diff --git a/cmd/build.go b/cmd/build.go
index f5531686..2b47c46c 100644
--- a/cmd/build.go
+++ b/cmd/build.go
@@ -24,6 +24,7 @@ var (
 		debugBootstrap    bool
 		debugBaseIgnition bool
 		isLiveISO         bool
+		preserveTempDirs  bool
 	}
 
 	envConfig    config.EnvConfig
@@ -42,6 +43,7 @@ func NewBuildCmd() *cobra.Command {
 	cmd.AddCommand(getBuildLiveISOCmd())
 	cmd.PersistentFlags().BoolVar(&buildOpts.debugBootstrap, "debug-bootstrap", false, "")
 	cmd.PersistentFlags().BoolVar(&buildOpts.debugBaseIgnition, "debug-base-ignition", false, "")
+	cmd.PersistentFlags().BoolVar(&buildOpts.preserveTempDirs, "preserve-temp-dirs", false, "Preserve temporary directories for debugging")
 	if err := cmd.PersistentFlags().MarkHidden("debug-bootstrap"); err != nil {
 		logrus.Fatal(err)
 	}
@@ -233,6 +235,7 @@ func preRunBuild(cmd *cobra.Command, args []string) {
 		DebugBootstrap:    buildOpts.debugBootstrap,
 		DebugBaseIgnition: buildOpts.debugBaseIgnition,
 		IsLiveISO:         buildOpts.isLiveISO,
+		PreserveTempDirs:  buildOpts.preserveTempDirs,
 	}
 
 	// Generate EnvConfig asset
diff --git a/pkg/asset/appliance/appliance_liveiso.go b/pkg/asset/appliance/appliance_liveiso.go
index d6e8bd33..c931d1bb 100644
--- a/pkg/asset/appliance/appliance_liveiso.go
+++ b/pkg/asset/appliance/appliance_liveiso.go
@@ -216,6 +216,15 @@ func (a *ApplianceLiveISO) buildLiveISO(
 		logrus.Errorf("Error creating isohybrid: %s", err)
 	}
 
+	// Clean up work directory now that appliance.iso has been created
+	if envConfig.PreserveTempDirs {
+		logrus.Infof("Preserving work directory for debugging: %s", workDir)
+	} else {
+		if err = os.RemoveAll(workDir); err != nil {
+			logrus.Warnf("Failed to clean up work directory %s: %v", workDir, err)
+		}
+	}
+
 	return log.StopSpinner(spinner, nil)
 }
 
diff --git a/pkg/asset/config/env_config.go b/pkg/asset/config/env_config.go
index 16e69f4e..3fe29ff2 100644
--- a/pkg/asset/config/env_config.go
+++ b/pkg/asset/config/env_config.go
@@ -26,6 +26,7 @@ type EnvConfig struct {
 
 	DebugBootstrap    bool
 	DebugBaseIgnition bool
+	PreserveTempDirs  bool
 }
 
 var _ asset.Asset = (*EnvConfig)(nil)
diff --git a/pkg/asset/data/data_iso.go b/pkg/asset/data/data_iso.go
index e6abfff3..b5eb6024 100644
--- a/pkg/asset/data/data_iso.go
+++ b/pkg/asset/data/data_iso.go
@@ -141,6 +141,14 @@ func (a *DataISO) Generate(dependencies asset.Parents) error {
 	if err = imageGen.GenerateImage(envConfig.CacheDir, dataIsoName, filepath.Join(envConfig.TempDir, dataDir), dataVolumeName); err != nil {
 		return log.StopSpinner(spinner, err)
 	}
+	// Clean up staging directory now that data.iso has been created
+	if envConfig.PreserveTempDirs {
+		logrus.Infof("Preserving staging directory for debugging: %s", dataDirPath)
+	} else {
+		if err = os.RemoveAll(dataDirPath); err != nil {
+			logrus.Warnf("Failed to clean up staging directory %s: %v", dataDirPath, err)
+		}
+	}
 	return log.StopSpinner(spinner, a.updateAsset(envConfig))
 }