diff --git a/etcd.go b/etcd.go
index 340bcf9e..c0da55a6 100644
--- a/etcd.go
+++ b/etcd.go
@@ -1539,6 +1539,8 @@ func (obj *EmbdEtcd) StartServer(newCluster bool, peerURLsMap etcdtypes.URLsMap)
 
 	err = os.MkdirAll(obj.dataDir, 0770)
 	if err != nil {
+		log.Printf("Etcd: StartServer: Couldn't mkdir: %s.", obj.dataDir)
+		log.Printf("Etcd: StartServer: Mkdir error: %s.", err)
 		obj.DestroyServer()
 		return err
 	}
diff --git a/main.go b/main.go
index ff72bee0..95f5826b 100644
--- a/main.go
+++ b/main.go
@@ -22,6 +22,7 @@ import (
 	etcdtypes "github.com/coreos/etcd/pkg/types"
 	"github.com/coreos/pkg/capnslog"
 	"github.com/urfave/cli"
+	"io/ioutil"
 	"log"
 	"os"
 	"os/signal"
@@ -121,6 +122,22 @@ func run(c *cli.Context) error {
 		return cli.NewExitError("", 1)
 	}
 
+	// make sure the working directory prefix exists
+	if err := os.MkdirAll(prefix, 0770); err != nil {
+		if c.Bool("allow-tmp-prefix") {
+			if prefix, err = ioutil.TempDir("", program); err != nil {
+				log.Printf("Main: Error: Can't create temporary prefix!")
+				return cli.NewExitError("", 1)
+			}
+			log.Println("Main: Warning: Working prefix directory is temporary!")
+
+		} else {
+			log.Printf("Main: Error: Can't create prefix!")
+			return cli.NewExitError("", 1)
+		}
+	}
+	log.Printf("Main: Working prefix is: %s", prefix)
+
 	var wg sync.WaitGroup
 	exit := make(chan bool) // exit signal
 	var G, fullGraph *Graph
@@ -472,6 +489,10 @@ func main() {
 					Name:  "no-caching",
 					Usage: "don't allow remote caching of remote execution binary",
 				},
+				cli.BoolFlag{
+					Name:  "allow-tmp-prefix",
+					Usage: "allow creation of a new temporary prefix if main prefix is unavailable",
+				},
 			},
 		},
 	}