diff --git a/CHANGELOG.md b/CHANGELOG.md
index 10aa93ee..2b97196f 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -14,9 +14,6 @@ The format is based on [Keep a Changelog](https://keepachangelog.com/en/1.0.0/).
 ### Changed
 
 - `wwctl node list <--yaml|--json>` outputs a map keyed by node name. #1667
-
-### Changes
-
 - Don't mount /run during wwinit. #1566
 
 ### Fixed
@@ -33,6 +30,7 @@ The format is based on [Keep a Changelog](https://keepachangelog.com/en/1.0.0/).
 - Don't attempt to back-up an output file that doesn't exist during upgrade. #1671
 - Specify init=/init when booting with Grub+dracut. #1573
 - Fix a warewulfd panic when no kernel fields are specified. #1689
+- Create site overlay directory. #1690
 
 ## v4.6.0rc1, 2025-01-29
 
diff --git a/internal/pkg/overlay/config.go b/internal/pkg/overlay/config.go
index 520a91e5..eed5988a 100644
--- a/internal/pkg/overlay/config.go
+++ b/internal/pkg/overlay/config.go
@@ -4,6 +4,7 @@ import (
 	"fmt"
 	"os"
 	"path"
+	"path/filepath"
 	"strings"
 
 	"github.com/containers/storage/drivers/copy"
@@ -67,6 +68,11 @@ func (overlay Overlay) CloneSiteOverlay() (siteOverlay Overlay, err error) {
 	if siteOverlay.Exists() {
 		return siteOverlay, fmt.Errorf("site overlay already exists: %s", siteOverlay.Name())
 	}
+	if !util.IsDir(filepath.Dir(overlay.Path())) {
+		if err := os.MkdirAll(filepath.Dir(overlay.Path()), 0755); err != nil {
+			return siteOverlay, err
+		}
+	}
 	err = copy.DirCopy(overlay.Path(), siteOverlay.Path(), copy.Content, true)
 	return siteOverlay, err
 }
diff --git a/warewulf.spec.in b/warewulf.spec.in
index 8c4494bb..aecd548e 100644
--- a/warewulf.spec.in
+++ b/warewulf.spec.in
@@ -190,6 +190,7 @@ getent group %{wwgroup} >/dev/null || groupadd -r %{wwgroup}
 
 %dir %{_sharedstatedir}/warewulf
 %dir %{_sharedstatedir}/warewulf/chroots
+%dir %{_sharedstatedir}/warewulf/overlays
 %dir %{_datadir}/warewulf/overlays
 %dir %{_datadir}/warewulf/overlays/*
 %dir %{_datadir}/warewulf/overlays/*/rootfs