diff --git a/include/swupd.h b/include/swupd.h
index 2b04c5ca..9b085841 100644
--- a/include/swupd.h
+++ b/include/swupd.h
@@ -169,8 +169,9 @@ extern void try_delta(struct file *file);
 extern void full_download(struct file *file);
 extern int start_full_download(bool pipelining);
 extern struct list *end_full_download(void);
+extern int untar_full_download(void *data);
 
-extern int do_staging(struct file *file);
+extern int do_staging(struct file *file, struct manifest *manifest);
 extern int rename_all_files_to_final(struct list *updates);
 extern int rename_staged_file_to_final(struct file *file);
 
@@ -219,6 +220,7 @@ void free_file_data(void *data);
 void remove_files_in_manifest_from_fs(struct manifest *m);
 void deduplicate_files_from_manifest(struct manifest **m1, struct manifest *m2);
 bool manifest_has_component(struct manifest *manifest, const char *component);
+extern struct file *search_file_in_manifest(struct manifest *manifest, const char *filename);
 
 extern char *mounted_dirs;
 extern void get_mounted_directories(void);
@@ -243,6 +245,7 @@ extern void string_or_die(char **strp, const char *fmt, ...);
 void update_motd(int new_release);
 void delete_motd(void);
 extern int is_dirname_link(const char *fullname);
+extern int verify_fix_path(char* targetpath, struct manifest *manifest);
 
 /* subscription.c */
 struct list *free_list_file(struct list *item);
diff --git a/src/bundle.c b/src/bundle.c
index 7b40906f..46e70517 100644
--- a/src/bundle.c
+++ b/src/bundle.c
@@ -417,7 +417,7 @@ int install_bundles(char **bundles)
 			continue;
 		}
 
-		ret = do_staging(file);
+		ret = do_staging(file, mom);
 		if (ret == 0) {
 			rename_staged_file_to_final(file);
 		}
diff --git a/src/download.c b/src/download.c
index 19a9244b..4a6dbc3e 100644
--- a/src/download.c
+++ b/src/download.c
@@ -243,7 +243,7 @@ free_tarcommand:
 
 /* This function will break if the same HASH.tar full file is downloaded
  * multiple times in parallel. */
-static void untar_full_download(void *data)
+int untar_full_download(void *data)
 {
 	struct file *file = data;
 	char *tarfile;
@@ -267,7 +267,7 @@ static void untar_full_download(void *data)
 			free(tar_dotfile);
 			free(tarfile);
 			free(targetfile);
-			return;
+			return 0;
 		} else {
 			unlink(tarfile);
 			unlink(targetfile);
@@ -323,6 +323,7 @@ exit:
 	if (err) {
 		unlink_all_staged_content(file);
 	}
+	return err;
 }
 
 static int perform_curl_io_and_complete(int *left)
diff --git a/src/helpers.c b/src/helpers.c
index 4a009c1a..719ed7fa 100644
--- a/src/helpers.c
+++ b/src/helpers.c
@@ -34,6 +34,7 @@
 #include <dirent.h>
 #include <errno.h>
 #include <stdarg.h>
+#include <libgen.h>
 
 #include "config.h"
 #include "swupd.h"
@@ -662,3 +663,122 @@ int is_dirname_link(const char *fullname)
 	free(real_path);
 	return ret;
 }
+
+void free_path_data(void *data)
+{
+        char *path = (char *) data;
+        free(path);
+}
+
+/* This function is meant to be called while staging file to fix any missing/incorrect paths.
+ * While staging a file, if its parent directory is missing, this would try to create the path
+ * by breaking it into sub-paths and fixing them top down.
+ * Here, target_MoM is the consolidated manifest for the version you are trying to update/verify.
+ */
+int verify_fix_path(char* targetpath, struct manifest *target_MoM)
+{
+	struct list *path_list = NULL;    /* path_list contains the subparts in the path */
+	char *path;
+	char *tmp = NULL, *target = NULL;
+	char *url = NULL;
+	struct stat sb;
+	int ret = 0;
+	struct file *file;
+	char *tar_dotfile = NULL;
+	struct list *list1 = NULL;
+
+	/* This shouldn't happen */
+	if (strcmp(targetpath, "/") == 0) {
+		return ret;
+	}
+
+	/* Removing trailing '/' from the path */
+	path = strdup(targetpath);
+	if (path[strlen(path) - 1] == '/') {
+		path[strlen(path) - 1] = '\0';
+	}
+
+	/* Breaking down the path into parts.
+	 * eg. Path /usr/bin/foo will be broken into /usr,/usr/bin and /usr/bin/foo
+	 */
+	while (strcmp(path, "/") != 0) {
+		path_list = list_prepend_data(path_list, strdup(path));
+		tmp = strdup(dirname(path));
+		free(path);
+		path = tmp;
+	}
+	free(path);
+
+	list1 = list_head(path_list);
+	while(list1) {
+		path = list1->data;
+		list1 = list1->next;
+
+		target = mk_full_filename(path_prefix, path);
+
+		/* Search for the file in the manifest, to get the hash for the file */
+		file = search_file_in_manifest(target_MoM, path);
+		if (file == NULL) {
+			printf("Error: Path %s not found in any of the subscribed manifests"
+				"in verify_fix_path for path_prefix %s\n", path, path_prefix);
+			ret = -1;
+			goto end;
+		}
+
+		if (file->is_deleted) {
+			printf("Error: Path %s found deleted in verify_fix_path\n", path);
+			ret = -1;
+			goto end;
+		}
+
+		ret = stat(target, &sb);
+		if (ret == 0) {
+			if (verify_file(file, target)) {
+				continue;
+			}
+			printf("Hash did not match for path : %s\n", path);
+		} else if (ret == -1 && errno == ENOENT) {
+			printf("Path %s is missing on the file system\n", path);
+		} else {
+			goto end;
+		}
+
+		string_or_die(&tar_dotfile, "%s/download/.%s.tar", STATE_DIR, file->hash);
+
+		// clean up in case any prior download failed in a partial state
+		unlink(tar_dotfile);
+
+		string_or_die(&url, "%s/%i/files/%s.tar", preferred_content_url, file->last_change, file->hash);
+		ret = swupd_curl_get_file(url, tar_dotfile, NULL, NULL, false);
+
+		if (ret != 0) {
+			printf("Error: Failed to download file %s in verify_fix_path\n", file->filename);
+			unlink(tar_dotfile);
+			goto end;
+		}
+		if (untar_full_download(file) != 0) {
+			printf("Error: Failed to untar file %s\n", file->filename);
+			ret = -1;
+			goto end;
+		}
+
+		ret = do_staging(file, target_MoM);
+		if ( ret != 0) {
+			printf("Error: Path %s failed to stage in verify_fix_path\n", path);
+			goto end;
+		}
+
+	}
+end:
+	if (target) {
+		free(target);
+	}
+	if (tar_dotfile) {
+		free(tar_dotfile);
+	}
+	if (url) {
+		 free(url);
+	}
+	list_free_list_and_data(path_list, free_path_data);
+	return ret;
+}
diff --git a/src/manifest.c b/src/manifest.c
index 6c756123..df4f8c54 100644
--- a/src/manifest.c
+++ b/src/manifest.c
@@ -1125,3 +1125,21 @@ bool manifest_has_component(struct manifest *manifest, const char *component)
 
 	return false;
 }
+
+/* This performs a linear search through the files list. */
+struct file *search_file_in_manifest(struct manifest *manifest, const char *filename)
+{
+	struct list *iter = NULL;
+	struct file *file;
+
+	iter = manifest->files;
+	while(iter) {
+		file = iter->data;
+		iter = iter->next;
+
+		if (strcmp(file->filename, filename) == 0) {
+			return file;
+		}
+	}
+	return NULL;
+}
diff --git a/src/staging.c b/src/staging.c
index acc8a969..f35fc4a1 100644
--- a/src/staging.c
+++ b/src/staging.c
@@ -65,7 +65,7 @@ static int create_staging_renamedir(char *rename_tmpdir)
 #warning "do_staging is currently not able to be run in parallel"
 /* Consider adding a remove_leftovers() that runs in verify/fix in order to
  * allow this function to mkdtemp create folders for parallel build */
-int do_staging(struct file *file)
+int do_staging(struct file *file, struct manifest *MoM)
 {
 	char *statfile = NULL, *tmp = NULL, *tmp2 = NULL;
 	char *dir, *base, *rel_dir;
@@ -94,10 +94,9 @@ int do_staging(struct file *file)
 	string_or_die(&targetpath, "%s%s", path_prefix, rel_dir);
 	ret = stat(targetpath, &s);
 
-	/* For now, just report on error conditions. Once we implement
-	* verify_fix_path(char *path, int targetversion), we'll want to call it here */
 	if ((ret == -1) && (errno == ENOENT)) {
-		printf("Error: Update target directory does not exist: %s\n", targetpath);
+		printf("Update target directory does not exist: %s. Trying to fix it\n", targetpath);
+		verify_fix_path(dir, MoM);
 	} else if (!S_ISDIR(s.st_mode)) {
 		printf("Error: Update target exists but is NOT a directory: %s\n", targetpath);
 	}
diff --git a/src/update.c b/src/update.c
index 1c885fdf..5598db4c 100644
--- a/src/update.c
+++ b/src/update.c
@@ -89,7 +89,7 @@ static struct list *full_download_loop(struct list *updates, int isfailed)
 	return end_full_download();
 }
 
-static int update_loop(struct list *updates)
+static int update_loop(struct list *updates, struct manifest *server_manifest)
 {
 	int ret;
 	struct file *file;
@@ -161,7 +161,7 @@ TRY_DOWNLOAD:
 		/* for each file: check hash value; on mismatch delete and queue full download */
 		/* todo: hash check */
 
-		ret = do_staging(file);
+		ret = do_staging(file, server_manifest);
 		if (ret < 0) {
 			printf("File staging failed: %s\n", file->filename);
 			return ret;
@@ -360,7 +360,7 @@ download_packs:
 
 	/* Step 7: apply the update */
 
-	ret = update_loop(updates);
+	ret = update_loop(updates, server_manifest);
 	if (ret == 0) {
 		ret = update_device_latest_version(server_version);
 		printf("Update was applied.\n");
diff --git a/src/verify.c b/src/verify.c
index 690eb27e..c435afb8 100644
--- a/src/verify.c
+++ b/src/verify.c
@@ -414,7 +414,7 @@ static void add_missing_files(struct manifest *official_manifest)
 		}
 
 		/* install the new file (on miscompare + fix) */
-		ret = do_staging(file);
+		ret = do_staging(file, official_manifest);
 		if (ret == 0) {
 			rename_staged_file_to_final(file);
 		}
@@ -486,7 +486,7 @@ static void deal_with_hash_mismatches(struct manifest *official_manifest, bool r
 		}
 
 		/* install the new file (on miscompare + fix) */
-		ret = do_staging(file);
+		ret = do_staging(file, official_manifest);
 		if (ret == 0) {
 			rename_staged_file_to_final(file);
 		}