diff --git a/usr.sbin/pw/cpdir.c b/usr.sbin/pw/cpdir.c
--- a/usr.sbin/pw/cpdir.c
+++ b/usr.sbin/pw/cpdir.c
@@ -49,9 +49,19 @@
 	if (*dir == '/')
 		dir++;
 
-	if (mkdirat(rootfd, dir, mode) != 0 && errno != EEXIST) {
-		warn("mkdir(%s)", dir);
-		return;
+	if (mkdirat(rootfd, dir, mode) != 0) {
+		mode_t pumask;
+
+		if (errno != EEXIST) {
+			warn("mkdir(%s)", dir);
+			return;
+		}
+
+		pumask = umask(0);
+		umask(pumask);
+
+		(void)fchmodat(rootfd, dir, mode & ~pumask,
+		    AT_SYMLINK_NOFOLLOW);
 	}
 	fchownat(rootfd, dir, uid, gid, AT_SYMLINK_NOFOLLOW);
 	if (flags > 0)