diff --git a/testsuite/mdev.tests b/testsuite/mdev.tests
index 1ee762828..777c5c540 100755
--- a/testsuite/mdev.tests
+++ b/testsuite/mdev.tests
@@ -8,6 +8,8 @@
 # sed: (1) "maj, min" -> "maj,min" (2) coalesce spaces
 # cut: remove date
 FILTER_LS="sed -e 's/,  */,/g' -e 's/  */ /g' | cut -d' ' -f 1-5,9-"
+# cut: remove size+date
+FILTER_LS2="sed -e 's/,  */,/g' -e 's/  */ /g' | cut -d' ' -f 1-4,9-"
 
 # testing "test name" "options" "expected result" "file input" "stdin"
 
@@ -31,7 +33,7 @@ brw-rw---- 1 0 0 8,0 sda
 	"" ""
 
 # continuing to use directory structure from prev test
-rm mdev.testdir/dev/sda
+rm -rf mdev.testdir/dev/*
 echo ".* 1:1 666" >mdev.testdir/etc/mdev.conf
 echo "sda 2:2 444" >>mdev.testdir/etc/mdev.conf
 testing "mdev stops on first rule" \
@@ -42,6 +44,38 @@ brw-rw-rw- 1 1 1 8,0 sda
 " \
 	"" ""
 
+# continuing to use directory structure from prev test
+rm -rf mdev.testdir/dev/*
+echo "sda 0:0 444 >disk/scsiA" >mdev.testdir/etc/mdev.conf
+testing "mdev move/symlink rule '>bar/baz'" \
+	"env - ACTION=add DEVPATH=/block/sda chroot mdev.testdir /mdev 2>&1;
+	ls -lnR mdev.testdir/dev | $FILTER_LS2" \
+"\
+mdev.testdir/dev:
+drwxr-xr-x 2 0 0 disk
+lrwxrwxrwx 1 0 0 sda -> disk/scsiA
+
+mdev.testdir/dev/disk:
+br--r--r-- 1 0 0 scsiA
+" \
+	"" ""
+
+# continuing to use directory structure from prev test
+rm -rf mdev.testdir/dev/*
+echo "sda 0:0 444 >disk/" >mdev.testdir/etc/mdev.conf
+testing "mdev move/symlink rule '>bar/'" \
+	"env - ACTION=add DEVPATH=/block/sda chroot mdev.testdir /mdev 2>&1;
+	ls -lnR mdev.testdir/dev | $FILTER_LS2" \
+"\
+mdev.testdir/dev:
+drwxr-xr-x 2 0 0 disk
+lrwxrwxrwx 1 0 0 sda -> disk/sda
+
+mdev.testdir/dev/disk:
+br--r--r-- 1 0 0 sda
+" \
+	"" ""
+
 # clean up
 rm -rf mdev.testdir
 
diff --git a/util-linux/mdev.c b/util-linux/mdev.c
index a2866054c..c4c4350a4 100644
--- a/util-linux/mdev.c
+++ b/util-linux/mdev.c
@@ -203,21 +203,26 @@ static void make_device(char *path, int delete)
 			if (ENABLE_FEATURE_MDEV_RENAME && alias) {
 				char *dest;
 
+				/* ">bar/": rename to bar/device_name */
+				/* ">bar[/]baz": rename to bar[/]baz */
 				dest = strrchr(alias, '/');
-				if (dest) {
-					if (dest[1] != '\0')
-						/* given a file name, so rename it */
-						*dest = '\0';
+				if (dest) { /* ">bar/[baz]" ? */
+					*dest = '\0'; /* mkdir bar */
 					bb_make_directory(alias, 0755, FILEUTILS_RECUR);
-					dest = concat_path_file(alias, device_name);
-					free(alias);
-				} else
-					dest = alias;
+					*dest = '/';
+					if (dest[1] == '\0') { /* ">bar/" => ">bar/device_name" */
+						dest = alias;
+						alias = concat_path_file(alias, device_name);
+						free(dest);
+					}
+				}
 
-				rename(device_name, dest);
-				symlink(dest, device_name);
+				/* recreate device_name as a symlink to moved device node */
+				if (rename(device_name, alias) == 0) {
+					symlink(alias, device_name);
+				}
 
-				free(dest);
+				free(alias);
 			}
 		}
 	}