Index: libselinux-3.0/src/selinux_restorecon.c
===================================================================
--- libselinux-3.0.orig/src/selinux_restorecon.c
+++ libselinux-3.0/src/selinux_restorecon.c
@@ -991,9 +991,8 @@ int selinux_restorecon(const char *pathn
 			selinux_log(SELINUX_ERROR,
 				    "Directory cycle on %s.\n",
 				    ftsent->fts_path);
-			errno = ELOOP;
-			error = -1;
-			goto out;
+			fts_set(fts, ftsent, FTS_SKIP);
+			continue;
 		case FTS_DP:
 			continue;
 		case FTS_DNR: