diff --git a/libguestfs.mkinitrd.setup.sh b/libguestfs.mkinitrd.setup.sh
index bda73d5..27f8d99 100644
--- a/libguestfs.mkinitrd.setup.sh
+++ b/libguestfs.mkinitrd.setup.sh
@@ -6,6 +6,9 @@
 # in guestfsd the mount point defaults to /sysroot
 mkdir -vp $tmp_mnt/sysroot
 
+# guestfsd tries to bind mount this directory
+mkdir -vp $tmp_mnt/selinux
+
 for f in /etc/magic /usr/share/misc/magic*
 do
 	if test -e $f