--- 060a8890503819b045af97d98c780deff504fd4e
+++ 2e09588357b6ff8964e8b82f538629df7ce2c529
@@ -1379,7 +1379,7 @@ nfsd_create_v3(struct svc_rqst *rqstp, s
 		goto out;
 	if (!(iap->ia_valid & ATTR_MODE))
 		iap->ia_mode = 0;
-	err = fh_verify(rqstp, fhp, S_IFDIR, NFSD_MAY_CREATE);
+	err = fh_verify(rqstp, fhp, S_IFDIR, NFSD_MAY_EXEC);
 	if (err)
 		goto out;
 
@@ -1401,6 +1401,13 @@ nfsd_create_v3(struct svc_rqst *rqstp, s
 	if (IS_ERR(dchild))
 		goto out_nfserr;
 
+	/* If file doesn't exist, check for permissions to create one */
+	if (!dchild->d_inode) {
+		err = fh_verify(rqstp, fhp, S_IFDIR, NFSD_MAY_CREATE);
+		if (err)
+			goto out;
+	}
+
 	err = fh_compose(resfhp, fhp->fh_export, dchild, fhp);
 	if (err)
 		goto out;