diff --git a/ipaserver/install/ipa_restore.py b/ipaserver/install/ipa_restore.py
index 48b95ed18..1916d3063 100644
--- a/ipaserver/install/ipa_restore.py
+++ b/ipaserver/install/ipa_restore.py
@@ -607,10 +607,13 @@ class Restore(admintool.AdminTool):
             logger.info("Waiting for LDIF to finish")
             wait_for_task(conn, dn)
         else:
+            template_dir = paths.VAR_LOG_DIRSRV_INSTANCE_TEMPLATE % instance
             try:
-                os.makedirs(paths.VAR_LOG_DIRSRV_INSTANCE_TEMPLATE % instance)
+                os.makedirs(template_dir)
             except OSError as e:
                 pass
+            # Restore SELinux context of template_dir
+            tasks.restore_context(template_dir)
 
             args = [paths.LDIF2DB,
                     '-Z', instance,