diff --git a/fs/diff_test.go b/fs/diff_test.go
index 69a3a1216..327cab724 100644
--- a/fs/diff_test.go
+++ b/fs/diff_test.go
@@ -108,6 +108,31 @@ func TestFileReplace(t *testing.T) {
 	}
 }
 
+func TestParentDirectoryPermission(t *testing.T) {
+	l1 := fstest.Apply(
+		fstest.CreateDir("/dir1", 0700),
+		fstest.CreateDir("/dir2", 0751),
+		fstest.CreateDir("/dir3", 0777),
+	)
+	l2 := fstest.Apply(
+		fstest.CreateDir("/dir1/d", 0700),
+		fstest.CreateFile("/dir1/d/f", []byte("irrelevant"), 0644),
+		fstest.CreateFile("/dir1/f", []byte("irrelevant"), 0644),
+		fstest.CreateFile("/dir2/f", []byte("irrelevant"), 0644),
+		fstest.CreateFile("/dir3/f", []byte("irrelevant"), 0644),
+	)
+	diff := []TestChange{
+		Add("/dir1/d"),
+		Add("/dir1/d/f"),
+		Add("/dir1/f"),
+		Add("/dir2/f"),
+		Add("/dir3/f"),
+	}
+
+	if err := testDiffWithBase(l1, l2, diff); err != nil {
+		t.Fatalf("Failed diff with base: %+v", err)
+	}
+}
 func TestUpdateWithSameTime(t *testing.T) {
 	tt := time.Now().Truncate(time.Second)
 	t1 := tt.Add(5 * time.Nanosecond)
diff --git a/fs/fstest/testsuite.go b/fs/fstest/testsuite.go
index 844642a1d..546be89d1 100644
--- a/fs/fstest/testsuite.go
+++ b/fs/fstest/testsuite.go
@@ -18,6 +18,7 @@ func FSSuite(t *testing.T, a TestApplier) {
 	t.Run("Basic", makeTest(t, a, basicTest))
 	t.Run("Deletion", makeTest(t, a, deletionTest))
 	t.Run("Update", makeTest(t, a, updateTest))
+	t.Run("DirectoryPermission", makeTest(t, a, directoryPermissionsTest))
 	t.Run("HardlinkUnmodified", makeTest(t, a, hardlinkUnmodified))
 	t.Run("HardlinkBeforeUnmodified", makeTest(t, a, hardlinkBeforeUnmodified))
 	t.Run("HardlinkBeforeModified", makeTest(t, a, hardlinkBeforeModified))
@@ -142,6 +143,22 @@ var (
 		),
 	}
 
+	// directoryPermissionsTest covers directory permissions on update
+	directoryPermissionsTest = []Applier{
+		Apply(
+			CreateDir("/d1", 0700),
+			CreateDir("/d2", 0751),
+			CreateDir("/d3", 0777),
+		),
+		Apply(
+			CreateFile("/d1/f", []byte("irrelevant"), 0644),
+			CreateDir("/d1/d", 0700),
+			CreateFile("/d1/d/f", []byte("irrelevant"), 0644),
+			CreateFile("/d2/f", []byte("irrelevant"), 0644),
+			CreateFile("/d3/f", []byte("irrelevant"), 0644),
+		),
+	}
+
 	hardlinkUnmodified = []Applier{
 		baseApplier,
 		Apply(