diff --git a/main.c b/main.c
index fc5cc79..5bd1993 100644
--- a/main.c
+++ b/main.c
@@ -4158,6 +4158,24 @@ ovl_setattr (fuse_req_t req, fuse_ino_t ino, struct stat *attr, int to_set, stru
 
   if (uid != -1 || gid != -1)
     {
+      struct stat st;
+
+      if (do_stat (node, fd, NULL, &st) < 0)
+        {
+          fuse_reply_err (req, errno);
+          return;
+        }
+
+      if (uid == -1)
+        {
+          uid = st.st_uid;
+        }
+
+      if (gid == -1)
+        {
+          gid = st.st_gid;
+        }
+
       if (fd >= 0)
         ret = do_fchown (lo, fd, uid, gid, node->ino->mode);
       else
diff --git a/tests/unpriv.sh b/tests/unpriv.sh
index 7bb19ed..a5916c7 100755
--- a/tests/unpriv.sh
+++ b/tests/unpriv.sh
@@ -29,3 +29,21 @@ else
 fi
 
 fusermount -u merged || [ $? -eq "${EXPECT_UMOUNT_STATUS:-0}" ]
+
+# xattr_permissions=2
+rm -rf lower upper workdir merged
+mkdir lower upper workdir merged
+
+touch upper/file
+
+fuse-overlayfs -o lowerdir=lower,upperdir=upper,workdir=workdir,xattr_permissions=2 merged
+
+# Ensure UID is preserved with chgrp.
+unshare --map-auto -r chgrp 1 merged/file
+test $(unshare --map-auto -r stat -c %u:%g merged/file) = 0:1
+
+# Ensure UID and GID are preserved with chmod.
+chmod 600 merged/file
+test $(unshare --map-auto -r stat -c %u:%g merged/file) = 0:1
+
+fusermount -u merged || [ $? -eq "${EXPECT_UMOUNT_STATUS:-0}" ]