diff --git a/openpower/package/palmetto-xml/palmetto-xml.mk b/openpower/package/palmetto-xml/palmetto-xml.mk
index af0b8b8..e165c13 100644
--- a/openpower/package/palmetto-xml/palmetto-xml.mk
+++ b/openpower/package/palmetto-xml/palmetto-xml.mk
@@ -4,7 +4,7 @@
 #
 ################################################################################
 
-PALMETTO_XML_VERSION = 227fdb14b0f03a422964ddc19563fdfd3a38e909
+PALMETTO_XML_VERSION = a3fc5ca767f0447a80442bbed70eec16f67fc7f4
 PALMETTO_XML_SITE = $(call github,open-power,palmetto-xml,$(PALMETTO_XML_VERSION))
 
 PALMETTO_XML_LICENSE = Apache-2.0
@@ -14,43 +14,26 @@
 PALMETTO_XML_INSTALL_TARGET = NO
 
 MRW_SCRATCH=$(STAGING_DIR)/openpower_mrw_scratch
-MRW_INSTALL_DIRECTORY=$(STAGING_DIR)/preprocessed_mrw
 MRW_HB_TOOLS=$(STAGING_DIR)/hostboot_build_images
 
-PALMETTO_XML_ENV_VARS= \
-    SCHEMA_FILE=$(MRW_SCRATCH)/schema/mrw.xsd \
-    PARSER_PATH=$(STAGING_DIR)/usr/bin \
-    XSL_PATH=$(MRW_SCRATCH)/xslt \
-    OUTPUT_PATH=$(MRW_INSTALL_DIRECTORY)
-
 define PALMETTO_XML_BUILD_CMDS
         # copy the palmetto xml where the common lives
         bash -c 'mkdir -p $(MRW_SCRATCH) && cp -r $(@D)/* $(MRW_SCRATCH)'
-        mkdir -p $(MRW_INSTALL_DIRECTORY)
 
-        # run the mrw parsers
-        $(PALMETTO_XML_ENV_VARS) bash -c 'cd $(MRW_SCRATCH) && $(MAKE) palmetto'
-
-        # move the APSS xml to the output area
-        cp $(MRW_SCRATCH)/PALMETTO_APSS.xml $(MRW_INSTALL_DIRECTORY)
-
-        # generate the system mrm xml
-        $(MRW_HB_TOOLS)/genHwsvMrwXml.pl \
-            --system=$(BR2_OPENPOWER_CONFIG_NAME) \
-            --mrwdir=$(MRW_INSTALL_DIRECTORY) \
-            --build=hb > $(MRW_INSTALL_DIRECTORY)/$(BR2_PALMETTO_MRW_XML_FILENAME)
-
+        # generate the system mrw xml
+        perl -I $(MRW_HB_TOOLS) \
+        $(MRW_HB_TOOLS)/processMrw.pl -x $(MRW_SCRATCH)/palmetto.xml
 endef
 
 define PALMETTO_XML_INSTALL_IMAGES_CMDS
 
         # merge in any system specific attributes, hostboot attributes
-        $(MRW_HB_TOOLS)/mergexml.sh $(@D)/$(BR2_PALMETTO_SYSTEM_XML_FILENAME) \
+        $(MRW_HB_TOOLS)/mergexml.sh $(MRW_SCRATCH)/$(BR2_PALMETTO_SYSTEM_XML_FILENAME) \
             $(MRW_HB_TOOLS)/attribute_types.xml \
             $(MRW_HB_TOOLS)/attribute_types_hb.xml \
             $(MRW_HB_TOOLS)/target_types_merged.xml \
             $(MRW_HB_TOOLS)/target_types_hb.xml \
-            $(MRW_INSTALL_DIRECTORY)/$(BR2_PALMETTO_MRW_XML_FILENAME) > $(MRW_HB_TOOLS)/temporary_hb.hb.xml;
+            $(MRW_SCRATCH)/$(BR2_PALMETTO_MRW_XML_FILENAME) > $(MRW_HB_TOOLS)/temporary_hb.hb.xml;
 
         # creating the targeting binary
         $(MRW_HB_TOOLS)/xmltohb.pl  \