diff --git a/components/engine/pkg/libcontainer/network/loopback.go b/components/engine/pkg/libcontainer/network/loopback.go
new file mode 100644
index 0000000000..6215061dc2
--- /dev/null
+++ b/components/engine/pkg/libcontainer/network/loopback.go
@@ -0,0 +1,24 @@
+package network
+
+import (
+	"fmt"
+	"github.com/dotcloud/docker/pkg/libcontainer"
+)
+
+// Loopback is a network strategy that provides a basic loopback device
+type Loopback struct {
+}
+
+func (l *Loopback) Create(n *libcontainer.Network, nspid int, context libcontainer.Context) error {
+	return nil
+}
+
+func (l *Loopback) Initialize(config *libcontainer.Network, context libcontainer.Context) error {
+	if err := SetMtu("lo", config.Mtu); err != nil {
+		return fmt.Errorf("set lo mtu to %d %s", config.Mtu, err)
+	}
+	if err := InterfaceUp("lo"); err != nil {
+		return fmt.Errorf("lo up %s", err)
+	}
+	return nil
+}
diff --git a/components/engine/pkg/libcontainer/network/strategy.go b/components/engine/pkg/libcontainer/network/strategy.go
index 234fcc0aa2..693790d280 100644
--- a/components/engine/pkg/libcontainer/network/strategy.go
+++ b/components/engine/pkg/libcontainer/network/strategy.go
@@ -10,7 +10,8 @@ var (
 )
 
 var strategies = map[string]NetworkStrategy{
-	"veth": &Veth{},
+	"veth":     &Veth{},
+	"loopback": &Loopback{},
 }
 
 // NetworkStrategy represents a specific network configuration for
diff --git a/components/engine/pkg/libcontainer/network/veth.go b/components/engine/pkg/libcontainer/network/veth.go
index 3ab1b2393b..3df0cd61ee 100644
--- a/components/engine/pkg/libcontainer/network/veth.go
+++ b/components/engine/pkg/libcontainer/network/veth.go
@@ -68,12 +68,6 @@ func (v *Veth) Initialize(config *libcontainer.Network, context libcontainer.Con
 	if err := InterfaceUp("eth0"); err != nil {
 		return fmt.Errorf("eth0 up %s", err)
 	}
-	if err := SetMtu("lo", config.Mtu); err != nil {
-		return fmt.Errorf("set lo mtu to %d %s", config.Mtu, err)
-	}
-	if err := InterfaceUp("lo"); err != nil {
-		return fmt.Errorf("lo up %s", err)
-	}
 	if config.Gateway != "" {
 		if err := SetDefaultGateway(config.Gateway); err != nil {
 			return fmt.Errorf("set gateway to %s %s", config.Gateway, err)
diff --git a/components/engine/pkg/libcontainer/nsinit/init.go b/components/engine/pkg/libcontainer/nsinit/init.go
index e329becbdf..117ae875ed 100644
--- a/components/engine/pkg/libcontainer/nsinit/init.go
+++ b/components/engine/pkg/libcontainer/nsinit/init.go
@@ -134,7 +134,11 @@ func setupNetwork(container *libcontainer.Container, context libcontainer.Contex
 		if err != nil {
 			return err
 		}
-		return strategy.Initialize(config, context)
+
+		err1 := strategy.Initialize(config, context)
+		if err1 != nil {
+			return err1
+		}
 	}
 	return nil
 }
diff --git a/components/engine/runtime/execdriver/native/default_template.go b/components/engine/runtime/execdriver/native/default_template.go
index e76be6ebec..47b19c9d66 100644
--- a/components/engine/runtime/execdriver/native/default_template.go
+++ b/components/engine/runtime/execdriver/native/default_template.go
@@ -19,19 +19,34 @@ func createContainer(c *execdriver.Command) *libcontainer.Container {
 	container.WorkingDir = c.WorkingDir
 	container.Env = c.Env
 
+	loopbackNetwork := libcontainer.Network{
+		// Using constants here because
+		// when networking is disabled
+		// These settings simply don't exist:
+		// https://github.com/dotcloud/docker/blob/c7ea6e5da80af3d9ba7558f876efbf0801d988d8/runtime/container.go#L367
+		Mtu:     1500,
+		Address: fmt.Sprintf("%s/%d", "127.0.0.1", 0),
+		Gateway: "localhost",
+		Type:    "loopback",
+		Context: libcontainer.Context{},
+	}
+
+	container.Networks = []*libcontainer.Network{
+		&loopbackNetwork,
+	}
+
 	if c.Network != nil {
-		container.Networks = []*libcontainer.Network{
-			{
-				Mtu:     c.Network.Mtu,
-				Address: fmt.Sprintf("%s/%d", c.Network.IPAddress, c.Network.IPPrefixLen),
-				Gateway: c.Network.Gateway,
-				Type:    "veth",
-				Context: libcontainer.Context{
-					"prefix": "veth",
-					"bridge": c.Network.Bridge,
-				},
+		vethNetwork := libcontainer.Network{
+			Mtu:     c.Network.Mtu,
+			Address: fmt.Sprintf("%s/%d", c.Network.IPAddress, c.Network.IPPrefixLen),
+			Gateway: c.Network.Gateway,
+			Type:    "veth",
+			Context: libcontainer.Context{
+				"prefix": "veth",
+				"bridge": c.Network.Bridge,
 			},
 		}
+		container.Networks = append(container.Networks, &vethNetwork)
 	}
 
 	container.Cgroups.Name = c.ID