diff --git a/cmds/installd/commands.c b/cmds/installd/commands.c
index 2c30ec7080d6a..4da772a0d7e6f 100644
--- a/cmds/installd/commands.c
+++ b/cmds/installd/commands.c
@@ -71,13 +71,20 @@ int install(const char *pkgname, uid_t uid, gid_t gid)
         return -1;
     }
 
-    if (selinux_android_setfilecon(libsymlink, pkgname, uid) < 0) {
+    if (selinux_android_setfilecon(libsymlink, pkgname, AID_SYSTEM) < 0) {
         ALOGE("cannot setfilecon dir '%s': %s\n", libsymlink, strerror(errno));
         unlink(libsymlink);
         unlink(pkgdir);
         return -1;
     }
 
+    if (selinux_android_setfilecon(pkgdir, pkgname, uid) < 0) {
+        ALOGE("cannot setfilecon dir '%s': %s\n", pkgdir, strerror(errno));
+        unlink(libsymlink);
+        unlink(pkgdir);
+        return -errno;
+    }
+
     if (chown(pkgdir, uid, gid) < 0) {
         ALOGE("cannot chown dir '%s': %s\n", pkgdir, strerror(errno));
         unlink(libsymlink);