diff --git a/changelog/bugfixes/2023-06-28-sssd-var-log.md b/changelog/bugfixes/2023-06-28-sssd-var-log.md
new file mode 100644
index 0000000000..abc20ed9be
--- /dev/null
+++ b/changelog/bugfixes/2023-06-28-sssd-var-log.md
@@ -0,0 +1 @@
+- Ensured that the folder `/var/log/sssd` is created if it doesn't exist, required for `sssd.service` ([Flatcar#1096](https://github.com/flatcar/Flatcar/issues/1096))
diff --git a/sdk_container/src/third_party/coreos-overlay/sys-auth/sssd/files/tmpfiles.d/sssd.conf b/sdk_container/src/third_party/coreos-overlay/sys-auth/sssd/files/tmpfiles.d/sssd.conf
index f8074a4332..c446c5aa4d 100644
--- a/sdk_container/src/third_party/coreos-overlay/sys-auth/sssd/files/tmpfiles.d/sssd.conf
+++ b/sdk_container/src/third_party/coreos-overlay/sys-auth/sssd/files/tmpfiles.d/sssd.conf
@@ -11,3 +11,4 @@ d /var/lib/sss/pipes/private	0700	root	root	-	-
 d /var/lib/sss/pubconf		0700	root	root	-	-
 d /var/lib/sss/pubconf/krb5.include.d	0700	root	root	-	-
 d /var/lib/sss/secrets		0755	root	root	-	-
+d /var/log/sssd			0700	root	root	-	-