diff --git a/cmd/import.go b/cmd/import.go
index c7c107d..b924a9e 100755
--- a/cmd/import.go
+++ b/cmd/import.go
@@ -96,15 +96,14 @@ func runImport(cmd *cobra.Command, args []string) {
 }
 
 func getImportVersionProduct(path string) (string, string) {
-	var versionfile string
-	versionfile = path + "/version.txt"
+	versionfile := path + "/version.txt"
 	version, err := utils.ScannerFunc(versionfile, "version")
 	if err != nil {
 		log.Error().Msg("Version not found.")
 	}
 	product, err := utils.ScannerFunc(versionfile, "product_name")
 	if err != nil {
-		log.Fatal().Msg("Product not found")
+		log.Error().Msg("Product not found")
 	}
 	log.Debug().Msgf("Import Product: %s; Version: %s", product, version)
 	return version, product
@@ -195,20 +194,6 @@ func runImageFileSync(absImportDir string, serverConfig string) {
 	if err != nil {
 		log.Fatal().Err(err).Msg("Error importing image files")
 	}
-
-	pillarImportDir := path.Join(absImportDir, "images", "pillars")
-	err = utils.FolderExists(pillarImportDir)
-	if err != nil {
-		if os.IsNotExist(err) {
-			log.Debug().Msg("No pillar files to import")
-			return
-		} else {
-			log.Fatal().Err(err).Msg("Error reading import folder for pillars")
-		}
-	}
-
-	log.Info().Msg("Copying image pillar files")
-	pillarDumper.ImportImagePillars(pillarImportDir, utils.GetCurrentServerFQDN(serverConfig))
 }
 
 func importSqlFile(absImportDir string) {
diff --git a/cmd/password_test.go b/cmd/password_test.go
index ca68129..045828e 100644
--- a/cmd/password_test.go
+++ b/cmd/password_test.go
@@ -7,28 +7,15 @@ package cmd
 import (
 	"os"
 	"testing"
-)
 
-// create a temp file with a dummy password
-func createTempFile(t *testing.T) string {
-	t.Helper()
-	f, err := os.CreateTemp("", "passwordfile")
-	if err != nil {
-		t.Fatalf("failed to create temp file: %v", err)
-	}
-	_, err = f.WriteString("filepassword\n")
-	if err != nil {
-		t.Fatalf("failed to write to temp file: %v", err)
-	}
-	f.Close()
-	return f.Name()
-}
+	"github.com/uyuni-project/inter-server-sync/tests"
+)
 
 // TestGetXMLRPCPassword tests the getXMLRPCPassword function
 // Checks the priority of password sources: xmlRpcPasswordFile flag, stdin, and xmlRpcPassword flag.
 func TestGetXMLRPCPassword(t *testing.T) {
 	// Create the temp file once
-	tmpFile := createTempFile(t)
+	tmpFile := tests.CreateTempFile(t, "filepassword\n")
 	defer os.Remove(tmpFile)
 
 	tests := []struct {
diff --git a/dumper/pillarDumper/pillarDumper.go b/dumper/pillarDumper/pillarDumper.go
index 255d5bb..280dd16 100644
--- a/dumper/pillarDumper/pillarDumper.go
+++ b/dumper/pillarDumper/pillarDumper.go
@@ -6,113 +6,21 @@ package pillarDumper
 
 import (
 	"fmt"
-	"os"
-	"os/exec"
-	"path"
-	"path/filepath"
 
 	"github.com/rs/zerolog/log"
-	"github.com/uyuni-project/inter-server-sync/dumper"
 	"github.com/uyuni-project/inter-server-sync/schemareader"
 	"github.com/uyuni-project/inter-server-sync/utils"
 )
 
-var serverDataDir = "/srv/susemanager/pillar_data/"
 var replacePattern = "{SERVER_FQDN}"
 
-func DumpImagePillars(outputDir string, orgIds []uint, serverConfig string) {
-	log.Debug().Msgf("Dumping pillars to %s", outputDir)
-	fqdn := utils.GetCurrentServerFQDN(serverConfig)
-
-	sourceDir := filepath.Join(serverDataDir, "images")
-	orgDir, err := os.Open(sourceDir)
-	if err != nil {
-		log.Fatal().Err(err)
-	}
-	defer orgDir.Close()
-	orgDirInfo, err := orgDir.ReadDir(-1)
-
-	// If orgIds is empty, set it to 0 so all orgs would be exported
-	if len(orgIds) == 0 {
-		orgIds = []uint{0}
-	}
-
-	for _, org := range orgDirInfo {
-		for _, orgId := range orgIds {
-			if org.Type().IsDir() && (orgId == 0 || org.Name() == fmt.Sprintf("org%d", orgId)) {
-				DumpPillars(path.Join(sourceDir, org.Name()), path.Join(outputDir, org.Name()), fqdn, replacePattern)
-			}
-		}
-
-	}
-}
-
-func DumpPillars(sourceDir, outputDir, sourceFQDN, targetFQDN string) {
-	log.Trace().Msgf("Pillar dump for %s, replacing FQDN %s", sourceDir, sourceFQDN)
-
-	pillarDir, err := os.Open(sourceDir)
-	if err != nil {
-		log.Fatal().Err(err)
-	}
-	defer pillarDir.Close()
-	pillarDirInfo, err := pillarDir.ReadDir(-1)
-
-	for _, pillar := range pillarDirInfo {
-		if pillar.Type().IsRegular() {
-			pillarFilePath := path.Join(sourceDir, pillar.Name())
-			pillarTargetPath := path.Join(outputDir, pillar.Name())
-			log.Trace().Msgf("Parsing and copying pillar from %s to %s", pillarFilePath, pillarTargetPath)
-
-			_, err := dumper.ModifyCopy(pillarFilePath,
-				pillarTargetPath,
-				sourceFQDN, targetFQDN)
-			if err != nil {
-				log.Fatal().Err(err)
-			}
-			os.Chmod(pillarTargetPath, 0640)
-			cmd := exec.Command("chown", "salt:susemanager", pillarTargetPath)
-			cmd.Stdout = os.Stdout
-			cmd.Stderr = os.Stderr
-			err = cmd.Run()
-			if err != nil {
-				log.Fatal().Err(err).Msg("Error processing image pillar files")
-			}
-		}
-	}
-}
-
-// 4.2 and older stores pillars in files
 // image export replaces hostnames in image pillars, we need to replace them to correct SUMA on import
-func ImportImagePillars(sourceDir string, fqdn string) {
-	log.Debug().Msgf("Importing image pillars from %s", sourceDir)
-	orgDir, err := os.Open(sourceDir)
+func UpdateImagePillars(serverConfig string) {
+	fqdn, err := utils.GetCurrentServerFQDN(serverConfig)
 	if err != nil {
-		log.Fatal().Err(err)
-	}
-	defer orgDir.Close()
-	orgDirInfo, err := orgDir.ReadDir(-1)
-
-	for _, org := range orgDirInfo {
-		if org.Type().IsDir() {
-			targetDir := path.Join(serverDataDir, "images", org.Name())
-			DumpPillars(path.Join(sourceDir, org.Name()), targetDir, replacePattern, fqdn)
-
-			cmd := exec.Command("chown", "salt:susemanager", targetDir)
-			cmd.Stdout = os.Stdout
-			cmd.Stderr = os.Stderr
-			err = cmd.Run()
-			if err != nil {
-				log.Fatal().Err(err).Msg("Error importing image pillar files")
-
-			}
-		}
+		log.Error().Msgf("FQDN of server not found, images pillar will not be updated")
+		return
 	}
-}
-
-// 4.3 and newer stores pillars in database
-// image export replaces hostnames in image pillars, we need to replace them to correct SUMA on import
-func UpdateImagePillars(serverConfig string) {
-	fqdn := utils.GetCurrentServerFQDN(serverConfig)
 
 	checkQuery := "SELECT EXISTS (SELECT FROM pg_tables WHERE schemaname = 'public' AND tablename = 'susesaltpillar')"
 	db := schemareader.GetDBconnection(serverConfig)
@@ -137,7 +45,7 @@ func UpdateImagePillars(serverConfig string) {
 		replacePattern, fqdn)
 	log.Trace().Msgf("Updating pillar files using query '%s'", sqlQuery)
 	log.Info().Msg("Updating image pillars if needed")
-	rows, err = db.Query(sqlQuery)
+	_, err = db.Query(sqlQuery)
 	if err != nil {
 		log.Fatal().Err(err).Msgf("Error updating image pillars")
 	}
diff --git a/entityDumper/imageDataDumper.go b/entityDumper/imageDataDumper.go
index a1ca97c..86ef56b 100644
--- a/entityDumper/imageDataDumper.go
+++ b/entityDumper/imageDataDumper.go
@@ -14,7 +14,6 @@ import (
 	"github.com/rs/zerolog/log"
 	"github.com/uyuni-project/inter-server-sync/dumper"
 	"github.com/uyuni-project/inter-server-sync/dumper/osImageDumper"
-	"github.com/uyuni-project/inter-server-sync/dumper/pillarDumper"
 	"github.com/uyuni-project/inter-server-sync/schemareader"
 	"github.com/uyuni-project/inter-server-sync/sqlUtil"
 )
@@ -268,13 +267,9 @@ func dumpImageData(db *sql.DB, writer *bufio.Writer, options DumperOptions) {
 		var outputFolderImagesAbs = filepath.Join(outputFolderAbs, "images")
 		ValidateExportFolder(outputFolderImagesAbs)
 		dumpImageStores(db, writer, schemaMetadata, options, "os_image")
-		if dumpOSImageTables(db, writer, schemaMetadata, options, outputFolderImagesAbs) {
-			var outputFolderPillarAbs = filepath.Join(outputFolderAbs, "images", "pillars")
-			ValidateExportFolder(outputFolderPillarAbs)
-			pillarDumper.DumpImagePillars(outputFolderPillarAbs, options.Orgs, options.ServerConfig)
-			if !options.MetadataOnly {
-				osImageDumper.DumpOsImages(outputFolderImagesAbs, options.Orgs)
-			}
+		if dumpOSImageTables(db, writer, schemaMetadata, options, outputFolderImagesAbs) && !options.MetadataOnly {
+			// Pillars are transfered as part of the sql export
+			osImageDumper.DumpOsImages(outputFolderImagesAbs, options.Orgs)
 		}
 		// This is needed for containers to be able to export their respective tables
 		markAsUnexported(schemaMetadata, []string{"suseimagestore", "suseimageprofile"})
diff --git a/inter-server-sync.changes.oholecek.remove_42_support b/inter-server-sync.changes.oholecek.remove_42_support
new file mode 100644
index 0000000..b236d1a
--- /dev/null
+++ b/inter-server-sync.changes.oholecek.remove_42_support
@@ -0,0 +1 @@
+- remove support for 4.2 file based pillars
diff --git a/inter-server-sync.changes.oholecek.use_correct_hostname_detection b/inter-server-sync.changes.oholecek.use_correct_hostname_detection
new file mode 100644
index 0000000..f355dfc
--- /dev/null
+++ b/inter-server-sync.changes.oholecek.use_correct_hostname_detection
@@ -0,0 +1,2 @@
+- use correct hostname detection for 5.x servers
+  (bsc#1253322)
diff --git a/tests/utils.go b/tests/utils.go
index c997b3d..b51bc18 100644
--- a/tests/utils.go
+++ b/tests/utils.go
@@ -9,6 +9,8 @@ import (
 	"database/sql"
 	"database/sql/driver"
 	"fmt"
+	"os"
+	"testing"
 
 	"github.com/DATA-DOG/go-sqlmock"
 )
@@ -113,3 +115,18 @@ func checkErr(err error) {
 		panic(err)
 	}
 }
+
+// create a temp file with a dummy password
+func CreateTempFile(t *testing.T, content string) string {
+	t.Helper()
+	f, err := os.CreateTemp("", "issv2")
+	if err != nil {
+		t.Fatalf("failed to create temp file: %v", err)
+	}
+	_, err = f.WriteString(content)
+	if err != nil {
+		t.Fatalf("failed to write to temp file: %v", err)
+	}
+	f.Close()
+	return f.Name()
+}
diff --git a/utils/utils.go b/utils/utils.go
index 484937c..c5ff641 100755
--- a/utils/utils.go
+++ b/utils/utils.go
@@ -98,16 +98,21 @@ func GetCurrentServerVersion(serverConfig string) (string, string) {
 	return version, product
 }
 
-func GetCurrentServerFQDN(serverConfig string) string {
+func GetCurrentServerFQDN(serverConfig string) (string, error) {
 	files := []string{serverConfig}
 	files = append(files, getDefaultConfigs()...)
-	property := []string{"cobbler.host"}
+	property := []string{"java.hostname"}
 	p, err := getProperty(files, property)
 	if err != nil {
-		log.Error().Msgf("FQDN of server not found, images pillar may not be processed correclty")
-		return ""
+		// This still might be 4.3 server, try cobbler.host
+		property = []string{"cobbler.host"}
+		p, err = getProperty(files, property)
+		if err != nil {
+			log.Error().Msgf(", images pillar may not be processed correctly")
+			return "", fmt.Errorf("FQDN of server not found")
+		}
 	}
-	return p
+	return p, nil
 }
 
 func getProperty(filePaths []string, names []string) (string, error) {
@@ -125,7 +130,8 @@ func getProperty(filePaths []string, names []string) (string, error) {
 func ScannerFunc(path string, search string) (string, error) {
 	f, err := os.Open(path)
 	if err != nil {
-		log.Fatal().Msgf("Couldn't open file: %s", path)
+		log.Error().Msgf("Couldn't open file: %s", path)
+		return "", err
 	}
 	defer f.Close()
 	scanner := bufio.NewScanner(f)
diff --git a/utils/utils_test.go b/utils/utils_test.go
index 71d8492..308c693 100644
--- a/utils/utils_test.go
+++ b/utils/utils_test.go
@@ -5,7 +5,10 @@
 package utils
 
 import (
+	"os"
 	"testing"
+
+	"github.com/uyuni-project/inter-server-sync/tests"
 )
 
 func TestArrayRevert(t *testing.T) {
@@ -41,3 +44,101 @@ func TestValidateDateInvalid(t *testing.T) {
 		t.Errorf("The date is not validated properly.")
 	}
 }
+
+func TestGetCurrentServerFQDN43(t *testing.T) {
+	rhnconf := `
+# OSA configuration #
+
+server.jabber_server = myhostname.example.com
+osa-dispatcher.jabber_server = myhostname.example.com
+
+# set up SSL on the dispatcher
+osa-dispatcher.osa_ssl_cert = /srv/www/htdocs/pub/RHN-ORG-TRUSTED-SSL-CERT
+
+# system snapshots enabled
+enable_snapshots = 1
+
+#cobbler host name
+cobbler.host = myhostname.example.com
+
+# Maximum Java Heap Size (in MB)
+# taskomatic.java.maxmemory=4096
+
+# Extended reposync filters to use the entire NEVRA
+server.satellite.reposync_nevra_filter = 0
+#option generated from rhn-config-satellite.pl
+disconnected=1
+
+#option generated from rhn-config-satellite.pl
+product_name=SUSE Manager
+	`
+	tmpFile := tests.CreateTempFile(t, rhnconf)
+	defer os.Remove(tmpFile)
+
+	fqdn, err := GetCurrentServerFQDN(tmpFile)
+	if err != nil {
+		t.Error("Error during hostname lookup")
+	}
+	if fqdn != "myhostname.example.com" {
+		t.Error("Wrong hostname found")
+	}
+}
+
+func TestGetCurrentServerFQDN(t *testing.T) {
+	rhnconf := `
+# OSA configuration #
+
+java.hostname = myhostname.example.com
+osa-dispatcher.jabber_server = myhostname.example.com
+
+# set up SSL on the dispatcher
+osa-dispatcher.osa_ssl_cert = /srv/www/htdocs/pub/RHN-ORG-TRUSTED-SSL-CERT
+
+# system snapshots enabled
+enable_snapshots = 1
+
+#cobbler host name
+cobbler.host = localhost
+
+# Maximum Java Heap Size (in MB)
+# taskomatic.java.maxmemory=4096
+	`
+	tmpFile := tests.CreateTempFile(t, rhnconf)
+	defer os.Remove(tmpFile)
+
+	fqdn, err := GetCurrentServerFQDN(tmpFile)
+	if err != nil {
+		t.Error("Error during hostname lookup")
+	}
+	if fqdn != "myhostname.example.com" {
+		t.Error("Wrong hostname found")
+	}
+}
+
+func TestGetCurrentServerFQDNInvalid(t *testing.T) {
+	rhnconf := `
+	# OSA configuration #
+
+server.jabber_server = myhostname.example.com
+osa-dispatcher.jabber_server = myhostname.example.com
+
+# set up SSL on the dispatcher
+osa-dispatcher.osa_ssl_cert = /srv/www/htdocs/pub/RHN-ORG-TRUSTED-SSL-CERT
+
+# system snapshots enabled
+enable_snapshots = 1
+
+# Maximum Java Heap Size (in MB)
+# taskomatic.java.maxmemory=4096
+	`
+	tmpFile := tests.CreateTempFile(t, rhnconf)
+	defer os.Remove(tmpFile)
+
+	fqdn, err := GetCurrentServerFQDN(tmpFile)
+	if err == nil {
+		t.Error("Unexpected success for FQDN lookup")
+	}
+	if fqdn != "" {
+		t.Error("Hostname found even when not supposed to")
+	}
+}