'if (/mtu\s(\d+)/) {print $1;}')
-    lxc profile device set default eth0 mtu $DEFAULT_MTU
+    sg lxd -c "lxc profile device set default eth0 mtu $DEFAULT_MTU"
     #sudo systemctl stop lxd-bridge
     #sudo systemctl --system daemon-reload
     #sudo systemctl enable lxd-bridge
@@ -356,7 +362,6 @@
 function install_juju() {
     echo "Installing juju"
     sudo snap install juju --classic
-    [ -z "$INSTALL_NOLXD" ] && sudo dpkg-reconfigure -p medium lxd
     [[ ":$PATH": != *":/snap/bin:"* ]] && PATH="/snap/bin:${PATH}"
     echo "Finished installation of juju"
     return 0
@@ -870,7 +875,7 @@
 
     # if no host is passed in, we need to install lxd/juju, unless explicilty asked not to
     if [ -z "$OSM_VCA_HOST" ] && [ -z "$INSTALL_NOLXD" ]; then
-        need_packages_lw="lxd snapd"
+        need_packages_lw="snapd"
         echo -e "Checking required packages: $need_packages_lw"
         dpkg -l $need_packages_lw &>/dev/null \
           || ! echo -e "One or several required packages are not installed. Updating apt cache requires root privileges." \
@@ -880,6 +885,7 @@
           || ! echo -e "Installing $need_packages_lw requires root privileges." \
           || sudo apt-get install -y $need_packages_lw \
           || FATAL "failed to install $need_packages_lw"
+        install_lxd
     fi
     track prereqok
 
diff --git a/installers/lxd-preseed.conf b/installers/lxd-preseed.conf
new file mode 100644
index 0000000..82ed8dc
--- /dev/null
+++ b/installers/lxd-preseed.conf
@@ -0,0 +1,44 @@
+#   Copyright 2020 Canonical Ltd.
+#
+#   Licensed under the Apache License, Version 2.0 (the "License");
+#   you may not use this file except in compliance with the License.
+#   You may obtain a copy of the License at
+#
+#       http://www.apache.org/licenses/LICENSE-2.0
+#
+#   Unless required by applicable law or agreed to in writing, software
+#   distributed under the License is distributed on an "AS IS" BASIS,
+#   WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+#   See the License for the specific language governing permissions and
+#   limitations under the License.
+
+config: {}
+networks:
+- config:
+    ipv4.address: auto
+    ipv6.address: none
+  description: ""
+  managed: false
+  name: lxdbr0
+  type: ""
+storage_pools:
+- config:
+    size: 100GB
+  description: ""
+  name: default
+  driver: zfs
+profiles:
+- config: {}
+  description: ""
+  devices:
+    eth0:
+      name: eth0
+      nictype: bridged
+      parent: lxdbr0
+      type: nic
+    root:
+      path: /
+      pool: default
+      type: disk
+  name: default
+cluster: null