Index: usr.sbin/freebsd-update/freebsd-update.sh
===================================================================
--- usr.sbin/freebsd-update/freebsd-update.sh
+++ usr.sbin/freebsd-update/freebsd-update.sh
@@ -3036,9 +3036,10 @@
 		install_from_index INDEX-NEW || return 1
 		install_delete INDEX-OLD INDEX-NEW || return 1
 
-		# Restart sshd if running (PR263489).  Note that this does not
-		# affect child sshd processes handling existing sessions.
-		if service sshd status >/dev/null 2>/dev/null; then
+		# Restart host sshd if running (PR263489).  Note that this does
+		# not affect child sshd processes handling existing sessions.
+		if [ $BASEDIR = / ] && \
+		    service sshd status >/dev/null 2>/dev/null; then
 			echo
 			echo "Restarting sshd after upgrade"
 			service sshd restart