diff --git a/ironic_discoverd/node_cache.py b/ironic_discoverd/node_cache.py
index cab2d33c9..226c4abf6 100644
--- a/ironic_discoverd/node_cache.py
+++ b/ironic_discoverd/node_cache.py
@@ -15,6 +15,7 @@
 
 import json
 import logging
+import os
 import sqlite3
 import sys
 import time
@@ -104,6 +105,9 @@ def init():
         LOG.critical('Configuration option discoverd.database should be set')
         sys.exit(1)
 
+    db_dir = os.path.dirname(_DB_NAME)
+    if db_dir and not os.path.exists(db_dir):
+        os.makedirs(db_dir)
     sqlite3.connect(_DB_NAME).executescript(_SCHEMA)
 
 
diff --git a/ironic_discoverd/test/test_node_cache.py b/ironic_discoverd/test/test_node_cache.py
index 5cce4f794..14c0c2c2a 100644
--- a/ironic_discoverd/test/test_node_cache.py
+++ b/ironic_discoverd/test/test_node_cache.py
@@ -11,6 +11,7 @@
 # See the License for the specific language governing permissions and
 # limitations under the License.
 
+import os
 import tempfile
 import time
 import unittest
@@ -268,6 +269,12 @@ class TestInit(unittest.TestCase):
             # Verify that table exists
             node_cache._db().execute("select * from nodes")
 
+    def test_create_dir(self):
+        temp = tempfile.mkdtemp()
+        conf.CONF.set('discoverd', 'database',
+                      os.path.join(temp, 'dir', 'file'))
+        node_cache.init()
+
     def test_no_database(self):
         self.assertRaises(SystemExit, node_cache.init)