diff --git a/src/confd/src/main.c b/src/confd/src/main.c
index f679d9df6..f646a8ee7 100644
--- a/src/confd/src/main.c
+++ b/src/confd/src/main.c
@@ -49,6 +49,31 @@
  */
 #define SENTINEL_PATH "/run/confd.boot"
 
+/*
+ * Set a finit condition, e.g. "run/startup/success", creating parent
+ * directories as needed.  Used to signal IITO (and finit services) about
+ * the outcome of the bootstrap/startup sequence.
+ */
+static void set_finit_cond(const char *cond)
+{
+	char path[128];
+	char *p;
+
+	snprintf(path, sizeof(path), "/run/finit/cond/%s", cond);
+
+	/* mkdir -p parent directories (e.g. /run/finit/cond/run/startup) */
+	for (p = path + strlen("/run/finit/cond/"); *p; p++) {
+		if (*p == '/') {
+			*p = '\0';
+			mkdir(path, 0755);
+			*p = '/';
+		}
+	}
+
+	if (symlink("/run/finit/cond/reconf", path) && errno != EEXIST)
+		WARN("Failed to set finit condition %s: %m", path);
+}
+
 /* Callback type names from sysrepo plugin API */
 #define SRP_INIT_CB    "sr_plugin_init_cb"
 #define SRP_CLEANUP_CB "sr_plugin_cleanup_cb"
@@ -512,6 +537,7 @@ static void handle_startup_failure(sr_session_ctx_t *sess, const char *failure_p
 		ERROR("sr_copy_config(factory-default) failed: %s", sr_strerror(r));
 		/* Nuclear option: wipe everything */
 		systemf("rm -f /etc/sysrepo/data/*startup* /etc/sysrepo/data/*running* /dev/shm/sr_*");
+		set_finit_cond("run/failure/failure");
 		return;
 	}
 
@@ -521,11 +547,13 @@ static void handle_startup_failure(sr_session_ctx_t *sess, const char *failure_p
 			ERROR("Failed loading failure-config, aborting!");
 			banner_append("CRITICAL ERROR: Logins are disabled, no credentials available");
 			systemf("initctl -nbq runlevel 9");
+			set_finit_cond("run/failure/failure");
 			return;
 		}
 	}
 
 	banner_append("ERROR: Corrupt startup-config, system has reverted to default login credentials");
+	set_finit_cond("run/failure/success");
 }
 
 /*
@@ -843,6 +871,9 @@ int main(int argc, char **argv)
 	/* Signal that bootstrap is complete (dbus, resolvconf depend on this) */
 	symlink("/run/finit/cond/reconf", "/run/finit/cond/usr/bootstrap");
 
+	/* Signal IITO that startup applied cleanly (status LEDs) */
+	set_finit_cond("run/startup/success");
+
 	/*
 	 * Write restart sentinel.  From this point on, sysrepo and the system
 	 * are in a consistent state.  If confd exits for any reason (crash or