diff --git a/target/sdk/convert-config.pl b/target/sdk/convert-config.pl
index 0e562f9558..f73744af09 100755
--- a/target/sdk/convert-config.pl
+++ b/target/sdk/convert-config.pl
@@ -2,33 +2,58 @@
 use strict;
 
 while (<>) {
+	my $match;
+	my $var;
+	my $val;
+	my $type;
 	chomp;
 	next if /^CONFIG_SIGNED_PACKAGES/;
-	next unless /^CONFIG_([^=]+)=(.*)$/;
 
-	my $var = $1;
-	my $val = $2;
-	my $type;
+	if (/^CONFIG_([^=]+)=(.*)$/) {
+		$var = $1;
+		$val = $2;
 
-	next if $var eq 'ALL';
+		next if $var eq 'ALL';
 
-	if ($val eq 'y') {
+		if ($val eq 'y') {
+			$type = "bool";
+		} elsif ($val eq 'm') {
+			$type = "tristate";
+		} elsif ($val =~ /^".*"$/) {
+			$type = "string";
+		} elsif ($val =~ /^\d+$/) {
+			$type = "int";
+		} else {
+			warn "WARNING: no type found for symbol CONFIG_$var=$val\n";
+			next;
+		}
+	} elsif (/^# CONFIG_BUSYBOX_(.*) is not set/) {
+		$var = "BUSYBOX_$1";
+		$val = 'n';
 		$type = "bool";
-	} elsif ($val eq 'm') {
-		$type = "tristate";
-	} elsif ($val =~ /^".*"$/) {
-		$type = "string";
-	} elsif ($val =~ /^\d+$/) {
-		$type = "int";
 	} else {
-		warn "WARNING: no type found for symbol CONFIG_$var=$val\n";
-		next;
+		# We don't want to preserve a record of deselecting
+		# packages because we may want build them in the SDK.
+		# non-package configs however may be important to preserve
+		# the same compilation settings for packages that get
+		# recompiled in the SDK.
+		# Also we want avoid preserving image generation settings
+		# because we set those while in ImageBuilder
+		next if /^(# )?CONFIG_PACKAGE/;
+		next if /^(# )?CONFIG_TARGET/;
+		if (/^# CONFIG_(.*) is not set/) {
+			$var = $1;
+			$val = 'n';
+			$type = "bool";
+                }
 	}
 
-	print <<EOF;
+	if (($var ne '') && ($type ne '') && ($val ne '')) {
+		print <<EOF;
 config $var
 	$type
 	default $val
 
 EOF
+	}
 }