diff --git a/.pipelines/containerSourceData/kubevirt/Dockerfile-kubevirt-sidecar-shim b/.pipelines/containerSourceData/kubevirt/Dockerfile-kubevirt-sidecar-shim
new file mode 100644
index 00000000000..fafe41308b1
--- /dev/null
+++ b/.pipelines/containerSourceData/kubevirt/Dockerfile-kubevirt-sidecar-shim
@@ -0,0 +1,16 @@
+# Copyright (c) Microsoft Corporation.
+# Licensed under the MIT License.
+
+ARG BASE_IMAGE
+
+FROM $BASE_IMAGE
+
+@INCLUDE_MAIN_RUN_INSTRUCTION@
+
+RUN useradd -u 1001 --create-home -s /bin/bash sidecar-shim
+USER 1001
+
+#simple smoke test
+RUN ls /usr/bin/sidecar-shim
+
+ENTRYPOINT [ "/usr/bin/sidecar-shim" ]
diff --git a/.pipelines/containerSourceData/kubevirt/sidecar-shim.name b/.pipelines/containerSourceData/kubevirt/sidecar-shim.name
new file mode 100644
index 00000000000..e33e5c5e2ec
--- /dev/null
+++ b/.pipelines/containerSourceData/kubevirt/sidecar-shim.name
@@ -0,0 +1 @@
+kubevirt-sidecar-shim
diff --git a/.pipelines/containerSourceData/kubevirt/sidecar-shim.pkg b/.pipelines/containerSourceData/kubevirt/sidecar-shim.pkg
new file mode 100644
index 00000000000..cec67eb8d83
--- /dev/null
+++ b/.pipelines/containerSourceData/kubevirt/sidecar-shim.pkg
@@ -0,0 +1,4 @@
+ca-certificates
+kubevirt-sidecar-shim
+python3
+shadow-utils
diff --git a/SPECS/kubevirt/kubevirt.spec b/SPECS/kubevirt/kubevirt.spec
index 3ddf87ce505..14f0b3f71b3 100644
--- a/SPECS/kubevirt/kubevirt.spec
+++ b/SPECS/kubevirt/kubevirt.spec
@@ -20,7 +20,7 @@
 Summary:        Container native virtualization
 Name:           kubevirt
 Version:        1.7.1
-Release:        8%{?dist}
+Release:        9%{?dist}
 License:        ASL 2.0
 Vendor:         Microsoft Corporation
 Distribution:   Azure Linux
@@ -137,6 +137,15 @@ Group:          System/Packages
 The pr-helper-conf package provides configuration files for persistent
 reservation helper
 
+%package        sidecar-shim
+Summary:        Sidecar shim for kubevirt hook sidecars
+Group:          System/Packages
+
+%description    sidecar-shim
+The sidecar-shim package provides the sidecar shim binary for kubevirt.
+It handles gRPC communication between hook sidecars and the main
+virt-launcher container, allowing custom modifications to VM definitions.
+
 %package        tests
 Summary:        Kubevirt functional tests
 Group:          System/Packages
@@ -175,6 +184,7 @@ build_tests="true" \
     cmd/virt-probe \
     cmd/virt-tail \
     cmd/virtctl \
+    cmd/sidecars \
     %{nil}
 
 env DOCKER_PREFIX=$reg_path DOCKER_TAG=%{version}-%{release} KUBEVIRT_NO_BAZEL=true ./hack/build-manifests.sh
@@ -198,6 +208,7 @@ install -p -m 0755 _out/cmd/virt-tail/virt-tail %{buildroot}%{_bindir}/
 install -p -m 0755 _out/cmd/virt-operator/virt-operator %{buildroot}%{_bindir}/
 install -p -m 0755 _out/tests/tests.test %{buildroot}%{_bindir}/virt-tests
 install -p -m 0755 cmd/virt-launcher/node-labeller/node-labeller.sh %{buildroot}%{_bindir}/
+install -p -m 0755 _out/cmd/sidecars/sidecars %{buildroot}%{_bindir}/sidecar-shim
 
 # Install network stuff
 mkdir -p %{buildroot}%{_datadir}/kube-virt/virt-handler
@@ -275,6 +286,11 @@ install -p -m 0644 cmd/virt-launcher/qemu.conf %{buildroot}%{_datadir}/kube-virt
 %dir %{_datadir}/kube-virt/pr-helper
 %{_datadir}/kube-virt/pr-helper/multipath.conf
 
+%files sidecar-shim
+%license LICENSE
+%doc README.md
+%{_bindir}/sidecar-shim
+
 %files tests
 %license LICENSE
 %doc README.md
@@ -282,6 +298,9 @@ install -p -m 0644 cmd/virt-launcher/qemu.conf %{buildroot}%{_datadir}/kube-virt
 %{_bindir}/virt-tests
 
 %changelog
+* Mon Aug 6 2026 Woojoong Kim <woojoongkim@microsoft.com> - 1.7.1-9
+- Add Kubevirt sidecar
+
 * Mon Jul 27 2026 Azure Linux Security Servicing Account <azurelinux-security@microsoft.com> - 1.7.1-8
 - Patch for CVE-2026-56852