diff --git a/daemon/graphdriver/graphtest/graphtest_unix.go b/daemon/graphdriver/graphtest/graphtest_unix.go
index b83fb13e3e..68be47b171 100644
--- a/daemon/graphdriver/graphtest/graphtest_unix.go
+++ b/daemon/graphdriver/graphtest/graphtest_unix.go
@@ -199,6 +199,7 @@ func DriverTestDiffApply(t testing.TB, fileCount int, drivername string, driverO
 	upper := stringid.GenerateRandomID()
 	deleteFile := "file-remove.txt"
 	deleteFileContent := []byte("This file should get removed in upper!")
+	deleteDir := "var/lib"
 
 	if err := driver.Create(base, "", "", nil); err != nil {
 		t.Fatal(err)
@@ -212,6 +213,10 @@ func DriverTestDiffApply(t testing.TB, fileCount int, drivername string, driverO
 		t.Fatal(err)
 	}
 
+	if err := addDirectory(driver, base, deleteDir); err != nil {
+		t.Fatal(err)
+	}
+
 	if err := driver.Create(upper, base, "", nil); err != nil {
 		t.Fatal(err)
 	}
@@ -220,7 +225,7 @@ func DriverTestDiffApply(t testing.TB, fileCount int, drivername string, driverO
 		t.Fatal(err)
 	}
 
-	if err := removeFile(driver, upper, deleteFile); err != nil {
+	if err := removeAll(driver, upper, deleteFile, deleteDir); err != nil {
 		t.Fatal(err)
 	}
 
@@ -271,6 +276,10 @@ func DriverTestDiffApply(t testing.TB, fileCount int, drivername string, driverO
 	if err := checkFileRemoved(driver, diff, deleteFile); err != nil {
 		t.Fatal(err)
 	}
+
+	if err := checkFileRemoved(driver, diff, deleteDir); err != nil {
+		t.Fatal(err)
+	}
 }
 
 // DriverTestChanges tests computed changes on a layer matches changes made
diff --git a/daemon/graphdriver/graphtest/testutil.go b/daemon/graphdriver/graphtest/testutil.go
index dc3585751a..4718f06852 100644
--- a/daemon/graphdriver/graphtest/testutil.go
+++ b/daemon/graphdriver/graphtest/testutil.go
@@ -78,14 +78,29 @@ func addFile(drv graphdriver.Driver, layer, filename string, content []byte) err
 	return ioutil.WriteFile(path.Join(root, filename), content, 0755)
 }
 
-func removeFile(drv graphdriver.Driver, layer, filename string) error {
+func addDirectory(drv graphdriver.Driver, layer, dir string) error {
 	root, err := drv.Get(layer, "")
 	if err != nil {
 		return err
 	}
 	defer drv.Put(layer)
 
-	return os.Remove(path.Join(root, filename))
+	return os.MkdirAll(path.Join(root, dir), 0755)
+}
+
+func removeAll(drv graphdriver.Driver, layer string, names ...string) error {
+	root, err := drv.Get(layer, "")
+	if err != nil {
+		return err
+	}
+	defer drv.Put(layer)
+
+	for _, filename := range names {
+		if err := os.RemoveAll(path.Join(root, filename)); err != nil {
+			return err
+		}
+	}
+	return nil
 }
 
 func checkFileRemoved(drv graphdriver.Driver, layer, filename string) error {
diff --git a/pkg/archive/archive_linux.go b/pkg/archive/archive_linux.go
index 277ff98885..5ec3ae1622 100644
--- a/pkg/archive/archive_linux.go
+++ b/pkg/archive/archive_linux.go
@@ -23,7 +23,8 @@ func (overlayWhiteoutConverter) ConvertWrite(hdr *tar.Header, path string, fi os
 	// convert whiteouts to AUFS format
 	if fi.Mode()&os.ModeCharDevice != 0 && hdr.Devmajor == 0 && hdr.Devminor == 0 {
 		// we just rename the file and make it normal
-		hdr.Name = WhiteoutPrefix + hdr.Name
+		dir, filename := filepath.Split(hdr.Name)
+		hdr.Name = filepath.Join(dir, WhiteoutPrefix+filename)
 		hdr.Mode = 0600
 		hdr.Typeflag = tar.TypeReg
 		hdr.Size = 0