diff --git a/scripts/runqemu b/scripts/runqemu
index 6c263d6b2a..b6af619f20 100755
--- a/scripts/runqemu
+++ b/scripts/runqemu
@@ -376,7 +376,42 @@ class BaseConfig(object):
              re.search('fitImage', p) or re.search('uImage', p):
             self.kernel =  p
         elif os.path.isfile(p) and ('-image-' in os.path.basename(p) or '.rootfs.' in os.path.basename(p)):
-            self.rootfs = p
+
+            # Decompress ZST image if needed
+            if p.endswith('.zst'):
+                # Get the real path to the image to avoid issues when a symbolic link is passed.
+                # This ensures we always operate on the actual file.
+                image_path = os.path.realpath(p)
+                # Extract target filename by removing .zst
+                image_dir = os.path.dirname(image_path)
+                uncompressed_name = os.path.basename(image_path).replace(".zst", "")
+                uncompressed_path = os.path.join(image_dir, uncompressed_name)
+
+                # If the decompressed image already exists (e.g., in the deploy directory),
+                # we use it directly to avoid overwriting artifacts generated by the build system.
+                # This prevents redundant decompression and preserves build outputs.
+                if os.path.exists(uncompressed_path):
+                    logger.warning(f"Found existing decompressed image: {uncompressed_path}, Using it directly.")
+                else:
+                    logger.info(f"Decompressing {p} to {uncompressed_path}")
+                    # Ensure the 'zstd' tool is installed before attempting to decompress.
+                    if not shutil.which('zstd'):
+                        raise RunQemuError(f"'zstd' is required to decompress {p} but was not found in PATH")
+                    try:
+                        with open(uncompressed_path, 'wb') as out_file:
+                            subprocess.check_call(['zstd', '-d', '-c', image_path], stdout=out_file)
+                    except subprocess.CalledProcessError as e:
+                        self.cleanup_files.append(uncompressed_path)
+                        raise RunQemuError(f"Failed to decompress {p}: {e}")
+
+                    # Mark for deletion at the end
+                    self.cleanup_files.append(uncompressed_path)
+
+                # Use the decompressed image as the rootfs
+                self.rootfs = uncompressed_path
+
+            else:
+                self.rootfs = p
             # Check filename against self.fstypes can handle <file>.cpio.gz,
             # otherwise, its type would be "gz", which is incorrect.
             fst = ""