diff --git a/package/dropbear/S50dropbear b/package/dropbear/S50dropbear
index 2694931d01..af50ccf254 100644
--- a/package/dropbear/S50dropbear
+++ b/package/dropbear/S50dropbear
@@ -11,6 +11,20 @@ start() {
 
 	echo -n "Starting dropbear sshd: "
 	umask 077
+
+	# If /etc/dropbear is not a directory, and
+	#   - the filesystem is RO (i.e. we can not rm the symlink),
+	#     create the directory pointed to by the symlink.
+	#   - the filesystem is RW (i.e. we can rm the symlink),
+	#     replace the symlink with an actual directory
+	if ! [ -d /etc/dropbear ]; then
+		if rm -f /etc/dropbear; then
+			mkdir -p /etc/dropbear
+		else
+			mkdir -p $(readlink /etc/dropbear)
+		fi
+	fi
+
 	start-stop-daemon -S -q -p /var/run/dropbear.pid \
 		--exec /usr/sbin/dropbear -- $DROPBEAR_ARGS
 	[ $? = 0 ] && echo "OK" || echo "FAIL"
diff --git a/package/dropbear/dropbear.mk b/package/dropbear/dropbear.mk
index bc65d69c05..5bbe864500 100644
--- a/package/dropbear/dropbear.mk
+++ b/package/dropbear/dropbear.mk
@@ -93,7 +93,7 @@ define DROPBEAR_INSTALL_TARGET_CMDS
 	for f in $(DROPBEAR_TARGET_BINS); do \
 		ln -snf ../sbin/dropbear $(TARGET_DIR)/usr/bin/$$f ; \
 	done
-	mkdir -p $(TARGET_DIR)/etc/dropbear
+	ln -snf ../var/run/dropbear $(TARGET_DIR)/etc/dropbear
 endef
 
 $(eval $(autotools-package))
diff --git a/package/dropbear/dropbear.service b/package/dropbear/dropbear.service
index 4e6c8795a1..0e2cf548d3 100644
--- a/package/dropbear/dropbear.service
+++ b/package/dropbear/dropbear.service
@@ -3,6 +3,19 @@ Description=Dropbear SSH daemon
 After=syslog.target network.target auditd.service
 
 [Service]
+# If /etc/dropbear is not a directory, and
+#   - the filesystem is RO (i.e. we can not rm the symlink),
+#     create the directory pointed to by the symlink.
+#   - the filesystem is RW (i.e. we can rm the symlink),
+#     replace the symlink with an actual directory
+ExecStartPre=/bin/sh -c '\
+if ! [ -d /etc/dropbear ]; then \
+    if rm -f /etc/dropbear; then \
+        mkdir -p /etc/dropbear; \
+    else \
+        mkdir -p $(readlink /etc/dropbear); \
+    fi; \
+fi'
 ExecStart=/usr/sbin/dropbear -F -R
 ExecReload=/bin/kill -HUP $MAINPID