diff --git a/create_tailscale_sysext.sh b/create_tailscale_sysext.sh
index 8e6e0db2..3a3e2d1f 100755
--- a/create_tailscale_sysext.sh
+++ b/create_tailscale_sysext.sh
@@ -34,13 +34,25 @@ curl -o "${TMP_DIR}/${TARBALL}" -fsSL "${URL}"
 
 tar xf "${TMP_DIR}/${TARBALL}" -C "${TMP_DIR}" --strip-components=1
 
-mkdir -p "${SYSEXTNAME}"/usr/local/{bin,sbin,lib/{systemd/system,extension-release.d}}
+mkdir -p "${SYSEXTNAME}"/usr/{bin,sbin,lib/{systemd/system,systemd/network,extension-release.d,tmpfiles.d},share/tailscale}
 
-mv "${TMP_DIR}/tailscale" "${SYSEXTNAME}/usr/local/bin/tailscale"
-mv "${TMP_DIR}/tailscaled" "${SYSEXTNAME}/usr/local/sbin/tailscaled"
-mv "${TMP_DIR}/systemd/tailscaled.service" "${SYSEXTNAME}/usr/local/lib/systemd/system/tailscaled.service"
+mv "${TMP_DIR}/tailscale" "${SYSEXTNAME}/usr/bin/tailscale"
+mv "${TMP_DIR}/tailscaled" "${SYSEXTNAME}/usr/sbin/tailscaled"
+mv "${TMP_DIR}/systemd/tailscaled.service" "${SYSEXTNAME}/usr/lib/systemd/system/tailscaled.service"
+mv "${TMP_DIR}/systemd/tailscaled.defaults" "${SYSEXTNAME}/usr/share/tailscale/tailscaled.defaults"
 
-sed -i 's/--port.*//g' "${SYSEXTNAME}/usr/local/lib/systemd/system/tailscaled.service"
+cat <<EOF >"${SYSEXTNAME}"/usr/lib/tmpfiles.d/10-tailscale.conf
+C /etc/default/tailscaled - - - - /usr/share/tailscale/tailscaled.defaults
+EOF
+
+cat <<EOF >"${SYSEXTNAME}"/usr/lib/systemd/network/50-tailscale.network
+[Match]
+Kind=tun
+Name=tailscale*
+
+[Link]
+Unmanaged=yes
+EOF
 
 rm -rf "${TMP_DIR}"
 
diff --git a/release_build_versions.txt b/release_build_versions.txt
index 976f6f50..fd2e9cff 100644
--- a/release_build_versions.txt
+++ b/release_build_versions.txt
@@ -23,7 +23,7 @@ wasmcloud-1.0.0
 wasmcloud-1.1.1
 wasmcloud-1.2.1
 
-tailscale-1.76.6
+tailscale-1.78.1
 
 nvidia_runtime-v1.16.2