diff --git a/microdroid/Android.bp b/microdroid/Android.bp
index bc4db6c..a2a4138 100644
--- a/microdroid/Android.bp
+++ b/microdroid/Android.bp
@@ -51,6 +51,7 @@
     deps: [
         "init_second_stage",
         "microdroid_build_prop",
+        "microdroid_init_debug_policy",
         "microdroid_init_rc",
         "microdroid_ueventd_rc",
         "microdroid_launcher",
diff --git a/microdroid/init.rc b/microdroid/init.rc
index 70c22d4..5187a12 100644
--- a/microdroid/init.rc
+++ b/microdroid/init.rc
@@ -21,13 +21,9 @@
     write /linkerconfig/ld.config.txt \#
     chmod 644 /linkerconfig/ld.config.txt
 
-# If VM is debuggable, send logs to outside ot the VM via the serial console.
-# If non-debuggable, logs are internally consumed at /dev/null
-on early-init && property:ro.boot.microdroid.debuggable=1
-    setprop ro.log.file_logger.path /dev/hvc2
-
-on early-init && property:ro.boot.microdroid.debuggable=0
-    setprop ro.log.file_logger.path /dev/null
+    # Applies debug policy to decide whether to enable adb, adb root, and logcat.
+    # We don't directly exec the binary to specify stdio_to_kmsg.
+    exec_start init_debug_policy
 
 on init
     mkdir /mnt/apk 0755 system system
@@ -47,8 +43,6 @@
     # payloads are not designed to run with bootstrap bionic
     setprop apex_config.done true
 
-    setprop ro.debuggable ${ro.boot.microdroid.debuggable:-0}
-
 on property:microdroid_manager.init_done=1
     # Stop ueventd to save memory
     stop ueventd
@@ -57,7 +51,7 @@
     # Mount tracefs (with GID=AID_READTRACEFS)
     mount tracefs tracefs /sys/kernel/tracing gid=3012
 
-on init && property:ro.boot.adb.enabled=1
+on property:init_debug_policy.adbd.enabled=1
     start adbd
 
 # Mount filesystems and start core system services.
@@ -179,3 +173,8 @@
     group shell log readproc
     seclabel u:r:shell:s0
     setenv HOSTNAME console
+
+service init_debug_policy /system/bin/init_debug_policy
+    oneshot
+    disabled
+    stdio_to_kmsg
diff --git a/microdroid/init_debug_policy/Android.bp b/microdroid/init_debug_policy/Android.bp
new file mode 100644
index 0000000..b56ef79
--- /dev/null
+++ b/microdroid/init_debug_policy/Android.bp
@@ -0,0 +1,11 @@
+rust_binary {
+    name: "microdroid_init_debug_policy",
+    srcs: ["src/init_debug_policy.rs"],
+    stem: "init_debug_policy",
+    rustlibs: [
+        "librustutils",
+    ],
+    installable: false, // match with microdroid_init_rc.
+    bootstrap: true,
+    prefer_rlib: true,
+}
diff --git a/microdroid/init_debug_policy/src/init_debug_policy.rs b/microdroid/init_debug_policy/src/init_debug_policy.rs
new file mode 100644
index 0000000..6c80926
--- /dev/null
+++ b/microdroid/init_debug_policy/src/init_debug_policy.rs
@@ -0,0 +1,57 @@
+// Copyright 2023, The Android Open Source Project
+//
+// Licensed under the Apache License, Version 2.0 (the "License");
+// you may not use this file except in compliance with the License.
+// You may obtain a copy of the License at
+//
+//     http://www.apache.org/licenses/LICENSE-2.0
+//
+// Unless required by applicable law or agreed to in writing, software
+// distributed under the License is distributed on an "AS IS" BASIS,
+// WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+// See the License for the specific language governing permissions and
+// limitations under the License.
+
+//! Applies debug policies when booting microdroid
+
+use rustutils::system_properties;
+use rustutils::system_properties::PropertyWatcherError;
+use std::fs::File;
+use std::io::Read;
+
+/// Get debug policy value in bool. It's true iff the value is explicitly set to <1>.
+fn get_debug_policy_bool(path: &'static str) -> Option<bool> {
+    let mut file = File::open(path).ok()?;
+    let mut log: [u8; 4] = Default::default();
+    file.read_exact(&mut log).ok()?;
+    // DT spec uses big endian although Android is always little endian.
+    Some(u32::from_be_bytes(log) == 1)
+}
+
+fn main() -> Result<(), PropertyWatcherError> {
+    // If VM is debuggable or debug policy says so, send logs to outside ot the VM via the serial console.
+    // Otherwise logs are internally consumed at /dev/null
+    let log_path = if system_properties::read_bool("ro.boot.microdroid.debuggable", false)?
+        || get_debug_policy_bool("/sys/firmware/devicetree/base/avf/guest/common/log")
+            .unwrap_or_default()
+    {
+        "/dev/hvc2"
+    } else {
+        "/dev/null"
+    };
+    system_properties::write("ro.log.file_logger.path", log_path)?;
+
+    let (adbd_enabled, debuggable) = if system_properties::read_bool("ro.boot.adb.enabled", false)?
+        || get_debug_policy_bool("/sys/firmware/devicetree/base/avf/guest/microdroid/adb")
+            .unwrap_or_default()
+    {
+        // debuggable is required for adb root and bypassing adb authorization.
+        ("1", "1")
+    } else {
+        ("0", "0")
+    };
+    system_properties::write("init_debug_policy.adbd.enabled", adbd_enabled)?;
+    system_properties::write("ro.debuggable", debuggable)?;
+
+    Ok(())
+}