diff --git a/yastd/Gemfile b/yastd/Gemfile
index eba16c4b3b..0f6189f132 100644
--- a/yastd/Gemfile
+++ b/yastd/Gemfile
@@ -8,3 +8,4 @@ gem "ruby-dbus"
 # Required by YaST
 gem "cheetah"
 gem "fast_gettext"
+gem "nokogiri"
diff --git a/yastd/lib/yast2/dbus/installer.rb b/yastd/lib/yast2/dbus/installer.rb
index 1460197430..18107fe632 100644
--- a/yastd/lib/yast2/dbus/installer.rb
+++ b/yastd/lib/yast2/dbus/installer.rb
@@ -153,6 +153,18 @@ def initialize(installer, logger, *args)
 
         dbus_signal :PropertiesChanged,
           "interface:s, changed_properties:a{sv}, invalidated_properties:as"
+
+        # signal for installation progress
+        #
+        # parameters:
+        #
+        # - message: localized string describing current step
+        # - total_steps: how many steps will be done
+        # - current_step: current step. Always in range of 0..total_steps
+        # - total_substeps: total count of smaller steps done as part of big step. Can be 0, which means no substeps defined
+        # - current_substep: current substep. Always in range of 0..total_substeps
+        dbus_signal :Progress,
+          "message:s, total_steps:t, current_step: t, total_substeps: t, current_substep: t"
       end
     end
   end
diff --git a/yastd/lib/yast2/dbus/installer_client.rb b/yastd/lib/yast2/dbus/installer_client.rb
index 94383a5321..0266a91129 100644
--- a/yastd/lib/yast2/dbus/installer_client.rb
+++ b/yastd/lib/yast2/dbus/installer_client.rb
@@ -46,6 +46,16 @@ def status=(id)
         )
       end
 
+      # Callback that triggers when installer make progress
+      #
+      # @param id [Integer] Installer status
+      # @see InstallerStatus
+      def report_progress(msg, total_steps, step, total_substeps, substep)
+        installer_obj["org.freedesktop.DBus.Properties"].Progress(
+          msg, total_steps, step, total_substeps, substep
+        )
+      end
+
     private
 
       # @return [DBus::ProxyObject] Returns a proxy object for
diff --git a/yastd/lib/yast2/installer.rb b/yastd/lib/yast2/installer.rb
index b0174158d2..5195fe00e5 100644
--- a/yastd/lib/yast2/installer.rb
+++ b/yastd/lib/yast2/installer.rb
@@ -1,12 +1,14 @@
 # frozen_string_literal: true
 
 require "yast"
-require "y2packager/product"
 require "y2storage"
 require "yast2/installer_status"
+require "yast2/software"
+require "yast2/progress"
 require "yast2/dbus/installer_client"
 Yast.import "CommandLine"
 require "dbus"
+require "forwardable"
 
 # YaST specific code lives under this namespace
 module Yast2
@@ -22,13 +24,17 @@ module Yast2
   class Installer
     class InvalidValue < StandardError; end
 
+    extend Forwardable
+
     DEFAULT_LANGUAGE = "en_US"
 
-    attr_reader :disks, :languages, :products
-    attr_reader :disk, :product
+    attr_reader :disks, :languages
+    attr_reader :disk
     attr_reader :logger
     attr_reader :language
 
+    def_delegators :@software, :products, :product
+
     # @return [InstallerStatus]
     attr_accessor :status
 
@@ -48,6 +54,8 @@ def initialize(dbus_client:, logger: nil)
       @status = InstallerStatus::IDLE
       @dbus_client = dbus_client
       @logger = logger || Logger.new(STDOUT)
+      @software = Software.new(@logger)
+      @progress = Progress.new(dbus_client)
     end
 
     def options
@@ -67,7 +75,8 @@ def options
     def probe
       change_status(InstallerStatus::PROBING)
       probe_languages
-      probe_software
+      @software.probe
+      @software.propose
       probe_storage
       true
     rescue StandardError => e
@@ -84,9 +93,9 @@ def disk=(name)
     end
 
     def product=(name)
-      raise InvalidValue unless products.map(&:name).include?(name)
-
-      @product = name
+      @software.select_product(name)
+    rescue
+      raise InvalidValue
     end
 
     def language=(name)
@@ -103,12 +112,12 @@ def install
       Yast::Installation.destdir = "/mnt"
       logger.info "Installing(partitioning)"
       change_status(InstallerStatus::PARTITIONING)
-      # Yast::WFM.CallFunction(["inst_prepdisk"], [])
+      Yast::WFM.CallFunction(["inst_prepdisk"], [])
       sleep 5
       # Install software
       logger.info "Installing(installing software)"
       change_status(InstallerStatus::INSTALLING)
-      sleep 5
+      @software.install(@progress)
       logger.info "Installing(finished)"
       change_status(InstallerStatus::IDLE)
     end
@@ -126,18 +135,6 @@ def change_status(new_status)
       end
     end
 
-    def probe_software
-      logger.info "Probing software"
-      Yast.import "Pkg"
-      Yast.import "PackageLock"
-      Yast::Pkg.TargetInitialize("/")
-      Yast::Pkg.TargetLoad
-      Yast::Pkg.SourceRestore
-      Yast::Pkg.SourceLoad
-      @products = Y2Packager::Product.all
-      @product = @products.first&.name
-    end
-
     # Returns the list of known languages
     #
     # @return [Hash]
diff --git a/yastd/lib/yast2/package_callbacks.rb b/yastd/lib/yast2/package_callbacks.rb
new file mode 100644
index 0000000000..1b88a15478
--- /dev/null
+++ b/yastd/lib/yast2/package_callbacks.rb
@@ -0,0 +1,61 @@
+# frozen_string_literal: true
+
+# Copyright (c) [2021] SUSE LLC
+#
+# All Rights Reserved.
+#
+# This program is free software; you can redistribute it and/or modify it
+# under the terms of version 2 of the GNU General Public License as published
+# by the Free Software Foundation.
+#
+# This program is distributed in the hope that it will be useful, but WITHOUT
+# ANY WARRANTY; without even the implied warranty of MERCHANTABILITY or
+# FITNESS FOR A PARTICULAR PURPOSE.  See the GNU General Public License for
+# more details.
+#
+# You should have received a copy of the GNU General Public License along
+# with this program; if not, contact SUSE LLC.
+#
+# To contact SUSE LLC about this file by physical or electronic mail, you may
+# find current contact information at www.suse.com.
+
+require "yast"
+
+Yast.import "Pkg"
+
+# YaST specific code lives under this namespace
+module Yast2
+  # This class represents the installer status
+  class PackageCallbacks
+    class << self
+      attr_reader :progress
+
+      def setup(progress)
+        new(progress).setup
+      end
+
+    def initialize(progress)
+      @progress = progress
+    end
+
+    def setup
+      Pkg.CallbackDonePackage(
+        fun_ref(method(:package_installed), "string (integer, string)")
+
+    end
+
+  private
+
+    def fun_ref(method, signature)
+      Yast::FunRef.new(method, signature)
+    end
+
+    # TODO: error handling
+    def package_installed(_error, _reason)
+      progress.package_installed
+
+      ""
+    end
+  end
+end
+
diff --git a/yastd/lib/yast2/progress.rb b/yastd/lib/yast2/progress.rb
new file mode 100644
index 0000000000..1839df3dac
--- /dev/null
+++ b/yastd/lib/yast2/progress.rb
@@ -0,0 +1,45 @@
+# frozen_string_literal: true
+
+# Copyright (c) [2021] SUSE LLC
+#
+# All Rights Reserved.
+#
+# This program is free software; you can redistribute it and/or modify it
+# under the terms of version 2 of the GNU General Public License as published
+# by the Free Software Foundation.
+#
+# This program is distributed in the hope that it will be useful, but WITHOUT
+# ANY WARRANTY; without even the implied warranty of MERCHANTABILITY or
+# FITNESS FOR A PARTICULAR PURPOSE.  See the GNU General Public License for
+# more details.
+#
+# You should have received a copy of the GNU General Public License along
+# with this program; if not, contact SUSE LLC.
+#
+# To contact SUSE LLC about this file by physical or electronic mail, you may
+# find current contact information at www.suse.com.
+
+# YaST specific code lives under this namespace
+module Yast2
+  # This class represents the installer status
+  class Progress
+    def initialize(dbus_obj)
+      @dbus_obj = dbus_obj
+      @total_pkgs = 0
+      @remaining_pkgs = 0
+    end
+
+    def packages_to_install=(value)
+      @total_pkgs = @remaining_pkgs = value
+    end
+
+    def package_installed
+      @remaining_pkgs -= 1
+      @dbus_obj.report_progress(
+        # TODO: localization
+        "Installing packages (#{@remaining_pkgs} remains)",
+        1, 0, @total_pkgs, @total_pkgs - @remaining_pkgs
+      )
+    end
+  end
+end
diff --git a/yastd/lib/yast2/software.rb b/yastd/lib/yast2/software.rb
new file mode 100644
index 0000000000..44c18f4b33
--- /dev/null
+++ b/yastd/lib/yast2/software.rb
@@ -0,0 +1,91 @@
+# frozen_string_literal: true
+
+# Copyright (c) [2021] SUSE LLC
+#
+# All Rights Reserved.
+#
+# This program is free software; you can redistribute it and/or modify it
+# under the terms of version 2 of the GNU General Public License as published
+# by the Free Software Foundation.
+#
+# This program is distributed in the hope that it will be useful, but WITHOUT
+# ANY WARRANTY; without even the implied warranty of MERCHANTABILITY or
+# FITNESS FOR A PARTICULAR PURPOSE.  See the GNU General Public License for
+# more details.
+#
+# You should have received a copy of the GNU General Public License along
+# with this program; if not, contact SUSE LLC.
+#
+# To contact SUSE LLC about this file by physical or electronic mail, you may
+# find current contact information at www.suse.com.
+
+require "yast"
+require "yast2/package_callbacks"
+require "y2packager/product"
+
+Yast.import "Pkg"
+Yast.import "PackageInstallation"
+
+# YaST specific code lives under this namespace
+module Yast2
+  # This class is responsible for software handling
+  class Software
+    attr_reader :product, :products
+
+    def initialize(logger)
+      @logger = logger
+      @products = []
+      @product = nil
+    end
+
+    def select_product(name)
+      raise ArgumentError unless @products.any? { |p| p.name == name }
+
+      @product = name
+    end
+
+    def probe
+      logger.info "Probing software"
+      Yast::Pkg.TargetInitialize("/")
+      Yast::Pkg.TargetLoad
+      Yast::Pkg.SourceRestore
+      Yast::Pkg.SourceLoad
+      @products = Y2Packager::Product.all
+    end
+
+    def propose
+      @product = @products.first&.name
+
+      raise "No Product Available" unless @product
+
+      Yast::Packages.Proposal(force_reset = true, reinit = true, _simple = true)
+      # do not return proposal hash, so intentional nil here
+      nil
+    end
+
+    def install(progress)
+      count_packages(progress)
+
+      PackageCallbacks.setup(progress)
+
+      # TODO: error handling
+      Yast::Pkg.TargetInitialize(Installation.destdir)
+      commit_result = Yast::PackageInstallation.Commit({})
+
+      if commit_result.nil? || commit_result.empty?
+        log.error("Commit failed")
+        raise Yast::Pkg.LastError
+      end
+    end
+
+  private
+
+    attr_reader :logger
+
+    def count_packages(progress)
+      count = Yast::Pkg.PkgMediaCount.reduce(0) { |sum, res| sum + res.reduce(0, :+) }
+
+      progress.packages_to_install = count
+    end
+  end
+end