diff --git a/core/includes/file.inc b/core/includes/file.inc
index 133d64f..551e983 100644
--- a/core/includes/file.inc
+++ b/core/includes/file.inc
@@ -2322,12 +2322,50 @@ function drupal_mkdir($uri, $mode = NULL, $recursive = FALSE, $context = NULL) {
     $mode = variable_get('file_chmod_directory', 0775);
   }
 
+  // Determine already existing part of $uri, we must not apply chmod for that part.
+  // We need to do so before directories will be created recursively.
+  if ($recursive) {
+    $uri_flat = $uri; // $uri_flat - $uri without schema prefix
+    $uri_existing = '';  // already existing part of $uri (determine later)
+
+    // check the case if $uri with schema
+    $scheme = file_uri_scheme($uri);
+    if ($scheme && file_stream_wrapper_valid_scheme($scheme)) {
+      $uri_flat = drupal_substr($uri, drupal_strlen($scheme) + 3); // +3 mean :// after scheme
+      $uri_existing = $scheme . '://';
+    }
+    $uri_flat = rtrim($uri_flat, '/\\');
+
+    foreach (explode('/', $uri_flat) as $uri_element) {
+      $uri_existing .= $uri_element . '/';
+      if (!is_dir($uri_existing)) { // find first absent directory and then exit
+        $uri_existing = drupal_substr($uri_existing, 0, - 2 - drupal_strlen($uri_element)); // -2 mean slashes
+        $uri_flat = -1; // set the flag
+        break;
+      }
+    }
+  }
+
   if (!isset($context)) {
-    return mkdir($uri, $mode, $recursive);
+    $success = mkdir($uri, $mode, $recursive);
   }
   else {
-    return mkdir($uri, $mode, $recursive, $context);
+    $success = mkdir($uri, $mode, $recursive, $context);
+  }
+
+  // Process directories, created recursively, with chmod.
+  // @see http://drupal.org/node/1068266
+  if ($success && $recursive && isset($uri_flat) && $uri_flat == -1) {
+    $uri_flat = drupal_substr($uri, drupal_strlen($uri_existing));
+    $uri_flat = trim($uri_flat, '/\\');
+    foreach (explode('/', $uri_flat) as $uri_element) {
+      $uri_existing .= '/' . $uri_element;
+      // Fail if permisions can not be changed.
+      $success = drupal_chmod($uri_existing, $mode);
+    }
   }
+
+  return $success;
 }
 
 /**
diff --git a/core/modules/system/lib/Drupal/system/Tests/File/DirectoryTest.php b/core/modules/system/lib/Drupal/system/Tests/File/DirectoryTest.php
index 5d57bdf..497f2eb 100644
--- a/core/modules/system/lib/Drupal/system/Tests/File/DirectoryTest.php
+++ b/core/modules/system/lib/Drupal/system/Tests/File/DirectoryTest.php
@@ -20,11 +20,48 @@ class DirectoryTest extends FileTestBase {
   }
 
   /**
-   * Test directory handling functions.
+   * Tests directory handling functions.
+   *
+   * Checks valid and invalid URI variations, single and recursively.
    */
   function testFileCheckDirectoryHandling() {
-    // A directory to operate on.
-    $directory = file_default_scheme() . '://' . $this->randomName() . '/' . $this->randomName();
+    $directories = array();
+
+    // Valid stream wrapper scheme.
+    $directories[] = file_default_scheme() . '://';
+
+    // Invalid stream wrapper scheme.
+    $directories[] = 'foo://';
+
+    // Valid absolute URI.
+    $directories[] = '/var/www/drupal8-core/sites/default/files/';
+
+    // Invalid absolute URI.
+    $directories[] = '%/var/www/drupal8-core/sites/default/files/';
+
+    // Valid relative URI.
+    $directories[] = '../sites/default/files/';
+
+    // Invalid relative URI.
+    $directories[] = '..%/sites/default/files/';
+
+    foreach ($directories as $directory) {
+      // Check directory handling.
+      $this->checkFileCheckDirectoryHandling($directory . $this->randomName());
+      // Check recursively.
+      $this->checkFileCheckDirectoryHandling($directory . $this->randomName() . '/' . $this->randomName());
+    }
+  }
+
+  /**
+   * Helper method for testFileCheckDirectoryHandling().
+   *
+   * @param string $directory
+   *   A file directory path to operate on.
+   */
+  function checkFileDirectoryHandling($directory = NULL) {
+    // Assert directory does not already exist.
+    // @todo check recursively?
     $this->assertFalse(is_dir($directory), t('Directory does not exist prior to testing.'));
 
     // Non-existent directory.