diff --git a/include/libbb.h b/include/libbb.h
index 8c7978456..83ecca47f 100644
--- a/include/libbb.h
+++ b/include/libbb.h
@@ -1515,7 +1515,8 @@ int del_loop(const char *device) FAST_FUNC;
  * malloc and return it in *devname.
  * return value is the opened fd to the loop device, or < on error
  */
-int set_loop(char **devname, const char *file, unsigned long long offset, unsigned flags) FAST_FUNC;
+int set_loop(char **devname, const char *file, unsigned long long offset,
+		unsigned long long sizelimit, unsigned flags) FAST_FUNC;
 /* These constants match linux/loop.h (without BB_ prefix): */
 #define BB_LO_FLAGS_READ_ONLY 1
 #define BB_LO_FLAGS_AUTOCLEAR 4
diff --git a/libbb/loop.c b/libbb/loop.c
index ada0c7638..85b2724e5 100644
--- a/libbb/loop.c
+++ b/libbb/loop.c
@@ -102,7 +102,8 @@ int FAST_FUNC get_free_loop(void)
  * search will re-use an existing loop device already bound to that
  * file/offset if it finds one.
  */
-int FAST_FUNC set_loop(char **device, const char *file, unsigned long long offset, unsigned flags)
+int FAST_FUNC set_loop(char **device, const char *file, unsigned long long offset,
+		unsigned long long sizelimit, unsigned flags)
 {
 	char dev[LOOP_NAMESIZE];
 	char *try;
@@ -185,6 +186,7 @@ int FAST_FUNC set_loop(char **device, const char *file, unsigned long long offse
 				memset(&loopinfo, 0, sizeof(loopinfo));
 				safe_strncpy((char *)loopinfo.lo_file_name, file, LO_NAME_SIZE);
 				loopinfo.lo_offset = offset;
+				loopinfo.lo_sizelimit = sizelimit;
 				/*
 				 * Used by mount to set LO_FLAGS_AUTOCLEAR.
 				 * LO_FLAGS_READ_ONLY is not set because RO is controlled by open type of the file.
diff --git a/util-linux/losetup.c b/util-linux/losetup.c
index ac8b79502..24f7a2349 100644
--- a/util-linux/losetup.c
+++ b/util-linux/losetup.c
@@ -150,7 +150,7 @@ int losetup_main(int argc UNUSED_PARAM, char **argv)
 			if (opt & OPT_P) {
 				flags |= BB_LO_FLAGS_PARTSCAN;
 			}
-			if (set_loop(&d, argv[0], offset, flags) < 0)
+			if (set_loop(&d, argv[0], offset, 0, flags) < 0)
 				bb_simple_perror_msg_and_die(argv[0]);
 			return EXIT_SUCCESS;
 		}
diff --git a/util-linux/mount.c b/util-linux/mount.c
index b92e2c297..19ac13930 100644
--- a/util-linux/mount.c
+++ b/util-linux/mount.c
@@ -1886,6 +1886,58 @@ static int nfsmount(struct mntent *mp, unsigned long vfsflags, char *filteropts)
 
 #endif // !ENABLE_FEATURE_MOUNT_NFS
 
+// Find "...,NAME=NUM,..." in the option string, remove "NAME=NUM" option
+// and return NUM.
+// Return 0 if not found.
+// All instances must be parsed and removed (for example, since kernel 5.4
+//      squashfs: Unknown parameter 'sizelimit'
+// will result if loopback mount option "sizelimit=NNN" is not removed
+// and squashfs sees it in option string).
+static unsigned long long cut_out_ull_opt(char *opts, const char *name_eq)
+{
+	unsigned long long ret = 0;
+
+	if (!opts) // allow NULL opts (simplifies callers' work)
+		return ret;
+
+	for (;;) {
+		char *end;
+		char *opt;
+
+		// Find comma-delimited "NAME="
+		for (;;) {
+			opt = strstr(opts, name_eq);
+			if (!opt)
+				return ret;
+			if (opt == opts)
+				break; // found it (it's first opt)
+			if (opt[-1] == ',') {
+				opts = opt - 1;
+				break; // found it (it's not a first opt)
+			}
+			// False positive like "VNAME=", we are at "N".
+			// - skip it, loop back to searching
+			opts = opt + 1;
+		}
+
+		ret = bb_strtoull(opt + strlen(name_eq), &end, 0);
+		if (errno && errno != EINVAL) {
+ err:
+			bb_error_msg_and_die("bad option '%s'", opt);
+		}
+		if (*end == '\0') {
+			// It is "[,]NAME=NUM\0" - truncate it and return
+			*opts = '\0';
+			return ret;
+		}
+		if (*end != ',')
+			goto err;
+		// We are at trailing comma
+		// Remove "NAME=NUM," and loop back to check for duplicate opts
+		overlapping_strcpy(opt, end + 1);
+	}
+}
+
 // Mount one directory.  Handles CIFS, NFS, loopback, autobind, and filesystem
 // type detection.  Returns 0 for success, nonzero for failure.
 // NB: mp->xxx fields may be trashed on exit
@@ -2029,9 +2081,16 @@ static int singlemount(struct mntent *mp, int ignore_busy)
 	) {
 		// Do we need to allocate a loopback device for it?
 		if (ENABLE_FEATURE_MOUNT_LOOP && S_ISREG(st.st_mode)) {
+			unsigned long long offset;
+			unsigned long long sizelimit;
+
 			loopFile = bb_simplify_path(mp->mnt_fsname);
 			mp->mnt_fsname = NULL; // will receive malloced loop dev name
 
+			// Parse and remove loopback options
+			offset = cut_out_ull_opt(filteropts, "offset=");
+			sizelimit = cut_out_ull_opt(filteropts, "sizelimit=");
+
 			// mount always creates AUTOCLEARed loopdevs, so that umounting
 			// drops them without any code in the userspace.
 			// This happens since circa linux-2.6.25:
@@ -2040,7 +2099,8 @@ static int singlemount(struct mntent *mp, int ignore_busy)
 			// Subject: Allow auto-destruction of loop devices
 			loopfd = set_loop(&mp->mnt_fsname,
 					loopFile,
-					0,
+					offset,
+					sizelimit,
 					((vfsflags & MS_RDONLY) ? BB_LO_FLAGS_READ_ONLY : 0)
 						| BB_LO_FLAGS_AUTOCLEAR
 			);