diff --git a/client.go b/client.go
index 8ea7d7972..aa626abcb 100644
--- a/client.go
+++ b/client.go
@@ -294,6 +294,7 @@ type RemoteContext struct {
 	PlatformMatcher platforms.MatchComparer
 
 	// Unpack is done after an image is pulled to extract into a snapshotter.
+	// It is done simultaneously for schema 2 images when they are pulled.
 	// If an image is not unpacked on pull, it can be unpacked any time
 	// afterwards. Unpacking is required to run an image.
 	Unpack bool
diff --git a/pull.go b/pull.go
index 3a91daba4..ef0d147ba 100644
--- a/pull.go
+++ b/pull.go
@@ -32,7 +32,7 @@ import (
 
 // Pull downloads the provided content into containerd's content store
 // and returns a platform specific image object
-func (c *Client) Pull(ctx context.Context, ref string, opts ...RemoteOpt) (Image, error) {
+func (c *Client) Pull(ctx context.Context, ref string, opts ...RemoteOpt) (_ Image, retErr error) {
 	pullCtx := defaultRemoteContext()
 	for _, o := range opts {
 		if err := o(c, pullCtx); err != nil {
@@ -61,6 +61,30 @@ func (c *Client) Pull(ctx context.Context, ref string, opts ...RemoteOpt) (Image
 	}
 	defer done(ctx)
 
+	var unpacks int32
+	if pullCtx.Unpack {
+		// unpacker only supports schema 2 image, for schema 1 this is noop.
+		u, err := c.newUnpacker(ctx, pullCtx)
+		if err != nil {
+			return nil, errors.Wrap(err, "create unpacker")
+		}
+		unpackWrapper, eg := u.handlerWrapper(ctx, &unpacks)
+		defer func() {
+			if err := eg.Wait(); err != nil {
+				if retErr == nil {
+					retErr = errors.Wrap(err, "unpack")
+				}
+			}
+		}()
+		wrapper := pullCtx.HandlerWrapper
+		pullCtx.HandlerWrapper = func(h images.Handler) images.Handler {
+			if wrapper == nil {
+				return unpackWrapper(h)
+			}
+			return wrapper(unpackWrapper(h))
+		}
+	}
+
 	img, err := c.fetch(ctx, pullCtx, ref, 1)
 	if err != nil {
 		return nil, err
@@ -69,8 +93,12 @@ func (c *Client) Pull(ctx context.Context, ref string, opts ...RemoteOpt) (Image
 	i := NewImageWithPlatform(c, img, pullCtx.PlatformMatcher)
 
 	if pullCtx.Unpack {
-		if err := i.Unpack(ctx, pullCtx.Snapshotter, pullCtx.UnpackOpts...); err != nil {
-			return nil, errors.Wrapf(err, "failed to unpack image on snapshotter %s", pullCtx.Snapshotter)
+		if unpacks == 0 {
+			// Try to unpack is none is done previously.
+			// This is at least required for schema 1 image.
+			if err := i.Unpack(ctx, pullCtx.Snapshotter, pullCtx.UnpackOpts...); err != nil {
+				return nil, errors.Wrapf(err, "failed to unpack image on snapshotter %s", pullCtx.Snapshotter)
+			}
 		}
 	}
 
diff --git a/unpacker.go b/unpacker.go
new file mode 100644
index 000000000..89c395cbb
--- /dev/null
+++ b/unpacker.go
@@ -0,0 +1,238 @@
+/*
+   Copyright The containerd Authors.
+
+   Licensed under the Apache License, Version 2.0 (the "License");
+   you may not use this file except in compliance with the License.
+   You may obtain a copy of the License at
+
+       http://www.apache.org/licenses/LICENSE-2.0
+
+   Unless required by applicable law or agreed to in writing, software
+   distributed under the License is distributed on an "AS IS" BASIS,
+   WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+   See the License for the specific language governing permissions and
+   limitations under the License.
+*/
+
+package containerd
+
+import (
+	"context"
+	"encoding/json"
+	"fmt"
+	"sync"
+	"sync/atomic"
+
+	"github.com/containerd/containerd/content"
+	"github.com/containerd/containerd/images"
+	"github.com/containerd/containerd/log"
+	"github.com/containerd/containerd/rootfs"
+	"github.com/opencontainers/go-digest"
+	"github.com/opencontainers/image-spec/identity"
+	ocispec "github.com/opencontainers/image-spec/specs-go/v1"
+	"github.com/pkg/errors"
+	"github.com/sirupsen/logrus"
+	"golang.org/x/sync/errgroup"
+)
+
+type layerState struct {
+	layer      rootfs.Layer
+	downloaded bool
+	unpacked   bool
+}
+
+type unpacker struct {
+	updateCh    chan ocispec.Descriptor
+	snapshotter string
+	config      UnpackConfig
+	c           *Client
+}
+
+func (c *Client) newUnpacker(ctx context.Context, rCtx *RemoteContext) (*unpacker, error) {
+	snapshotter, err := c.resolveSnapshotterName(ctx, rCtx.Snapshotter)
+	if err != nil {
+		return nil, err
+	}
+	var config UnpackConfig
+	for _, o := range rCtx.UnpackOpts {
+		if err := o(ctx, &config); err != nil {
+			return nil, err
+		}
+	}
+	return &unpacker{
+		updateCh:    make(chan ocispec.Descriptor, 128),
+		snapshotter: snapshotter,
+		config:      config,
+		c:           c,
+	}, nil
+}
+
+func (u *unpacker) unpack(ctx context.Context, config ocispec.Descriptor, layers []ocispec.Descriptor) error {
+	p, err := content.ReadBlob(ctx, u.c.ContentStore(), config)
+	if err != nil {
+		return err
+	}
+
+	var i ocispec.Image
+	if err := json.Unmarshal(p, &i); err != nil {
+		return errors.Wrap(err, "unmarshal image config")
+	}
+	diffIDs := i.RootFS.DiffIDs
+	if len(layers) != len(diffIDs) {
+		return errors.Errorf("number of layers and diffIDs don't match: %d != %d", len(layers), len(diffIDs))
+	}
+
+	var (
+		sn = u.c.SnapshotService(u.snapshotter)
+		a  = u.c.DiffService()
+		cs = u.c.ContentStore()
+
+		states []layerState
+		chain  []digest.Digest
+	)
+	for i, desc := range layers {
+		states = append(states, layerState{
+			layer: rootfs.Layer{
+				Blob: desc,
+				Diff: ocispec.Descriptor{
+					MediaType: ocispec.MediaTypeImageLayer,
+					Digest:    diffIDs[i],
+				},
+			},
+		})
+	}
+	for {
+		var layer ocispec.Descriptor
+		select {
+		case layer = <-u.updateCh:
+		case <-ctx.Done():
+			return ctx.Err()
+		}
+		log.G(ctx).WithField("desc", layer).Debug("layer downloaded")
+		for i := range states {
+			if states[i].layer.Blob.Digest != layer.Digest {
+				continue
+			}
+			states[i].downloaded = true
+			break
+		}
+		for i := range states {
+			if !states[i].downloaded {
+				break
+			}
+			if states[i].unpacked {
+				continue
+			}
+
+			log.G(ctx).WithFields(logrus.Fields{
+				"desc": states[i].layer.Blob,
+				"diff": states[i].layer.Diff,
+			}).Debug("unpack layer")
+
+			unpacked, err := rootfs.ApplyLayerWithOpts(ctx, states[i].layer, chain, sn, a,
+				u.config.SnapshotOpts, u.config.ApplyOpts)
+			if err != nil {
+				return err
+			}
+
+			if unpacked {
+				// Set the uncompressed label after the uncompressed
+				// digest has been verified through apply.
+				cinfo := content.Info{
+					Digest: states[i].layer.Blob.Digest,
+					Labels: map[string]string{
+						"containerd.io/uncompressed": states[i].layer.Diff.Digest.String(),
+					},
+				}
+				if _, err := cs.Update(ctx, cinfo, "labels.containerd.io/uncompressed"); err != nil {
+					return err
+				}
+			}
+
+			chain = append(chain, states[i].layer.Diff.Digest)
+			states[i].unpacked = true
+			log.G(ctx).WithFields(logrus.Fields{
+				"desc": states[i].layer.Blob,
+				"diff": states[i].layer.Diff,
+			}).Debug("layer unpacked")
+		}
+		// Check whether all layers are unpacked.
+		if states[len(states)-1].unpacked {
+			break
+		}
+	}
+
+	chainID := identity.ChainID(chain).String()
+	cinfo := content.Info{
+		Digest: config.Digest,
+		Labels: map[string]string{
+			fmt.Sprintf("containerd.io/gc.ref.snapshot.%s", u.snapshotter): chainID,
+		},
+	}
+	_, err = cs.Update(ctx, cinfo, fmt.Sprintf("labels.containerd.io/gc.ref.snapshot.%s", u.snapshotter))
+	if err != nil {
+		return err
+	}
+	log.G(ctx).WithFields(logrus.Fields{
+		"config":  config.Digest,
+		"chainID": chainID,
+	}).Debug("image unpacked")
+	return nil
+}
+
+func (u *unpacker) handlerWrapper(uctx context.Context, unpacks *int32) (func(images.Handler) images.Handler, *errgroup.Group) {
+	eg, uctx := errgroup.WithContext(uctx)
+	return func(f images.Handler) images.Handler {
+		var (
+			lock    sync.Mutex
+			layers  []ocispec.Descriptor
+			schema1 bool
+		)
+		return images.HandlerFunc(func(ctx context.Context, desc ocispec.Descriptor) ([]ocispec.Descriptor, error) {
+			children, err := f.Handle(ctx, desc)
+			if err != nil {
+				return children, err
+			}
+
+			// `Pull` only supports one platform, so there is only
+			// one manifest to handle, and manifest list can be
+			// safely skipped.
+			// TODO: support multi-platform unpack.
+			switch desc.MediaType {
+			case images.MediaTypeDockerSchema1Manifest:
+				lock.Lock()
+				schema1 = true
+				lock.Unlock()
+			case images.MediaTypeDockerSchema2Manifest, ocispec.MediaTypeImageManifest:
+				lock.Lock()
+				for _, child := range children {
+					if child.MediaType == images.MediaTypeDockerSchema2Config ||
+						child.MediaType == ocispec.MediaTypeImageConfig {
+						continue
+					}
+					layers = append(layers, child)
+				}
+				lock.Unlock()
+			case images.MediaTypeDockerSchema2Config, ocispec.MediaTypeImageConfig:
+				lock.Lock()
+				l := append([]ocispec.Descriptor{}, layers...)
+				lock.Unlock()
+				if len(l) > 0 {
+					atomic.AddInt32(unpacks, 1)
+					eg.Go(func() error {
+						return u.unpack(uctx, desc, l)
+					})
+				}
+			case images.MediaTypeDockerSchema2LayerGzip, images.MediaTypeDockerSchema2Layer,
+				ocispec.MediaTypeImageLayerGzip, ocispec.MediaTypeImageLayer:
+				lock.Lock()
+				update := !schema1
+				lock.Unlock()
+				if update {
+					u.updateCh <- desc
+				}
+			}
+			return children, nil
+		})
+	}, eg
+}