diff --git a/man/systemd-sysext.xml b/man/systemd-sysext.xml
index 39a16d8e8fb..258c7142c93 100644
--- a/man/systemd-sysext.xml
+++ b/man/systemd-sysext.xml
@@ -84,9 +84,8 @@
     them they may optionally carry Verity authentication information.</para>
 
     <para>System extensions are automatically looked for in the directories
-    <filename>/etc/extensions/</filename>, <filename>/run/extensions/</filename>,
-    <filename>/var/lib/extensions/</filename>, <filename>/usr/lib/extensions/</filename> and
-    <filename>/usr/local/lib/extensions/</filename>. The first two listed directories are not suitable for
+    <filename>/etc/extensions/</filename>, <filename>/run/extensions/</filename> and
+    <filename>/var/lib/extensions/</filename>. The first two listed directories are not suitable for
     carrying large binary images, however are still useful for carrying symlinks to them. The primary place
     for installing system extensions is <filename>/var/lib/extensions/</filename>. Any directories found in
     these search directories are considered directory based extension images, any files with the
diff --git a/src/shared/discover-image.c b/src/shared/discover-image.c
index fa018cb9123..5873741c8c6 100644
--- a/src/shared/discover-image.c
+++ b/src/shared/discover-image.c
@@ -58,11 +58,13 @@ static const char* const image_search_path[_IMAGE_CLASS_MAX] = {
                             "/usr/local/lib/portables\0"
                             "/usr/lib/portables\0",
 
+        /* Note that we don't allow storing extensions under /usr/, unlike with other image types. That's
+         * because extension images are supposed to extend /usr/, so you get into recursive races, especially
+         * with directory-based extensions, as the kernel's OverlayFS explicitly checks for this and errors
+         * out with -ELOOP if it finds that a lowerdir= is a child of another lowerdir=. */
         [IMAGE_EXTENSION] = "/etc/extensions\0"             /* only place symlinks here */
                             "/run/extensions\0"             /* and here too */
-                            "/var/lib/extensions\0"         /* the main place for images */
-                            "/usr/local/lib/extensions\0"
-                            "/usr/lib/extensions\0",
+                            "/var/lib/extensions\0",        /* the main place for images */
 };
 
 static Image *image_free(Image *i) {
diff --git a/units/systemd-sysext.service b/units/systemd-sysext.service
index f8c26f5fbfa..9a8d4ebc5f8 100644
--- a/units/systemd-sysext.service
+++ b/units/systemd-sysext.service
@@ -15,8 +15,6 @@ ConditionCapability=CAP_SYS_ADMIN
 ConditionDirectoryNotEmpty=|/etc/extensions
 ConditionDirectoryNotEmpty=|/run/extensions
 ConditionDirectoryNotEmpty=|/var/lib/extensions
-ConditionDirectoryNotEmpty=|/usr/local/lib/extensions
-ConditionDirectoryNotEmpty=|/usr/lib/extensions
 
 DefaultDependencies=no
 After=local-fs.target