in.cap.realm = cpu_to_le64(ci->i_snap_realm->ino);
        in.cap.flags = CEPH_CAP_FLAG_AUTH;
        in.ctime = in.mtime = in.atime = iinfo.btime;
-       in.mode = cpu_to_le32((u32)mode);
        in.truncate_seq = cpu_to_le32(1);
        in.truncate_size = cpu_to_le64(-1ULL);
        in.xattr_version = cpu_to_le64(1);
        in.uid = cpu_to_le32(from_kuid(&init_user_ns, current_fsuid()));
-       in.gid = cpu_to_le32(from_kgid(&init_user_ns, dir->i_mode & S_ISGID ?
-                               dir->i_gid : current_fsgid()));
+       if (dir->i_mode & S_ISGID) {
+               in.gid = cpu_to_le32(from_kgid(&init_user_ns, dir->i_gid));
+
+               /* Directories always inherit the setgid bit. */
+               if (S_ISDIR(mode))
+                       mode |= S_ISGID;
+               else if ((mode & (S_ISGID | S_IXGRP)) == (S_ISGID | S_IXGRP) &&
+                        !in_group_p(dir->i_gid) &&
+                        !capable_wrt_inode_uidgid(&init_user_ns, dir, CAP_FSETID))
+                       mode &= ~S_ISGID;
+       } else {
+               in.gid = cpu_to_le32(from_kgid(&init_user_ns, current_fsgid()));
+       }
+       in.mode = cpu_to_le32((u32)mode);
+
        in.nlink = cpu_to_le32(1);
        in.max_size = cpu_to_le64(lo->stripe_unit);