diff --git a/fs/kernfs/dir.c b/fs/kernfs/dir.c
index 44842e6cf0a9..a00e11ebfa77 100644
--- a/fs/kernfs/dir.c
+++ b/fs/kernfs/dir.c
@@ -669,6 +669,18 @@ struct kernfs_node *kernfs_new_node(struct kernfs_node *parent,
 {
 	struct kernfs_node *kn;
 
+	if (parent->mode & S_ISGID) {
+		/* this code block imitates inode_init_owner() for
+		 * kernfs
+		 */
+
+		if (parent->iattr)
+			gid = parent->iattr->ia_gid;
+
+		if (flags & KERNFS_DIR)
+			mode |= S_ISGID;
+	}
+
 	kn = __kernfs_new_node(kernfs_root(parent), parent,
 			       name, mode, uid, gid, flags);
 	if (kn) {