diff --git a/hadoop-hdfs-project/hadoop-hdfs/src/main/java/org/apache/hadoop/hdfs/server/namenode/FSDirMkdirOp.java b/hadoop-hdfs-project/hadoop-hdfs/src/main/java/org/apache/hadoop/hdfs/server/namenode/FSDirMkdirOp.java
index 2f0a0fc298..95e889888b 100644
--- a/hadoop-hdfs-project/hadoop-hdfs/src/main/java/org/apache/hadoop/hdfs/server/namenode/FSDirMkdirOp.java
+++ b/hadoop-hdfs-project/hadoop-hdfs/src/main/java/org/apache/hadoop/hdfs/server/namenode/FSDirMkdirOp.java
@@ -17,6 +17,7 @@
  */
 package org.apache.hadoop.hdfs.server.namenode;
 
+import org.apache.hadoop.fs.permission.FsCreateModes;
 import com.google.common.base.Preconditions;
 import org.apache.hadoop.fs.FileAlreadyExistsException;
 import org.apache.hadoop.fs.FileStatus;
@@ -187,10 +188,19 @@ private static INodesInPath createSingleDirectory(FSDirectory fsd,
   private static PermissionStatus addImplicitUwx(PermissionStatus parentPerm,
       PermissionStatus perm) {
     FsPermission p = parentPerm.getPermission();
-    FsPermission ancestorPerm = new FsPermission(
-        p.getUserAction().or(FsAction.WRITE_EXECUTE),
-        p.getGroupAction(),
-        p.getOtherAction());
+    FsPermission ancestorPerm;
+    if (p.getUnmasked() == null) {
+      ancestorPerm = new FsPermission(
+          p.getUserAction().or(FsAction.WRITE_EXECUTE),
+          p.getGroupAction(),
+          p.getOtherAction());
+    } else {
+      ancestorPerm = FsCreateModes.create(
+          new FsPermission(
+            p.getUserAction().or(FsAction.WRITE_EXECUTE),
+            p.getGroupAction(),
+            p.getOtherAction()), p.getUnmasked());
+    }
     return new PermissionStatus(perm.getUserName(), perm.getGroupName(),
         ancestorPerm);
   }
diff --git a/hadoop-hdfs-project/hadoop-hdfs/src/test/java/org/apache/hadoop/hdfs/server/namenode/FSAclBaseTest.java b/hadoop-hdfs-project/hadoop-hdfs/src/test/java/org/apache/hadoop/hdfs/server/namenode/FSAclBaseTest.java
index ee92217626..fd50648637 100644
--- a/hadoop-hdfs-project/hadoop-hdfs/src/test/java/org/apache/hadoop/hdfs/server/namenode/FSAclBaseTest.java
+++ b/hadoop-hdfs-project/hadoop-hdfs/src/test/java/org/apache/hadoop/hdfs/server/namenode/FSAclBaseTest.java
@@ -1150,7 +1150,7 @@ public void testDefaultAclNewDirIntermediate() throws Exception {
     AclStatus s = fs.getAclStatus(dirPath);
     AclEntry[] returned = s.getEntries().toArray(new AclEntry[0]);
     assertArrayEquals(expected, returned);
-    assertPermission(dirPath, (short)010750);
+    assertPermission(dirPath, (short)010770);
     assertAclFeature(dirPath, true);
     s = fs.getAclStatus(subdirPath);
     returned = s.getEntries().toArray(new AclEntry[0]);
diff --git a/hadoop-hdfs-project/hadoop-hdfs/src/test/resources/testAclCLIWithPosixAclInheritance.xml b/hadoop-hdfs-project/hadoop-hdfs/src/test/resources/testAclCLIWithPosixAclInheritance.xml
index 7e9ace1444..9ff71b86fa 100644
--- a/hadoop-hdfs-project/hadoop-hdfs/src/test/resources/testAclCLIWithPosixAclInheritance.xml
+++ b/hadoop-hdfs-project/hadoop-hdfs/src/test/resources/testAclCLIWithPosixAclInheritance.xml
@@ -740,6 +740,83 @@
         </comparator>
       </comparators>
     </test>
+    <test>
+      <!-- Added to verify HDFS-14359 -->
+      <description>setfacl : check inherit default ACL to ancestor dir with mkdir -p</description>
+      <test-commands>
+        <command>-fs NAMENODE -mkdir /dir1</command>
+        <command>-fs NAMENODE -setfacl -m default:user:charlie:r-x,default:group:admin:rwx /dir1</command>
+        <command>-fs NAMENODE -mkdir -p /dir1/dir2/dir3</command>
+        <command>-fs NAMENODE -getfacl /dir1/dir2</command>
+      </test-commands>
+      <cleanup-commands>
+        <command>-fs NAMENODE -rm -R /dir1</command>
+      </cleanup-commands>
+      <comparators>
+        <comparator>
+          <type>SubstringComparator</type>
+          <expected-output># file: /dir1/dir2</expected-output>
+        </comparator>
+        <comparator>
+          <type>SubstringComparator</type>
+          <expected-output># owner: USERNAME</expected-output>
+        </comparator>
+        <comparator>
+          <type>SubstringComparator</type>
+          <expected-output># group: supergroup</expected-output>
+        </comparator>
+        <comparator>
+          <type>SubstringComparator</type>
+          <expected-output>user::rwx</expected-output>
+        </comparator>
+        <comparator>
+          <!-- Ensure there is no #effective comment after the permissions, masking them -->
+          <type>RegexpComparator</type>
+          <expected-output>^user:charlie:r-x$</expected-output>
+        </comparator>
+        <comparator>
+          <type>SubstringComparator</type>
+          <expected-output>group::r-x</expected-output>
+        </comparator>
+        <comparator>
+          <!-- Ensure there is no #effective comment after the permissions, masking them -->
+          <type>RegexpComparator</type>
+          <expected-output>^group:admin:rwx$</expected-output>
+        </comparator>
+        <comparator>
+          <type>RegexpComparator</type>
+          <expected-output>^mask::rwx$</expected-output>
+        </comparator>
+        <comparator>
+          <type>SubstringComparator</type>
+          <expected-output>default:user::rwx</expected-output>
+        </comparator>
+        <comparator>
+          <type>SubstringComparator</type>
+          <expected-output>default:user:charlie:r-x</expected-output>
+        </comparator>
+        <comparator>
+          <type>SubstringComparator</type>
+          <expected-output>default:group::r-x</expected-output>
+        </comparator>
+        <comparator>
+          <type>SubstringComparator</type>
+          <expected-output>default:group:admin:rwx</expected-output>
+        </comparator>
+        <comparator>
+          <type>SubstringComparator</type>
+          <expected-output>default:mask::rwx</expected-output>
+        </comparator>
+        <comparator>
+          <type>SubstringComparator</type>
+          <expected-output>default:other::r-x</expected-output>
+        </comparator>
+        <comparator>
+          <type>SubstringComparator</type>
+          <expected-output>other::r-x</expected-output>
+        </comparator>
+      </comparators>
+    </test>
     <test>
       <description>getfacl -R : recursive</description>
       <test-commands>