--- src/copypass.c
+++ src/copypass.c
@@ -239,15 +239,23 @@ process_copy_pass ()
 		  cdf_flag = 1;
 		}
 #endif
-	      res = mkdir (output_name.ds_string, in_file_stat.st_mode);
+	      res = mkdir (output_name.ds_string, in_file_stat.st_mode & ~077);
 
 	    }
 	  else
-	    res = 0;
+            {
+              if (!no_chown_flag && (out_file_stat.st_mode & 077) != 0
+                  && chmod (output_name.ds_string, out_file_stat.st_mode & 07700) < 0)
+                {
+                  error (0, errno, "%s: chmod", output_name.ds_string);
+                  continue;
+                }
+              res = 0;
+            }
 	  if (res < 0 && create_dir_flag)
 	    {
 	      create_all_directories (output_name.ds_string);
-	      res = mkdir (output_name.ds_string, in_file_stat.st_mode);
+	      res = mkdir (output_name.ds_string, in_file_stat.st_mode & ~077);
 	    }
 	  if (res < 0)
 	    {
@@ -290,12 +298,12 @@ process_copy_pass ()
 
 	  if (link_res < 0)
 	    {
-	      res = mknod (output_name.ds_string, in_file_stat.st_mode,
+	      res = mknod (output_name.ds_string, in_file_stat.st_mode & ~077,
 			   in_file_stat.st_rdev);
 	      if (res < 0 && create_dir_flag)
 		{
 		  create_all_directories (output_name.ds_string);
-		  res = mknod (output_name.ds_string, in_file_stat.st_mode,
+		  res = mknod (output_name.ds_string, in_file_stat.st_mode & ~077,
 			       in_file_stat.st_rdev);
 		}
 	      if (res < 0)
--- src/copyin.c
+++ src/copyin.c
@@ -186,11 +186,12 @@ list_file(struct cpio_file_stat* file_hd
 
 static int
 try_existing_file (struct cpio_file_stat* file_hdr, int in_file_des,
-		   int *existing_dir)
+		   int *existing_dir, mode_t *existing_mode)
 {
   struct stat file_stat;
 
   *existing_dir = false;
+  *existing_mode = 0;
   if (lstat (file_hdr->c_name, &file_stat) == 0)
     {
       if (S_ISDIR (file_stat.st_mode)
@@ -200,6 +201,7 @@ try_existing_file (struct cpio_file_stat
 	     we are trying to create, don't complain about
 	     it.  */
 	  *existing_dir = true;
+	  *existing_mode = file_stat.st_mode;
 	  return 0;
 	}
       else if (!unconditional_flag
@@ -567,7 +569,7 @@ copyin_regular_file (struct cpio_file_st
 }
 
 static void
-copyin_directory (struct cpio_file_stat *file_hdr, int existing_dir)
+copyin_directory (struct cpio_file_stat *file_hdr, int existing_dir, mode_t existing_mode)
 {
   int res;			/* Result of various function calls.  */
 #ifdef HPUX_CDF
@@ -610,14 +612,22 @@ copyin_directory (struct cpio_file_stat 
 	  cdf_flag = 1;
 	}
 #endif
-      res = mkdir (file_hdr->c_name, file_hdr->c_mode);
+      res = mkdir (file_hdr->c_name, file_hdr->c_mode & ~077);
     }
   else
-    res = 0;
+    {
+      if (!no_chown_flag && (existing_mode & 077) != 0
+         && chmod (file_hdr->c_name, existing_mode & 07700) < 0)
+       {
+         error (0, errno, "%s: chmod", file_hdr->c_name);
+         return;
+       }
+      res = 0;
+    }
   if (res < 0 && create_dir_flag)
     {
       create_all_directories (file_hdr->c_name);
-      res = mkdir (file_hdr->c_name, file_hdr->c_mode);
+      res = mkdir (file_hdr->c_name, file_hdr->c_mode & ~077);
     }
   if (res < 0)
     {
@@ -692,12 +702,12 @@ copyin_device (struct cpio_file_stat* fi
       return;
     }
   
-  res = mknod (file_hdr->c_name, file_hdr->c_mode,
+  res = mknod (file_hdr->c_name, file_hdr->c_mode & ~077,
 	    makedev (file_hdr->c_rdev_maj, file_hdr->c_rdev_min));
   if (res < 0 && create_dir_flag)
     {
       create_all_directories (file_hdr->c_name);
-      res = mknod (file_hdr->c_name, file_hdr->c_mode,
+      res = mknod (file_hdr->c_name, file_hdr->c_mode & ~077,
 	    makedev (file_hdr->c_rdev_maj, file_hdr->c_rdev_min));
     }
   if (res < 0)
@@ -772,9 +782,10 @@ static void
 copyin_file (struct cpio_file_stat* file_hdr, int in_file_des)
 {
   int existing_dir=0;
+  mode_t existing_mode;
 
   if (!to_stdout_option
-      && try_existing_file (file_hdr, in_file_des, &existing_dir) < 0)
+      && try_existing_file (file_hdr, in_file_des, &existing_dir, &existing_mode) < 0)
     return;
 
   /* Do the real copy or link.  */
@@ -785,7 +796,7 @@ copyin_file (struct cpio_file_stat* file
       break;
 
     case CP_IFDIR:
-      copyin_directory (file_hdr, existing_dir);
+      copyin_directory(file_hdr, existing_dir, existing_mode);
       break;
 
     case CP_IFCHR: