diff --git a/libpod/container_internal_linux.go b/libpod/container_internal_linux.go
index 7745646b6b10..77d01a3721d4 100644
--- a/libpod/container_internal_linux.go
+++ b/libpod/container_internal_linux.go
@@ -391,18 +391,40 @@ func (c *Container) generateSpec(ctx context.Context) (*spec.Spec, error) {
 		}
 
 		overlayFlag := false
+		upperDir := ""
+		workDir := ""
 		for _, o := range namedVol.Options {
 			if o == "O" {
 				overlayFlag = true
 			}
+			if overlayFlag && strings.Contains(o, "upperdir") {
+				splitOpt := strings.SplitN(o, "=", 2)
+				if len(splitOpt) > 1 {
+					upperDir = splitOpt[1]
+				}
+			}
+			if overlayFlag && strings.Contains(o, "workdir") {
+				splitOpt := strings.SplitN(o, "=", 2)
+				if len(splitOpt) > 1 {
+					workDir = splitOpt[1]
+				}
+			}
 		}
 
 		if overlayFlag {
+			var overlayMount spec.Mount
+			var overlayOpts *overlay.OverlayOptions
 			contentDir, err := overlay.TempDir(c.config.StaticDir, c.RootUID(), c.RootGID())
 			if err != nil {
 				return nil, err
 			}
-			overlayMount, err := overlay.Mount(contentDir, mountPoint, namedVol.Dest, c.RootUID(), c.RootGID(), c.runtime.store.GraphOptions())
+
+			overlayOpts = nil
+			if upperDir != "" && workDir != "" {
+				overlayOpts = &overlay.OverlayOptions{Upperdir: upperDir, Workdir: workDir}
+			}
+
+			overlayMount, err = overlay.MountWithOptions(contentDir, mountPoint, namedVol.Dest, c.RootUID(), c.RootGID(), c.runtime.store.GraphOptions(), overlayOpts, false)
 			if err != nil {
 				return nil, errors.Wrapf(err, "mounting overlay failed %q", mountPoint)
 			}
@@ -2781,6 +2803,7 @@ func (c *Container) copyTimezoneFile(zonePath string) (string, error) {
 }
 
 func (c *Container) cleanupOverlayMounts() error {
+	//overlay.CleanupContent("/tmp/exp-overlay")
 	return overlay.CleanupContent(c.config.StaticDir)
 }
 
diff --git a/pkg/util/mountOpts.go b/pkg/util/mountOpts.go
index 959763dba472..f39d8a2c6533 100644
--- a/pkg/util/mountOpts.go
+++ b/pkg/util/mountOpts.go
@@ -25,16 +25,31 @@ type defaultMountOptions struct {
 // The sourcePath variable, if not empty, contains a bind mount source.
 func ProcessOptions(options []string, isTmpfs bool, sourcePath string) ([]string, error) {
 	var (
-		foundWrite, foundSize, foundProp, foundMode, foundExec, foundSuid, foundDev, foundCopyUp, foundBind, foundZ, foundU bool
+		foundWrite, foundSize, foundProp, foundMode, foundExec, foundSuid, foundDev, foundCopyUp, foundBind, foundZ, foundU, foundOverlay bool
 	)
 
 	newOptions := make([]string, 0, len(options))
 	for _, opt := range options {
 		// Some options have parameters - size, mode
 		splitOpt := strings.SplitN(opt, "=", 2)
+
+		// add advanced options such as upperdir=/path and workdir=/path, when overlay is specified
+		if foundOverlay {
+			if strings.Contains(opt, "upperdir") {
+				newOptions = append(newOptions, opt)
+				continue
+			}
+			if strings.Contains(opt, "workdir") {
+				newOptions = append(newOptions, opt)
+				continue
+			}
+
+		}
+
 		switch splitOpt[0] {
-		case "idmap":
 		case "O":
+			foundOverlay = true
+		case "idmap":
 			if len(options) > 1 {
 				return nil, errors.Wrapf(ErrDupeMntOption, "'O' option can not be used with other options")
 			}
diff --git a/test/e2e/run_volume_test.go b/test/e2e/run_volume_test.go
index c2817c551dfd..8f093c849288 100644
--- a/test/e2e/run_volume_test.go
+++ b/test/e2e/run_volume_test.go
@@ -260,6 +260,53 @@ var _ = Describe("Podman run with volumes", func() {
 
 	})
 
+	It("podman support overlay on named volume with custom upperdir and workdir", func() {
+		SkipIfRemote("Overlay volumes only work locally")
+		if os.Getenv("container") != "" {
+			Skip("Overlay mounts not supported when running in a container")
+		}
+		if rootless.IsRootless() {
+			if _, err := exec.LookPath("fuse-overlayfs"); err != nil {
+				Skip("Fuse-Overlayfs required for rootless overlay mount test")
+			}
+		}
+
+		// create persistant upperdir on host
+		upperDir := filepath.Join(tempdir, "upper")
+		err := os.Mkdir(upperDir, 0755)
+		Expect(err).To(BeNil(), "mkdir "+upperDir)
+
+		// create persistant workdir on host
+		workDir := filepath.Join(tempdir, "work")
+		err := os.Mkdir(workDir, 0755)
+		Expect(err).To(BeNil(), "mkdir "+workDir)
+
+		overlayOpts := fmt.Sprintf("upperdir=%s,workdir=%s", upperDir, workDir)
+
+		session := podmanTest.Podman([]string{"volume", "create", "myvolume"})
+		session.WaitWithDefaultTimeout()
+		volName := session.OutputToString()
+		Expect(session).Should(Exit(0))
+
+		// create file on actual volume
+		session = podmanTest.Podman([]string{"run", "--volume", volName + ":/data", ALPINE, "sh", "-c", "echo hello >> " + "/data/test"})
+		session.WaitWithDefaultTimeout()
+		Expect(session).Should(Exit(0))
+
+		// create file on overlay volume
+		session = podmanTest.Podman([]string{"run", "--volume", volName + ":/data:O," + overlayOpts, ALPINE, "sh", "-c", "echo hello >> " + "/data/overlay"})
+		session.WaitWithDefaultTimeout()
+		Expect(session).Should(Exit(0))
+
+		// volume should contain only `test` not `overlay`
+		session = podmanTest.Podman([]string{"run", "--volume", volName + ":/data:O," + overlayOpts, ALPINE, "sh", "-c", "ls /data"})
+		session.WaitWithDefaultTimeout()
+		// must contain stuff on persistant upper and workdir
+		Expect(session.OutputToString()).To(ContainSubstring("overlay"))
+		Expect(session.OutputToString()).To(ContainSubstring("test"))
+
+	})
+
 	It("podman run with noexec can't exec", func() {
 		session := podmanTest.Podman([]string{"run", "--rm", "-v", "/bin:/hostbin:noexec", ALPINE, "/hostbin/ls", "/"})
 		session.WaitWithDefaultTimeout()
diff --git a/vendor/github.com/containers/buildah/pkg/overlay/overlay.go b/vendor/github.com/containers/buildah/pkg/overlay/overlay.go
index 8ee4ab6d1f61..a20978b57833 100644
--- a/vendor/github.com/containers/buildah/pkg/overlay/overlay.go
+++ b/vendor/github.com/containers/buildah/pkg/overlay/overlay.go
@@ -18,6 +18,11 @@ import (
 	"golang.org/x/sys/unix"
 )
 
+type OverlayOptions struct {
+	Upperdir string
+	Workdir  string
+}
+
 // TempDir generates an overlay Temp directory in the container content
 func TempDir(containerDir string, rootUID, rootGID int) (string, error) {
 	contentDir := filepath.Join(containerDir, "overlay")
@@ -61,11 +66,19 @@ func generateOverlayStructure(containerDir string, rootUID, rootGID int) (string
 	return containerDir, nil
 }
 
+// MountWithOptions creates a subdir of the contentDir based on the source directory
+// from the source system.  It then mounts up the source directory on to the
+// generated mount point and returns the mount point to the caller.
+// But allows api to set custom workdir, upperdir and other overlay options
+func MountWithOptions(contentDir, source, dest string, rootUID, rootGID int, graphOptions []string, opts *OverlayOptions, readonly bool) (mount specs.Mount, Err error) {
+	return mountHelper(contentDir, source, dest, rootUID, rootGID, graphOptions, opts, readonly)
+}
+
 // Mount creates a subdir of the contentDir based on the source directory
 // from the source system.  It then mounts up the source directory on to the
 // generated mount point and returns the mount point to the caller.
 func Mount(contentDir, source, dest string, rootUID, rootGID int, graphOptions []string) (mount specs.Mount, Err error) {
-	return mountHelper(contentDir, source, dest, rootUID, rootGID, graphOptions, false)
+	return mountHelper(contentDir, source, dest, rootUID, rootGID, graphOptions, nil, false)
 }
 
 // MountReadOnly creates a subdir of the contentDir based on the source directory
@@ -73,11 +86,11 @@ func Mount(contentDir, source, dest string, rootUID, rootGID int, graphOptions [
 // generated mount point and returns the mount point to the caller.  Note that no
 // upper layer will be created rendering it a read-only mount
 func MountReadOnly(contentDir, source, dest string, rootUID, rootGID int, graphOptions []string) (mount specs.Mount, Err error) {
-	return mountHelper(contentDir, source, dest, rootUID, rootGID, graphOptions, true)
+	return mountHelper(contentDir, source, dest, rootUID, rootGID, graphOptions, nil, true)
 }
 
 // NOTE: rootUID and rootUID are not yet used.
-func mountHelper(contentDir, source, dest string, _, _ int, graphOptions []string, readOnly bool) (mount specs.Mount, Err error) {
+func mountHelper(contentDir, source, dest string, _, _ int, graphOptions []string, opts *OverlayOptions, readOnly bool) (mount specs.Mount, Err error) {
 	mergeDir := filepath.Join(contentDir, "merge")
 
 	// Create overlay mount options for rw/ro.
@@ -88,11 +101,17 @@ func mountHelper(contentDir, source, dest string, _, _ int, graphOptions []strin
 		if err := os.Mkdir(lowerTwo, 0755); err != nil {
 			return mount, err
 		}
-		overlayOptions = fmt.Sprintf("lowerdir=%s:%s,private", source, lowerTwo)
+		overlayOptions = fmt.Sprintf("lowerdir=%s:%s,private", escapeColon(source), lowerTwo)
 	} else {
 		// Read-write overlay mounts want a lower, upper and a work layer.
 		workDir := filepath.Join(contentDir, "work")
 		upperDir := filepath.Join(contentDir, "upper")
+
+		if opts != nil {
+			workDir = opts.Workdir
+			upperDir = opts.Upperdir
+		}
+
 		st, err := os.Stat(source)
 		if err != nil {
 			return mount, err
@@ -105,8 +124,7 @@ func mountHelper(contentDir, source, dest string, _, _ int, graphOptions []strin
 				return mount, err
 			}
 		}
-
-		overlayOptions = fmt.Sprintf("lowerdir=%s,upperdir=%s,workdir=%s,private", source, upperDir, workDir)
+		overlayOptions = fmt.Sprintf("lowerdir=%s,upperdir=%s,workdir=%s,private", escapeColon(source), upperDir, workDir)
 	}
 
 	if unshare.IsRootless() {
@@ -155,6 +173,11 @@ func mountHelper(contentDir, source, dest string, _, _ int, graphOptions []strin
 	return mount, nil
 }
 
+// Convert ":" to "\:", the path which will be overlay mounted need to be escaped
+func escapeColon(source string) string {
+	return strings.ReplaceAll(source, ":", "\\:")
+}
+
 // RemoveTemp removes temporary mountpoint and all content from its parent
 // directory
 func RemoveTemp(contentDir string) error {
diff --git a/vendor/github.com/containers/common/pkg/parse/parse.go b/vendor/github.com/containers/common/pkg/parse/parse.go
index fda129c83064..5d826e805142 100644
--- a/vendor/github.com/containers/common/pkg/parse/parse.go
+++ b/vendor/github.com/containers/common/pkg/parse/parse.go
@@ -14,9 +14,27 @@ import (
 
 // ValidateVolumeOpts validates a volume's options
 func ValidateVolumeOpts(options []string) ([]string, error) {
-	var foundRootPropagation, foundRWRO, foundLabelChange, bindType, foundExec, foundDev, foundSuid, foundChown int
+	var foundRootPropagation, foundRWRO, foundLabelChange, bindType, foundExec, foundDev, foundSuid, foundChown, foundUpperDir, foundWorkDir int
 	finalOpts := make([]string, 0, len(options))
 	for _, opt := range options {
+		// support advanced options like upperdir=/path, workdir=/path
+		if strings.Contains(opt, "upperdir") {
+			foundUpperDir++
+			if foundUpperDir > 1 {
+				return nil, errors.Errorf("invalid options %q, can only specify 1 upperdir per overlay", strings.Join(options, ", "))
+			}
+			finalOpts = append(finalOpts, opt)
+			continue
+		}
+		if strings.Contains(opt, "workdir") {
+			foundWorkDir++
+			if foundWorkDir > 1 {
+				return nil, errors.Errorf("invalid options %q, can only specify 1 workdir per overlay", strings.Join(options, ", "))
+			}
+			finalOpts = append(finalOpts, opt)
+			continue
+		}
+
 		switch opt {
 		case "noexec", "exec":
 			foundExec++