diff --git a/testsuite/mdev.tests b/testsuite/mdev.tests
index 7320e17dd..48d3dcc2c 100755
--- a/testsuite/mdev.tests
+++ b/testsuite/mdev.tests
@@ -11,7 +11,7 @@ FILTER_LS="grep -v '^total ' | sed -e 's/,  */,/g' -e 's/  */ /g' | cut -d' ' -f
 # cut: remove size+date
 FILTER_LS2="grep -v '^total ' | sed -e 's/,  */,/g' -e 's/  */ /g' | cut -d' ' -f 1-4,9-"
 
-# testing "test name" "options" "expected result" "file input" "stdin"
+# testing "test name" "commands" "expected result" "file input" "stdin"
 
 rm -rf mdev.testdir
 mkdir mdev.testdir
@@ -126,6 +126,26 @@ br--r--r-- 1 0 0 sda
 	"" ""
 SKIP=
 
+# continuing to use directory structure from prev test
+rm -rf mdev.testdir/dev/*
+echo "sda 0:0 444 =disk/sd/a" >mdev.testdir/etc/mdev.conf
+optional STATIC FEATURE_MDEV_CONF FEATURE_MDEV_RENAME FEATURE_LS_RECURSIVE FEATURE_LS_TIMESTAMPS FEATURE_LS_USERNAME
+testing "mdev move rule '=bar/baz/fname'" \
+	"env - PATH=$PATH ACTION=add DEVPATH=/block/sda chroot mdev.testdir /mdev 2>&1;
+	ls -lnR mdev.testdir/dev | $FILTER_LS2" \
+"\
+mdev.testdir/dev:
+drwxr-xr-x 3 0 0 disk
+
+mdev.testdir/dev/disk:
+drwxr-xr-x 2 0 0 sd
+
+mdev.testdir/dev/disk/sd:
+br--r--r-- 1 0 0 a
+" \
+	"" ""
+SKIP=
+
 # continuing to use directory structure from prev test
 rm -rf mdev.testdir/dev/*
 # here we complicate things by having non-matching group 1 and using %0
diff --git a/util-linux/mdev.c b/util-linux/mdev.c
index 79871d30e..75de14ff1 100644
--- a/util-linux/mdev.c
+++ b/util-linux/mdev.c
@@ -429,6 +429,18 @@ static const struct rule *next_rule(void)
 
 #endif
 
+static void mkdir_recursive(char *name)
+{
+	/* if name has many levels ("dir1/dir2"),
+	 * bb_make_directory() will create dir1 according to umask,
+	 * not according to its "mode" parameter.
+	 * Since we run with umask=0, need to temporarily switch it.
+	 */
+	umask(022); /* "dir1" (if any) will be 0755 too */
+	bb_make_directory(name, 0755, FILEUTILS_RECUR);
+	umask(0);
+}
+
 /* Builds an alias path.
  * This function potentionally reallocates the alias parameter.
  * Only used for ENABLE_FEATURE_MDEV_RENAME
@@ -442,7 +454,7 @@ static char *build_alias(char *alias, const char *device_name)
 	dest = strrchr(alias, '/');
 	if (dest) { /* ">bar/[baz]" ? */
 		*dest = '\0'; /* mkdir bar */
-		bb_make_directory(alias, 0755, FILEUTILS_RECUR);
+		mkdir_recursive(alias);
 		*dest = '/';
 		if (dest[1] == '\0') { /* ">bar/" => ">bar/device_name" */
 			dest = alias;
@@ -641,7 +653,7 @@ static void make_device(char *device_name, char *path, int operation)
 			char *slash = strrchr(node_name, '/');
 			if (slash) {
 				*slash = '\0';
-				bb_make_directory(node_name, 0755, FILEUTILS_RECUR);
+				mkdir_recursive(node_name);
 				*slash = '/';
 			}
 			if (G.verbose)