diff --git a/__tests__/docker/install.test.itg.ts b/__tests__/docker/install.test.itg.ts
index 4d0dde95..c55f43a8 100644
--- a/__tests__/docker/install.test.itg.ts
+++ b/__tests__/docker/install.test.itg.ts
@@ -19,6 +19,7 @@ import {jest, describe, expect, test, beforeEach, afterEach} from '@jest/globals
 
 import {Install} from '../../src/docker/install';
 import {Docker} from '../../src/docker/docker';
+import {Exec} from '../../src/exec';
 
 // prettier-ignore
 const tmpDir = path.join(process.env.TEMP || '/tmp', 'docker-install-jest');
@@ -38,8 +39,19 @@ aarch64:https://cloud.debian.org/images/cloud/bookworm/20231013-1532/debian-12-g
     process.env = originalEnv;
   });
   // prettier-ignore
-  test.each(['v24.0.4'])(
+  test.each(['v26.1.4'])(
     'install docker %s', async (version) => {
+      if (process.env.ImageOS && process.env.ImageOS.startsWith('ubuntu')) {
+        // Remove containerd first on ubuntu runners to make sure it takes
+        // ones packaged with docker
+        await Exec.exec('sudo', ['apt-get', 'remove', '-y', 'containerd.io'], {
+          env: Object.assign({}, process.env, {
+            DEBIAN_FRONTEND: 'noninteractive'
+          }) as {
+            [key: string]: string;
+          }
+        });
+      }
       await expect((async () => {
         const install = new Install({
           version: version,
diff --git a/src/docker/assets.ts b/src/docker/assets.ts
index fd42cf1a..15e39c22 100644
--- a/src/docker/assets.ts
+++ b/src/docker/assets.ts
@@ -79,6 +79,9 @@ if (Get-Service docker -ErrorAction SilentlyContinue) {
   Write-Host "Service removed"
 }
 
+$env:Path = "$ToolDir;" + [System.Environment]::GetEnvironmentVariable("Path","Machine") + ";" + [System.Environment]::GetEnvironmentVariable("Path","User")
+Write-Host "Path: $env:Path"
+
 $env:DOCKER_HOST = $DockerHost
 Write-Host "DOCKER_HOST: $env:DOCKER_HOST"
 
diff --git a/src/docker/install.ts b/src/docker/install.ts
index d3243cb2..46af76cb 100644
--- a/src/docker/install.ts
+++ b/src/docker/install.ts
@@ -253,6 +253,12 @@ export class Install {
       });
     }
 
+    const envs = Object.assign({}, process.env, {
+      PATH: `${this.toolDir}:${process.env.PATH}`
+    }) as {
+      [key: string]: string;
+    };
+
     await core.group('Start Docker daemon', async () => {
       const bashPath: string = await io.which('bash', true);
       const cmd = `${this.toolDir}/dockerd --host="${dockerHost}" --config-file="${daemonConfigPath}" --exec-root="${this.runDir}/execroot" --data-root="${this.runDir}/data" --pidfile="${this.runDir}/docker.pid" --userland-proxy=false`;
@@ -262,11 +268,12 @@ export class Install {
         // avoid killing it when the action finishes running. Even if detached,
         // we also need to run dockerd in a subshell and unref the process so
         // GitHub Action doesn't wait for it to finish.
-        `sudo -E ${bashPath} << EOF
+        `sudo env "PATH=$PATH" ${bashPath} << EOF
 ( ${cmd} 2>&1 | tee "${this.runDir}/dockerd.log" ) &
 EOF`,
         [],
         {
+          env: envs,
           detached: true,
           shell: true,
           stdio: ['ignore', process.stdout, process.stderr]
@@ -280,7 +287,7 @@ EOF`,
           try {
             await Exec.getExecOutput(`docker version`, undefined, {
               silent: true,
-              env: Object.assign({}, process.env, {
+              env: Object.assign({}, envs, {
                 DOCKER_HOST: dockerHost
               }) as {
                 [key: string]: string;