Hello, On the overlay ext4 file system, we found that transmute flag is not inherited by newly created sub-directories. The issue can be recreated on the newest kernel(6.3.0-rc6) on qemux86-64 with following steps. /data directory is mounted on /dev/vdb which is a ext4 fs. It is remounted as an overlay again to upperdir /home/root/data. # mount -t overlay overlay -o lowerdir=/data,upperdir=/home/root/data,workdir=/home/root/data_work /data Add a new smack rule and set label and flag to /data directory. # echo "_ system rwxatl" > /sys/fs/smackfs/load2 # chsmack -a "system" /data # chsmack -t /data Create directories under /data. # mkdir -p /data/dir1/dir2 And then check the smack label of dir1 and dir2. # chsmack /data/dir1 /data/dir1 access="system" # chsmack /data/dir1/dir2 /data/dir1/dir2 access="_" We can see dir1 did not inherit transmute flag from data and dir2 got the process label. The transmute xattr of the inode is set inside the smack_d_instantiate which depends on SMK_INODE_CHANGED bit of isp->smk_flags. But the bit is not set in the overlay fs mkdir function call chain. So one simple solution we have is passing inode ptr into smack_dentry_create_files_as and set the SMK_INODE_CHANGED bit if parent dir is transmuting. Although it looks reasonable to me and we did not meet any issue in testing, I am not sure if there is a better solution to it. It will be great, if experts could take a look. Thanks, Mengchi Cheng