diff --git a/CHANGELOG b/CHANGELOG
index 5d19d8c..17d27cc 100644
--- a/CHANGELOG
+++ b/CHANGELOG
@@ -1,4 +1,7 @@
 
+innoextract 1.7	(TDB)
+ - Fixed wrong case in parent directory when creating subdirectories
+
 innoextract 1.6 (2016-03-24)
  - Added support for Inno Setup 5.5.7 (and 5.5.8) installers
  - Added a --collisions=rename-all option
diff --git a/src/cli/extract.cpp b/src/cli/extract.cpp
index 8fe500c..031b2ef 100644
--- a/src/cli/extract.cpp
+++ b/src/cli/extract.cpp
@@ -381,11 +381,17 @@ static bool insert_dirs(DirectoriesMap & processed_directories, const path_filte
 	
 	size_t oldlength = dir.length();
 	if(insert_dirs(processed_directories, includes, internal_dir, dir, implied)) {
+		// Existing dir case differs, fix path
 		if(dir.length() == oldlength) {
 			path.replace(0, dir.length(), dir);
 		} else {
 			path = dir + path.substr(oldlength);
 		}
+		// Also fix previously inserted directory
+		DirectoriesMap::iterator inserted = processed_directories.find(internal_dir);
+		if(inserted != processed_directories.end()) {
+			inserted->second.set_path(dir);
+		}
 		return true;
 	}