diff --git a/cmds/installd/InstalldNativeService.cpp b/cmds/installd/InstalldNativeService.cpp
index ae4ea78..47fdcc4 100644
--- a/cmds/installd/InstalldNativeService.cpp
+++ b/cmds/installd/InstalldNativeService.cpp
@@ -2055,10 +2055,15 @@
     CHECK_ARGUMENT_PATH(dexMetadataPath);
     std::lock_guard<std::recursive_mutex> lock(mLock);
 
+    const char* oat_dir = getCStr(outputPath);
+    const char* instruction_set = instructionSet.c_str();
+    if (oat_dir != nullptr && !createOatDir(oat_dir, instruction_set).isOk()) {
+        // Can't create oat dir - let dexopt use cache dir.
+        oat_dir = nullptr;
+    }
+
     const char* apk_path = apkPath.c_str();
     const char* pkgname = getCStr(packageName, "*");
-    const char* instruction_set = instructionSet.c_str();
-    const char* oat_dir = getCStr(outputPath);
     const char* compiler_filter = compilerFilter.c_str();
     const char* volume_uuid = getCStr(uuid);
     const char* class_loader_context = getCStr(classLoaderContext);
diff --git a/cmds/installd/tests/installd_dexopt_test.cpp b/cmds/installd/tests/installd_dexopt_test.cpp
index 13fd067..73780ec 100644
--- a/cmds/installd/tests/installd_dexopt_test.cpp
+++ b/cmds/installd/tests/installd_dexopt_test.cpp
@@ -241,18 +241,14 @@
     }
 
     ::testing::AssertionResult create_mock_app() {
-        // Create the oat dir.
-        app_oat_dir_ = app_apk_dir_ + "/oat";
         // For debug mode, the directory might already exist. Avoid erroring out.
         if (mkdir(app_apk_dir_, kSystemUid, kSystemGid, 0755) != 0 && !kDebug) {
             return ::testing::AssertionFailure() << "Could not create app dir " << app_apk_dir_
                                                  << " : " << strerror(errno);
         }
-        binder::Status status = service_->createOatDir(app_oat_dir_, kRuntimeIsa);
-        if (!status.isOk()) {
-            return ::testing::AssertionFailure() << "Could not create oat dir: "
-                                                 << status.toString8().c_str();
-        }
+
+        // Initialize the oat dir path.
+        app_oat_dir_ = app_apk_dir_ + "/oat";
 
         // Copy the primary apk.
         apk_path_ = app_apk_dir_ + "/base.jar";
@@ -283,7 +279,7 @@
           }
 
         // Create the app user data.
-        status = service_->createAppData(
+        binder::Status status = service_->createAppData(
                 volume_uuid_,
                 package_name_,
                 kTestUserId,
@@ -647,6 +643,16 @@
                         DEX2OAT_FROM_SCRATCH);
 }
 
+TEST_F(DexoptTest, DexoptPrimaryPublicCreateOatDir) {
+    LOG(INFO) << "DexoptPrimaryPublic";
+    ASSERT_BINDER_SUCCESS(service_->createOatDir(app_oat_dir_, kRuntimeIsa));
+    CompilePrimaryDexOk("verify",
+                        DEXOPT_BOOTCOMPLETE | DEXOPT_PUBLIC,
+                        app_oat_dir_.c_str(),
+                        kTestAppGid,
+                        DEX2OAT_FROM_SCRATCH);
+}
+
 TEST_F(DexoptTest, DexoptPrimaryFailedInvalidFilter) {
     LOG(INFO) << "DexoptPrimaryFailedInvalidFilter";
     binder::Status status;