Squashfs As Rootfs

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Hello.

I’m trying to add option to grub menu (amongst other options) to boot from squashfs image. But ‘root=live:/path/tofile’ doesn’t work. I didn’t find anything useful on the internet. Anybody can point me in right direction?

Maybe better choice is to replace grub with isolinux?
I have working solution with iso with squashfs booting through PXE, but i don’t know how to do this in grub.

TIA